Article 683. Term in a residential lease agreement

1. A residential lease agreement is concluded for a period not exceeding five years. If the contract does not specify a term, the contract is considered to be concluded for five years.

2. The rules provided for in paragraph 2 of Article 677, Articles 680, 684 - 686, paragraph four of paragraph 2 of Article 687 of this Code are not applied to a rental agreement for residential premises concluded for a period of up to one year (short-term rental), unless otherwise provided by the agreement .

  • Article 682. Payment for residential premises
  • Article 684. Preemptive right of the tenant to conclude an agreement for a new term

Commentary to Art. 683 Civil Code of the Russian Federation

1. Unlike a social tenancy agreement, a commercial tenancy agreement is of a purely fixed-term nature. True, the law does not classify the term as one of the essential conditions of a residential rental agreement, but establishes only the maximum period for which residential premises can be rented. Moreover, if the lease agreement does not specify a period, it is considered to be concluded for a maximum period of five years.

This rule is aimed primarily at protecting the interests of the owner of the residential premises, who should be able to obtain the residential premises at their disposal at least after the expiration of the contract. The interests of the tenant are protected to a certain extent by the fact that he is not threatened with eviction before the expiration of the contract and he enjoys the preemptive right to conclude a rental agreement with him for a new term (see Article 684 of the Civil Code and commentary thereto).

2. Point 2 comments. Art. allows the parties to enter into a short-term housing rental agreement for a period of up to one year, which differs from regular rentals in a more stringent legal regime. In particular, the tenant does not enjoy the right to move other citizens into the premises (clause 2 of Article 677 of the Civil Code), cannot accommodate temporary residents (Article 680 of the Civil Code), sublease the rented premises (Article 685 of the Civil Code), or replace himself in agreement by another employer (Article 686 of the Civil Code), and also does not have a pre-emptive right to conclude a lease agreement for a new term (Article 684 of the Civil Code). However, these restrictions apply only if the contract does not provide otherwise.

What is commercial real estate?

Let's start with the most important definition. Commercial real estate is considered to be various structures, land plots, buildings that are used by their owners and employers to carry out business activities. The goal of the latter is to obtain constant profit, periodic capital gains, and rental income. This is one of the investment options.

Here are the most common objects that can be called commercial real estate:

  • Agricultural enterprises.
  • Industrial facilities.
  • Hotels, inns, hostels.
  • Warehouses, garages.
  • Office structures.
  • Shopping centers and shops.

Judicial practice under Article 683 of the Civil Code of the Russian Federation

Determination of the Judicial Collegium for Civil Cases of the Supreme Court of the Russian Federation dated August 22, 2017 N 89-KG17-12
In accordance with Article 683 of the Civil Code of the Russian Federation, a rental agreement for residential premises is concluded for a period not exceeding five years. If the contract does not specify a period, the contract is considered to be concluded for five years (clause 1). The rules provided for in paragraph 2 of Article 677, Articles 680, 684 - 686, paragraph four of paragraph 2 of Article 687 of the Code are not applied to a rental agreement for residential premises concluded for a period of up to one year (short-term rental), unless otherwise provided by the agreement (paragraph 2 ).

Categories

Now - the gradation of commercial real estate:

  • Buildings for free use. Sports and fitness centers, hotels, hotels, restaurants, cafes.
  • Retail premises. Shops and shopping and entertainment centers.
  • Office real estate. From business centers to private offices and office spaces.
  • Industrial buildings. Production premises, structures of industrial enterprises, warehouse complexes.
  • Social rooms. Medical centers, entertainment complexes (bowling alleys, swimming pools, disco halls, etc.), commercial airports, etc.
  • Commercial housing. So-called apartments in apartment buildings, premises for short-term rental for the purpose of living.

However, only the first four categories are still considered truly commercial real estate. The last two occupy a more borderline position - between social and commercial, between residential and commercial types. They will bring profit to their owners and tenants only when used for certain purposes.

Example of commercial housing

The most common example of such housing is a typical multi-story, apartment building. But each apartment in it acts as a private living space. In fact, the construction of apartment buildings is an investment project in the field of commercial real estate. After all, the design, architectural planning and further construction of a building is an investment, the purpose of which is quite clear - to make a profit.

But at the same time, every apartment in such a building is residential real estate. Once the apartments in such a building are sold, it ceases to be a commercial project. From now on it will apply only to residential private property.

Commercial housing. What is this in Belarus? This is exactly the example that is meant. But besides this, you need to know about commercial housing in the Moscow Region and other large cities of Russia, which is better known to the public under the name “apartments.”

Prevalence of the phenomenon

Statistics show that more than a quarter of real estate on the primary housing market in Moscow are apartments. Why are they so common? It's all about the low price, which is a huge plus for selling housing in the capital region of the Russian Federation.

But buyers do not pay attention to the big drawback - the legal status of such premises is not yet clearly stated. Formally, these apartments are non-residential real estate. Despite the fact that they are completely suitable for human habitation, they are actively included in the plans and projects of administrative centers and hotel complexes.

