How is non-residential premises rented out? What laws govern this process and what conditions must be met for a commercial real estate lease transaction to be legal and legal for both parties? Read about this in our article.
The procedure for leasing non-residential properties is a form of property agreement, according to which the lessor (owner of the premises) transfers the property to the lessee (tenant) for temporary use on rental terms. Most often, such rental transactions are made between legal entities or individual entrepreneurs. The procedure for leasing non-residential premises is regulated by the Civil Code of the Russian Federation, the Federal Law of the Russian Federation “On state registration real estate." In accordance with the Civil Code of the Russian Federation, which is concluded for a period of less than 12 months, is not subject to state registration, while an agreement executed for more than a year must be registered with the competent authorities. Available for rent various structures, buildings as a whole or individual premises included in the non-residential stock. Not available for rent individual elements premises (for example, basement, roof, flight of stairs, etc.). The non-residential premises are transferred to the tenant along with documents and keys, otherwise the contract is terminated on the basis of the lack of conditions for operating the premises.
Renting non-residential properties: paying taxes
Renting out any residential or non-residential premises is directly related to the issues of paying taxes on the profits received. Many responsible owners of premises, in particular individuals, are interested in answers to questions - how much tax should be paid, whether it is necessary to register as an individual entrepreneur, and many others. Let's try to understand all the intricacies of leasing non-residential properties. So, do you need to pay tax when renting out non-residential premises?
Every landlord, whether an individual or a legal entity, is required to pay tax on the profit received from renting premises!
In accordance with clause 4, part 1, art. 208 of the Tax Code of the Russian Federation, rent for the use of premises is income from which the owner of the premises (individual) must pay, the amount of which is 13% of the total amount received for the period of validity of the contract. It is worth noting that concealing the fact of renting premises often results in the collection of the entire tax amount for owners, and, in addition, fines in the amount of 20% of the unpaid amount and penalties. It is not difficult for the tax service to find out that residential or non-residential premises owned are being rented out: the sources can be regular bank transfers to a card in a certain amount (usually more than 100 thousand rubles monthly), direct information to the tax authorities from the tenant, and other reasons that serve as excellent leverage on the landlord.
Do I need to register as an individual entrepreneur to rent out premises?
In accordance with Russian legislation, carrying out business activities without official registration with the relevant government bodies entails administrative (Article 14.1 of the Code of Administrative Offenses) and criminal liability (Article 171 of the Criminal Code of the Russian Federation), if the income received is more or less than 2,250 million rubles per year. year accordingly. It is quite difficult to obtain an unambiguous answer to the question of whether renting out premises is a business activity, therefore the courts, when considering such cases and making a decision, take into account many factors and the specific circumstances of the case. For example, if residential premises are rented out, and the reason for this is that there is no need to use it for one’s own residence, this type of income will not be considered entrepreneurial activity, but the owner of the premises will still have to pay 3-NDFL tax. At the same time, several signs can be identified that indicate that renting out premises will be considered as a type of entrepreneurial activity with income generation:
- Renting out a non-residential property. In this case, the fact that non-residential premises cannot be used to satisfy the household or family needs of citizens is taken into account, which means that this object is rented out for the purpose of making a profit.
- If the premises are leased to a legal entity. Accordingly, the organization that rented the non-residential premises will note in the expense item the amount spent on rent.
- If the premises are purchased specifically for further rental.
- If the lease agreement is concluded for a very long term or the fact of repeated renewal of the lease agreement has been established. This aspect is considered by the court as a sign of systematic profit-making by the owner of the premises.
If these signs are present, according to the law, the owner must undergo official registration with government agencies as an individual entrepreneur. IN in this case To pay taxes, a simplified form of the taxation system is chosen, the amount of which is 6% of the amount of profit (remember that the income tax for an individual is 13%). It is also worth considering that the owner of the premises, both as an individual entrepreneur and an individual, will need to submit the appropriate tax reports within the deadlines and in the form established by the Tax Code of the Russian Federation.
Sublease of non-residential premises
Renting residential or non-residential premises implies the possibility of subletting it directly by the tenant. Re-letting of real estate is permitted only with the written permission of the direct owner of the premises and availability special condition in the lease agreement. The parties to the sublease agreement can be both individuals and legal entities. A copy of the agreement must be handed over to the subtenant as a confirmed fact of the owner’s consent to commit of this action. The sublease transaction of non-residential premises has some features that the tenant must take into account when concluding an agreement with the subtenant.
- The term of the sublease agreement cannot be longer than the term of the original/main lease agreement. If the tenant's agreement with the owner has terminated, the subtenant has the right to conclude a lease agreement with the owner of this premises on the same terms until the end of the sublease agreement.
- Any lease/sublease agreement concluded for a period of more than 12 months must be registered with the authorized government agencies.
- The rights and obligations of the tenant include: provision of premises to the subtenant within the agreed period and for certain conditions, exercise control over the use of the premises for the appropriate purpose.
- The rights and obligations of the subtenant include: timely payment of rent, performance of repair work (by agreement), maintenance of the premises in order and use exclusively for its intended purpose.
- The fact of transfer of premises by the tenant to the subtenant is recorded in the transfer deed.
- Any violation of contractual obligations gives each party the right to terminate the sublease agreement before the end of its validity period in court.
Renting municipal non-residential property
Rent of non-residential premises, which are the property of the municipality, is one of the most common forms of civil law relations. At the same time, the transfer of municipal property under the terms of a lease agreement can significantly replenish the local budget and, accordingly, is of great importance for economic development regional territory. The most common are transactions to conclude a lease agreement for municipal real estate, in particular, land plots, buildings, and individual premises. Less common are cases of leasing existing municipal enterprises. For tenants of municipal non-residential premises, it is very important have a moderate rental price, its stability, transparency of bidding, on the basis of which the rental of municipal facilities takes place. Accordingly, these factors influence the fact that municipal real estate is more willingly rented by entrepreneurs than private property. It is true that it is worth noting that sometimes the unsatisfactory condition of municipal premises is a serious problem for the landlord, because, in addition to natural routine repairs, tenants have to invest in more significant work to restore the roof, facades, engineering and communication systems, and this, accordingly, is already capital attachments. To somehow interest tenants, municipalities offer various systems incentives: for example, increasing the duration of the lease agreement taking into account the work performed, reimbursement of costs incurred upon termination of the lease agreement, exemption from rent as a percentage of the estimated cost of repair work performed, and others. Both individuals and legal entities, as well as citizens of foreign countries, can enter into a lease agreement for municipal non-residential property. In accordance with Art. 17.1 of the Federal Law “On the Protection of Competition”, since July 2008, all lease agreements for municipal property are concluded based on the results of tenders, auctions or competitions with the participation of everyone. In accordance with Art. 447-449 of the Civil Code of the Russian Federation, each municipality develops its own Regulations on the conduct of auctions, which contain the rules and procedures, conditions for participants, the procedure for determining the winner and recording the results.
Important! A lease agreement for municipal property that was concluded without holding appropriate auctions is considered invalid.
Requires the presence of a cadastral passport for the property. Accordingly, if the land is not registered in the cadastral register, the potential tenant must collect a package of documents for it and initially register it with the cadastral register, then submit an application for an auction giving the right to lease this municipal property. In the case of sole participation in the auction, it is considered valid and gives the tenant the right to conclude a direct contract. The rental agreement for municipal premises is concluded by signing an agreement by two parties. The contract must contain complete information about the property, its cadastral number, area and location address. To submit an application for bidding and a contract you will need:
- passport of the future tenant;
- state certificate of registration of a legal entity or individual entrepreneur;
- an application in the form of the lessor indicating the purpose and duration of the lease;
- other documents provided for in the bidding documentation.
If a lease agreement for municipal property is concluded for a period of more than 12 months, the tenant must submit information to Rosreestr to enter information about the lease into the unified state register.
If a lease agreement for municipal property is concluded for a period of 3 years or more, the tenant acquires the pre-emptive right to purchase the leased premises into private ownership.
Amon
Sergey (senior lawyer) 02/08/2019 14:02:32 Hello! Without a temporary residence permit or temporary residence permit, you will not be able to obtain individual entrepreneur status. These documents must be provided when registering an individual entrepreneur. But you can rent out the premises without registering as an individual entrepreneur. If you have only one premises, it is difficult to prove that you are engaged in entrepreneurial activity. Hello Serey / Thank you very much for your reactive answer)) Another question is, if I can’t register as an individual entrepreneur, then how can I pay the 13% tax on income. Yes, I want to rent out only one room in the business center as an office. but would like to legally pay taxes. How can I register with the tax office and pay 13% of income? thanks Amon
Sergey (senior lawyer)
Hello! To pay income tax, it is not necessary to have a residence permit or temporary residence permit. Since you will receive income in Russia, then you just need to submit a personal income tax return every year.
Amon
Good Day: I am not a citizen of the Russian Federation and live abroad. I have an undesirable property in Moscow. I want to rent it out as an office. To open an individual entrepreneur for me, I must have a temporary residence permit or a residence permit, but since I don’t live there, I don’t have one, but since I am a citizen of the CIS, I can stay on the territory of the Russian Federation without a visa. What should I do to rent an unwanted property without a residence permit? Can I register as a private entrepreneur? thank you very much Amon
Sergey (senior lawyer)
Hello! Without a temporary residence permit or temporary residence permit, you will not be able to obtain individual entrepreneur status. These documents must be provided when registering an individual entrepreneur. But you can rent out the premises without registering as an individual entrepreneur. If you have only one premises, it is difficult to prove that you are engaged in entrepreneurial activity.
Sophia
Hello! In June, my husband purchased a non-residential property and was doing renovations there; the employee did not have a Russian passport; they took him away from the Federal Migration Service and deported him to Uzbekistan. In September we finished the renovation, we signed an agreement for free services with my individual entrepreneur and I have been opening an individual entrepreneur beauty salon there since 2015 (previously I worked and rented premises from an individual entrepreneur) Today they call me from the migration service and say that the fine will be large for me, and perhaps they will cover it salon 😂 on what basis? If the husband did the repairs as an individual?
Sergey (senior lawyer)
Hello, Sophia! This question should be addressed to the migration service employees, since it is not known what documents they have and what facts they operate with. If we are to hold you accountable for the illegal use of migrant labor, then your husband, since you have an agreement for the free use of the premises only from September.
Valentina
General store shared ownership for 3 co-owners, without division of shares. Can I rent out space in a store for 9-11 months for trade of 1/2 of my share (36 sq.m.) as an individual, without an individual entrepreneur, with the filing of an annual declaration on my own behalf and pay 13% of the income. If so, can I renew a short-term contract within the same framework in the future, without the requirement to open an individual entrepreneur. I’m 70 years old and I don’t need extra papers at all
Sergey (senior lawyer)
Hello, Valentina! No, you cannot without obtaining the consent of the other owners, since your share is not allocated in any way.
Alexei
Good afternoon! In order to rent out a garage for a car service, what documents must I provide to the tenant? and do I need to convert the land into commercial use and change the purpose of the land for this? T.K. This is a summer cottage plot. The land and garage are owned.
Sergey (senior lawyer)
Hello, Alexey! It is necessary to provide an agreement and a document on ownership of the land and garage. Whether or not to change the permitted use of a land plot depends on the existing types of permitted use. This should be looked at in the urban planning plan of the territory, perhaps in other documents of this kind.
Alexei
Thank you Sergey! I have one more question. Because of the service. I own a dacha plot, the so-called car service center built on it is registered as (GARAGE 100 sq.m.) and there is a certificate for it as my property. Can I work there as a self-employed person and still pay 4% tax without opening an individual entrepreneur? And if possible, can I rent out part of the garage to my father so that he can also work and be considered self-employed? Thank you in advance!
Sergey (senior lawyer)
Hello, Alexey! If you live in the region where the experiment is being conducted, you can register as self-employed. The question regarding the father is resolved similarly.
Alexei
Good afternoon! I am the owner of a summer cottage on which I built a garage. Can I rent it out for a car service? And what documents do I need to collect for this? Thank you in advance.
Sergey (senior lawyer)
Hello, Alexey! You, as the owner of the property, have the right to rent it out on the basis of a regular lease agreement. You don’t need to collect any documents for this, you sign an agreement and that’s it. But you need to be prepared for the fact that neighbors may start complaining about you, since, most likely, placing a car service center on a dacha plot of land is not provided for by the permitted use of the land plot.
Vladimir
I am engaged in retail trade on UTII. I have built a non-residential premises of 500 m2, I want to rent it out, how to do this correctly so that there are no problems with the tax authorities (rent as an individual or as
Sergey (senior lawyer)
Hello, Vladimir! You can rent it out as an individual and do not forget to pay personal income tax. You can also submit it as an individual entrepreneur with a legal taxation regime that can be applied under this type activities. Just pay your taxes on time and there will be no problems with the tax office.
Oksana
Hello. I am a self-employed individual in the simplified business, I rent out premises for a shopping complex, the owner of which is my husband. Do we have the right to be exempt from property tax? Thank you.
Sergey (senior lawyer)
Hello, Oksana! Property tax must be paid in any case, regardless of whether the property is rented or not.
Elena
Good afternoon We are an LLC, combining UTII and simplified tax system. We rent premises free of charge from an individual and rent them out to several tenants. Among the tenants there are individuals. Does an LLC have the right to provide premises for rent to individuals? Standard contracts. Thank you!
Sergey (senior lawyer)
Hello, Elena! An LLC may sublease premises to any persons, citizens and organizations if it has such a right under the lease agreement. Theoretically, such activity could be considered illegal if the rental of premises contradicts the statutory goals and objectives of the LLC, but this is unlikely.
Grishina Nadezhda Nikolaevna
Good afternoon! I sole founder LLC, I rent out a cafe to my daughter IP without rent. Do I need to file a tax return and what taxes should I pay?
