What happens if you rent out an apartment unofficially?

In recent years, the activities of government bodies aimed at combating the illegal residence of citizens, including migrants, have been tightened in Russia. The state budget is not replenished with funds received from the legalization of income concealed by citizens and organizations.

In order to avoid problems that inevitably arise during the illegal rental of residential premises, relations should be formalized taking into account the requirements of the law.

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Law on renting out apartments (renting)

Chapters 34 and 35 of the Civil Code of the Russian Federation regulate the basic set of relations that arise during the provision of residential real estate for temporary use (rent and rental) for a fee.

Since these types of contractual relationships are of a paid nature and the lessor receives income, the requirements of tax legislation should also be taken into account.

Based on the legal status of the apartment owner, the income received is taxed:

• Personal income tax (Chapter 23 of the Tax Code of the Russian Federation);
• Corporate income tax (Chapter 25 of the Tax Code of the Russian Federation);
• Taxes under special taxation regimes - simplified and patent systems (Chapters 26.2; 26.5 of the Tax Code of the Russian Federation).

Taxpayer Responsibilities

According to Art. 19 of the Tax Code of the Russian Federation, taxpayers are organizations and individuals who, in accordance with the Tax Code of the Russian Federation, are obliged to pay taxes and (or) fees, respectively.

Individuals

Individuals receiving profit from renting out an apartment are required to submit a declaration in form 3-NDFL to the tax office at the place of their permanent registration by April 30 following the reporting year..

Taxpayers are required to transfer the tax payment calculated in the declaration for the tax period (year) by July 15 following the reporting period.

The tax base (the sum of all payments received for residential premises) can be reduced by the amount of the tax deduction.

Citizens have the right to such deductions:

1. Those who transfer part of their income to charity (a deduction is provided in the amount of the donation, but not more than 25% of the income received);
2. Those who pay for their own education or the education of children (in the amount of expenses incurred, but not more than 50 thousand rubles);
3. Those who purchased medical services or medications prescribed by a doctor at their own expense (in the amount of actual expenses incurred);
4. Making additional contributions to pension insurance (in the amount of paid contributions);
5. Those who incurred expenses for the purchase or construction of housing (the deduction does not exceed 2 million rubles), including at the expense of loan funds (the deduction is provided in the amount of interest paid on the loan, but not more than 3 million rubles).

If you want to learn how to transfer property when renting out an apartment, we advise you to read the article.

Individual entrepreneurs

Individual entrepreneurs who receive income from leasing residential premises fulfill their tax obligations by choosing one of the special tax regimes:

• Under the simplified taxation system (STS), the taxpayer chooses the method of forming the tax base . If only profit is included in the base, then a rate of 6% is applied . Income minus expenses incurred is subject to 15% tax . A quarterly return must be submitted.
• A more preferable option for entrepreneurs whose source of profit is income from renting out housing is the patent system . To implement this regime, each subject of the Russian Federation legally determines the potential amount of income per year for specific types of business activity. This value is the tax base. The tax rate is 6% . There is no need to provide a tax return.

Organizations

Organizations can carry out their activities both in the general taxation regime and using the simplified tax system.

Under the general regime, legal entities providing housing rental services are required to pay income tax. The base rate is 20%.

Where to report illegal rental of an apartment and what the punishment is?

• The owner has the right, at his own discretion, to take any actions in relation to his property that do not contradict the law and other legal acts and do not violate the rights and legally protected interests of other persons, including alienating his property into the ownership of other persons, transferring to them, while remaining the owner, the rights possession, use and disposal of property, pledge property and encumber it in other ways, dispose of it in any other way.
• Possession, use and disposal of land and other natural resources, to the extent that their circulation is permitted by law (Article 129), is carried out by their owner freely, if this does not cause damage to the environment and does not violate the rights and legitimate interests of other persons.
• The owner can transfer his property into trust management to another person (trustee).

