Issues discussed in the material:
- How to register a house on an individual housing construction site
- How to register a built house on an individual housing construction site
- How to decorate a house on a summer cottage
- How to register a house on a summer cottage if you have already built it
- How to register a house on a private plot
- Special cases of registration of a house on a site
If you have a plot of land, before starting construction, you need to study in detail the question of how to register a house on a plot of land in accordance with current legislation. If the land is privatized, legislators have simplified the procedure for registering a residential building. But the procedure remains quite complicated, since the preparation and submission of the necessary documents has many nuances, knowing which, you can avoid additional costs of time and money.
How to register a house on an individual housing construction site
If you have received a plot of land for individual housing construction and built a residential building on it, you must register it with the state. Until this procedure is completed, the house cannot be sold, donated, exchanged, or rented out.
Therefore, after construction, you should immediately start the paperwork process to register ownership of the house.
Currently, the Commissioning of a residential building is completed by the Bureau of Technical Inventory.
A visit from BTI technical specialists to your new home will be required to draw up a technical building plan and passport. They will inspect the new building and take the necessary measurements. Your next step will be to assign a personal address to your private home. An application for assignment of an address is submitted to the administration of your city or other locality. After this, you will need to obtain a cadastral passport and a building plan.
You should determine in advance the status of the land on which the house is built - whether there is permission for individual housing construction and a set of documents confirming this right.
The following nuances are taken into account:
- If your private house is built on a dacha or garden plot, you have the right not to register it in the cadastral database. A simplified scheme for registering property rights assumes that all the necessary information about the building is indicated in a declaration of the established form, which must be provided at the place of registration.
- If a house is built on a plot of land for individual housing construction for private farming, you can immediately register it in the cadastral register, after which you will be issued documents confirming ownership.
Before visiting Rosreestr you need to prepare the following documents:
Name | Peculiarities |
Land owner's passport | Original and copy |
Application for registration of ownership of a house | On behalf of the owner of the land plot |
Documents confirming the right of ownership of the plot | Agreement of privatization, purchase and sale, exchange, annuity, will, deed of gift, certificate of inheritance, etc. |
Construction permit documents | In the absence of permission - about unauthorized construction |
Extract from Rosreestr | Certifies the owner's right to this land plot |
Technical and cadastral documents | Passports and plans |
Floor plan of the building | Issued by the Bureau of Technical Inventory |
Receipt for payment of state duty | Original and copy |
Permission to put a private house into operation with subsequent registration of ownership can be obtained in the same place where you received permission to carry out construction work. The period for receiving such a document is no more than ten working days.
Pros of investing in a guest house
The peculiarity of guest houses is that they are mainly used by people of the middle and older generation, that is, clients with money who are willing to spend money on comfort. Of course, young people can also opt for a guest house, but mostly young people prefer more active and even extreme holidays.
Guests of such houses are, as a rule, urban residents with an average or high level of income. Comfort is important to them during their vacation, so everything must be of a high standard. This, in turn, will require significant investment. But all the costs will pay off, since guest houses are very popular these days.
A distinctive feature of this type of vacation is that guest houses are more comfortable than budget hotels and sanatoriums. As a rule, the level of service here is at least four stars, but there is no significant overpayment. The owners of guest houses try to create the most pleasant and friendly atmosphere, which promotes relaxation and is so popular among city residents. Due to their enormous advantages, such establishments have become increasingly popular in recent years.
But there is one drawback worth noting here, namely the seasonality of the work.
Guest houses, as a business, can be very profitable only during the holiday period, that is, from May to September.
In winter there are very few visitors to the guest houses. The only exception can be a good location of the business. For example, if an entrepreneur manages to obtain a plot for construction near a tourist site, he can receive income all year round.