Sergey (senior lawyer)
Hello, Nadezhda Nikolaevna! If you rent out premises as an individual and have not received income from this, then you do not need to file a personal income tax return, since there is no taxable income.
Konstantin
Hello! Please tell me if I can rent out a semi-basement, uninhabited space for housing, there is heating, cold water. mountains sewerage, window, separate exit, high ceilings.
Sergey (senior lawyer)
Hello, Konstantin! You can rent it out as non-residential premises, since this premises does not have residential status. But how the tenants will use this premises is another question. If you agree for them to live there, then there will be no problems. It’s just better not to indicate in the lease agreement that the premises will be used for housing.
Veronica
Hello! IP on OSNO is engaged in wholesale trade. As an individual, he rents out non-residential premises owned by him. Payment for rent goes to his card as an individual. One organization withholds personal income tax and transfers it to the budget. The other pays the rent in full. Can I rent as an individual? If not, then what is the right thing to do? Or register leasing as a type of activity on the simplified tax system? Thank you
Sergey (senior lawyer)
Hello, Veronica! A citizen has the right to dispose of his property at his own discretion, including renting it out. This is not a business activity. But if a citizen has several premises that he rents out, then this is a sign of entrepreneurial activity. Therefore, it is better to conduct this activity as an individual entrepreneur.
Olga
Hello! I am an individual entrepreneur on UTII, retail sale of products, owned store. I wanted to rent out part of the premises. How to do it right? Thank you.
Sergey (senior lawyer)
Hello Olga! Rent out the premises as an individual under a lease agreement. In this case, you will have to pay 13% personal income tax. You can rent out as an individual entrepreneur and apply a simplified or general taxation regime for leasing.
Lyudmila
Hello! I am the only founder of an LLC, we are on UTII, I have a non-residential premises in which there is a store, the owner of the premises is my LLC, I would like to rent it out to another LLC for a long period of time, please tell me what taxes will need to be paid and which taxation system is better to switch to in order to reduce pay these taxes. Also, do I have to contribute to the establishment? documents changes, because the type of activity will change.
Sergey (senior lawyer)
Hello, Lyudmila! Income received from the rental of real estate is not subject to UTII. Therefore, they will have to pay corporate income tax. As an option, you can switch to a simplified taxation system. In connection with changes in the type of activity, it is advisable to make changes to the charter.
Anna
Good afternoon. I am an individual who owns land. After some time, I opened an LLC (I am the founder) and built an office building on this land. (a free lease agreement was concluded between me and the LLC for the land). Is there any income here? Do I need to submit a 3-NDFL tax return?
Sergey (senior lawyer)
Hello Anna! In your situation there is no income, since you do not receive any income from renting out the property. Therefore, there is no need to submit a declaration.
Lyudmila
Hello! The store is in shared ownership: 1/2 by an individual and 1/2 by an individual entrepreneur. Phys. a person wants to conclude an agreement with an individual entrepreneur on the free use of non-residential premises, because the individual does not have the opportunity to engage in activities. The individual entrepreneur will rent out the entire store and pay taxes. Will an individual be exempt from personal property tax?
Sergey (senior lawyer)
Hello, Lyudmila! No, it will not, since ownership remains with the individual. The tax office will send notifications about the payment of property tax to the owner, regardless of who actually uses the premises.
Anna
Hello, I rent premises for personal services, my lease agreement is free of charge. At the moment I received a letter from the tax office about adjusting the declaration for 3 kV. 2018 for my type of activity on imputed income And they ask me to send a lease agreement from 2015 to 2018. The letter says “errors were identified in the documents, or inconsistencies between the information provided by the taxpayer, the information available to the tax authority, and received by it during the tax control “Should the Tax Service ask me for a lease agreement.
Sergey (senior lawyer)
Hello Anna! The tax office has the right to request any documents related to the calculation and payment of a specific tax. If the amount of imputed income and related payments is affected by the parameters of the lease agreements, then you must provide them. If they do not, then you are not required to provide these documents.
Amelia
Good afternoon Please tell me, an agreement has been concluded for the free use of non-residential premises between mother and daughter. The mother, as an individual, transfers non-residential premises to her daughter for free use for a period of 30 years. The daughter registered an LLC, where she acts as the general director (the mother is the chief physician), using the simplified “income minus expenses”. Question: Is it necessary to put a building on the organization’s balance sheet? (it turns out to be rented?) And who pays property taxes and utilities?
Sergey (senior lawyer)
Hello! The agreement was concluded between individuals, so there is no need to put the premises on the balance sheet of the LLC. Property tax must be paid by the owner of the premises. Payment for utilities is, by default, the responsibility of the person to whom the premises were transferred for use, but other conditions may be specified in the contract.
Galina
Hello, please tell me! There was a need to move to a retail store (clothing), where renovations had just been completed, but the store does not yet have the status of a non-residential premises (in the process, and most likely not for a month). I am an individual entrepreneur on UTII. What should I do with the lease agreement, as with the tax?
Sergey (senior lawyer)
Hello, Galina! It is better for you to hold off on concluding a lease agreement, since it does not have the status of non-residential premises. By law, most types of business activities are prohibited in residential premises. Therefore, this is fraught with problems with the tax authorities.
Pauline
Hello! I am an individual entrepreneur and own a store building. As an individual, I rent out part of the store to a legal entity; the state registration of the agreement was carried out in 2012. All this time I reported to the tax office and paid tax as from a trading place. IP on UTII. After a desk audit of the legal entity, the tax office received a request to provide clarifications or to make changes to the tax reporting within 5 days. but according to the Tax Code, the delivery of part of the store does not fall under UTII, and besides, the contract is for an individual, and not with an individual entrepreneur. What are my next steps? and isn’t the tenant obliged to act as a tax agent in this case?
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Sergey (senior lawyer)
Hello, Polina! You can refer in your answer that you rented out the premises as an individual and, in accordance with the agreement, the tenant had to pay personal income tax for you. But there is little hope that such an explanation will satisfy the tax authorities, since the premises were rented out to an organization for conducting business activities and, as a result, it was you who had to file declarations on income from renting out the premises. In this case, the tenant did not have to act as a tax agent. It is better for you to contact a lawyer to deal with a tax audit in more detail, since you have a significant risk of additional taxes being assessed.
Turan
Hello, I do not have Russian citizenship and I have non-residential premises in Moscow. I want to rent it out. How much and how (individual entrepreneur, patent and/or others) should I pay taxes?
Sergey (senior lawyer)
Hello! You need to open an IP. You will pay taxes depending on the tax system you choose. The features of taxation systems are quite numerous; they cannot be covered in a short answer. Therefore, it is better for you to contact a lawyer who will tell you in detail about all the nuances of paying taxes.
Nikita
Good afternoon, please tell me, I am renting a room for a children's development and creativity studio, there is no electricity in the room. Alarms and the like. Tell me, are there any standards for renting premises, what should be in the premises??? And who should install the alarm system?
Sergey (senior lawyer)
Hello, Nikita! There are no legal standards for leasing premises. Each landlord can independently develop such standards, but this is not required. But the legislation contains mandatory requirements for premises for a certain purpose. The issue of installing a fire alarm system is decided by the parties to the lease agreement by mutual agreement, that is, as you agree, so it will be. But usually such issues must be resolved by the landlord, since he is obliged to hand over the premises in a condition suitable for further use.
Alexei
Good afternoon I am the owner of non-residential premises in Moscow, now I want to rent it out and there are options for both a long-term lease agreement and for 11 months. -Do I need to register as an individual entrepreneur or is it enough to pay 3NDFL tax? -Second question? When selling premises, do I, as an individual, now have the right to deduct expenses incurred for the purchase of unwanted premises, or is this right only given for residential real estate? - when choosing an individual entrepreneur of 6 or 15 percent, is the right to a deduction for expenses incurred for the purchase of non-residential premises retained?
Sergey (senior lawyer)
Hello, Alexey! If there is only one premises, then it is not necessary to register an individual entrepreneur. But you need to pay personal income tax on the income received. Tax deduction is provided only for the purchase of residential real estate.
Stella
We are a management organization. we received a request from kumi. kumi asks to provide information about concluded agreements for the maintenance, maintenance and current repairs of the common property of an apartment building with tenants renting municipal non-residential premises. Question: should the management company issue contracts if the tenant registers everything through cumi? If possible, show me the article with labor code
Sergey (senior lawyer)
Hello! This issue is resolved at the discretion of the management company, since KUMI has the rights to request information about economic activity commercial organizations does not possess.
Love
Good afternoon. My mother is a pensioner, at the moment she has an individual entrepreneur on UTII. shop owned. Now he wants to close the IP. I will work in the store, opening an individual entrepreneur. Is it possible to work in this store without rent, simply by registering the right to dispose at your own discretion?
Sergey (senior lawyer)
Hello, Love! Of course you can. If the owner does not object to this, then work as much as you want. The legislation does not say anything about the fact that an individual entrepreneur is required to have any premises for rent.
Eugene
Hello. I am an individual who wants to rent out non-residential premises to an individual. I’m on my own plot for individual gardening, I need to register the premises as property and how to do everything legally. Thank you in advance.
Sergey (senior lawyer)
Hello, Evgeniy! If the non-residential premises are a country house, then it is not necessary to register it. It is enough to state in the land plot lease agreement that the plot is provided for rent along with the country house.
Alexander
The owner - an individual rents out a small non-residential premises of 12 sq.m. The contract period is 11 months. with extension, Do I need to pay 13 personal income tax every year or register an individual entrepreneur?
Sergey (senior lawyer)
Hello, Alexander! In any case, according to the law, personal income tax must be paid. It is not necessary to register an individual entrepreneur, since this activity is unlikely to fall under entrepreneurial activity.
Olga
Good afternoon The owner of a non-residential premises is an individual who wants to rent it out. But he doesn’t want to register as an individual entrepreneur. Can another individual, who is an individual entrepreneur, rent it to us by proxy from the owner? The power of attorney gives the owner the right to manage non-residential premises, including concluding a lease agreement, for a price and on terms at his own discretion, with the right to receive money as rent and dispose of the money at his own discretion, pay taxes, etc. Is this power of attorney recognized as competent and, with this formulation, will income from the rental of the property of an individual entrepreneur, and not the owner of an individual, be recognized? faces? and will the individual entrepreneur pay the tax on his own?
Sergey (senior lawyer)
Hello Olga! No, he can not. A power of attorney can only be issued to conclude a lease agreement, but it will still be concluded in favor of the owner. This individual entrepreneur does not have any rights to rent out someone else's premises. But if you are not bothered by the fact that the agreement will be legally void, then you can use this option to avoid problems with the tax authorities. In terms of income, everything will depend on who will be the lessor in the agreement. If the owner is the lessor, the individual entrepreneur will not have to pay anything.
Galina
Good afternoon I have this unusual situation. Individual entrepreneur on OSNO, engaged in wholesale trade groceries etc. conservation. In 2017, an administrative and management building was built. The ownership of each office is registered to him as an individual. It was assumed that the objects would be sold, but due to the lack of demand, one office is currently leased, and another one is planned to be sold. What to do in this situation and how to keep records? Thank you in advance.
Sergey (senior lawyer)
Hello, Galina! Funds from the rental of premises must be taken into account as income received and used when calculating taxes payable.
Alexei
Hello. I am renting a room, I have written an application to terminate the contract, the contract is 2 months in advance. after 1.5 months, the Landlord entered into a lease agreement for the same premises with a new person. Now I have been billed for the 15 days that the new tenant has been using the premises. The contract with me has not been terminated yet. Are their actions legal in demanding payment for these 15 days? Thanks for the answer
Sergey (senior lawyer)
Hello, Alexey! To answer this question, you need to look at the terms of the lease agreement. Apparently, the contract contains a clause regarding the payment of rental payments in the event of early termination of the contract. In itself, such a condition does not contradict current legislation.
Alexey Krainov
Hello. I am planning to purchase non-residential premises to rent out. While I, as an individual, am acquiring it for myself, in the future I plan to open a private enterprise and will rent it out as a private entrepreneur. Tell me if it’s possible to rent out like this or tell me the best options for what to do regarding renting out
Sergey (senior lawyer)
Hello, Alexey! You can safely rent out premises as an individual. This legislation does not contain any restrictions. For such activities it is not even necessary to register an individual entrepreneur. It is enough to submit a tax return every year.
Natalia
Hello! I am an individual entrepreneur and I rent out non-residential premises to an individual entrepreneur. Payment goes to the bank account. Now the Tenant has stated that they are undergoing a reorganization and will become an LLC. They ask to renegotiate the contract. Will this change anything for me in future activities of renting to them? For financial and economic issues or for payment via bank account? Thank you.
Sergey (senior lawyer)
Hello, Natalia! Fundamental changes should not occur. They may depend on what taxation system the LLC will use. Perhaps they will ask you to provide certain documents relating to the conclusion and execution of the lease agreement.
Raisa
Hello Sergey. I have this situation: I have a trading kiosk in the market that I constantly sublet and paid UTII for it, since the market administration at one time took good fees for installing the kiosk, but they couldn’t re-let it in the lease agreement... This is an agreement of sublease and free use .Since now the tax requirements have become more stringent with the introduction of the cash register, my tenant did not want to work with the cash register, I decided to close the UTII and open a lease by entering an additional qualifier... Tell me, would a lease agreement for non-residential premises between an individual entrepreneur and an individual be suitable in my situation? I want to protect myself, I don’t trade there and I want the tenant to be responsible for his activities? what is the right thing for me to do?
Sergey (senior lawyer)
Hello! A lease agreement for non-residential premises is not provided for by law. Non-residential premises can be rented only on the basis of a lease agreement.
Svetlana
Good afternoon Please tell me what kind of rental agreement needs to be concluded so as not to lose the right to a licensed type of activity? I own a premises, as an individual I rent out to an LLC, where I am the founder, I want to rent out one office to another LLC. This LLC's activities are not licensed. What kind of agreement should I conclude that was without consequences? Thank you!