Responsibility for non-payment of taxes

Tax legislation establishes financial liability for illegal rental of an apartment in the form of a fine for:

1. Failure to fulfill the obligation to pay tax (Article 122 of the Tax Code of the Russian Federation) – from 20 to 40% (if the offense was committed intentionally) of the amount of the unpaid tax payment;
2. Failure to submit a declaration (Article 119 of the Tax Code of the Russian Federation) - 5% of the contribution to be transferred for each month of delay, but not more than 30% and not less than a thousand rubles.

For significant violations of the requirements of tax legislation , expressed in non-payment of taxes on a large scale (more than 600 thousand rubles within 3 years - for citizens and 2 million rubles - for legal entities) and based on the severity of the crime, criminal liability has been introduced (Articles 198, 199 of the Criminal Code RF) in the form:

• Fine;
• Forced labor;
• Arrest;
• Imprisonment.

You may be interested in an article about an alternative real estate transaction when buying and selling an apartment, you can read about it here.

Procedure

The country's legislation implies a fine for illegally renting out an apartment, so the owners will do their best to hide their small business from the other residents of the building. You can chat with other neighbors on the staircase; it is likely that you are not alone in your problem, and there is someone else who is tired of the constant loud sounds and the presence of strangers in the entrance.

Few people know where to complain if their neighbors rent out an apartment illegally, but with common efforts, you will find a solution. Most lawyers recommend writing a complaint to the housing and communal services and the management company servicing your home. Again, it wouldn't hurt to file a complaint with the police. It is likely that a brothel or brothel has been opened in the neighborhood, and it is your statement that will help reveal the dullness. Very often, girls of easy virtue who rent living space seem polite and decent, but they can mislead the owner. When renting an apartment, the owner may not have any idea what is going on there, so initially try to talk to him. Express your complaints together with your neighbors, and also inform him of criminal liability under Art. 241 of the Criminal Code of the Russian Federation for maintaining a brothel. It is likely that the owner will come to his senses and drive the residents away.

If it is more or less clear with permanent tenants of an apartment who behave inappropriately, then what to do if neighbors illegally rent out an apartment on a daily basis, because the owner changes every day, and it is difficult to hold him accountable.

Illegal renting of an apartment for a day is now very popular; the owner himself may not even participate in such an event; he entrusts real estate agents to carry out the real estate transaction. Illegal business renting out an apartment is a criminal offense, so your task, as a respectable citizen, is to prevent such an act or stop it.

To prevent various kinds of incidents with new residents, you need to perform a number of the following actions:

Eviction of illegally residing citizens from an apartment: grounds and procedure

1. Record the presence of new persons in the apartment each time. In this case, you can use CCTV cameras, photographs, as well as information from neighbors who also see strangers entering the problematic home. It’s very good if there are concierges at your entrance, they will help register new people.
2. During loud celebrations, call the police immediately. The reports of police officers who come on call are strong evidence in court, especially if they involve new people each time.
3. When sufficient evidence has been collected, you can write a statement to the court and demand protection of your legal rights.

It should be noted that when an apartment is illegally rented on a daily basis, you know where to complain, it is more difficult to solve this problem, because by the time officials check the apartment, the apartment may be clean and in complete order. At the same time, all the evidence you collect will be groundless, because there is no smell of tenants there. They paid the money, spent the night and left.

The owners know very well the dangers of illegally renting out an apartment, so they will do everything possible to make you look like a liar and humiliate you in front of the other neighbors and in the face of law enforcement agencies, who next time will not want to respond to your call.

How to properly file a complaint?

You now know where to report the illegal rental of an apartment, but an equally important point is the correct filing of the complaint. The document must be drawn up in accordance with existing rules, otherwise it will not be accepted for consideration. So, when writing, you should adhere to the following structure:

1. The name of the body where you are going to complain (you can submit an application to the district police officer or to the housing and communal services).
2. Your personal information and addresses with telephone numbers. If there are several applicants, then all of them must be listed.
3. The body should contain a description of the problem and a list of evidence that supports your words.
4. Information about the owner of the apartment and about the tenants, if, of course, you manage to find out who they are.
5. Date of compilation, signature.

