What are the advantages of transferring an apartment to trust management? What scheme does the work follow? What rights does the manager have? Do I need to pay taxes? Sutki2 experts will answer these and many other questions.
“Extra” square meters are a good help for the family budget, reliable insurance during an economic crisis and a good investment. Unlike a deposit, an apartment will not disappear along with a bankrupt bank and will bring not too much, but stable income for decades, while at the same time growing in price. There are always people looking to rent an apartment for daily rent in St. Petersburg: every year they come to the city on the Neva to see the sights, make deals, enroll in universities or undergo treatment. How to legally, safely and easily make money on real estate inherited or specifically purchased for rental?
Ways to rent out an apartment
- Self-promotion and independent communication with residents. The main advantage is that the owner of the apartment receives 100% of the income. Not suitable for those who own real estate in another city, region or country, and are also very limited in time - searching and selecting tenants, receiving payment, repairs, paying utilities and cleaning the apartment requires a lot of time (especially if cheap apartments are offered for daily rent) ;
- Information cooperation with the agency. Allows you not to waste time reposting on social networks and searching for tenants through friends or advertisements. You have to negotiate with residents and select guests yourself. Suitable for those who, for some reason, cannot use the Internet and/or do not have a circle of acquaintances to start word of mouth (elderly people who came from another city);
- Trust management. All work involved in renting out an apartment is performed by an officially appointed professional manager; the owner can only receive income minus the manager’s remuneration. Suitable for all categories of owners.
Daily VS long-term rental
The monthly rent of a modest one-room apartment renovated from the Soviet period will be about 15 thousand rubles per month, daily rent will bring about 1,700 rubles per day. The advantages of long-term rent are obvious: tenants need to be searched and selected on average once a year; “long-term” residents treat the interior of the apartment more carefully and can even update the renovation at their own expense. Income from long-term rentals is small but stable.
The main disadvantage of renting for a long time is the inability to raise the price based on the season or market fluctuations. Long-term rent traditionally implies the same monthly payment all year, while daily rent of apartments in St. Petersburg, due to the frequent change of tenants, can cost differently every week. The most expensive daily rent from the owner is in the summer, during the New Year holidays and during sports competitions, business forums, concerts and other major events.
Daily rent allows you to get the maximum benefit, but calculating the exact income for a month is not so easy: the apartment may remain idle for 1-2 days between tenants, and after particularly unscrupulous guests, additional costs for a cleaning service may be required. In addition to the need to constantly advertise the apartment and look for tenants, the landlord is required to constantly visit the apartment for routine cleaning and replacement of bed linen, towels and household chemicals (all of which are traditionally provided to tenants in daily rentals).
For those who specifically purchased real estate for rent or rent out “extra meters,” the most profitable option is to rent apartments daily in St. Petersburg through a professional manager who will take care of all issues regarding advertising, finding tenants, cleaning and repairs. The most profitable investment option: apartments for daily rent near the metro. Outlying stations are preferred by budget travelers and those arriving in St. Petersburg via Pulkovo. Rent an apartment in the center of St. Petersburg for daily rent is usually planned by those who come to admire the beauty of the city, go shopping or enroll in one of the major universities.
○ Rules for terminating the contract
Article 450 of the Civil Code provides for the following grounds on which it is possible to terminate a lease or rental agreement:
1. Amendments and termination of the contract are possible by agreement of the parties, unless otherwise provided by this Code, other laws or the contract.
2. At the request of one of the parties, the contract can be changed or terminated by a court decision only:
1) in case of a significant violation of the contract by the other party;
2) in other cases provided for by this Code, other laws or agreement.
A violation of the contract by one of the parties is considered significant, which entails such damage for the other party that it is significantly deprived of what it had the right to count on when concluding the contract.”
Trust management of an apartment: truth and myths
Trust management is a service offered by agencies and individual private realtors. Allows the owner to receive rental income without having to organize the occupancy of tenants, repairs and pay bills. A predetermined amount—remuneration for the manager—is subtracted from the amount of income received.