How to register a built house on an individual housing construction site
If you built a house without obtaining a permit for construction work, then upon completion of construction you will have to go through a procedure to legalize it. The procedure for registering such a building is determined by the Town Planning Code of the Russian Federation. The procedure can last several months and will require quite a large financial investment, especially if you have to use the services of a specialist.
There are three options for this case:
- Recognize the construction as legal in court.
- Obtain a building permit after the actual construction of the house. To do this, when applying for a permit, you do not need to report the construction, obtain the necessary document, and then hand over the object after a certain time.
- Submit an application to preserve the house to the commission for the suppression of unauthorized construction. If the decision is positive, you will be given a permit and all the necessary documents.
Once your building has been declared legal, you should begin the paperwork to obtain the property in accordance with the procedure described above.
Important points for opening a guest house
Similar types of hotels existed during the Soviet Union and were quite popular. But only earlier it was a simple alternative to a sanatorium, but now staying in a guest house can be called an elite vacation. Accordingly, the level of service here should be at its best.
One of the best options would be to open a guest house near the sea. Such houses are in great demand during the season, but the initial investment will be large. Land by the sea is expensive. Plus, it is necessary to equip a beach for vacationers. We are talking about sunbeds, umbrellas, a lifeguard station and water activities. All this is not a prerequisite, but will allow you to take your business to a new level. Good beaches always attract people who are going to relax by the sea.
In the event that the site for the construction of guest houses is an area near attractions, you can also organize additional excursions. This is very convenient for guests and beneficial for home owners. You can organize additional leisure time. If possible, it is worth organizing diving, rafting or water skiing. Horseback riding and hiking are always in great demand among guests.
Considering that the guest house is mainly visited by people who prefer comfort, it is worth taking care of providing high-quality Internet and equipping comfortable bathrooms with hot water. It is advisable to offer guests a transfer. This is very important for those clients who will be staying in the guest house for the first time.
In general, guest houses are equipped with comfortable furniture, but without significant frills. Of course, you can design one room as a “luxury”, but mostly the houses in the usual “standard” and “comfort” categories are in demand.
Food needs to be highlighted separately, as it must be offered in the guest house. Here you can go in two ways, that is, invite guests to use the kitchen or contact a chef who will serve breakfast, lunch and dinner (meals are included in the room price). It is advisable to equip special areas for preparing barbecue. They can be installed near the pool.
How to decorate a house on a summer cottage
After March 1, 2021, to register ownership of a house you will need:
- notify the local administration or Construction Supervision about the start of construction. Notification can be submitted through the MFC;
- start construction work;
- notify the relevant authorities about the completion of construction, also through the MFC;
- wait for a special commission that will issue a conclusion on the compliance of the new building with the requirements of the legislation on urban planning;
- If you receive such a conclusion, you need to provide it to Rosreestr and receive a document on ownership. If the commission does not consider it possible to issue a positive conclusion, it will be necessary to carry out reconstruction in accordance with the comments provided or completely demolish the structure.
Possible difficulties when registering country property:
- sometimes going to court significantly speeds up the protracted registration process;
- the data in technical terms may not correspond to the information already available in the Unified State Register of Real Estate;
- If the property was built a long time ago and there are no documents for it, registering ownership will take several months.
There are cases in which you will be denied registration of a building on a summer cottage:
- change in the legal status of a land plot - withdrawal from circulation or restriction of the right to use;
- land boundaries go beyond the cadastral red lines;
- discrepancies in the data on the boundaries of the site in the submitted documents.
If you have already built a house on a summer cottage, how to decorate it
If you built a house on your summer cottage without obtaining permission, then you have no legal grounds to consider it your property. Only after you have registered your right of ownership with the appropriate service and your country house has been assigned a cadastral number, you will be able to perform various actions with it: sell, exchange, donate, inherit, insure and use as collateral.
In 2006, legislators passed a law called the “dacha amnesty.” Unauthorized developers of summer cottages now have the opportunity to register ownership of unregistered real estate using a simplified version. The latest changes introduced by Federal Law No. 36-FZ of February 28, 2018, allow you to take advantage of the simplified registration procedure until December 31, 2020.
