Publication date: 30.05.2024
lawyer, 23 years of experience in enforcement.
What should be taken into account and what should be paid attention to when renting out housing?
Renting out an apartment or house can be profitable as a source of constant passive income. However, it will be helpful to understand some of the specifics and laws that apply to the situation. This will primarily benefit those who have never encountered it before.
As a rule, both parties - the landlord and the tenant - want to be sure that the contractual relationship between them is clear and comfortable, and that there are no claims against each other after the end of the lease agreement. Understanding misunderstandings is unfortunate, and a housing lease agreement is necessary to clarify the rights and obligations of both parties regarding housing.
Housing rental agreement:
Part 1 of Art. 759 of the Civil Code of Ukraine under a contract of employment (lease) the owner (lessor) undertakes to transfer or accept the property to the lessee for a fee for a certain period.
An oral contract between the parties is the most dangerous form of solving legal issues regarding housing rental, it is not effective and does not ensure the protection of the rights of the parties, as it is extremely difficult to prove legality. verbal agreement. Neither the landowner nor the tenant will be fully protected from accident and breach of verbal agreements by the other. In addition, the provisions of the Civil Code of Ukraine on land ownership establish that the property lease agreement must be concluded in writing (Part 1, Article 811 of the Civil Code of Ukraine).
Basic rules for renting housing:
- - The subject of a housing lease can be an apartment, a house or other housing (also a part of a house or apartment) intended for housing.
- You can use the housing for its intended purpose, that is, live in it.
- The fee for the use of housing is documented in the lease agreement. Payment of rent can be made in cash or non-cash form upon agreement of the parties. The currency of calculations is hryvnia.
- In case of transfer of ownership of a rented apartment or house, the rights and obligations under the lease contract are transferred to the new owner. That is, the lease agreement is still considered legal.
In addition, the contract may specify various terms, including the cost of the services provided, the frequency of repairs, termination conditions (if applicable) and the duration of the contract.
To begin with, in order to enter into a lease agreement for any property, it is important to assess whether it is subject to a lien, lien or encumbrance. The owner of the land will have to demonstrate that he is the owner of the documents. The document confirming ownership of the property and entering information about it in the state register of rights to real estate is an extract from the state register. You can order an extract of this type using DIYA electronic services. In addition, the lease must state that the owner has not entered into any other agreements regarding this property.
In addition, the contract must contain specific information about the parties. For individuals, these are: surname, first name, patronymic, taxpayer identification card (TIN), series and number of a passport or other identity document (residence permits, refugee cards, etc.), if one party is a foreigner. , it is important to consider their address of registration and residence.
Thirdly, the contract must contain all agreements that the parties recognize. An important (mandatory) component of concluding a housing rental contract is the subject of the contract (housing, which must be specific and have an exact location), the rental price and the list of residents.
The question of increasing the rent and the correct way to inform the tenants about the owner's desire to do so is very important and urgent, it should be clearly stated in the contract. The law does not allow a one-time rent increase unless it is documented in the contract.
The annexes to the contract or the contract itself must contain a list of furniture and appliances for the apartment. If the parties have agreed on a lease term of more than 2 years and 11 months, then this contract must be notarized.
Taxation and submission of declarations:
Currently, the current legislation of Ukraine regarding income from rent is taxation. Since the tenant receives this income, he is obliged to pay taxes. That is, the tenant is unable to pay any taxes for the rental of housing. The process of taxation of income from rent (sublease) of immovable property, defined in Clause 170.1 of Art. Chapter 170 of the Tax Code of Ukraine.
These sources of income will be taxed at the rate determined by Clause 167.1 of the Tax Code of Ukraine, which is 18% of personal income tax and 1.5% of the military budget.
In addition, at the end of the calendar year, the owner of the rented property must submit a report on the state of the property and income, this information indicates the amount of rental income and other received income. The declaration is officially recognized by the governing body. The owner of the property accepts the declaration on May 1 of the current year, taxes are paid on July 1.
If the home owner is registered as an individual entrepreneur (FOP) and has a form of employment in accordance with KVED 68.20 "Renting and exploitation of own or leased property", he is also taxed on this income and must do so in accordance with the chosen taxation system.
Remember that the final lease agreement is a powerful protector of the rights of the owner and the tenant, it will help you avoid problems that may arise unexpectedly and save time, so it is advisable to get the services of a lawyer before executing such a deed.
Legal service "Consultant" provides legal services of a lawyer and a lawyer's consultation, which will make a legal analysis of the situation, form relevant documents, and, if necessary, help in gathering the evidence base for the most effective resolution of the issue, if necessary, accompany the court proceedings.