The document must be written in a clear manner and the content should not contain personal insults or obscene words. Describe only facts that are relevant to the case.

Very often, neighbors who are used to renting out an apartment can threaten with violence only in words, without doing anything and fearing the consequences, the reaction of the first one. The complaint may be submitted anonymously. You can complain in writing, state all the known facts, but do not sign as an applicant; you can indicate yourself, for example, in the list of witnesses.

If the rental of the apartment has not stopped after your complaint to the district police officer or housing and communal services, you can contact the police, indicating in the “header” the name of the head of the local district department, the prosecutor’s office, and even the court if your tenants have caused damage to your property. If the tenants have created unsanitary conditions, you can contact the Rospotrebnadzor office.

Drawing up and filing a complaint against a decision to initiate a criminal case

It is not uncommon for premises to be illegally rented out to migrants. You need to immediately inform the police, namely the Migration Office. Illegal entrepreneurship in this case is only one of the articles incriminated against the home owner; it also covers foreigners who illegally arrived and reside in the territory of the Russian Federation. The migrant is evicted and deported to his home country, and the neighbor will pay a fine and be punished under the Criminal Code of the Russian Federation. It is also important to contact the sanitary and epidemiological station if insects or rodents appear on you and other inhabitants of the house; often illegal migrants live in cramped conditions in large groups and make a complete mess.

Where to complain?

Often, when renting out housing, owners are only concerned with extracting maximum profit and are not too picky about the formalization of contractual relations and the identity of the tenant. As a result of such carelessness, not only the budget suffers from lost taxes, but also the neighbors due to the behavior of tenants.

Where can I complain about my neighbors renting out their apartment illegally?

To resolve the situation, interested parties (neighbors) can file a complaint with the relevant government authorities.

Where to complain if neighbors rent an apartment illegally

List of violations:

1. accommodation in the apartment is carried out without temporary registration and a rental agreement, which is confirmed by the tenants themselves.
2. Smoking in the entrance.
3. Listening to loud music, fighting and brawling at night.

These violations contradict the requirements of Art. 17, clause 4 of the Housing Code of the Russian Federation; the contents of paragraphs 6, 10 “Rules for the use of residential premises.” Residents do not respond to numerous requests and comments, or are rude and make threats.

We ask you:

1. Bring to justice the owner of the apartment L.N. Paramonov. for renting out housing on illegal grounds.
2. Influence residents by explaining the rules of the dormitory in an apartment building.

If you refuse to resolve the situation, we ask you to provide an official response with a specific explanation of the impossibility of stopping the illegal behavior of the residents of the apartment. 25.

How to legally rent out an apartment?

Correct actions by the landlord will not only avoid problems with the law, but also fully protect their interests and avoid unexpected losses.

The main document regulating the relationship between the owner and the intended residents of the apartment is the contract.

If the user of the housing is an individual, then a rental agreement is drawn up.

A lease agreement is concluded with a legal entity . Any of these documents must be in writing.

Agreements concluded for a period equal to or exceeding one year are subject to state registration.

To minimize costs, it is better to enter into contracts for a period of less than a year and with the possibility of extension. In this case, you do not need to pay a registration fee.

An apartment can be rented out by the owner or a person authorized by him . If possible, it is preferable to act independently, since public trust in transactions through a representative is much lower , and a fee is charged for issuing a power of attorney by a notary.

In order to obtain the maximum amount of income from the provision of housing for rent (hire), it is necessary to decide in advance on the system for calculating and paying tax payments.

This choice depends on many factors:

1. Number of objects to be rented;
2. Tax policy of a constituent entity of the Russian Federation;
3. Potential income;
4. Real estate category (economy class housing or luxury apartments);
5. Amount of housing maintenance costs;
6. Landlord status (individual or individual entrepreneur).

