In Russia, changes are planned to the legislation to legalize the rental market. Cyan did research among landlords and found that many of them do not mind stepping out of the shadows.
In Russia, they are going to amend the legislation to legalize the rental market and create a single platform for rental housing. This is supposed to help bring the rental market out of the shadows. As it turned out as a result of Tsian's research, the average rentier in Moscow is 39 years old, he has rented housing for four years and has been employed. Rental income provides a quarter of his earnings.
Became a rentier due to circumstances
Almost half of the rentiers who rent out an apartment initially bought it for their own living (46%), but in the end they rent it out.
30% of rentiers are investors who bought housing specifically to organize a rental business. This is comparable to the share of investment deals in new buildings.
Another 23% of rentiers became such unplanned - after receiving an apartment as an inheritance from relatives.
And 1% were lucky enough to receive such an expensive gift in the form of an apartment, which is now rented out.
Thus, the new bill is aimed primarily at those who became rentiers due to life circumstances, and did not initially plan it.
A quarter of rentiers plan to expand their business
27% of the capital's rentiers are planning to buy more apartments for rent in the future. Almost half - 43% - are going to keep the number of leased apartments.
However, there are also those who want to say goodbye to the rental business - such 3%. Another 3% are going to reduce the number of rented apartments. The majority cited financial reasons (66%) as reasons for refusing to lease: high real estate prices, low rental yields, and the choice of another investment instrument. 24% mentioned personal circumstances, and 10% intend to stop renting due to legislative changes in this industry.
The main headache is tenant behavior
Despite the prospect of tightening control over the payment of taxes in the field of rent, such initiatives excite only 9% of rentiers who are ready to continue doing this business.
A far greater headache for rentiers is the behavior of tenants (damage to property, antisocial behavior, disputes about a deposit) - when renting, 58% of owners are worried about it.
Another third (33% of rentiers) consider the financial component to be the main problem when renting out housing: the tenant's debt, the cost of a loan or mortgage payments, repair costs, etc.
Thus, despite active discussions on the prospects of withdrawing from the shadow of the rental business, rentiers consider other issues, rather of an “applied” nature, to be more important.
Renting out provides a quarter of the income of the average landlord
Renting out an apartment does not allow the rentier to completely abandon other ways of earning. For half of landlords (56%), renting generates less than a quarter of their total monthly income.
For another quarter of the rentiers (25%), rent provides up to half of all earnings.
More than 50% of the income as rent is received by only 20% of the rentiers.
Despite the fact that an apartment for rent is often perceived as an addition to the capital's pension, only 4% of current rentiers are retirees. Most rentiers are only future retirees who are already thinking about the level of income after completing their work. 71% of landlords are employees in companies, which provides them with the main income.
Pay tax and live in peace
It is generally accepted that 90% of the rental market is in the shadows: the vast majority of landlords do not pay taxes on the income received. However, as the survey has shown, this is not true. The capital rent market is one third legal - among all respondents, 35% pay taxes on rent. Another 23% honestly admitted that they are hiding these revenues from the state. The remaining 42% chose not to answer the question, staying in the shadows, like most of the rental business.
It was possible to increase the share of "official" rentiers due to the possibility of obtaining self-employed status. Of those who pay rental taxes, the majority chose this option (76%). Another 14% are registered as individual entrepreneurs. The remaining 10% file a tax return at the end of the year and pay personal income tax at a rate of 13%.
“The rental business in Russia is at the stage of active development,” notes Alexey Popov, head of the Cyan Analytical Center. - Even in the capital, with the largest number of potential tenants, the average rentier has only four years of experience in renting out housing. Therefore, it is not surprising that the market is in the shadows. "
In order to make it legal, the expert continues, it is necessary to offer the tenant an alternative - we are talking about apartment buildings, which are presented today for a small layer of potential customers due to high rates.
DEVELOPERS ARE NOT ACTUALLY INTERESTED IN IMPLEMENTING NEW PROJECTS OF PROFITABLE HOUSES IN
IN THE MASS SEGMENT DUE TO THE LONG PAYBACK OF SUCH INVESTMENTS OVER A FEW TEN YEARS. WHERE EASIER TO SELL, GETTING PROFIT ON A SHORT TIME SECTION.
“Therefore, in order to legalize the rental market, it is necessary not only to increase control over private rentiers, but also to stimulate developers to develop the market of apartment buildings, including in dormitory areas of the city,” says Alexey Popov. "This will reduce pendulum migration, increase the mobility of the population and create conditions when the renting of housing will officially become a competitive advantage for the owner."