Sergey (senior lawyer)
Hello Svetlana! If you rent as an individual, then LLC has nothing to do with it at all. You can enter into a regular real estate lease agreement.
Olga
Hello. The LLC rents out part of the premises to a legal entity, the contract is long-term, the numbers of the premises are specified in the contract. Is it possible to apply property tax relief to the remaining premises that are not rented out?
Sergey (senior lawyer)
Hello Olga! It is unlikely, since upon inspection it will turn out that not the entire premises, registered as a single object, were actually rented out, but only part of it.
Marina
Hello! Tell me whether the LLC needs to be included in the Unified State Register of Legal Entities and the charter the new kind OKVED, if you plan to rent out premises owned by an LLC? The main activity is sales and provision of services.
Sergey (senior lawyer)
Hello, Marina! This information must be entered, otherwise there may be problems with the tax authorities.
Natalia
Hello. Can a charitable foundation sublease part of the premises? Foundation on basis. What taxation? VAT and income tax?.
Sergey (senior lawyer)
Hello, Natalia! Maybe if the money received from subletting goes to charity. Earnings received will likely be counted as income when determining income taxes.
Tatiana
Hello! A lease agreement for the building was concluded with one legal entity and registered with Rosreestr. This legal entity is responsible for maintaining the building independently. Now part of the building needs to be rented out to a second legal entity. person by registering with Rosreestr. Can these legal entities independently operate and maintain the building without the participation of the owner. The owner agrees.
Sergey (senior lawyer)
Hello Tatiana! If there is no conflict between the two lease agreements, then the maintenance of the building can be entrusted to these legal entities through appropriate wording in the text of the agreement.
Julia
Good afternoon. Landlord shopping center, Tenant store stationery, on the contrary in mall toy store. The stationery store has expanded its assortment by adding toys, games, construction sets, etc. Question: Does the landlord of a Shopping Center have the right to limit the assortment portfolio of the tenant, referring to the presence in the shopping center of another tenant with the same type of assortment?
Sergey (senior lawyer)
Hello Julia! If such conditions are provided for in the contract, the tenant is obliged to fulfill it. But in the absence of such provisions in the contract, the law does not give the landlord the right to regulate the range of tenants.
Edik
Please tell me I have a municipal premises on lease, I have the right to change the type of activity of my work, I want to change the type of activity for a trade hall for a gym, thank you in advance!!!
Sergey (senior lawyer)
Hello! If the lease agreement does not indicate the intended purpose of the premises and if the purpose changes, there will be no redevelopment or reconstruction, then you can change the type of activity.
Eugene
Hello. I am an individual entrepreneur for a long time I rented a car repair bay on the territory of a car wash. I installed roller gates and paid the security deposit for the last month. There was no agreement; the money was transferred monthly in cash. I decided to move out. I gave 2 weeks notice. Refuses to return the deposit amount and money for the roller shutter, or the roller shutter itself. Is it possible to bring them to administrative or criminal liability or get theirs back?
Sergey (senior lawyer)
Hello, Evgeniy! You can try to contact the police with a statement of arbitrariness, since the owner of the car wash tried to exercise his civil rights in a manner not provided for by law.
Elena
Hello! I am an individual entrepreneur and I own a store. with total area 40 square meters where I carry out trading activities, can I rent out 15 square meters from this area to another individual entrepreneur, these 15 square meters are fenced with a glass display case. I maintain tax reporting as UTII and USN 6 without a cash register. How will I have to report for the space being rented out?
Sergey (senior lawyer)
Hello, Elena! You can rent out part of the premises. You will need to report income from renting out the premises as part of your taxable income.
Magomed
Hello. I live in the Republic of Ingushetia, for my minor orphan nephews aged 10 and 13 I built small room measuring 14 by 5, dividing it into 4 small rooms measuring 12 square meters for renting out for small shops. The premises were built on the children's own territory. Please explain whether it is necessary to pay tax on the rental of such premises and whether it is necessary to register an individual entrepreneur? I act as a private person, as a close relative in a trusting relationship. The total income from all premises is no more than 45 thousand per month and minus the costs of gas, electricity, repairs and maintenance of the premises. The average monthly income is 35-38 thousand rubles in the summer, 30-33 thousand rubles in the winter. I receive all funds in cash and are used to improve the housing and living conditions of children who have a survivor's pension. Mother doesn't work. Thank you!
Sergey (senior lawyer)
Hello! Such activities can be regarded as entrepreneurial, but in any case it is necessary to pay personal income tax, regardless of the registration of an individual entrepreneur.
Magomed
Continuing the topic of Ingushetia - the tax inspector suggested that I conclude lease agreements and present them to the tax office, is it necessary to conclude such agreements with tenants from the point of view of the law, if you do not register an individual entrepreneur and pay tax as an individual, tenants are reliable guys for whom their word is more important than the law? And another question - if possible, is it profitable in this situation to register an individual entrepreneur in order to pay according to the simplified system 6? This is my first time encountering such things and therefore I apologize. Thank you!
Sergey (senior lawyer)
By law, real estate lease agreements must be concluded in writing, otherwise they are invalid. In certain cases, it is more profitable to register an individual entrepreneur and pay 6 on revenue than to pay 13 in personal income tax. But when registering an individual entrepreneur, you will have to draw up written agreements with landlords to confirm the legality of the proceeds.
Magomed
Thanks Sergey for your help. And in conclusion, if I might like to ask one more question, do lease agreements need to be certified by a notary or can they be presented in simple written form? Thanks for the help. All the best!
Sergey (senior lawyer)
All that is required is a simple written contract. It is not necessary to have it certified by a notary. This is stated in Art. 651 of the Civil Code of the Russian Federation. Good luck!
Masha
Hello. Please tell me, if the building is the property of the city, the premises in this building are rented by the municipal unitary enterprise "...", the director of this municipal unitary enterprise can rent out these premises, for example, to an LLC? Or can an LLC sublease from a municipal unitary enterprise or directly enter into a lease agreement with the city administration?
Sergey (senior lawyer)
Hello Maria! A municipal unitary enterprise can sublease premises only with the consent of the lessor under the main lease agreement. The LLC may enter into a lease agreement directly with the administration, subject to termination of the lease agreement with the municipal unitary enterprise.
Irina
Good afternoon, at what point is it necessary to register an individual entrepreneur to rent out non-residential premises if the premises themselves have not yet been built? Is this important for the subsequent sale of the premises?
Sergey (senior lawyer)
Hello Irina! It is advisable before receiving the first money from renting out the premises. The presence of individual entrepreneur status does not have any significance for the purposes of selling property.
Victor
Hello! I am an individual entrepreneur and report using the UTII form. For my work, I enter into a lease agreement for non-residential premises with the owner of an individual. Should VAT be added to the rent?
Sergey (senior lawyer)
Hello, Victor! Renting out property is not included in the subject of VAT taxation. Therefore, there is no need to include VAT provisions in the lease agreement.
Tatiana
Sergey, good afternoon. I am a Lessor, can I rent out one non-residential premises with the consent of the Tenants to two LLCs at the price per m2 established by the company for each? Or do you have to share? One LLC was registered earlier and pays rent per m2, the second LLC is in the process of registering at the same address. What about two? Thank you.
Sergey (senior lawyer)
Hello Tatiana! To avoid misunderstandings, it is better to indicate in each agreement the specific part of the premises leased to each LLC. The law, of course, does not provide direct guidance on this, but by providing the same premises to two organizations at the same time, you not only create uncertainty, but also theoretically risk being prosecuted for fraud. There is also a risk that these agreements will be declared invalid.
Natalia
Hello. An individual rents out non-residential real estate to an organization and does not pay tax. Who is responsible for non-payment of personal income tax - an individual or an organization? If, according to the law, the tax agent of an individual in this situation is an organization, therefore, payment of personal income tax is its responsibility and the organization is also responsible for non-payment?
Sergey (senior lawyer)
Hello, Natalia! Responsibility must lie with the organization, which must calculate and pay personal income tax for an individual.
Angela
Good evening. I am an individual, I rent out non-residential premises, the lease agreement was concluded for 11 months. Do I have to pay tax?
Sergey (senior lawyer)
Hello! You are required to pay personal income tax 13 on the income you receive.
Dina
Hello! I would like to clarify one question. I saw a situation similar to ours: an individual subleases land to an LLC. plot for the same price, which costs 15,000 rubles. The individual receives no income. But what about the duty of a tax agent? After all, an LLC is obliged to withhold and transfer personal income tax? Should it really concern us where and how much an individual transfers the payment received from us? Or can we show both agreements to the tax office so that we don’t have to pay additional taxes later? Thank you!
Sergey (senior lawyer)
Hello! Formally, in accordance with tax legislation, the LLC is obliged to withhold personal income tax and transfer it to the budget.
Victoria
Good afternoon Please tell me what the fine is for renting office space to several legal entities at the same time?
Sergey (senior lawyer)
Hello, Victoria! Administrative liability for this type of action has not been established. But under certain circumstances, the landlord may be held criminally liable for fraud. Also, in civil proceedings, the defrauded tenant may demand compensation for damage and losses caused to him.
Galina
Hello! I am an individual who owns non-residential premises. Can I rent it out to myself since I am registered as an individual entrepreneur under a free-of-charge agreement? How to draw up an agreement so that there are no claims from the tax office. Sincerely.
Sergey (senior lawyer)
Hello, Galina! According to the law, such an agreement cannot be concluded, since both parties to the agreement will actually be one person, that is, you.
Galina
Hello! Sergey, thanks for your answer. I am 67 years old, I think that I can rent out one premises without forming an individual entrepreneur. On the same basis, I believe that it is possible to conclude an agreement between me and my individual entrepreneur, who is located on UTII, for the free use of this premises, since it will not generate income for me. A civil agreement - of a failed nature. According to Article 608 of the Civil Code of the Russian Federation, the owner can rent out his property. Obtaining the status of an individual entrepreneur does not impose an obligation on a person to additionally transfer property to his individual entrepreneur. The only differences appear in the system of taxation and social benefits. Please tell me if I think correctly. Best regards.
Sergey (senior lawyer)
It doesn't matter that you won't receive income. In accordance with Art. 413 of the Civil Code of the Russian Federation, the obligation is terminated on the basis of the coincidence of the debtor and the creditor in one person. You cannot rent out property to yourself, either for rent or for free use.
Andrey
Good afternoon! As an individual, I am the owner of commercial real estate. I rent out real estate to an LLC as an individual. I have my own LLC, where I am the only founder and director. Can I draw up a lease agreement between two LLCs or do I need to register an individual entrepreneur? And if so, what is more profitable: an LLC agreement with an LLC, an individual entrepreneur with an LLC, or an individual with an LLC? Thank you!
Sergey (senior lawyer)
Hello Andrei! In order for an LLC to rent out premises, this property must be owned by the LLC or leased with subsequent sublease. Therefore, at the moment you will not be able to rent out the premises on behalf of the LLC. The most convenient option will be the current scheme, since there will be no need to include the premises in the assets of the LLC or carry out appropriate tax accounting.
Andrey
Continuing the topic. What if I, as an individual, have an agreement with an LLC for the right to use it free of charge? and based on this agreement, the LLC will enter into a sublease agreement
Sergey (senior lawyer)
This option is acceptable, at least it does not contradict the law.
Nellie
Hello! The landlord, who has the status of an individual entrepreneur, has been renting out parts of the premises to different tenants for retail trade for a long time. He collected the rent in cash and did not issue payment documents. I sold the premises a year and a half ago. And now it turned out that through the court. I was charged with about 100 thousand in debt, supposedly this money was not paid... Is it possible to prove the opposite and how legal is this? Thank you in advance.
Sergey (senior lawyer)
Hello! It is possible, but it will require painstaking work to study documents and other evidence. In court, it is necessary to prove the existence of abuse of the rights of the landlord. This can be proven by the fact that he never demanded money. If there was a debt, he could terminate the contract or, at a minimum, constantly remind him of the debt. Depending on the specific circumstances, defense tactics should be built. It is best to get a professional lawyer on your side.
Oksana
Hello, we are two individuals, owners of non-residential premises in equal shares. We would like to rent out non-residential premises to a legal entity. To do this, we will open an IP simplified tax system or a patent for one owner. Is it permissible to conclude a lease agreement from only one of the owners, what powers of attorney are needed in this case, an agreement from the second owner in favor of the first? Payments from a legal entity will be transferred to the individual entrepreneur’s account and the individual entrepreneur will pay taxes on income. Or is it necessary to enter into an agreement with multiple persons on the lessor’s side and the legal entity will pay rent to two lessors equally and each must pay tax on their income?
Sergey (senior lawyer)
Hello, Oksana! In order to rent out the entire premises, in any case, it is necessary to obtain the will of the second owner. It can be expressed in the form of a power of attorney to the first owner to conclude a lease agreement on his behalf. The second method was also indicated by you. But even in the first case, the first owner is not exempt from the obligation to pay taxes.
Lera
Hello. Tell me whether the landlord can enter into a lease agreement with two legal entities. if one was concluded a little earlier, and medical services are provided there until June 1, and the other company needs this agreement only for the time being to obtain a license and the agreement states that actual use begins only from June 1, subject to obtaining a license. Thank you in advance
Sergey (senior lawyer)
Hello! The legislation does not contain a ban on concluding such agreements. You just need to indicate in the second contract from what time the lease will begin. You can also enter into a preliminary agreement with a second company.
SERGEY
Hello! We, an LLC under the simplified tax system, rent municipal non-residential real estate, and we want to rent out part of the premises for an office to another LLC. What tax should we pay?
Sergey (senior lawyer)
Hello, Sergey! None. Income from the rental of property will be included in income to determine the tax base under the simplified tax system.
Sergey
Good afternoon We are VAT residents and want to rent non-residential premises from an employee. What tax do you end up paying???