However, the simplified procedure for registering land plots and real estate, in force before these amendments, ended on March 1, 2019. The new procedure requires more documents, and registration of rights now takes place through a notification procedure.
Also, the simplified procedure has been expanded for those citizens who have unregistered real estate and land plots received before the date of entry into force of the Land Code of the Russian Federation - October 1, 2001.
The law on “dacha amnesty” until 2021 expands the required package of documents. Now, to successfully register real estate, you will need:
- application for registration of ownership;
- a document confirming the right of ownership of the property (a document on the possibility of indefinite use of land, a purchase and sale agreement, a certificate of inheritance);
- house plan, for which you should contact the Bureau of Technical Inventory. A cadastral engineer will come to your site to take the necessary measurements. Then, within 10 working days you will be given the relevant documents. The cost of this service ranges from 7,000 to 15,000 rubles;
- receipt of payment of state duty in the amount of 350 rubles.
To submit documents you can currently use:
- official website of Rosreestr;
- email;
- Multifunctional center (MFC);
- Russian Post.
There are restrictions when registering real estate in garden non-profit partnerships (SNT), dacha non-profit partnerships (DNP):
- the building can have no more than 3 floors;
- the height of the house must be less than or equal to 20 meters;
- the distance from the building to the boundaries of the site should not be less than 3 meters.
If you have not completed all the paperwork for your property in advance, you will have to obtain permission in order to have the right to use the house. You will need to prepare a list of documents:
- land and house plans;
- design documentation;
- engineering communications diagrams;
- documents confirming the construction’s compliance with technical standards.
Documents for opening a guest house
In addition, in order to draw up a competent business plan for a guest house, if we are talking about a small project and not a chain hotel, you will need to register as an individual entrepreneur. This is the simplest organizational and legal form, which will allow you to choose the simplest and most convenient tax system. You won’t be able to handle the work in a guest house on your own, so you’ll have to hire employees. This must be taken into account and registered as an employer with the Pension Fund.
In addition, to open a hotel business you will have to obtain permission from the fire service, SES and Rospotrebnadzor. If the guest house has its own bar, you will need to additionally obtain a license to sell alcoholic beverages. Contracts for waste removal, electricity and water supply are mandatory.
Additional documentation depends on the specifics of the business. It is quite possible that the owner of the guest house will want to provide guests with additional services, for example, excursions. Here you will have to obtain the appropriate permits and certificates. If an entrepreneur is going to delight clients with horseback riding, that is, he will maintain his own stable, this will require a lot of additional documents, and first of all, veterinary reports on the health of the animals.
How to register a house on a private plot
When erecting a building on a personal plot, certain difficulties may arise with its registration. Without property rights formalized in compliance with the entire procedure, you will not be able to dispose of your property: sell, rent, give, inherit, or even simply live in it.
If you decide to build a house on land allocated for personal plotting, you need to carefully study the list of all the requirements that the building must meet and the list of necessary documents:
- a private plot of private plots can be purchased;
- can be rented from the land owner;
- can be obtained free of charge from regional authorities if:
- you have been recognized as low-income;
- there are group 1 disabled people in the family or there is documentary evidence that you need to run a subsidiary farm;
- you are raising more than three minor children (your family is recognized as having many children).
The legally established area of plots for personal plots is 5 hectares, but by decision of regional authorities it can be increased to 20-25 hectares.
How much will the guest house cost?
The cost of such a project, as well as the speed of its payback, directly depend on where the house is located. Initial costs will be required to acquire the site and construct a suitable building, which will cost at least 1.5 million rubles. Additional equipment will cost another million. Business advertising will require about 200 thousand.
Each month there will be certain expenses. In the high season they will be larger, but the profit will accordingly increase. On average, 100 thousand is spent monthly on salaries, 50 thousand on taxes and utility bills.