The final choice can be made only after first calculating all possible options.

We must not forget about the direct payment of tax and submission of a declaration, since violation of the requirements of tax legislation threatens significant expenses in the form of fines and unpleasant consequences for the reputation.

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If a person has free space, he can rent it out. Completing the action allows you to pay for the maintenance of your home and even earn money. However, the transaction must be carried out in accordance with the norms of current legislation. If a person does not pay contributions to the state treasury, he can expect a number of negative consequences. Experts advise you to immediately understand the risks of renting out an apartment without paying taxes .

The responsibilities of taxpayers can vary significantly depending on their status. This fact will also affect possible sanctions.

Typically, the measures taken against organizations are more severe. Experts do not advise violating the provisions of current legislation. We will talk further about what legal acts regulate the rental of premises, the liability of violators, as well as how to legally rent out premises.

Current tax legislation

The basic set of relations that arises when renting and leasing an apartment is regulated by Chapters 34-35 of the Civil Code of the Russian Federation. Legal relations are contractual and compensated in nature. This means that the owner of the apartment receives income. In this regard, it is necessary to take into account the requirements of tax legislation.

The income that was received may be subject to the following types of taxes:

• personal income tax;
• income tax;
• tax established when using special taxation regimes.

The process of transferring taxes when renting out an apartment is regulated by Chapters 23-26 of the Tax Code of the Russian Federation.

Taxpayer Responsibilities

In accordance with Article 19 of the Tax Code of the Russian Federation, taxpayers are individuals and organizations that receive income and must pay tax contributions to the state. Status has a significant impact on the responsibilities of citizens and organizations.

Legal entities

Organizations have the right to use the OSN or simplified tax system as a tax regime. In the first case, companies that provide real estate for rent and receive income must make contributions to the state budget on profits. The basic tax rate is 20%.

Individuals

If a person rents out an apartment and receives income from it, he is required to file a tax return. The document is drawn up in the form 3-NDFL. The declaration must be submitted to the tax office at the place of permanent registration by April 30 of the year following the reporting period. The payment itself must be made to the state budget before July 15. The law allows you to reduce the tax base from which the payment is levied. The reduction is carried out by the amount of the deduction.

The following categories of citizens have the right to receive it:

• persons making additional contributions to pension insurance;
• citizens who donate part of their profits to charity;
• people who bought or built real estate at their own expense or using credit funds;
• citizens who paid for medical services or purchased medications as prescribed by a doctor;
• persons who paid fees for their own education or for the education of their children.

The size of the tax deduction can vary significantly. So, if an apartment was purchased, a refund will be provided for an amount of up to 2 million rubles. The use of credit funds will increase the value of the indicator to 3 million rubles.

Individual entrepreneurs

If an individual entrepreneur receives income from renting out an apartment, he will be able to choose one of the special tax payment regimes. If the payment is made according to the simplified tax system, the individual entrepreneur independently determines the method on the basis of which the tax base will be formed. If it includes only the profit received, contributions to the budget must be made at a rate of 6%. If the tax regime “income minus expenses” is used, the rate will be 15%. Individual entrepreneurs are required to submit a declaration quarterly.

What liability can be brought against a person who illegally rented out an apartment?

Illegal rental of housing is fraught with penalties. Their size directly depends on what specific norm was violated. Thus, if a person has not complied with the provisions of Article 122 of the Tax Code of the Russian Federation and has not paid taxes, a monetary penalty in the amount of 20 to 40% of the unpaid amount will be applied to him. The value of the indicator depends on whether the offense was committed intentionally.

If a citizen received income and did not submit a tax return, he violated Article 119 of the Tax Code of the Russian Federation. In this case, you will have to pay 5% of the contribution that needed to be transferred for each month of delay.