Sergey (senior lawyer)
Hello, Sergey! In this case, VAT is not allocated or paid.
Sergey
Thank you
Elena
Good afternoon If I have, like a physical. persons have commercial real estate. I want to use it for personal purposes: a dance studio, where I will teach a subscription system. Plus, I want to rent out the gym hourly to other instructors. What taxes do I need to pay and which tax system should I choose? Thank you!
Sergey (senior lawyer)
Hello, Elena! Everything will depend on how you formalize your activity: individual entrepreneur or LLC. Each type has its own taxation characteristics.
Valery
Hello, I want to buy a premises with a municipal unitary enterprise as a tenant, the lease agreement specifies the price including VAT. Will the rent be reduced since I am not a VAT payer. Thank you.
Sergey (senior lawyer)
Hello, Valery! This issue must be resolved by agreement with the tenant through the conclusion of an additional agreement.
Yuri
Hello! I am a private individual, the owner of a new office. I intend to rent out the office to a legal entity. What do you recommend, registering an individual entrepreneur to pay tax 6, or is it better to file a personal income tax return at the end of the year? If the latter, then how can I prove to the fiscal authorities during the first year of rent that I plan to subsequently submit a declaration and pay the taxes due?
Sergey (senior lawyer)
Hello, Yuri! It will be safer to register an individual entrepreneur. And it will be easier for tenants to work with an individual entrepreneur rather than with a private owner. In addition, in fact, your activity is entrepreneurial and there is a risk of being held accountable for illegal business.
Olga
Hello. I am an individual entrepreneur and registered a few days ago. I have not yet registered with the tax authorities. I want to rent space for a store. The owner of the premises is not an individual entrepreneur. Can I enter into a rental agreement with an individual? What does this mean for both sides?
Sergey (senior lawyer)
Hello Olga! You can enter into an agreement with an individual. This is not prohibited by law. There will be no negative consequences from this.
Valentine
I am the owner of a non-residential property that I want to rent out. But I don’t want to register as an individual entrepreneur. Can my nephew, who is an individual entrepreneur, take it? Do I need to somehow formalize my relationship with my nephew? What tax will he pay?
Sergey (senior lawyer)
Hello, Valentin! A nephew can rent if he himself officially receives the right to use the premises, for example, if he takes it from you for free use. A lease or free use agreement must be concluded between you. His taxation will be determined by his chosen tax payment system.
Artem
Good afternoon I am an individual entrepreneur renting premises from a federal state unitary enterprise, the contract contains a clause for sublease. I want to rent out part of the premises. I do household services and want to rent it out as an atelier. I work according to the simplified tax system. How and what kind of agreement should be drawn up so that it is legal and the lessor does not have grounds for terminating the agreement? What should I do? Thank you.
Sergey (senior lawyer)
Hello, Artem! If the owner has prohibited the sublease of the premises, then no other agreements can change the situation: such an agreement can easily be declared invalid.
Contents [Show]
Owners who have available square meters are usually faced with the question of how to successfully rent out the premises. Be it an apartment, office, warehouse, etc. the owner always wants to get the maximum benefit with minimal costs: that is, rent it out as expensively as possible, pay as little taxes as possible, and also not have to pay commissions and the premises themselves remain safe and sound. Believe me, this desire, although understandable, is impossible.
Instructions
It is not always possible to rent out premises at an inflated price even
agencies
The fact is that such square meters are in demand among a narrow number of tenants. That is, if your premises meets all the requirements of the renter (as a rule, these are some specific features), then he may agree to your proposal. But you can wait a very long time for such a customer. Therefore, it is better to start from the average market price when assessing your
premises
As for the preservation of the premises in their original form, this is unrealistic. Even the most careful tenants will inevitably cause at least some damage to it while using it (from basic dirt to damage to the finish). If your premises are very dear to you, then stipulate compensation for damage to it in the contract.
It follows from this that when formalizing
with a tenant, you will no longer be able to avoid taxation of your income from renting out the premises.
And in order to quickly find a tenant who will suit you and who will be satisfied with your premises and its price, and avoid a lot of problems,
better contact
to a proven agency with at least 5 years of experience.
The first thing you should do is find a good rental agency
real estate
An agreement for the provision of services must be concluded with this organization. As a rule, there is no commission charged to the landlord. Next, the agent will ask you to show him your premises, after which he will be able to determine the amount you can expect. The agent will also suggest the best way for you to receive
rental
fees. Usually for commercial
real estate
Payments are made quarterly, but for residential - monthly. If there are no valuables in your premises, you can safely leave the keys to the agent, who will show it to future tenants without interrupting your work. And the last step is getting to know the tenants and concluding an agreement with them
Offer from our partner
Sources:
- how to rent out offices
If you have extra square meters, then let them bring you income. Rent out your apartment. Renting an apartment is not a simple matter and you need to approach it armed with as much knowledge as possible.
Instructions
The very first thing is to estimate the cost of rent. This can be done simply. View rental advertisements
the same type and size as yours. In addition, the cost of renting a property is affected by its location. That is, the same
apartments
Prices will vary in different areas.
The next thing you will encounter when renting out an apartment is finding tenants. In this case, there are two ways to proceed: hire a realtor or start searching on your own. Both methods have advantages and disadvantages. By hiring a real estate specialist, you are freed from searching - all you have to do is meet tenants on the spot. But at the same time you will have to fork out for the services of a realtor. Although many realtors offer free services to tenants, because they will take their commission from the tenants. If you decide to search on your own, then you will need to place an advertisement for renting an apartment. But first, interview your friends and, for sure, they will have someone willing
to rent an apartment
When you find a suitable tenant, under no circumstances conduct settlements with him on a trust basis. When renting out an apartment
is standard contract, where the term and subject of the contract, rights and
responsibilities
parties. All passport data must be recorded. The following describes the condition of the apartment this moment. Describe the property you are transferring for use. Also provide for penalties in case of damage. Be sure to provide for the possibility of changing the payment for
The contract must necessarily contain a clause stating who has the right to be in
apartment
How can you visit it? Some unscrupulous tenants may rent
apartment
for sublease, but not to live in this territory. There are even developed fraud schemes related to subletting. Your tenant can invite several potential subtenants, collect advance payments from them, and disappear. If they go to the police, you can't avoid trouble.
Any lessor bears certain
when renting out an apartment. The main problem is when the tenant does not pay rent. To prevent such situations from arising, draw up the contract correctly. It is necessary to provide for the procedure for settlements and collection measures in the event of a situation of insolvency of the tenant. Decide who will pay communal payments: you, or the tenant. This point must also be fixed in the contract.
Renting an apartment in
can be a great opportunity to get an additional source of income, but in order to avoid problems in the future, it is better to contact professionals who can take into account those nuances that you have not even thought about.
Tenant for a vacant lot
office you can find it yourself by advertising on various media (print media, online boards advertisements, billboards, if these costs are justified by the cost of rent, etc.) or resort to the help of intermediaries. In any case, it is better to participate in person in showing the premises and discussing the essential terms of the lease.
You will need
- - documents confirming your right to dispose of the office;
- - services of real estate agencies or resources for advertising;
- - text of the lease agreement.
Instructions
Monitor the market situation. To do this, analyze
price
The rental price is definitely affected by the location
office, convenience of transport links (both by car and by public transport), availability of a telephone and the number of lines, Internet.
The number of rooms, the possibility of dividing space with office partitions, the availability of parking, air conditioning, etc. also play a role.
If you prefer help
intermediary
Discuss with him as thoroughly as possible mutual obligations, the amount and procedure for payment for his services, etc. Secure all the essential points in the contract.
When searching on your own, create an advertisement with the most detailed description of the proposed option and place it on as many popular resources as possible.
If you have
owned
business center or more
premises
rent- your specialization, special employees will negotiate with tenants. Otherwise, think about your contacts. Perfect option- separate phone number and email
For unhourly calls, connect an answering machine.
Be prepared to make appointments with tenants and show them documents confirming your right to
manage the office, answer their questions, including not the most convenient ones. Think about how you can minimize the effect of possible negative factors.
With the tenant who has made a choice in favor of your offer, discuss in detail mutual obligations, the amount, procedure and terms of payment, the lease term and the possibility of its extension (usually contracts are concluded for a year with the possibility of automatic extension) and other essential conditions.
Secure all this in the lease agreement. The standard text of the latter can be easily found on the Internet and modified to suit your own needs.
After concluding the contract, do not forget to accept
rental
payment, if necessary reminding about its deadlines, and periodically check the condition of the premises.
In the modern business model, it is common to build a business from scratch for its subsequent resale. Once open shop, cafe, salon, begins to generate a stable income, the owner sells it or rents it out rent for a long time. This model is beneficial to both parties; the owner acquires the source passive income, and the owner (tenant) - ready business without significant material and time costs.
Instructions
To pass
shop V
rent, it is necessary to draw up a corresponding agreement. When drafting it, try to provide as much as possible for possible solutions to various legal issues, as well as potential controversial aspects. Lease agreement
shop and, in accordance with the civil legislation of the Russian Federation, differentiated as a building lease agreement
and structures
(premises). So,
shop accepted
non-residential premises. In its turn
the room is
real estate object
Which is integral part buildings and structures.
Lease contract shop and most often it is bilateral and is concluded between the landlord on the one hand and the tenant shop and on the other.
The lessor is usually the owner
shop and (sometimes specially authorized
owner
face). Virtually any legal entity, naturally capable and legally capable, can become a tenant.
Lease contract shop and is concluded for a period of no less than one year. Such an agreement must necessarily undergo state registration of the lease right.
agreement
shop and the parties concluding the agreement and their details must be indicated; information about property transferred to
rent(address, name of the rental object, inventory number, purpose
shop ,
Rent amount).
successful
state registration of the lease agreement, it is necessary to attach cadastral passports of both the relevant building (structure) and the premises itself, indicating
rent total area.
There are standard (standard) samples of lease agreements non-residential premises, including those used for
shop. However, in order to avoid circumstances undesirable for both parties, be sure to show
your contract to a lawyer.
Sources:
- rent out a grocery store
Extra living space can bring a good monthly income to its owner, if you follow simple rules when renting it out, which will help to significantly increase the rent.
You will need
- - furniture;
- - repair.
Instructions
To get the maximum benefit from renting out excess living space, do not use the services of intermediaries. Although most of them receive their percentage from the tenant, your rent amount can still be significantly reduced, since there is unlikely to be a tenant willing to pay very a large sum for your housing, if a similar apartment is rented nearby first-hand and the rental price is significantly lower.
If you are not busy with work, rent out the apartment
daily
This will help you increase your income several times. Persons who have permanent job It is extremely undesirable to engage in this method of generating income, since you will have to constantly “hang” on the phone, constantly show clients the apartment, hand over and pick up keys and receive rent, which is completely unrealistic to do with systematic employment.
Can bring good income
renting an apartment
one room at a time. If your home is spacious enough, all rooms are isolated, then this option is worth considering. The only drawback is the constant change of tenants. If some move out, you will have to look for other tenants and the room may remain empty for some time, which will affect the total amount received from renting out housing. In addition, this option is completely unsuitable for apartments with adjacent rooms and for small-sized housing.
Cosmetic renovations or spring-cleaning. The first impression of a sparklingly clean apartment allows you to call the initial amount of rent higher than if the apartment contains dirt and rubbish from previous residents.
Before renting out your home, pay special attention to lighting. If there are not a single light bulb left after the previous residents, screw them in in all rooms, in the hallway, kitchen and bathroom. When inspecting the property, you will be able to turn on the lighting in all rooms. This will help create the first impression that, upon moving into the apartment, you won’t have to immediately deal with minor household problems.
A furnished apartment equipped with household appliances always costs significantly more than a completely empty home. After all, many tenants, moving from place to place, do not have bulky furniture and household appliances. Therefore, they are looking for housing that is equipped with everything they need, and are willing to pay much more for it.
Possibility of renting in rent non-residential premises depend on the purposes for which it is suitable: for production, warehouse, office, store location. Its size and various additional factors also matter. Based on all this, you can understand to whom and in what way it is better to offer it: large or small business, manufacturing, trading or other company, etc.
You will need
- - documents confirming the right to legally dispose of the premises;
- - advertising placement services;
- - lease contract.
Instructions
Start with who your potential tenant will be. This will help you choose those advertising
sites
Where exactly your consumer will be found. The law of the market is known: supply must be where there is demand for it.
Analyze various factors affecting the price
This is, first of all
Location, convenient transport links, availability of various additional functions.
room, due to which it is possible to smooth out certain shortcomings.
The price and expected benefit will help you understand the limits of your advertising budget. For example, one office with an area of about a dozen or two
room m under a supermarket or business center the picture may be different.
Create an ad that highlights the aspects of your option that are significant to the consumer, and place it on resources that the consumer is guaranteed to read. This could be various print media and bulletin boards.
real estate
So do industry publications and network resources, including professional social networks, forums, etc. They may have special sections for such proposals.
Be ready to meet
with tenants
Show them
room, answer tricky questions, demonstrate documentary evidence of your right to dispose of this property.
With the tenant who has made a decision in your favor, discuss in detail all the essential conditions (
payment, rental period and the possibility of its extension, your and the client’s obligations, etc.) and reflect them in the contract.
A standard lease agreement can be easily found on the Internet and modified to suit your needs.
In the future, you only need to monitor the timeliness of receipt of payment and periodically check the status
premises
Sources:
- non-residential premises for rent
To submit to rent any free area, whether residential or commercial, you can contact a real estate agency or find a tenant yourself. In the second case, it is effective to post information in print media and on the Internet on those resources that are visited by potential tenants from the area where the property is located.
You will need
- - documents confirming your ownership of real estate;
- - computer with Internet access;
- - money to pay for the services of realtors and/or posting ads on paid resources;
- - telephone and email for communication.