Experts have calculated that with an investment of 3 million in the guest house, the business will bring in about 400 thousand every month. With all monthly expenses, the business will pay off within 2-3 years, which is considered an excellent result.
How to register a house on a private plot
The legislation of the Russian Federation prohibits the construction of real estate without special permission.
If you first build a house and then decide to register it, then there is a high probability that regional authorities will refuse to obtain ownership rights to such a building and recognize it as unauthorized construction. After this, you will receive an order to demolish the illegally built house.
To easily obtain ownership of housing built on a private plot of land, you should:
- obtain a building permit;
- build a house with the involvement of construction organizations or on your own.
- prepare a list of technical documents and an application for registration of a new building and submit them to Rosreestr.
Within ten days, your application will be reviewed and you will be notified accordingly.
If you have land received for personal plotting and you want to build a house on it, you are required to:
- Obtain a building permit. To do this you should:
- Contact the administration of the locality to which your private plot belongs.
- Provide documents confirming your ownership or ownership of the land, such as a purchase and sale agreement or a land grant deed from the municipality.
- Attach urban planning plans for the land plot. They should be requested in advance from the land department of the local administration.
- Present the proposed construction scheme. The necessary diagram can be obtained from the construction organization that will be building your house.
Your appeal will be considered by the administration within one to two months, after which an official response will be issued.If you want to start construction at the same time as submitting an application for permission, there is a risk of being refused. In this case, your building will be recognized as an unauthorized construction, and you will be forced to demolish it.
- Conclude a contract for the construction of a house with a construction organization. The legislation does not prohibit the construction of private houses on their own, without the involvement of contractors.
- After the house is built, you need to prepare a list of documents for registering ownership.
- Pay the state fee, the amount of which is regulated at the federal level.
- Submit the prepared set of documents and a receipt for payment of the state duty to Rosreestr. The owner of the land must personally contact Rosreestr and fill out an application to register ownership of the constructed property.
- Wait for the scheduled examination, which is scheduled after submitting an application for registration. A commission of technical specialists arrives at the constructed facility at a predetermined time and carries out an expert inspection of the structure built on a private plot, after which it issues an appropriate conclusion.
- Obtain permission to register or refuse. For this, Rosreestr is given 10 working days.
If you receive a positive response from Rosreestr, you should:
- write a statement recognizing the object as property;
- obtain a certificate of ownership;
- register in a built house.
If you do not provide Rosreestr with the following documents, you will be denied registration of your house:
- Documents confirming your ownership of land intended for personal farming: an act of transfer of land from regional authorities, a purchase and sale agreement, a lease, a certificate of gift, etc.
- A building permit obtained in advance from the administration of your locality.
- Technical plan.
- Certificate of completion of construction work and acceptance of the property - in the event that the construction of the house was carried out by a construction organization.
- Receipt for payment of state duty.
- Passport of the owner of the private plot.
- A declaration in which you provide the following information:
- total and living area of the property;
- house address;
- the main purpose of the constructed facility, for example, for permanent residence by a family or recreation in the summer;
- description of utility networks;
- characteristics of the material from which the external walls are constructed;
- additional description, for example, indicating the number of rooms and floors, the presence of an attic, basements, etc.
The declaration is submitted in two copies.
Currently, the state fee that you must pay for registering ownership of real estate on a private plot is 2,000 rubles.
You will also have to pay a state fee of 400 rubles to obtain an extract from the Unified State Register of Real Estate. If you also register ownership of private household plot land, you are required to pay a state fee of 350 rubles.
So, if you are the owner of a private plot, have submitted the necessary set of documents to Rosreestr, paid the state fee and received all the necessary permits from the local administration, you have the legal right to registration, permanent or temporary residence in a built house on your plot.
