What will happen to illegally renting out an apartment in Russia?

If you own several residential properties, this is a good investment. Everyone knows that money should “work”, so the owner more often begins to rent out housing and lets tenants in for extra square meters. It is important to understand that illegally renting out an apartment is fraught with unpleasant consequences ( find out what exactly ) . In this article we will look at what consequences illegal rent, excessive greed and/or ignorance of the laws can have for homeowners.

What does the law say about renting out an apartment?

The concept of renting and renting residential premises is presented and regulated by the Civil Code of the Russian Federation (Civil Code of the Russian Federation, Chapter 34-35). This piece of legislation contains all the information a new landlord (tenant) needs:

• rules for drawing up a rental agreement;
• the need to register rental documents in Rosreestr;
• duties of the parties;
• the process and consequences of early termination of a transaction;
• re-letting of an apartment (sublease);
• how and when payment should be made for rental property, etc.

According to Russian law, all income of citizens must be taxed. Rental income is included in the list of taxable profits and is subject to mandatory declaration .

What taxes do you need to pay when renting out an apartment?

The type and, accordingly, the amount of tax to be paid depends on the legal status of the property owner. For individuals, everything is quite simple. From the monthly amount received from the tenant, the owner must pay 13% to the state budget (personal income tax).

If the lessor is an individual entrepreneur or a legal entity, you can choose the optimal tax system:

1. General - tax is 20% of profit. In this case, the income declaration is submitted to the tax office quarterly.
2. Simplified - declaration of profits and/or expenses is carried out once a year. An entrepreneur has the opportunity to choose at what rate the taxation will be carried out (6 or 15%). The choice depends on availability and the ratio of profits and expenses.
3. Patent - the average regional profit for a specific type of activity is established, which is taxed at a rate of 6%. After the transition to a patent taxation system, there is no need to declare income from rental real estate.

Important! Illegal business activity is punishable by law, and the profit from renting out an apartment is disproportionate to the penalties applicable to the violator.

What is the liability for non-payment of taxes?

Responsibility for illegal rental of housing is prescribed in the following legislative acts:

1. Tax Code (Tax Code of the Russian Federation, Articles 119, 122) . Negligent landlords and tenants caught failing to pay taxes must pay the calculated amount of tax to the budget, as well as a fine of 20-40% of the profit received.
2. Criminal Code (Criminal Code of the Russian Federation, Art. 198-199) . Provides for criminal liability in the form of a fine of 100 to 300 thousand rubles or imprisonment for a term of six months to 3 years. The severity of the punishment depends on the amount that the state lost as a result of tax fraud by the property owner.

In addition, additional punishment may be applied to the violator:

• payment of penalties for the entire period from the moment of the tax violation to the discovery of the fraud;
• penalty for failure to file a tax return - 5-30% of the amount due for each month of delay;
• application of Article 171 of the Criminal Code of the Russian Federation for carrying out illegal business activities (fine up to 300 thousand rubles or 480 hours of community service, or imprisonment for six months).

Where can I complain if my neighbors rent out their apartment illegally?

If an apartment is being illegally rented out in your building, you should not immediately notify all government agencies about it. Perhaps relatives came to visit the neighbors, and we are talking about a guest visit, and not about hiring.

Let's define several options for where to complain and who you can contact in such a situation:

1. Police . The police or local police officer should be called during violent parties or if tenants are making noise at inappropriate times (from 11:00 p.m. to 8:00 a.m.). Employees of the Ministry of Internal Affairs will check the residents’ documents. If they reside illegally (lack of temporary or permanent registration at their place of residence), penalties will be applied to them. The policemen will remind the owner of the apartment about his duties as a taxpayer.
2. The Federal Migration Service . If neighbors rent out an apartment illegally to people of non-Slavic appearance, then they are violating not only tax, but also migration laws. One call to the FMS hotline 8-800-222-98-98 will change the situation in a matter of days . This telephone number is available around the clock not only to residents of Moscow and the region, but also to all Russians.
3. Tax Service . An organization whose competence includes imposing fines for illegal rental of apartments will be grateful for a timely call and identification of violators.

How to officially rent out an apartment?

If a citizen decides to become a legal landlord, the following instructions must be followed:

1. Completely prepare the housing for delivery (make repairs, clean the premises, check the functionality of household appliances and appliances).
2. Find potential tenants (placing an ad in the media, on popular Internet sites).
3. Draw up and sign a rental agreement, as well as an acceptance certificate for residential premises.
4. Issue temporary registration for residents for the period specified in the contract.
5. Register the rental agreement with Rosreestr (required if the delivery period exceeds 11 months).
6. By April 30, fill out and submit a declaration to the tax office located at the owner’s place of residence (Tax Code of the Russian Federation, Article 228).
7. By June 15, pay the amount of tax on the rental of the apartment, calculated and indicated in the declaration.

What are the consequences for a landlord for illegally renting out an apartment?

Each subject of the Russian Federation is home to many careless citizens who are trying to deceive the state and not pay income taxes. But is it always the state that bears the loss? Let's look at the consequences of illegal renting to a homeowner:

1. Damage and/or loss of property . Tenants often carelessly handle the situation in the apartment, which entails serious expenses for repairs and the purchase of new property. In addition, residents can move out at any time, taking with them valuables, equipment, or even furniture from the rented apartment. The landlord will not be able to contact the police without revealing his tax fraud.
2. Unplanned expenses . Sometimes tenants can flood their neighbors or start a fire. In such a situation, it is the owner of the apartment who is responsible to the affected neighbors.
3. Deception . Residents may not pay rent to the landlord or move out, leaving huge utility debts.

If there is an official rental agreement, in such situations the owner of the property can go to court and receive compensation not only for material damage, but also for moral damage.