Instructions
Even if you do not want to resort to the help of realtors, it will not be superfluous to visit several agencies and consult about the price of renting your
areas
and the factors influencing it. It may not be superfluous to take certain measures that give grounds to request more. For example, connect additional telephone lines, wired Internet, etc., depending on the situation and nature
area .
If you prefer to entrust the search for tenants and initial contacts with intermediaries to intermediaries, meticulously ask about the terms of cooperation: price, payment procedure for agency services (ideally after moving in
tenant
In other cases you should
think)
guarantees
When searching on your own, prepare ad texts of varying lengths. Your task is to contain as much essential information as possible in a minimum amount of text, giving a complete picture of the areas for rent. Often its solution is facilitated by generally accepted, understandable abbreviations.
A separate issue is contacts. A separate symbol will help you save your nerves and insure yourself against untimely calls.
You can insert it into your phone only at times when it is convenient for you to receive calls, but for others (which there will definitely be)
use
answering machine.
This function is also convenient after
areas. It will be enough for you to turn off the phone by writing on the answering machine that
It will also be useful to have a separate email address for correspondence with tenants.
As you receive calls from tenants, arrange viewings and rental periods with them. Be prepared to accompany them as they tour your premises and answer a variety of questions, including awkward ones.
Try to look at the premises through the eyes of a potential tenant: what suits you about it, what doesn’t and why, think about how you can minimize the negative aspects.
Prepare also
documentation
area, confirming your right to legally dispose of them (certificate of ownership, power of attorney from the owner, etc.) in order to present them upon request.
With a tenant who is suitable for your option, enter into an agreement, which specifies the rental period, the possibility of extension, the amount, procedure and terms of payment.
And, of course, do not forget to accept payments, reminding if necessary that it is time to make another one (although, of course, preferable
tenants
With which this procedure is not required).
A correct understanding of how a lease differs from a sublease will help any property owner or person wishing to obtain one room rent, avoid financial risks. IN sublease The area or real estate is transferred only with the consent of the owner, which is confirmed by a package of documents. If you decide to issue room V sublease, then you must follow clear instructions.
You will need
- - originals of registered agreements according to the number of participants in the transaction and an additional copy;
- - notarized constituent documents of the parties to the agreement;
- - a copy of the document confirming ownership;
- - cadastral passport, explication and extract from the technical passport.
Instructions
Never forget that all transactions must be in writing. It is the contract that serves as protection for you from all kinds of fraud on the part of third parties.
Concluding an agreement
sublease
You should check out
primary
lease agreement and ask the sublessor for permission
owner
room secondary. Remember that if
owner
was not informed about this or for some reason did not include this clause in the contract, then you have no right
design
room V
sublease, because it will be illegal.
Be careful: the sublease agreement cannot last longer
lease agreement
If you ignore this rule you will have to leave
room sooner than you thought. Accordingly, you will suffer losses and pretty much fray your nerves.
To register an agreement, you must “collect” the following package of documents: originals of registered agreements according to the number of participants in the transaction and an additional copy; notarized constituent documents of the parties to the agreement; copy of the document confirming the right
property
; cadastral passport, explication and extract from technical
passports
Remember that collecting documents will take you some time, so take care of everything in advance.
note
Sometimes subletting premises involves complex and confusing situations. Never take people's word for it. The best way out of such situations is to contact a qualified lawyer who will help you draw up a sublease agreement in accordance with established regulations.
Helpful advice
It would not be amiss to remind once again that the sublease agreement is registered with the consent of the owner, therefore it is necessary to obtain his permission in the form of a letter and provide a notarized copy of the registered lease agreement.
Non-residential premises. especially for commercial purposes, are in demand: every day new companies and projects are created that need to have an office or trading platform somewhere. In order to profitably rent out non-residential room, it is important to navigate market prices and conclude a competent lease agreement for non-residential premises.
Instructions
As a rule, change
non-residential premises
carried out in two ways:
acquaintances;
2. rental through a specialized agency.
Each of these methods has its advantages and
The main advantage of the first one is
owner
knows who he's renting to
room and considers them reliable people. Its disadvantage follows from its advantage:
reliable acquaintances may let you down, and relationships with them will deteriorate. Damage to relationships includes losses caused by their activities. The advantage of the second method is that the relationship with the tenant will be purely business.
non-residential premises
of the same area differ depending on its location - the region,
And also depending on its condition and purpose. This is worth keeping in mind when setting your price. The location in the city center or not in the very center, but in an elite building is a reason for setting a high price.
Particular attention should be paid to concluding a lease agreement
non-residential
premises. According to civil law, the lease agreement must be in writing. If it is concluded for a period of more than 12 months, it is subject to state registration. The essential terms of the lease agreement are as follows:
1. subject of the contract (it is important to clearly identify
room, indicate its address, area, cadastral or conditional number, etc.).
2. condition regarding rent. This condition is not significant from the point of view of civil law, but it is important in commercial transactions.
In addition to these conditions, the parties have the right to determine other conditions that will be significant. It should be remembered that in the absence of essential conditions, the lease agreement will be considered not concluded.
If for some reason you have a free garage, it can be rented out. Change garage and may bring a small replenishment of the family budget, so you can start looking for a potential tenant. But don’t rush to rent out real estate to the first person you come across and generally be careful when renting out garage and problems and unpleasant situations may arise.
Instructions
Before you give
announcement
in the newspaper or hang them around, remove them from
garage and all valuables. Also clear the room of any rubbish and other things.
Untidy
garage and do not really attract motorists with new and expensive
cars
old cars
people are used to leaving them under the window of their own home.
After you have found a tenant, agree on the amount and delivery date garage as well as the terms and date of payment. Don’t forget to draw up a lease agreement, it will insure you against unpleasant incidents, because, in extreme cases, you can go to court or the police. You should have two copies of the agreement, one for you and one for the tenant.
Submit an application to the tax office about what you are renting
garage. Bypass
very dangerous if the tax office reveals the fact of delivery
garage And if there are no deductions from profits, you may have major problems with huge fines. You must pay 13% of the amount you receive for change
garage A. Once a year you will have to visit the tax office and submit an income tax return.
Monitor the condition of the premises and collect rent on time. If money is delayed, resolve it privately. Not always
simply refuses
Sometimes there are significant reasons for this
grounds
such as delay wages and other unforeseen situations.
How to rent out a room
Renting non-residential premises, for example, for a store, involves searching for a suitable property and concluding a written agreement. It is necessary not only to fill out all its sections correctly, but also to follow the exact sequence of actions. How to rent out non-residential premises correctly from a legal point of view?
Legislation
Issues of leasing non-residential properties are regulated by the Federal Law “On State Registration of Rights to Real Estate and Transactions with It” and the Civil Code of the Russian Federation. According to the law, non-residential objects include those that are part of buildings, but are not suitable for living.
The owner can independently rent out non-residential premises on a contractual basis. It can only be in writing. If the lease is for a period of up to 12 months, the agreement does not have to be registered. If the lease is issued for a period of more than 1 year, the agreement should be registered in the prescribed manner with Rosreestr. Landlords undertake to pay taxes on rental income within the time limits established by law.
Sequencing
The owner has the right to rent out non-residential premises in apartment building, in an office or shopping center. It is necessary to know the sequence of actions that must be followed by both parties to the transaction.
Selection of real estate
Finding a suitable property is the most difficult stage. The tenant selects premises based on parameters such as transport accessibility, infrastructure and traffic. The search can be carried out through real estate agencies and specialized websites. Experienced businessmen devote a lot of time to this process.
The non-residential real estate market is divided into premises for the following purposes:
- Office;
- Trading;
- Production;
- Warehouse.
It is necessary to initially decide on the type of property, location, number of floors and area. It is easier to formulate a query when this data becomes clear. After selecting several options, the future tenant inspects the premises. This is a necessary step. The landlord must present the premises from its advantageous perspective. But you should not hide existing shortcomings, as they may appear later. This could lead to the termination of the lease agreement.
If there is no time to search for premises, the tenant can delegate this work to a trusted person or intermediary. All details and required parameters are provided. These are paid services that are paid in the amount of 50 to 100% of the monthly rent. An agreement must be concluded with the intermediary. Payment must be made after selecting a suitable premises.
A thorough study of the issue does not always guarantee a positive outcome.. On our website you can for free get the most detailed advice on your issue from our lawyers via the online form or by phone in Moscow ( +7-499-350-97-04 ) And St. Petersburg ( +7-812-309-87-91 ) .
Conclusion of an agreement
It is better to involve a lawyer in this process. He will help you draw up the contract correctly and explain controversial issues, as well as check the legal purity of the transaction. You can do this work yourself. Before signing the contract, you must request the following documents:
- property documents;
- floor plan;
- owner's charter documents.
After checking the documents, you should discuss the terms of the lease. They may relate to the following points:
- payment of utility bills;
- the amount of rent;
- deadline for delivery of the premises;
- availability of telephone communication and Internet access;
- carrying out repair work;
- conditions for termination of the contract.
It is important to discuss which party is assigned each item and within what time frame the obligations are fulfilled. The agreements reached are stated in the contract or in the form of additional agreements to it.
It is important to include a clause in the contract regarding actions in the event of force majeure.
Download the lease agreement for non-residential premises (sample 2018)
Signing the contract
It is better if the tenant and the landlord sign the agreement in person without intermediaries. In this case, it is easier to resolve controversial issues; the parties can make some concessions. When drawing up a contract, it is important to fully include information about the property. They must include the full address, floor, area of the premises. The agreement should be accompanied by a floor plan. Only in this case can the agreement be considered valid.
The agreement is signed in 2 copies if the lease is provided for a period of up to 12 months. If a long-term lease of 1 year or more is planned, 3 copies of the agreement are signed. One copy each remains with the landlord and the tenant. Another copy remains with the registrar.
Transfer of premises
After signing the contract, a transfer deed is drawn up from the landlord to the tenant. The day it is signed will be considered the beginning of the lease. The act is signed only after the premises have been completely inspected. If a malfunction is discovered during inspection, it is recorded in the report. This allows you to avoid unnecessary expenses in the future.
The analysis allows you to require the tenant to eliminate defects and malfunctions and reduce the rent. Therefore, it is better for the owner to tidy up the premises and communications in advance. After signing the transfer deed, the tenant can fully use the premises and conduct entrepreneurial activity.
According to current legislation, the contract must contain the following basic conditions:
- The parties to the agreement are the tenant and the landlord. In accordance with Art. 608 of the Civil Code of the Russian Federation, the right to rent out non-residential premises belongs to the owner.
- Subject of the agreement. Detailed characteristics of the premises are indicated. In accordance with paragraph 3 of Art. 607 of the Civil Code of the Russian Federation, in the absence of them, the agreement is considered invalid.
- Terms of use of real estate. They can be recorded in as much detail as possible. It is indicated who is obliged to carry out cosmetic and major renovation.
- Payment. The payment amount is fixed. Without this, the contract is considered gratuitous, and this is not permissible for rental agreements.
- Validity. It is determined by the parties by mutual agreement. If it is not specified, the contract will be considered concluded for an indefinite period.
A contract whose validity period is less than 12 months is not subject to mandatory registration. If, after its expiration, another agreement is concluded for a similar period, registration is also not required. An agreement for a period of 12 months is subject to mandatory registration. But it is important to take into account that, based on Articles 619 and 620 of the Civil Code of the Russian Federation, early termination of the contract is possible.
Sublease
The tenant can transfer the real estate under a sublease agreement. But this is possible only with the consent of the landlord, who is the owner of the property. The sublease agreement must also be registered in accordance with the procedure established by law.
But it is important to consider that early termination of the lease agreement is possible. Both the landlord and the tenant have this right. In fact, the parties to the transaction have complete freedom of action. But the contract must contain the grounds on which early termination is possible.
There are the following features of sublease:
- The validity period is limited to the duration of the lease agreement with the owner;
- If the lease agreement is terminated, the subtenant has the opportunity to renew the agreement with the owner before the end of the sublease period on the same terms;
- If the contract is concluded for a period of 12 months or more, it must be registered.
The following rights and obligations of the tenant are highlighted:
- Monitoring the use of premises for their intended purpose.
- Timely payment of rent.
- Carrying out repairs by agreement of the parties.
- Maintaining the premises in proper order.
- Drawing up a transfer deed with the subtenant.
In case of any violation of accepted obligations, each party to the transaction has the opportunity to terminate the obligation before the end of the contract.
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Required documents
For contracts concluded for a period of 12 months or more, state registration is carried out. To do this, the following package of documents is generated:
- application of the established form;
- lease agreement with all attachments;
- cadastral passport;
- Russian passports - for individuals, title documents - for legal entities;
- power of attorney, if the documents are submitted by a representative;
- notarized consent of the spouse, if the object is jointly owned or was acquired during marriage;
- permission from the guardianship and trusteeship authority, if the property is registered in the name of an incapacitated or minor citizen;
- written permission from the pledgee if the property is pledged;
- receipt of payment of state duty.
Taxes
Taxes are provided for the rental of non-residential premises. The optimal tax regime is a simplified taxation system. Special tax regimes not only make accounting easier, but also have a lower tax burden. The following features apply:
- if the cadastral value is determined and a special regional law is in force, tax is paid on office, administrative and retail real estate;
- locally the rate is 2%.
If a special law has not been adopted at the local level, the following rates are established for entrepreneurs using the simplified taxation system:
- simplified tax system 6% - from total income;
- STS 15% - from income minus expenses.
If the organization is on the general taxation system, a high tax burden is established. In this case, the rental business is not profitable. Traditionally, three main taxes are established:
- on the profit of the organization and personal income tax for individual entrepreneurs - 20% for legal entities and 13% for entrepreneurs;
- for property – 2% based on the cadastral value and 2.2% when calculating the residual value;
- on added value - 18%, if quarterly revenue is more than 2 million rubles.