Location and house itself
Since you are planning to purchase or build real estate, you need to very wisely approach the choice of its location, from the point of view of commercial attractiveness and the possibility of sale in case of failure in business. There are several locations that are most often considered for the construction and operation of guest houses.
- Tourist cities and places. Where there are a lot of tourists, there will always be a demand for room rental services. Historical centers, health resorts, nature reserves, all this attracts many travelers who will rent accommodation.
- Guest house near the sea. This is a separate niche with very high competition. All local residents who live near the sea thus earn good money during the season. They themselves move to cabins or to stay with relatives, and rent out their house for vacationers at high prices. To stand out from your competitors, you can use interesting options for the interior and exterior of your building and offer high-quality service.
- Location near cities with a population of over a million. These could be plots in nearby villages or suburbs. The main requirement is convenient access, a beautiful location (preferably in nature or near a forest), and the presence of transport links and infrastructure nearby.
- In the village. This is a format of eco-estates, which provides for the unity of visitors with nature, fishing, mushroom picking and other entertainment. The location of the village can be anywhere, the main thing is that it is beautiful. Particularly popular are mountainous areas, villages near lakes and rivers, as well as houses near eco-farms.
- Guest house near a busy highway. The main visitors will be travelers and truckers. You can organize a cafe at home to increase profits.
Based on the choice of location, the format of work and organization of your guesthouse will depend, as well as investments in its construction and purchase of land.
Now what about the house itself? There are also two approaches here.
- Purchase of a finished building. Many people think that this will greatly simplify starting a guest house rental business, but in reality this is not the case. Having a ready-made structure, a long stage of redevelopment, completion and repair of premises awaits you. When converting an ordinary residential building into a guesthouse, you will need to be guided by the requirements in accordance with building codes and regulations (SNiP), sanitary standards (SanPiN), and departmental building codes (VSN).
- Building a house from scratch. In this case, you will hire an experienced architect who will help you create a project where you will plan the entire area of the house as efficiently as possible and will be able to implement your functional or design ideas. Constructing a building is a longer process, but you get a completely new facility, with your design, that will serve you for many years.
If you have the financial opportunity, then it is best to build a guest house from scratch, but if you don’t, then you can choose ready-made solutions and do redevelopment and repairs.
The number of residential rooms in a guesthouse does not exceed 10. We advise you to divide all rooms into doubles and singles, with the possibility of adding one bed. There is no point in making larger rooms, since a significant area needs to be allocated for them, and there are many times fewer orders for them.
Smart planning
Where to start building a guest house or remodeling it? This starts with creating a house project and zoning its area into functional rooms.
- As mentioned above, you will need to arrange single and double rooms. Each room should have a window on which mosquito nets will be installed during the warm season.
- The bathroom is shared and placed directly in the room. Or they make it common on the floor. In guesthouses, a toilet, washbasin and shower are usually installed in the bathroom. In rare cases, a bathtub is installed. Make sure these rooms have good ventilation.
- Dining room. A separate room is allocated for it on the ground floor. In summer, you can organize a dining room on the terrace near the house.
- Kitchen. Also located on the first floor. It is equipped with a good exhaust hood so that cooking odors do not spread throughout the house.
- Laundry. A washing machine and dryer are installed in it.
- Boiler room.
The laundry room, boiler room and other utility rooms are usually located in the basement of the building.
It is not at all necessary to hire a designer to decorate your home; you can choose color schemes yourself and make bright accents from accessories, but if your budget allows, then you can do everything with the help of specialists.
Guest house equipment
Now let's figure out what you will need to complete the various rooms of your home.
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Room configuration (basic):
- Single bed 80 x 200 cm. If there is a double bed, then at least 140 x 200 cm.
- Bed sheets. They purchase twice as many sets as the number of beds in the guest house in order to be able to change linen for clean ones.
- Towels.
- Wardrobe with hangers for things.
- Furniture: table, chair, bedside table.
- Depending on the price of the room, the following may be installed: air conditioning, TV, iron, hairdryer, kettle.