The total amount of the penalty cannot exceed 30% of the amount or be less than 1000 rubles. If a person has committed a significant violation of the requirements of the Tax Code of the Russian Federation, he will be brought to criminal liability. Non-payment of taxes in the amount of more than 600,000 rubles is considered significant. for 3 years for citizens or 2 million rubles. for legal entities. The punishment will be established in accordance with the provisions of Article 198-199 of the Criminal Code of the Russian Federation.

The following sanctions may be applied to a violator who rents out premises without a contract:

• monetary recovery;
• involvement in forced labor
• deprivation of liberty;
• arrest.

The severity of the crime is taken into account.

Where can I file a complaint about illegal rental of an apartment?

In practice, owners only strive to obtain maximum income from renting out housing. Many apartment owners do not bother themselves with drawing up contracts. Due to the illegal rental of housing, not only the state budget, but also neighbors may suffer.

If the owner of an apartment looks only at the amount of money that clients are willing to give him, without understanding who exactly he is letting in, the behavior of tenants can often go beyond what is permitted.

If such a situation arises, neighbors have the right to complain about the landlord to the authorized body by writing a corresponding statement. First of all, you should inform the local police officer about the current situation. He has the right to find out on what basis citizens live in the premises.

If it is revealed that migrants or a person without registration live in the apartment, a representative of the authorized body will issue a resolution to impose an administrative fine. This rule is enshrined in Article 19.15.1 of the Code of Administrative Offenses of the Russian Federation. If foreign citizens are illegally living in the premises, it is recommended to contact the migration service. Tax officials are interested in reports of illegal rental of premises. Therefore, you can complain about illegal business to the Federal Tax Service. Upon receipt of the complaint, a representative of the authorized body will call the owner to provide explanations and conduct an inspection. If a citizen is proven guilty, penalties will be applied against him. Additionally, he will have to pay all accrued tax payments. If representatives of the Federal Tax Service do not fulfill their obligations, you can file a complaint with the prosecutor's office.

Is it possible to evict?

In order for the appeal to be effective and for the authorities to quickly respond to the application, you need to know where to file a complaint and in what form.

Where to complain?

There are many authorities where you can file a complaint about illegal rental of real estate. The choice of one or another organ depends on the circumstances. The first thing you need to do is try to come to an agreement with the owner of the apartment. If the tenants are making noise and disturbing the order, it is better to first inform the owner.

In order for the conversation with the owner to yield results, you can hint to him that if he does not act, information about the illegal rental of an apartment or noisy neighbors will go to the authorities. If the owner is interested in further renting out the apartment, then he will resolve the issue with the tenants himself (we discussed in a separate article how the owner can evict tenants who behave dishonestly or do not pay rent).

The dialogue with the landlord did not bring a positive result? Then you need to contact the authorities. Where can I report the surrender :

• To the building management company or HOA. The organization is interested in maintaining order in the house, as this is required by the Housing Code. The management company or homeowners association must provide the address of the problem apartment and information about the owner.
• To the district police officer. A law enforcement officer will be required to listen to the complaint and accept the application, and then conduct an inspection and, if the fact of illegal rental of housing or illegal migrants living in it is revealed, the district police officer will send information about the tenants to the tax or migration service.
• To the prosecutor's office. It makes sense to contact this authority only if other authorities are inactive.

Read more: How to temporarily block your home phone by Rostelecom

How to write a complaint?

The document is drawn up in any form, printed or by hand. What you need to indicate in your complaint :

1. The header of the document contains the name and address of the body to which the complaint is being filed.
2. Applicant details (full name, address, contact number).
3. The title of the document is “Application”.
4. The essence of the problem. You will need to indicate the address of the apartment, information about the owner of the premises (if any).
5. Goal of request. A request to conduct an inspection of the owner and residents living in the specified living space.
6. Date and signature.