According to paragraph 4 of Art. 209 of the Civil Code of the Russian Federation, the manager cannot sell or donate an apartment without the consent of the owner.
Stages of registering an apartment or house in trust management
- Signing of a written “Trust Management Agreement” by the homeowner and the realtor;
- Registration of trust management (according to Article 4 of Law No. 122-FZ). Technically, it is not the “Agreement” itself that is registered, but the restriction of the right of ownership of an apartment or house (clause 2 of Article 1017 of the Civil Code of the Russian Federation);
- Issuing a notarized power of attorney to the realtor to manage the property;
- Recording the condition of the apartment and all the property in it (it is recommended to make an inventory).
It is necessary to take into account that for third parties (tenants, utility services) the “Trust Management Agreement” will begin to be valid only after official registration.
Is it true
- The apartment manager has full control over all processes related to its operation. The owner does not need to pay the tax bill on his own and visit the tax office.
- The manager is responsible to third parties (tenants). After the “Agreement” comes into force, the responsibility of the lessor passes to the manager.
- Risks are insured. By agreement with the owner, the apartment and furnishings (appliances, art, leather furniture, antiques) can be insured before renting out the property.
Myths
- The manager can sell, donate or exchange the apartment. A standard “Deed of Trust Management” transfers to the manager only the right to manage the property. The sale of an apartment can only be carried out by a person who has ownership rights to the object (real right).
- Trust management is an illegal charter. Trust management of property (for example, real estate or securities) is a legal scheme for generating income and is regulated by current legislation.
- Trust management is a way to evade paying taxes. Each owner decides independently whether to pay taxes or not. Read more about taxes on rental income below.
○ How to register a lease agreement
According to the requirements of the norms set out in Article 651 of the Civil Code, a rental agreement for residential premises, if it is concluded for a period of more than a year, is subject to mandatory registration in the Unified State Register of Real Estate. From now on he should be considered a prisoner.
Lack of registration entails the invalidity of the concluded agreement. In accordance with the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 59 dated February 16, 2001, if the lease agreement is less than a year long and it contains a condition that it can be automatically extended for an indefinite period, there is no need to register the agreement.
✔ Registration procedure
Registration of a lease agreement requires contacting the territorial division of Rosreestr or a multifunctional center for the provision of public services.
✔ Required documents
The registration procedure involves submitting the necessary package of documents, which consists of:
- An application drawn up in the prescribed form.
- Lease agreement with an act of acceptance and transfer of the subject of the transaction.
- Personal documents of the tenant's representative.
- Power of attorney addressed to the representative.
- Payment order for payment of state duty in the amount of 22 thousand rubles.
✔ The main reasons for refusal to register an agreement
According to Article 27 of Federal Law No. 218 “On State Registration of Real Estate”, if, within the period provided to the applicant, to eliminate deficiencies in the documents submitted without registration, the reasons that impede the state registration of rights are not eliminated, a decision is made to refuse registration of the agreement.
It must be in writing and communicated to the applicant.
Benefits of trust management
- Economic efficiency. Owners of private businesses know very well that the costs of effort and time must be taken into account in the same way as financial costs. Daily rental of an apartment, handed over in trust to reliable professionals, allows you to extract maximum benefits from the property with a minimum expenditure of your own resources. The commission charged by the agent for services pays off many times over due to the absence of the need to constantly visit the apartment and worry about damaged repairs, disgruntled neighbors and unpaid bills;
- Cleaning. Before changing tenants, the apartment must be thoroughly cleaned, which often poses a significant difficulty. When transferring to trust management, the issue of cleaning is decided by the manager, and if necessary, a cleaning service is called;
- Repair. Both the natural wear and tear of the apartment during operation and various accidents (leaks, fires) require attention and financial costs. The property manager constantly monitors its condition and, based on his experience, makes a timely conclusion about the need for repairs;
- Control over payment of CG. It is not always possible to trust residents to pay utility bills. Unscrupulous tenants can pocket money for months to pay utility bills, which the apartment owner only finds out about when a large debt has accumulated in his personal account. When transferring an apartment to trust management, payment for the utility bill is handled by a realtor who is personally interested in the absence of debts and is familiar with all the nuances of this property (the presence of housing cooperatives in the house, the need to install meters, etc.).