How to avoid paying taxes on income received from renting non-residential real estate? On the one hand, the legislation establishes the obligation to pay taxes on all lease agreements. If the contract is drawn up for a period of 1 year or more, it is registered in Rosreestr. This information transferred to the tax service in accordance with the information exchange agreement. If the agreement is drawn up for a period of up to 1 year, the tax service will have to prove the fact of lease, which is not always possible.
Does an individual need to register an individual entrepreneur?
Current legislation provides for administrative and criminal liability for carrying out illegal business. Criminal liability is established if illegal business activities are carried out or large profits are made in the amount of 1.5 million rubles.
When a violation is found, judges take into account the person’s specific circumstances and many other factors. As a rule, there are no problems in the case of renting an apartment or country house. If a non-residential property is for rent, several signs of entrepreneurial activity can be identified. If the premises are purchased directly for rent, the activity requires registration, as it is recognized as entrepreneurial.
The same applies to long-term leases or contracts that are renewed multiple times. This sign is interpreted as a fact of systematic and intentional profit-making from the ownership of a non-residential property. If these signs are detected, the citizen is recommended to register an individual entrepreneur. In this case, the tax is 6% of the total income. Personal income tax is 13%.
The owner of the premises must file tax returns annually.
Thus, renting non-residential premises has its own number of features. It is necessary to draw up a legally competent agreement, provide for all the specifics of the agreement and pay taxes on time. This will allow you to avoid problems in the future and legally make a profit.
How is non-residential premises rented out? What laws govern this process and what conditions must be met for a commercial real estate lease transaction to be legal and legal for both parties? Read about this in our article.
The procedure for leasing non-residential properties is a form of property agreement, according to which the lessor (owner of the premises) transfers the property to the lessee (tenant) for temporary use on rental terms. Most often, such rental transactions are made between legal entities or individual entrepreneurs. The procedure for leasing non-residential premises is regulated by the Civil Code of the Russian Federation, the Federal Law of the Russian Federation “On state registration of rights to real estate and transactions with it.” In accordance with the Civil Code of the Russian Federation,
lease contract
Which is concluded for a period of less than 12 months, is not subject to state registration, while an agreement executed for more than a year must be registered with the competent authorities.
Various structures, buildings as a whole or individual premises included in the non-residential stock are subject to rent. Certain elements of the premises are not subject to rent (for example, the basement, roof, flight of stairs, etc.). The non-residential premises are transferred to the tenant along with documents and keys, otherwise the contract is terminated on the basis of the lack of conditions for operating the premises.
Renting non-residential properties: paying taxes
Renting out any residential or non-residential premises is directly related to the issues of paying taxes on the profits received. Many responsible owners of premises, in particular individuals, are interested in answers to questions - how much tax should be paid, whether it is necessary to register as an individual entrepreneur, and many others. Let's try to understand all the intricacies of leasing non-residential properties.
So, do you need to pay tax when renting out non-residential premises?
Every landlord, whether an individual or a legal entity, is required to pay tax on the profit received from renting premises!
In accordance with clause 4 of clause 1 of Art. 208 of the Tax Code of the Russian Federation, rent for the use of premises is income from which the owner of the premises (individual) must pay
personal income tax (3-NDFL)
The amount of which is 13% of the total amount received during the contract period.
It is worth noting that concealing the fact of leasing residential or non-residential premises often results in the collection of the entire amount of tax for the owners, and in addition, fines in the amount of 20% of the unpaid amount and penalties in the amount of 8% per annum.
It is not difficult for the tax service to find out that residential or non-residential premises owned are being rented out: the sources can be regular bank transfers to a card in a certain amount (usually more than 100 thousand rubles monthly), direct information to the tax authorities from the tenant, and other reasons that serve as excellent leverage on the landlord.
Do I need to register as an individual entrepreneur to rent out premises?
In accordance with Russian legislation, carrying out business activities without official registration with the relevant government bodies entails administrative (Article 14.1 of the Code of Administrative Offenses) and criminal liability (Article 171 of the Criminal Code of the Russian Federation), if the income received is more or less than 1.5 million rubles per year accordingly.
It is quite difficult to obtain an unambiguous answer to the question of whether renting out premises is a business activity, therefore the courts, when considering such cases and making a decision, take into account many factors and the specific circumstances of the case. For example, if residential premises are rented out, and the reason for this is that there is no need to use it for one’s own residence, this type of income will not be considered entrepreneurial activity, but the owner of the premises will still have to pay 3-NDFL tax.
At the same time, several signs can be identified that indicate that renting out premises will be considered as a type of entrepreneurial activity with income generation:
- Renting out a non-residential property. In this case, the fact that non-residential premises cannot be used to satisfy the household or family needs of citizens is taken into account, which means that this object is rented out for the purpose of making a profit.
- If the premises are leased to a legal entity. Accordingly, the organization that rented the non-residential premises will note in the expense item the amount spent on rent.
- If the premises are purchased specifically for further rental.
- If the lease agreement is concluded for a very long period or the fact of repeated renewal of the lease agreement is established. This aspect is considered by the court as a sign of systematic profit-making by the owner of the premises.
If these signs are present, according to the law, the owner must undergo official registration with government agencies as an individual entrepreneur. In this case, a simplified form of the taxation system is chosen for paying taxes, the amount of which is 6% of the amount of profit (remember that the income tax for an individual is 13%). It is also worth considering that the owner of the premises, both as an individual entrepreneur and an individual, will need to submit the appropriate tax reports within the deadlines and in the form established by the Tax Code of the Russian Federation.
Sublease of non-residential premises
Renting residential or non-residential premises implies the possibility of subletting it directly by the tenant. Re-letting of real estate is allowed only with the written permission of the direct owner of the premises and the presence of a special condition in the lease agreement. The parties to the sublease agreement can be both individuals and legal entities. A copy of the agreement must be handed over to the subtenant as a confirmed fact of the owner’s consent to perform this action.
The sublease transaction of non-residential premises has some features that the tenant must take into account when concluding an agreement with the subtenant.
- The term of the sublease agreement cannot be longer than the term of the original/main lease agreement. If the tenant's agreement with the owner has terminated, the subtenant has the right to conclude a lease agreement with the owner of this premises on the same terms until the end of the sublease agreement.
- Any lease/sublease agreement concluded for a period of more than 12 months must be registered with the authorized government agencies.
- The rights and responsibilities of the tenant include: provision of premises to the subtenant within the agreed period and on certain conditions, and to exercise control over the use of the premises for the appropriate purpose.
- The rights and obligations of the subtenant include: timely payment of rent, performance of repair work (by agreement), maintenance of the premises in order and use exclusively for its intended purpose.
- The fact of transfer of premises by the tenant to the subtenant is recorded in the transfer deed.
- Any violation of contractual obligations gives each party the right to terminate the sublease agreement before the end of its validity period in court.
Renting municipal non-residential property
Rent of non-residential premises, which are the property of the municipality, is one of the most common forms of civil law relations. At the same time, the transfer of municipal property under the terms of a lease agreement can significantly replenish the local budget and, accordingly, is of great importance for the economic development of the regional territory.
The most common are transactions to conclude a lease agreement for municipal real estate, in particular, land plots, buildings, and individual premises. Less common are cases of leasing existing municipal enterprises. For tenants of municipal non-residential premises, the moderate cost of rent, its stability, and the transparency of the bidding on the basis of which the rental of municipal properties takes place are very important. Accordingly, these factors influence the fact that municipal real estate is more willingly rented by entrepreneurs than private property.
It is true that it is worth noting that sometimes the unsatisfactory condition of municipal premises is a serious problem for the landlord, because, in addition to natural routine repairs, tenants have to invest in more significant work to restore the roof, facades, engineering and communication systems, and this, accordingly, is already capital attachments. In order to somehow interest tenants, municipalities offer various incentive systems: for example, increasing the duration of the lease agreement taking into account the work performed, reimbursement of costs incurred upon termination of the lease agreement, exemption from rent as a percentage of the estimated cost of repair work performed, and others .
Both individuals and legal entities, as well as citizens of foreign countries, can enter into a lease agreement for municipal non-residential property. In accordance with Art. 17 Federal Law “On the Protection of Competition”, since July 2008, all lease agreements for municipal property are concluded based on the results of tenders, auctions or competitions with the participation of everyone. In accordance with Art. 447-449 of the Civil Code of the Russian Federation, each municipality develops its own Regulations on the conduct of auctions, which contain the rules and procedures, conditions for participants, the procedure for determining the winner and recording the results.
Important! A lease agreement for municipal property that was concluded without holding appropriate auctions is considered invalid.
Municipal ownership of land
requires the presence of a cadastral passport for the property. Accordingly, if the land is not registered in the cadastral register, the potential tenant must collect a package of documents for it and initially register it with the cadastral register, then submit an application for an auction giving the right to lease this municipal property. In the case of sole participation in the auction, it is considered valid and gives the tenant the right to conclude a direct contract.
The rental agreement for municipal premises is concluded by signing an agreement by two parties. The contract must contain complete information about the property, its cadastral number, area and location address.
To submit an application for bidding and a contract you will need:
- passport of the future tenant;
- state certificate of registration of a legal entity or individual entrepreneur;
- application form from the lessor indicating the purpose and duration of the lease.
Important! A lease agreement for a municipal non-residential property can be concluded for a period of 1 to 5 years. For failure to comply with one of the terms of the lease agreement, the lessor has the right to terminate the agreement unilaterally.
If a lease agreement for municipal property is concluded for a period of more than 12 months, the tenant must submit information to the Federal Office of the State Registration Center to enter information about the lease into the unified state register.
If a lease agreement for municipal property is concluded for a period of 3 years or more, the tenant acquires the pre-emptive right to purchase the leased premises into private ownership.
Many people have various non-residential properties that are not used for any purpose. The best option is to rent them out, since under such conditions a constant and high income is ensured. To do this, the landlord can act as an individual, individual entrepreneur or business owner. The procedure for leasing non-residential premises must be carried out competently, for which official contracts are drawn up with tenants. The need to pay taxes on income received is taken into account.
Rules for providing objects for rent
Many property owners use this type of activity. Renting non-residential premises allows you to receive high passive income. In this case, the lessor may be:
- an individual who is the direct owner of the property, therefore he must have official documents for this property;
- An individual entrepreneur specially registered with the Federal Tax Service to conduct this activity, and usually entrepreneurs choose the simplified tax system, PSN or UTII to pay taxes, since through the use of simplified regimes it will not be difficult to calculate and pay tax, as well as submit a declaration;
- a company represented by a legal entity, and enterprises, like individual entrepreneurs, can use simplified systems for calculating tax.
When drawing up a contract, any of the above owners take into account different nuances. If the rental of non-residential premises is carried out without official registration and registration of income with the Federal Tax Service, then this is an illegal activity for which the owners of the premises are held accountable.
Rules for renting out objects by individuals
Private citizens can own different real estate properties. They are used for different purposes, such as:
- creation of an office;
- warehouse organization;
- formation of a production enterprise;
- creation of stores.
A citizen can act as a party to a lease agreement. People must be the direct owners of objects, therefore they are required to have the appropriate title documents and an extract from the Unified State Register of Real Estate. The specifics of leasing non-residential premises by an individual include the following:
- citizens must make an entry in advance in Rosreestr that the existing premises are a non-residential property, and technical and cadastral parameters must additionally be indicated;
- if the premises are not registered in the cadastral register or are unregistered, then it is not permitted to officially transfer it for use by other persons;
- handing over an object for use to companies or other citizens is a property transaction, therefore a civil contract must be concluded with the owner;
- In order for the documentation to be formalized officially and correctly, the agreement is drawn up exclusively in writing, after which it is certified by a notary and registered with Rosreestr.
Often an agreement is drawn up for a period not exceeding one year. Under such conditions, there is no need to register the document with Rosreestr.
What documents are required from an individual to conclude a transaction?
If non-residential premises are leased by an individual, the citizen must prepare certain documentation in advance. This includes the following papers:
- passport of the citizen who is the owner of the premises;
- certificate of ownership, which can be replaced by a new extract from the Unified State Register of Real Estate, which indicates the direct owner of the object;
- technical certificate;
- other technical documents issued to the owner by BTI employees;
- an extract from Rosreestr confirming that the property does not have any encumbrances represented by arrest, pledge or other restrictions.
It is allowed to attract a representative to participate in the transaction, but he must have a notarized power of attorney.
Are taxes paid by individuals?
Quite often, citizens who own real estate use this type of activity to earn money. Renting out non-residential premises brings people quite a significant passive income.
If the agreement is registered in Rosreestr, then information from this institution is sent to the nearest branch of the Federal Tax Service to record the income of citizens. Therefore, renting physical persons of non-residential premises require the calculation and payment of income tax.
To do this, you must annually submit a 3-NDFL declaration to the Federal Tax Service, which indicates all the citizen’s income from renting out the property. Additionally, this document provides the correct amount of personal income tax. Therefore, you will have to pay 13% on the amounts received. Due to such a high tax burden, citizens often prefer to register an individual entrepreneur or open a company in order to significantly reduce the amount of tax, since when using simplified regimes, the tax amount can be reduced to 6% of all income.
Nuances for individual entrepreneurs
Many citizens who are owners of real estate that they prefer to rent out specifically open individual entrepreneurs for these purposes. In this case, they can use simplified regimes when calculating the amount of tax. Leasing of non-residential premises to individual entrepreneurs takes into account the following nuances:
- the conclusion of a contract with tenants must be recorded in an official agreement, which specifies the duration of the contract, the features of the property, the cost of rent and other important features;
- if the validity period of the agreement exceeds a year, then the contract is registered in Rosreestr;
- IP taxes will certainly be paid for the income received, for which the entrepreneur can choose the patent system, simplified tax system or UTII;
- The direct transfer of funds must be recorded, for which receipts are drawn up, but most often money is transferred to a current account, so you can prove the receipt of money using bank statements.