Bathroom:
- Toilet.
- Shower cabin.
- Washbasin, mirror.
- Shelves for towels and hygiene products.
- Forced exhaust.
Kitchen:
- washing
- kitchen table, chairs
- refrigerator, microwave, kettle, stove
- wall cabinets and shelves
- dishes
- inventory
- cutlery
- detergents, etc.
There will also be additional rooms, such as a dining room, where tables and chairs are installed, a laundry room with a washing machine and dryer, a boiler room with access to all communications, and others.
Additionally, take care of the area near the house, where you will need to lay paving slabs, make parking for cars, and organize a barbecue area. The subsequent equipment of the guesthouse depends on the format of your business and the number of additional services that you plan to provide.
Before you open a guest house, you need to create a marketing plan for promotion. Room bookings and your earnings in general will depend on the effectiveness of advertising. Let's highlight the main channels for attracting customers.
The target audience of your project will be: tourists, people on business trips, organizers of various events, people who want to live in nature, foreigners.
- Specialized online sites for rental housing: booking, TripAdvisor, Airbnb, Hotels, Expedia, Agoda and others. Pay attention to reviews and reputation on these sites; the higher they are, the more clients will come to you.
- Own website. You can pay for contextual advertising to get clients right away.
- Social media. Reviews from satisfied customers work especially well here.
- Notice boards: Avito, OLX.
- Personal recommendations from clients.
It is worth saying that the specifics of business in the guest house format include working with regular clients, since people often book accommodation again, and with high service, they recommend you to their friends and acquaintances.
Staff
A guest house implies the format of a family business. In fact, to service a house with 5 rooms, it is enough to hire one employee (a cook who will also help with housework) and for one of the spouses to be actively involved in the processes of cleaning and caring for the local area. Housekeeping responsibilities include: cleaning rooms, washing and drying linen and towels, cleaning other rooms, mowing the lawn, or removing snow in winter.
Accounting can be outsourced, or you can figure out this issue yourself. Home security can be achieved by installing an alarm system.
How much should you invest?
To calculate the amount of starting capital, you will need to develop a business plan for a guest house with calculations for all the expense items that will be required to start your business.
Initial investment:
- Buying a plot and building a house with 5 rooms – from $60,000 and above.
- Equipment and furniture – from $10,000
- Organization of space near the house – from $8000
- Promotional materials – from $500
- Paperwork – from $250
Monthly payments:
- Taxes – $250
- Utility payments - individually.
- Staff salaries start from $350 per employee per month.
- Advertising – from $100
- Transportation costs – $60
- Purchase of home care products – $25.
What can you do to save start-up capital? Firstly, you can start building a guest house yourself, doing some of the work with your own hands and performing the tasks of a foreman. Secondly, you can select budget options for interior decoration, but try to use the price/quality rule. Thirdly, this is equipment and furniture; they can also be looked for in regions where their price will be cheaper. Fourthly, you can improve the surrounding area yourself.
Business payback
The return on investment in this project will depend on the effectiveness of advertising and reviews on online services for rental housing. Your task is to ensure maximum occupancy of rooms in the guest house. When fully occupied, a small guesthouse with 5 rooms can bring its owner about $3,100 - $3,600. Now let’s take into account that part of the time the rooms will be free, and this amount will be $2300 – $2800. If you subtract monthly expenses and take into account that you will hire only one assistant to care for the house, then you can earn about $1,300 - $1,700 net. The payback period for the project is 3.5 – 4 years. Please note that we do not take into account seasonal earnings at increased rates, as well as full occupancy of rooms, in which case the return on investment period will be even shorter.
Conclusions . A guest house as a business is a project with a long-term return on investment, but at the same time it is a stable source of income. You can exit the business at any time by selling your property. High customer service, reasonable prices, effective advertising - all this is the key to the successful operation of a guesthouse.