○ Advice from a lawyer:
✔ How to protect property from damage by temporary residents?
The owner of the apartment, in order to protect himself from possible damage to property by the tenant, must provide for his responsibility in the text of the contract itself. In addition, in the act of acceptance and transfer of the apartment, it is necessary to list all the property that is transferred to the tenant, its condition. If possible, take photos and videos of the condition of the apartment.
Another way is to insure the property and liability of the apartment owner to third parties in the event of the occurrence of various forms of majeure circumstances.
Taxes
The issue of taxation worries all landlords who want to remain clean before the law. From the point of view of modern Russian legislation, leasing real estate is the same source of income as a private business, and is subject to a personal income tax (NDFL) of 13% for citizens of the Russian Federation and 30% for non-residents. The tax is charged not only on the rent for an apartment or room, but also on the amount of utility bills (if they are paid at the expense of the tenant).
For example, an inexpensive one-room apartment, which is rented out for 15,000 a month, will bring its owner 180 thousand rubles a year. If you add utility bills to the total amount (3 thousand * 12 = 36 thousand rubles per year), the total amount will be 216 thousand rubles. The personal income tax in this case will be 28,080 rubles for residents of Russia and 64,800 thousand rubles for non-residents of the Russian Federation.
In addition to the loss of part of the income, paying taxes requires significant time from the apartment owner - annual calculation of the amount of payments, filling out a tax return and visiting the tax office are the responsibility of the landlord.
Alternative options that allow you to save money are taxation according to a simplified scheme (the so-called “simplified tax system”) or purchasing a patent for rent. Both options make it possible to pay a tax of 6%, but require the owner of the property to register as an individual entrepreneur, maintain related reporting documentation, make insurance contributions, etc. This option will be beneficial mainly to individuals who already have a private business and are familiar with the nuances of accounting .
What is the penalty for non-payment of taxes?
A certain percentage of private renters prefer to evade paying taxes and not officially register their rental business. Such a decision can be fraught with serious problems: without an official Lease Agreement, it will be almost impossible to force tenants to pay for a fire or leak, and neighbors outraged by the noise may deliberately “expose” the landlord to the tax authorities. For tax evasion, the homeowner faces the need to pay personal income tax for the entire past year, as well as an additional fine of 20-40% of the entire unpaid amount.
Who pays taxes on a real estate trust?
When transferring an apartment into trust management, the obligation to pay taxes on income falls on the shoulders of the manager, but the tax payment itself is carried out at the expense of the owner. According to current legislation, tax is paid on the amount of rental income minus the manager's remuneration.
According to Art. 226 of the Tax Code of the Russian Federation, the manager acts as a tax agent, i.e. pays personal income tax for the beneficiary (owner of the apartment). In the event that the manager for some reason has not paid the tax, the owner will have to draw up a tax return (clause 4 of Article 228 of the Tax Code of the Russian Federation). For this reason, the choice of a manager must be approached with the utmost seriousness.
○ Difference between a lease agreement and a residential lease agreement
Current legislation classifies lease and rental agreements for residential premises as property transactions. Under these agreements, real estate is temporarily transferred to the use and possession of another person for a certain fee.
Despite the apparent equivalence of those specified in the agreement, they have differences:
- By name of the parties depending on their status. So, if an agreement is concluded between citizens, the landlord is on one side, and the employer is on the other. If the tenant is a legal entity, it will be called a tenant. And the person who will rent out the housing is the landlord. At the same time, in both the first and second cases, housing can be used only in accordance with its intended purpose.
- According to the form of the transaction and the need for state registration. Both types of agreement must be in writing. Unlike a lease agreement, a rental agreement is not subject to mandatory registration with Rosreestr. However, existing restrictions and encumbrances must be entered into the state register. A lease agreement, if concluded for a period of more than one year, is subject to mandatory registration.