Through the use of simplified tax systems, citizens can avoid paying significant taxes. Most often, when renting out non-residential premises, individual entrepreneurs choose UTII, since when using this tax the same amount is paid quarterly. The tax in this case depends on the size of the premises, so it is not affected by the rental price.
The lease of non-residential premises to individual entrepreneurs must be officially carried out. Taxation depends on the chosen regime, but it is important not only to correctly calculate and pay taxes on time, but also to prepare declarations necessary for employees of the Federal Tax Service.
What documents are required from individual entrepreneurs?
If the owner of non-residential real estate is an entrepreneur, then the following documents must be prepared to draw up a contract with the tenant:
- certificate of registration and registration;
- citizen's passport;
- title documents for the property;
- technical papers for the facility.
A correctly drawn up agreement must be submitted to the Federal Tax Service along with the declaration, since it confirms the conduct of a specific activity.
Specifics of renting out premises by companies
Often, various non-residential properties are owned not by individuals, but by enterprises. Firms often decide to rent out non-residential premises. The procedure in this case has the following features:
- the company may not be the owner of the object, as it can act as an intermediary;
- a civil contract is drawn up with the tenants, to which various documentation from the company is attached;
- The organization must pay tax on the income received, calculated on the basis of the applicable tax regime, and companies can combine several systems at once to save money on fees.
If the company is not the direct owner of the property, then it can sublease it. Under such conditions, it is required to obtain permission for this activity from the owner.
What documents are required from the company?
If the lessor is a company, then to draw up an agreement the company must prepare the following documentation:
- certificate from the Unified State Register of Legal Entities;
- constituent documentation of the enterprise;
- title papers for the property, confirming that the company actually has the rights to rent out this premises;
- if an object is subleased, the company must have permission from the owner for such activities;
- the founder, who is the owner of the business, can issue a power of attorney for his employee, as a result of which he has the appropriate authority to carry out the transaction.
Most often, companies with significant areas rent them out, since they do not use them themselves for any purposes. Renting out non-residential premises provides significant passive income, which is why many companies resort to this method of earning money. When drawing up an agreement with a company, you should definitely register it with Rosreestr.
Leasing of objects by the municipality
The administration of any city owns many different real estate properties, which can be residential or non-residential. In this case, the city authorities may decide on the need to rent out these facilities to direct users. Funds received from such activities will be directed to the local budget.
Under such conditions, it is necessary to follow the correct order of delivery of objects. For this, the following nuances are taken into account:
- to determine the tenant, official tenders are certainly held;
- a lease agreement is concluded with the bidder who offers the highest rent;
- the bidding is held in the form of an auction, and individuals, individual entrepreneurs or organizations can take part in it;
- To participate in the auction, you must submit a special application on the regional administration website;
- only after registration all participants are invited to the auction;
- a deposit, represented by an entrance fee, is paid by all applicants, and it is usually equal to 10% of the cost of the object;
- the rental price is calculated based on the cadastral price of the property;
- If only one applicant submits an application, then no bidding will be held, so the applicant issues a lease without an auction.
The administration may provide the opportunity to sign a contract for a long period exceeding 10 years.
Rules for drawing up a contract
Regardless of who the landlord is, it is important to draft the lease agreement correctly. It is with its help that the proper execution of a property transaction is carried out. The lease agreement for non-residential premises must contain the following information:
- the place and date of its compilation is indicated;
- the parties involved in the transaction are specified;
- if the participants are individuals, then their full name, date of birth and information from their passports are entered;
- if the tenant or lessor is a company, then its details are indicated;
- the technical features of the property are specified, as well as the address of its location;
- lists the conditions on the basis of which the property can be used;
- the rental period and cost are indicated;
- it is allowed to include a clause on the basis of which in the future the tenant will have the opportunity to purchase the property;
- the rights and obligations of each participant in the transaction are given;
- the responsibility of the parties is indicated, since if they violate the terms of the agreement for various reasons, then different sanctions or other measures of influence will be applied to them;
- the conditions on the basis of which the contract can be terminated early are provided;
- situations when you will have to go to court to resolve various conflict issues are listed;
- various force majeure circumstances are included under which the parties to the transaction must behave in a specific way.
This documentation does not need to be certified by a notary. This official document regulates the procedure for leasing residential and non-residential premises. The documentation is drawn up in three copies, since one remains with the landlord, the second is given to the tenant, and the third is used for registration with Rosreestr. The agreement comes into force only after registration. Prolongation of the contract is allowed if there is an agreement between the parties. A sample agreement is presented below.
Rules for drawing up a transfer and acceptance certificate
As soon as an agreement is drawn up on the basis of which non-residential premises are leased by an individual entrepreneur, individual or company, it is required to transfer the object to the tenant.
The transfer is carried out directly within the terms specified in the contract. For this purpose, it is advisable to draw up a transfer and acceptance certificate. A document is drawn up in the presence of third parties confirming that the parties to the transaction are in good faith and capable.
The document lists all the parameters of the existing real estate, which include:
- condition of floor and wall coverings;
- availability of plumbing fixtures;
- location and technical features of communications.
If there is furniture in the room, you should list it and also indicate what condition it is in.
What tax regimes are used by the lessor?
Property owners who rent out real estate receive a certain income from this process, on which they are required to pay tax. Individuals pay 13% on all income. Due to such a high tax burden, landlords prefer to open an individual entrepreneur or a company. Different tax regimes can be selected for calculations:
- USN. Under this regime, 6% of all cash receipts or 15% of net profit is paid. Local authorities may increase rates for office or retail real estate. The tax base is income for the year of work or profit from activities. Some regions are introducing incentives for small businesses. Additionally, due to tax transfers, the amount paid by entrepreneurs for themselves to the Pension Fund and other funds is reduced.
- Patent for leasing non-residential premises. This taxation system is considered the most beneficial for many entrepreneurs. Only IP patents can be used. Renting non-residential premises under such conditions does not require the preparation and submission of various reports to the Federal Tax Service. Therefore, it is only necessary to initially purchase a patent at the optimal cost for a specific period of time. They can purchase an individual entrepreneur patent for different periods. Leasing non-residential premises using this mode is considered a profitable process.
- BASIC. This system is rarely chosen for renting out properties, since you have to pay a large number of taxes and deal accounting. Typically, this mode is used by companies that do not want to combine several systems.
- UTII. Renting non-residential premises under this regime is usually chosen only if there is a small-sized property. If the premises have a significant area, then it is more advisable to choose a simplified tax system or a patent. When calculating UTII, the physical indicator represented by the area of the property is taken into account. Therefore, it is optimal to choose this mode if the size of the object does not exceed 30 square meters. m.
The choice of a specific system depends on the direct tenants. Some companies and individual entrepreneurs prefer to combine several regimes, which provides an opportunity to reduce the tax burden.
Conclusion
Renting out various non-residential premises is considered a profitable process. It can be carried out by individuals, individual entrepreneurs or companies. Firms may not be the owners of the objects at all, so they act only as intermediaries.
The procedure for providing real estate for rent requires proper execution of the transaction, for which an official agreement must be drawn up between the participants and registered with Rosreestr.
The rental business in the field of commercial real estate will always be profitable and reliable. But if you decide to invest your free funds in this way, you shouldn’t rush off the handle and take whatever comes your way. You need to try to choose a premises in such a location and with such a tenant that the payback period is as short as possible. In Moscow it now varies from 6 to 15 years, average– 10-12 years old, 7-9 years old is considered good.
Payback period - main indicator efficiency of any investment. In the case of commercial real estate and rental business, it is influenced by the following factors: the ratio of the purchase price and the expected rental rate, the size of the premises, its location on the city map and in a specific area, the presence of a tenant at the time of purchase, and finally, the identity of the tenant and your relationship with him relationships. All these factors are interconnected, so choosing a property is a complex, complex task with many inputs and unknowns. To profitably rent out non-residential premises, it is better to seek the help of experienced realtors. But even in this case, you need to be savvy in some issues.
First. Who to rent the premises to?
First of all, you need to determine for yourself who you want to rent out your unpurchased property to. It is easier to negotiate and work with someone you understand, whose specific activities, needs and capabilities you know first-hand. If you understand the shoe trade, it is better to buy a shoe store rather than a grocery store. If you like to sew and cut, look for an object for the atelier. With this approach, it will be much easier for you to find a tenant.
© Photo from loftec.ru
Second. Payback period for rental business
Calculate how many times you will need to receive monthly rent to cover the cost of the purchased property. This indicator in modern times should be in the range from 90 to 120. If it is less, then they are trying to sell you a suspicious pig in a poke, if it is more, you have good bargaining potential. At a very attractive price you can buy space in a building under construction, but you will not see rental payments until construction is completed and for an indefinite period of time.
Third. Which footage is faster to hand over?
The larger the room, the more expensive it is. But the main thing is that it is more difficult for him to find a tenant, because they can only be large companies, who have special requirements for the location. According to statistics, larger premises pay for themselves several years longer. If payback time is a priority for you, it is better to purchase several small ones instead of one large object.
Fourth. Location
When choosing a location, you need to focus on the type of business that will be conducted in your premises. For a small grocery store, the ideal place is a densely populated residential area; for production, an industrial zone or suburb; for a cafe, it is desirable to have a business center or educational institution nearby.
Fifth. Ready-made rental business (GAB)
Buying a property with an existing tenant is a good option from all points of view, and income will begin to flow within a month. But the cost of such properties is higher than that of empty ones, and you may encounter fraud on the part of the seller. You need to make sure that the rental rate stated in the contract is consistent, check the stability of the tenant’s business, find out his plans - in case he plans to move soon.
© Photo from the site mitino.sminex.com
Sixth. Tenant selection
And one last thing. To ensure that the payback period does not extend, you need a good tenant and a business (that is, mutually beneficial) relationship with him. If you have a choice when “settling” a property, it is better to let an experienced, but not large, entrepreneur. The ideal option is the owner of a small but successful store who is going to open another outlet.
Leasing commercial real estate and concluding an agreement for such a transaction is not too complicated. However, compared to residential rentals, this area of the real estate market is governed by different laws and regulations. Renting commercial real estate is a profitable business, but many owners of large office buildings And commercial properties who have a small area often face the problem of finding bona fide tenants. If the solution to this issue is relevant to you, then ours will be very useful for you: it will talk about how to rent out premises, do it in the shortest possible time and with the greatest benefit.
Legal basis for leasing commercial real estate
Before we look at how to rent out commercial real estate, let’s look at the legislation regulating these actions. The process of transferring commercial real estate for paid use is regulated by the Civil Code of the Russian Federation(v. 34). In accordance with this legislative act, the conditions arising during the process of drawing up an agreement are reflected in the lease agreement - the main document confirming the agreement between the owner and the tenant.
Commercial real estate rental
The main responsibility of the owner of real estate is maintaining order and proper condition in the rented premises. So, for example, Art. 616 of the Civil Code obliges the landlord to independently carry out major repairs within a certain time frame. The same article also outlines the responsibilities assigned to the tenant, including cosmetic repairs of the premises, timely payment of current utility bills, and ensuring order inside the premises.
The lessor is assigned the right to rent out commercial properties on other terms, which must be specified in the lease agreement. For example, the landlord can shift the responsibility for carrying out major repairs to the person using the premises on a lease basis, or assume the responsibilities of the tenant.
Stages of real estate delivery
With a competent approach and understanding of all the intricacies of leasing commercial properties, almost every landlord will be able to cope with the issue of how to independently rent out non-residential premises. Let's look at the procedure, describing in detail what needs to be done to conclude the most profitable deal.
When renting out real estate, the main thing is to set the optimal price, find a bona fide tenant and competently prepare documents for transferring the property for rent!
Determining the rental price
This is the first and most important stage. If the lessor personally conducts the transaction, the establishment of rental value, as a rule, will not be completely objective. Since any lessor plans to obtain the maximum benefit. But an inflated price scares away potential tenants, while an underestimated figure will raise certain doubts. Many owners of commercial properties turn to specialists (realtor/appraiser) for help, although today many analyze similar offers posted on special sites, for example, Avito, Cyan and other online platforms. This allows you to understand the current market situation and fairly evaluate your own premises.
Remember! Renting a room for conducting own business, the potential tenant expects to make a profit from it. That is why, when evaluating a premises, you should take into account the estimated probable income that it will be able to receive.
In addition, when assessing the premises for rent, it is advisable to take into account a number of important factors, including:
- area of the premises to be rented;
- existing layout;
- object state;
- availability of furniture and communications;
- location of the object;
- availability of equipped parking;
- transport and other accessibility for the tenant’s business partners and clients;
- visitor traffic (especially for large shopping, entertainment and office centers).
Taking into account the above points and analyzing similar options, you can set the optimal, mutually beneficial price for the premises for rent.
Search for a tenant
Finding potential tenants is an equally important stage when renting out real estate. It is important to decide who to rent the premises to, because finding a bona fide tenant can often be very difficult.
After determining the monthly fee, you need to prepare the text of the advertisement.
Usually it indicates in detail the main parameters of the object - room size, floor, geographical position, infrastructure development, condition of the premises and its equipment. It is advisable to highlight the existing advantages of the premises in the text. But you shouldn’t hide the possible disadvantages of the property being rented out, so that during the inspection you don’t end up in an awkward situation and don’t scare off a potential tenant.
You should tell us more about the options searching for potential tenants.
Search through friends/acquaintances is considered the easiest way to find a bona fide tenant. Typically, if they have extensive “connections” in the business community, commercial real estate owners can rent out their premises quite easily and quickly.
Publication of advertisements on special Internet portals, of which there are a large number working on the network. The advantage of this method is that the current rental offer is seen by a huge audience of users who are interested in choosing the most profitable option. But to attract their attention, it is important to create a good ad with a detailed description of the premises, indicating in the text the existing advantages and not forgetting to note the disadvantages. True information about the property will help you find a tenant faster.