• complaints about neighbors to the management company/homeowners association/precinct office/prosecutor's office
• complaints about neighbors to the district police officer
• complaints about neighbors to the Criminal Code
• complaints about neighbors in the HOA
• complaints about neighbors to the prosecutor's office

Legal rental of an apartment

Having found out what the fine is for renting out an apartment without paying taxes in 2019, most citizens decide to act within the law. However, not everyone knows how to correctly draw up the act of renting out an apartment. The main document regulating the legal relationship between the owner and the tenant is the contract. The features of its composition depend on who exactly will use the room.

If the tenant is an individual, it is necessary to draw up a rental agreement. If a company wants to rent premises, it needs to draw up a lease agreement. Each of the papers is drawn up in writing. If the agreement is concluded for more than 1 year, the transaction must be registered in accordance with the established procedure.

Experts advise concluding contracts for a period of less than 1 year, leaving the possibility of extension. In this situation, participants in the transaction will be able to save money. They will not have to pay a state fee to complete the registration.

The owner of the apartment or his authorized representative has the right to rent out housing. Experts advise acting independently. If for some reason this is not possible, you must issue a power of attorney. It must be notarized. This will result in additional costs. Having decided to rent out housing, you need to choose a method for calculating taxes and paying payments to the state budget.

The choice depends on many factors, which include:

• income that can be obtained as a result of renting out the premises;
• number of apartments for rent;
• the amount of expenses for maintaining the premises;
• property owner status;
• tax policy, which is carried out in a specific subject of the Russian Federation;
• category that includes housing.

Experts advise considering all available options for deducting taxes to the budget, calculating approximate income and only then making a final decision. This will allow you to choose the most optimal tax system. You also need to remember about the need to provide a declaration. Violation of tax laws will result in fines and other unpleasant consequences. By observing all the norms established by law, a citizen will be able to rent out housing without hindrance.

Download samples of apartment rental agreements:

Maslennikov Ivan Ivanovich

Graduated with honors from the State Academy of Law (SLA) with a degree in jurisprudence. Extensive experience in resolving legal issues of a wide range.

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1. Michael
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I encountered the same problem myself. Two years ago, I was left as the heir to a two-room apartment after the death of my grandmother. I rented it out to a young couple. I didn’t know anything about taxes and now I’m paying with fines.

Illegal rental of housing - what the dangers are and how to avoid problems

With the right approach and competent attitude to its obligations, the owner of a leased property must annually submit a residential lease agreement in 3 copies to the Federal Tax Service for registration. Then, at the end of the reporting period, fill out the appropriate tax return and pay one of the taxes.

We recommend reading: What assistance from the state to families with children in 2020

The owner of the living space risks the most by allowing tenants into the house without legal registration of the transaction and reporting it to the tax office. The danger may arise not only from unscrupulous tenants, but also from regulatory authorities.

Responsibility for illegal rental of an apartment

What are the dangers of illegal housing rental? Responsibility for such acts is provided for both criminal and administrative. The division of liability depends on the amount of unpaid tax.

If the amount of taxes for 3 financial years is more than 600,000.00 rubles and the share of unpaid taxes exceeds 10% of the taxes payable, then for failure to submit a declaration and non-payment of taxes, criminal liability arises under Article 198 of the Criminal Code of the Russian Federation. The sanction of this article provides for a fine from 100,000.00 rubles to 300,000.00 rubles or a fine in the amount of the wages of the convicted person from 1 to 2 years. Liability is also provided in the form of forced labor, arrest or imprisonment for up to 1 year. Such liability arises for the above act if the amount of unpaid taxes is large. For particularly large sizes, stricter liability is provided. But we will not go into details, since you can study the sanction of Part 2 of Article 198 of the Criminal Code of the Russian Federation yourself.

However, in practice, criminal liability for non-payment of tax upon renting out an apartment is quite difficult, since the contract price must be very high if the amount of tax payable is 600,000.00 rubles. That is, with a tax amount of 600,000.00 rubles, the total amount of income for 3 years should be 4,615,384.61 rubles. The amount of income per year should be 1,538,461.53 rubles, and per month 128,205.12 rubles. This price for a rental agreement is only possible in Moscow and in a very elite apartment.