Apartments in Moscow, for example, account for about 26-28% of all housing offers for sale. The largest distributors here are such large companies as “Symbol”, “ZilArt” and others.

How much does commercial housing cost? If we compare apartments with new buildings in typical residential high-rise buildings, they will be 20-25% lower in cost. Moreover, the characteristics of the premises will be similar.

Who is the offer intended for?

How to buy commercial housing? You just need to contact the sales department of the developer you are interested in. There are no problems with buying apartments in Russia today.

Initially, this type of construction began to develop in the capital of the Russian Federation due to a shortage of sites for the construction of traditional housing. Apartments were included in business centers. Further more. Former factories are now being converted into apartment complexes.

Who are they intended for? Initially, the apartments were premises for temporary comfortable residence of successful businessmen. A business person could buy such housing in a city where he often appears on business trips, for the purpose of meetings, negotiations, so as not to stay at a hotel or inn.

Then another category of citizens began to purchase apartments. Not for living, but for investing your money in real estate.

Subtleties of taxation

Tax payments for commercial real estate can also pose problems. Since such housing is not actually included in the housing stock, it is impossible to receive a 13% tax deduction.

But at the same time, taxes on apartments themselves are written off at high rates, because according to the law, this housing is considered commercial. Therefore, the owner of an apartment, compared to the owner of a simple home, overpays in terms of taxes.

When determining the tax base, the minimum rate for commercial housing is 0.5%, the maximum is 2%. As for simple housing, a rate of 0.1% applies.

The most unprofitable in terms of taxes are apartments that are located in an office, shopping complex, or in a building created for catering establishments. The most affordable accommodations are in hotels.

Is it possible to privatize such housing? There are problems here too. Sometimes people are offered contracts where they are considered the owners not of housing, but of some share in the common property.

Rates

As for utility tariffs, there are again difficulties with apartments. They will not be subject to housing code requirements that are mandatory for the residential sector in relation to the management of common property.

Thus, apartment owners cannot influence the amount of tariffs set by the management company for the operation of the building, local area, and infrastructure in general. Therefore, utility bills here are definitely higher when compared with ordinary apartments. On average, by 15%.

Renting housing: how to protect yourself?

  1. All documents for housing must be checked. In this case, payment must be provided only against receipt, because conditional agreements cannot play an important role.
  2. The agreement must be concluded taking into account numerous aspects: it is necessary to indicate the passport details of each of the two parties, the exact address of the residential property, mention documents for ownership of the property, clarify the terms of the relationship and the amount of rent for the period under consideration, all amounts of advance payments and deposits, and the nuances of repairs. Only such a document acquires legal force.
  3. When transferring housing for rent, you need to draw up a transfer deed with a detailed description of the features of the apartment or house, the condition of the furniture, carpets, and household appliances. The transfer act will prevent unpleasant and risky situations and avoid unwanted conflicts.
  4. In each case, housing can only be used for a specific purpose, which is predetermined by the contract. All living conditions described in the Housing Code of the Russian Federation must be observed. And, without a doubt, the terms of the contractual relationship must be implemented in practice.

The above safety tips should be taken into account in any case.

Real EstateComment

Unregulated infrastructure

Another alarming disadvantage that you need to pay attention to before purchasing an apartment. The developer is not obliged to improve the area adjacent to commercial real estate. That is, a green area, lawns, playgrounds, places for temporary parking of cars and pedestrian paths may never appear near your house.

Pay attention to your neighbors too. If the apartments are located in a business center, then your house will have a wide variety of visitors and couriers. Under the windows there can be a smoking area or car parking for office workers.

Where can I register?

According to the law, registration in non-residential premises is possible when they fall under the jurisdiction of specialized institutions - hotels, hotels, hospitals, rest homes. The responsibility for registering residents living here is assigned to the administration of such an organization.

If the apartments are part of a business center or a former factory, it is impossible to make them a place of registration. But even in the resolved case, not everything is smooth. Even here, apartment owners receive non-permanent registration. They are required to renew their registration every 5 years. But it will give them the same rights as those registered in standard apartments. That is, they will be assigned to a local clinic and can apply for a place for a child in a kindergarten or school with registration. Therefore, apartments often become the choice of family buyers.

SanPiN standards

In conclusion, we add that commercial housing is not subject to sanitary standards, which must be strictly observed by construction companies constructing standard housing. According to the level of illumination, noise insulation, insolation.

This is especially alarming for apartments located in old industrial complexes that have undergone reconstruction. That is, former factories, factories, warehouses. Many people are attracted to so-called lofts, but how safe will you be there?

If the enterprise that was previously located there was, in one way or another, connected with the chemical industry or hazardous waste, then living in such a premises is simply dangerous. Since the decay period of such substances is tens, or even hundreds of years.

Commercial housing is what apartments are called. Previously, they attracted only businessmen and investors. Today - ordinary citizens interested in affordable personal housing. But in fact, the lower cost of apartments results in a number of disadvantages that cannot even justify it.

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