Accompany your ad with several photos of the proposed premises. This will help potential tenants quickly determine whether they are interested in your property.
Sending an offer bye-mail. Cafes and bars, large and small retail outlets, beauty salons and other establishments, as well as organizations are often looking for premises to open new outlets or move to a more convenient area. You can find out the e-mail addresses of business owners or managers who may be interested in your premises on the company’s official website.
Features of renting large and small premises
We can help you rent out non-residential premises, depending on the area of the property being rented out. recommendations from real estate market professionals.
For renting out a small space:
You can organize a search for potential tenants in person or through a real estate agency
- Using the help of professionals, you will need to sign an agreement for the provision of services. After concluding a lease agreement, you will need to pay for the agency's services. Of course, you can cooperate without formalities; then you will need to write a letter containing a commercial proposal indicating the realtor’s remuneration, and send it to agencies that work with commercial properties. Typically, the realtor's commission is half the monthly rent (one-time payment).
- Having decided to search for tenants on your own, publish advertisements on free Internet sites, organize targeted electronic mailings, in addition, placing a banner on the facade (paid service) in the window of the rented premises (free) will be effective.
Renting a large premises:
If you plan to rent out a large premises, which means it will have a high expected profitability, then you can make a simple website with your own commercial offer. Typically, a website is promoted by contextual advertising using key queries. This allows you to reach the target audience, while in this option you can control the cost of the ad. In this option, you can advertise your property and save on agent fees.
Signing the contract
Competent presentation of the premises for rent– guarantee of a successful transaction. When showing the property, try to provide as much information as possible, drawing the potential tenant's attention to the advantages and likely profit that he will be able to receive when renting this property.
Signing the agreement– the final and most important stage of the transaction. A professionally prepared and executed lease agreement protects the landlord from an unscrupulous tenant. The lease agreement must include:
- identification data of the owner of the property and the tenant;
- address of the location of the object, its area and key characteristics;
- Registration information;
- contract time;
- the amount of rent and the rules for paying it.
For your information! The law prohibits the owner of the premises from increasing the rent more than once every 12 months. Therefore, the document must indicate the largest amount of the likely increase, specifying the period for mandatory notification of the tenant.
The document must contain a detailed description of the rights/responsibilities of the parties to the agreement, as well as the responsibility of the parties for violating sections of the document. It wouldn’t hurt to include in the document an inventory of the property on the premises. So, after the end of the lease, the owner can demand financial compensation for damaged property.
How to quickly find a tenant
A few more useful tips will help you quickly rent out an office or other property.
For owners who are not ready to personally search for a tenant or conduct showings/negotiations, it makes sense to seek the help of a professional realtor. He will objectively evaluate the premises, establishing its real value, and make high quality photos, will correctly compose the text of the ad and begin to demonstrate your property.
However, there are some nuances in cooperation with the agency. They must be clarified before cooperation begins.
If a landlord wants to quickly find a tenant for his premises, then he can pay the agency fee himself (many agencies charge tenants for services). This option is often used by owners of luxury real estate or if they own many properties. The money paid to the realtor will, among other things, be spent on the costs of leasing the property. Another quick option for flipping a commercial property is to reduce the rent. And there is no need at all to rent out the premises for “three rubles”; it is enough to reduce the rental cost by 5-10%. Then the premises’ competitiveness increases.
Possible risks when renting out premises
Any owner is concerned about the condition of the premises being rented and wants to have income from the transaction. We will present the main risks of commercial real estate owners and tell you how to protect yourself from them.
Inappropriate use of premises
Any properly prepared lease agreement specifies the purposes of its use and operating conditions. This applies to equipment rented with the premises.
Let’s say that at the conclusion of the transaction the tenant promised to use the premises as a warehouse, but opened a store in it. The landlord has the right to demand cancellation of the agreement without refunding the rent paid and imposing a fine on the tenant.
Damage to property
The property was handed over to the tenant in good condition, with machinery and equipment. But one day it is discovered that the premises are in a state of ruin, the equipment is broken, etc. In this case, the lessor may demand full compensation for the damage caused. In this case, not only the costs of repair work, but also the (market) value of the broken equipment are subject to reimbursement.
Liability is not provided in cases where the premises and property were damaged due to force majeure circumstances (fire, etc.).
Tenant refuses to pay rent
Sloppy payers are usually punished financially. Although this is only feasible if the lease agreement is properly executed - it clearly states the terms, procedure and amount of the monthly rent.
Where can I rent commercial non-residential premises or a warehouse? How to rent retail space for a store? How to rent out commercial real estate correctly?
Hello to everyone who has visited the website of the popular online magazine “HeatherBeaver”! We have an expert with you - Denis Kuderin.
The topic of today's conversation is commercial real estate rental. The article will be useful to businessmen, owners of non-residential premises and all those who are interested in current financial issues.
At the end of the article you will find an overview of the most reliable Russian real estate companies that provide intermediary services in leasing commercial properties.
So let's begin!
1. Why rent commercial real estate?
Successful business activity largely depends on the well-chosen premises for doing business. This is especially true for trade and the service sector. A cozy, well-equipped store in a busy part of the city itself attracts customers.
The same can be said about offices. Every self-respecting company should have good premises for work and receiving visitors. Even if you sell goods through an online store, you need a place to complete and issue orders, as well as resolve disputes with customers.
Not every businessman, especially a beginner, can afford to purchase non-residential premises. In such cases, renting commercial real estate comes to the rescue.
We list all the advantages of renting:
- relatively low financial costs;
- a simpler documentation procedure compared to purchasing;
- the ability to change the landlord and move to another building at any time;
- a large selection of real estate, especially in big cities.
The reverse process - renting out premises - also has many advantages. First of all, this reliable source passive income. Acquisition of ownership of commercial space (retail, office, industrial and others) – good option investing funds.
While it exists private business, its representatives will constantly need premises to conduct business, which means that property owners will have a stable profit without much labor.
Finding suitable premises for a business is a troublesome undertaking. The fastest and most reliable way to find an object is to use the services of professional intermediaries.
There is a detailed article on our website about how modern ones work.
2. How to rent commercial real estate - 5 useful tips
When renting commercial properties, you need to be as careful as possible in choosing them. The parameters and functional characteristics of the premises determine how soon you can start a business activity, and whether the object will fully meet the goals of your business.
First, decide how you will search suitable premises– independently or with the help of an agency. The first method assumes the presence of an unlimited supply of free time and is associated with various risks. The second option is safer and more reliable.
You will find additional information on the topic of working with intermediaries in the article “”.
Expert advice will help you avoid common tenant mistakes.
Tip 1. Carefully study the hood and ventilation systems
You or your employees will be working in the premises, so the availability of working ventilation systems- the most important point. The lack of powerful and autonomous ventilation in a building is a real obstacle to the normal operation of a cafe, restaurant, or grocery store.
Food products must be stored in appropriate conditions, and visitors and sellers should not be disturbed by foreign odors. Moreover, sanitary services simply will not allow you to use the facility as a catering establishment or grocery store if it only has general ventilation.
Tip 2: Focus on loading and unloading areas
A convenient area for loading and unloading goods is another key moment for owners of cafes, restaurants, canteens and shops.
It is important that the area where loading and unloading operations will be carried out does not overlook the courtyard of a residential building or onto roadway. If you disturb residents or motorists, you will be tormented with complaints.
The issue of adequate power supply is especially relevant for tenants whose business involves the use of energy-consuming equipment - refrigerators, electric ovens, machine tools, etc.
Make sure that the electrical cables in the room are capacious enough to fully meet the needs of the enterprise.
Tip 4. Read the terms of the contract carefully
Before signing your signature on the lease agreement, carefully read the terms and conditions under which you are entering into a deal.
The contract must contain the following points:
- rental terms, cost and method of payment;
- if the premises are rented with equipment, then an inventory of the property must be drawn up;
- liability of the parties for violation of the contract;
- terms of termination of the agreement.
Expenses for utility bills, garbage removal, maintenance of the fire protection system and security alarm are usually borne by the tenant. However, the landlord pays for major repairs, if necessary, including replacement of plumbing communications and electrical wiring if they fail.
Discuss in advance with the landlord the issue of property insurance - whether such an agreement will be drawn up, and if not, decide who will pay for losses in the event of unforeseen situations.
It is imperative to check the owner’s title documents – purchase and sale agreement, extract from State Register for the right of ownership.
Make sure that the premises actually belong to the person who is renting it to you. Otherwise, one day it will appear real owner object with appropriate permissions. It is also important that the premises are not mortgaged, have not been seized for debts, or have other encumbrances.
A person who is far from the intricacies of housing law should take advantage of professional help when renting or purchasing non-residential premises. For example, you can clarify for yourself all the unclear points on the Pravoved website, a resource where specialists from all areas of jurisprudence work.
You can ask your question even without registering, right on the main page. You will receive a legally correct and competent answer in just a few minutes, and completely free of charge. If your problem requires in-depth study, you will need to pay for the services of professionals, but you have the right to set the amount of the fee yourself.
Step 2. Determine the amount of rent
To find out the optimal rental price, use one of two options. The first is to personally review your city’s databases and determine the approximate price range for renting similar premises. Second, delegate this task to a realtor.
By the way, in addition to real estate agencies, private brokers provide intermediary services. They typically charge 25-50% less for their work than companies. However, there are only a few private specialists working with non-residential real estate, even in large cities.
5. If you rent out commercial real estate - 3 main risks for the landlord
Every landlord is concerned about the condition of his property and wants to make a profit from rent, not losses.
We will list the main risks for commercial property owners and show you how to avoid them.
Risk 1. Use of the premises for other purposes
Each well-drafted lease agreement specifies for what purpose and how the leased premises will be used. This also applies to equipment that you rent out along with your rental.
If the tenant promised to use the premises as a warehouse, but set up a store in it retail, you have the right to fine him or terminate the agreement without returning the rental price.
Risk 2. Damage or loss of property
You handed over the facility and equipment to what you thought was a respectable citizen, but he, to use diplomatic language, did not live up to your expectations. Namely, he brought the premises to a state of ruin, broke the equipment, unscrewed the light bulbs and generally behaved like a pig.
In such cases, the owner has the right to demand compensation for damage in full. Moreover, not only repair costs must be reimbursed, but also the market value of the damaged equipment.
Liability is not provided if the object and property were damaged as a result of unforeseen circumstances - for example, a fire or flood.
Risk 3. Tenant’s refusal to pay monthly rent
Sloppy payers should be punished with rubles. However, this is possible, again, if the lease agreement is drawn up according to all the rules. That is, the document must clearly stipulate the terms and amount of monthly payments.
6. If you rent commercial real estate - 3 main risks for the tenant
The tenant may also suffer as a result of illegal or unauthorized actions of the landlord.
Risk 1. Renting premises to which the “lessor” has no legal rights
If the premises are rented to you by a person who does not have the legal rights of the owner to the property, the contract will be considered invalid. To avoid this, require the presentation of title documents.
You can independently obtain an extract from Rosreestr by contacting the Multifunctional Center. The service is paid, but you will reliably know “who’s boss.”
Risk 2. Changing the locks on the premises immediately after making an advance payment
Yes, such situations still occur in nature. You sign an agreement, make an advance payment, receive the keys from hand to hand, and when you want to move into the premises with your property, it turns out that the locks have been changed, and there is no trace of the “owners”.
There is only one way out in such a situation - to contact the police and initiate a criminal case on the fact of fraud.
Risk 3. Sublease
The best way to explain this is with a simple example.
Example
The tenant Andrey, an aspiring entrepreneur, rented space for a store for a year, paying six months in advance. At the same time, the businessman did not check the title documents, relying on the honesty of the lessor.
A month later successful trading The real owner showed up at the store with a full set of original documents. He politely asked the tenant to move out of the occupied space. Andrey tried to find a subtenant in order to at least get his money paid in advance back, but the enterprising intermediary never responded to either calls or SMS.
Bottom line: Deal directly with the owner. At the very least, he should be aware of all the manipulations that occur with his property.
7. Professional assistance for tenants and landlords - review of TOP-3 real estate agencies
Finding a qualified intermediary is a difficult task. To help readers, we have compiled a review of the most reliable companies in Russia working with commercial real estate.
1) Agency.net
Real estate management agency. Will help landlords and tenants rent and rent: office, retail space, workshop, warehouse, mansion and any other commercial real estate. The company employs only experienced and qualified lawyers and realtors.
A significant advantage of the company is its professional approach, the presence of a detailed website, and the development of an individual strategy for each client of the office. There are no real estate services that the company’s specialists cannot provide to users.
Commercial real estate in Moscow and the region is the main specialization of the company. Respect has been operating on the market since 2004. The agency's initial goal was to provide clients with the widest range of services related to the rental, purchase and sale of real estate.
The company has several representative offices in the capital. In his work he uses advanced information technologies and proprietary software. Has one of the most extensive databases in Moscow.
The website has an open online catalog of real estate properties. Guarantees legal support to clients and advises on all issues related to real estate.
The agency has been working in the Moscow real estate market for more than 10 years. Commercial properties are the main profile of the company. Assists in the rental, sale and purchase of offices, retail outlets, warehouses, production premises, large industrial real estate objects.
Rentalcom employees are well versed in legal and financial aspects transactions and successfully apply their knowledge in practice. Other advantages of cooperation with the agency are efficiency, low tariffs, and our own database, which includes non-residential properties in Moscow and the Moscow region.
8. Conclusion
Let's summarize. Renting commercial real estate is a profitable and often necessary business for property or business owners.
In such operations, it is advisable to seek help from professional intermediaries - they will save your time and help you find the most profitable options.
We wish our readers success in any real estate transactions! We will be glad if you rate and comment on the article. See you again!
To rent an apartment - step-by-step instruction how to rent an apartment without intermediaries for a long term + 4 useful tips on how to avoid becoming a victim of scammers