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Russia decided to strengthen control over the rent of apartments

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The Russian Ministry of Construction decided to strengthen control over those who rent out apartments and other housing. Izvestia writes about this.

The department is expected to submit the bill to the State Duma by the end of this year. The document is aimed at increasing the transparency of the rental market for residential real estate, ensuring the protection of the rights of landlords and tenants, told the publication in “Dom.RF”.

As explained by Nikita Stasishin, Deputy Minister of Construction and Housing and Communal Services of Russia, measures to develop the rental housing market are included in the passport of the federal project “Housing”. It is also planned to launch an information system to record housing lease agreements, he added.

According to him, the integration of the digital platform with the systems of the Federal Tax Service of Russia will simplify the process of calculating and paying taxes for the owner and will help to bring rental housing out of the “gray zone”. This, in turn, will lead to an increase in tax revenues.

Andrey Kolochinsky, Managing Partner of VectorStroyFinance, noted that now about 80-90 percent of the rental housing market in the country is in the shadows, which means lost tax revenues. At the same time, the new rules may lead to an increase in the cost of rental housing. Prices are expected to rise in line with the tax – within 13 percent.

In December last year, it was reported that the cost of renting housing in major cities of Russia in 2021 could increase by 8-10 percent, in Moscow – by 15 percent. According to experts, the growth of rental rates can only be prevented by new tough restrictions due to the coronavirus.

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