Fine for illegally renting out an apartment

Administrative liability for non-payment of tax amounts and failure to submit a tax return is provided for by the Tax Code of the Russian Federation.

Responsibility is provided separately for both failure to submit a declaration and for non-payment or incomplete payment of taxes.

Thus, for failure to submit a tax return, you will be required to pay a fine of 5% of the amount of unpaid tax on an unsubmitted return for each month of failure to submit a return, but not more than 30% of the specified amount and not less than 1,000.00 rubles.

Responsibility for non-payment of tax to the budget is expressed in the form of a fine in the amount of 20% of the amount of unpaid tax, and if non-payment of tax was made intentionally, then in the amount of 40%.

Let's visually calculate the amount of tax and penalties for non-payment and failure to submit a declaration to make it clearer that the amounts of liability are significant.

So, for example, you receive 200,000.00 rubles per year from renting an apartment. That is, per year you are required to pay taxes totaling 26,000.00 rubles.

By April 30 of the year following the reporting year, you do not submit a tax return; the tax service detects non-payment of tax and failure to submit a declaration a year after the need to submit a declaration.

That is, for late filing of a declaration, you must pay 26,000.00 * 5% = 1,300.00 rubles per month, for 12 months - 15,600.00 rubles, but not more than 30% of the tax amount. In this case, there will be an excess and you will be required to pay 30% of the tax amount, that is, 7,800.00 rubles.

For late payment of tax, you are required to pay 40% of the total tax amount. That is, 26,000.00*40% = 10,400.00 rubles.

The total amount of penalties for non-payment of tax and failure to submit a declaration will be equal to 18,200.00 rubles, this amount exceeds your monthly income from renting out an apartment.

Thus, it is more profitable to pay and declare all income than to face penalties.

In this publication, we have discussed possible fines and types of liability for failure to submit a tax return and failure to pay taxes on income from renting out an apartment.

ATTENTION!

Due to recent changes in legislation, the information in this article may be out of date!
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Is it possible to punish neighbors who illegally rent out an apartment?

Unfortunately, it is impossible to prohibit the owner from renting out housing. According to Art. 209 of the Civil Code of the Russian Federation, the owner has the right to dispose of the property belonging to him at his own discretion, if this does not violate the interests of other persons.

What is meant by violating the interests of others? This means that the owner can use, in this case, the apartment so that it is kept in proper sanitary condition, and nothing poses a threat to the life, health or property of neighbors (Articles 209, 293 of the Civil Code of the Russian Federation).

In addition to the penalty for failure to pay income tax, the owner is subject to a fine of 20% of the amount owed. In case of repeated violation, the fine amount is doubled. If the debt exceeds 1.5 million rubles, imprisonment for up to three years is possible.

If an illegal rental of a municipal apartment is discovered, the owner will face eviction and, accordingly, deprivation of the right to use the living space.

Read more: Request form to the Russian registry for information

As you can see, if neighbors rent out an apartment illegally, measures can be taken. However, it is possible that the owner and the tenant will prove that the latter’s accommodation is provided free of charge. Then, it will not be possible to influence lawbreakers with penalties.

Citizens who own several residential properties often provide them to third parties for living on a rental basis. The reasons for the absence of an agreement between the owner and the tenant are extremely simple - no one knows about the source of income, therefore, there is no need to provide a declaration and pay tax.

But no one thinks about the existing types of liability for illegally renting out an apartment. The government is very actively working on laws that can bring real estate rentals out of the shadows, and among tenants you can often find unscrupulous people or even scammers.

Attention! If you have any questions, you can chat for free with a lawyer at the bottom of the screen or call Moscow; Saint Petersburg; ext.480 Free call for all of Russia.