Failure to comply with the requirements for entering the relevant data into Rosreestr is subject to administrative liability. Thus, for violation of the requirements for state registration of a lease agreement, a fine of 1,500 to 2 thousand rubles is applied, and for failure to provide information about encumbrances under the lease agreement - a fine of 5 thousand rubles.
- By definition of the validity period. The conclusion of a lease agreement is possible for an indefinite period. It is not limited to the maximum possible period. Renting housing can be concluded for no more than 5 years. If the text of the rental agreement does not specify its validity period, it is considered to be concluded for 5 years.
- If possible, early termination. Any party to the lease agreement can raise the issue of its termination only through the court. The rental agreement, in turn, can be terminated by the lessee at any time, and at the initiative of the lessor - only through the court.
About trust
As noted above, the reliability and professionalism of the manager will directly affect the level of income from the apartment and the possibility of difficulties arising (conflicts with neighbors, non-payment of utilities, frequent idleness of the apartment).
Experts recommend giving preference not to private realtors, but to well-known rental agencies offering their catalog of apartments and cottages for daily rent. Large companies have their own client base, a well-promoted website and other advertising opportunities, as well as numerous attractive services: booking apartments in St. Petersburg, transfers, excursions. An important factor is also the presence of a large number of employees: in the event that the managing realtor is suddenly forced to take sick leave or unscheduled leave, his colleagues can temporarily take over his responsibilities for showing the apartment or communicating with residents.
You can personally check the reliability of the selected rental company. One of the most effective ways is to call the agency as a buyer and arrange several showings of the apartments you are interested in for rent. Well-coordinated work, a professional realtor, clean and cheap apartments for daily rent indicate that this agency knows how to properly present its properties and is interested in making an honest profit. If daily rental housing is unreasonably cheap, the apartments offered are dirty and unrepaired, and the agent agrees to accommodate 15 undocumented people in a one-room apartment for a small fee, it is better to give preference to another company.
Who should I give it to?
How can I rent for a short period? Who is looking for apartments for short-term rent?
For a short period of time, they are in demand among lovers, as well as among couples who have nowhere to retire due to the fact that their living conditions are very poor. Such people rent a room or entire home for a few hours.
The cost of hiring for a few hours is usually very high.
From several days to a month, the apartment is rented either by tourists who came to see the city, or by people who came to this city on a business trip . Sometimes apartments are rented for a short period of time by parents who brought their children to a hospital in a large city for treatment .
How to select (attract) tenants? There are no specific criteria for choosing tenants. You should rely only on your ideas about people .
Remember that married couples with children, on the one hand, are more reliable (there will be no noise, no drinking and fights, and they will not disturb the neighbors too much), but at the same time, children often damage property.
You can attract people with good advertising . Contact the agency, they will help you find tenants.
At the same time, you can find tenants yourself among your friends by also placing advertisements on various free resources.
But remember that if you are looking for tenants on your own, through various resources, you may encounter scammers .
What documents need to be completed?
How to rent daily? Upon check-in, a contract must be drawn up. established form for such a document . In principle, such papers are provided by agencies. If you are taking the test yourself, you can compose it yourself or download a template on the Internet.
A short-term rental agreement must contain the details of the responsible tenant; in addition, it is advisable to include in the document the details of all those who will live there.
Find out who is the responsible tenant in a municipal apartment and whether it can be rented out from our articles.
The document also specifies all the conditions under which the premises are rented and the amount of payment . It is drawn up in two copies, one for each party. It is advisable to familiarize yourself with the passports of everyone who will be staying and take photocopies.
Should I take a deposit?
Most landlords include a clause in the contract requiring the payment of a deposit. The amount is paid on the day of check-in and serves as a guarantee that the tenant will not forget to return the keys and will not cause material damage.
A sample agreement with collateral is available here.
In what size?
It is determined by the owner and most often amounts to at least the cost of 1 day of rental housing. At the end of the contract, if the property is intact, the deposit is returned in full to the tenant.
