Removal rules

Buying an apartment with a mortgage and immediately renting it out is a great investment option. You can reduce the financial burden by repaying all or part of the loan through rental payments. And how does the bank treat such transactions? It is known that during the loan period, housing is pledged to him, and some transactions are limited. If you find yourself between two fires and don’t know how to rent an apartment: officially or “in black”, read the article - and the solution will be found by itself.

Your Mortgage Rights

Some Russians are afraid to buy an apartment on credit because of the prevailing myth that if something happens, the bank can throw them out on the street and take away their housing. Due to unreasonable fear, some are deprived of the only opportunity to realize the dream of a personal apartment. To understand how such fears are justified, it is necessary to know the important nuances of the law.

Who is actually the owner of a home purchased in whole or in part with credit funds?

Definitely the rightful and sole owner is the buyer, who is also the borrower. If you buy a finished apartment, then immediately after signing the contract of sale, you should register the ownership of it. When buying a mortgage on a premises located in a new building, the situation is slightly different - it can be registered only after the construction is completed and the house is put into operation.

When registering the ownership of credit housing, the registration service imposes an encumbrance on it in the form of a bank pledge, which leads to some restrictions. As a result, you will not be able to sell or exchange an apartment without the consent of the financial institution. In addition, the loan agreement usually establishes additional prohibitions until the debt is fully repaid. Usually, without the permission of the lender, it is forbidden to perform the following actions with housing:

• register relatives;
• to make redevelopment and reorganization;
• rent out.

In what cases can the bank evict the borrower and sell the mortgaged apartment?

Before putting mortgage housing up for auction, the lender goes to court with a claim to impose a penalty on it. This can happen if you are unable to repay a loan. The loan agreement clearly states how many missed payments the termination of the agreement entails.

Usually, it is enough not to pay for 3 months, but the bank does not always exercise its right and gives borrowers a delay. After the court makes a positive decision to collect the debt, the consent of the owner to sell the apartment is not required.

If you regularly make payments, but violate the rules for using the apartment or do not fulfill other obligations under the loan agreement, the bank has the right to demand termination of the agreement. It is known that very few people can pay off the entire mortgage in one amount, so you will have to sell the apartment. Fortunately, banks rarely resort to such a practice, and serious reasons are needed to terminate the contract.

Mortgage housing: is it possible to make money on it?

Since a mortgage is a heavy financial burden, it is not surprising that a borrower is looking for ways to earn extra income. By renting out a mortgage apartment, you will be able to make a profit immediately after its purchase and regularly repay the loan. Some people specifically purchase apartments in order to use them as a source of income in the future.

By law, the homeowner has the right to own, use and dispose of it at his own discretion, but the interests of third parties, which in our case are represented by the bank, cannot be violated.

The lender imposes a ban on renting a mortgage apartment based on the following considerations:

1. It is your responsibility to keep the mortgaged property safe and in good condition, and the tenant can ruin it. The loss of the presentation of the collateral and the decrease in its market value is absolutely not profitable for the bank. It is known that tenants are not always good with housing, and the owners are in no hurry to make repairs, because. it incurs additional costs.
2. If the client turns out to be a persistent defaulter, the bank will terminate the mortgage agreement and compensate for its costs by selling the collateral. Tenants who have entered into a contract by law and paid a long-term fee in advance may interfere with the sale of an apartment. Tenants are protected by law, so the bank will not be able to evict them, but will wait for the lease to expire.
3. Banks are losing profits as mortgages for individuals have better terms than loans for small businesses. In the meantime, the use of an apartment to generate income is an entrepreneurial activity.

In addition to financial institutions, insurance agencies are also interested in the purposes of using mortgaged real estate. Due to the increased risks, the rates for insurance of commercial properties are much higher than those of residential apartments. Naturally, agencies are unwilling to pay for the consequences of someone else's mistakes.

On the other hand, in order to rent out housing, it is not necessary to register a legal entity or individual entrepreneurship. The bank is unlikely to be able to prove the fact of commercial activity, because the apartment is used for its intended purpose - for living, even if not for the owner, but for the tenant.

In principle, the possibility of leasing depends on the specific bank and the terms of the loan agreement. Typically, financial institutions are not interested in the activities of the borrower as long as payments are received on time and the apartment is in good condition. From a financial point of view, renting a mortgage apartment is most profitable in large cities, where the cost of rent is covered by the loan payment. In this case, the borrower must have his own living space. Some people buy housing for the future residence of children in it, but while they are small, they rent out the premises to tenants. Sometimes real estate is purchased for the purpose of investing free money or simply because a profitable option has turned up.

If you decide to rent out a mortgage apartment, carefully consider all aspects of the issue and weigh the appropriateness of such a step, because:

• banks require you to formally conclude a lease agreement, so you will have to pay a tax of 13% of the profit;
• depending on the agreements, the landlord must pay for utilities or control the payments of tenants;
• if the apartment is in a new building, it is necessary to make minimal repairs - glue wallpaper, lay the floor, whitewash the ceiling.
• under the insurance contract, additional contributions are usually provided.

The main thing is that you really make a profit, and not unnecessary problems.

Official lease of a mortgage apartment or "black": is there a choice?

Without the consent of the bank, it is possible to rent out housing only if the conditions for renting it are not specified in the loan agreement. If such an item is present, then the borrower has a choice: to rent an apartment officially or resort to an illegal method. Each option has its own advantages and disadvantages. When choosing an official lease, the following procedure awaits you:

1. You visit the bank with a written application, which details all the circumstances and reasons for the situation. The lender will review the application within 5 days and give official consent. Please note that not all banks are against renting mortgage apartments. Many consider this prospect as additional guarantees for regular loan payments. Consent is secured if you:

2. If consent is received, collect additional documents:

• certificate of ownership of housing;
• a certificate from the housing office on the composition of the family;
• notarial consent of all owners of the apartment.

3. Find tenants and draw up a lease agreement, which spells out all the conditions for paying rent and utilities, the payment terms are indicated, and the rules of conduct are indicated. Be sure to attach to the contract an act of acceptance and transfer of property and register the transaction with a notary.

4. Pay annual income tax in the amount of 13% of the profit. To do this, you must fill out a declaration with the tax authority and attach a lease agreement, receipts for receiving payment for rent and certificates from the place of work.

The bank that rejected the application is not obliged to give explanations, however, this may happen for the following reasons:

• you have a bad credit history due to repeated delays in payments and accrued fines;
• the contract of employment is concluded for a period of more than a year;
• the bank examined the housing and found that it was already rented out without his consent.

When the bank does not allow renting housing or you simply do not want documentary red tape, you can resort to a "black" scheme. Renting an apartment without the consent of the bank and without a contract, trusting the "gentlemen's agreement", you are at a certain risk. The law states that bank employees have the right to visit you at any time in order to check the true state of mortgage housing. If the lender discovers illegal activity, then sanctions from the bank and tax authorities await you.

However, judging by the reviews of borrowers, banks practically do not control the condition of the apartment if the loan is repaid on time. Statistics say that most borrowers let tenants into mortgaged apartments without approval from a financial institution.

Please note that illegal renting of an apartment is associated with various risks. If the tenants damage the property or do not pay for the accommodation, you will not be able to recover the damages, since the transaction is not legal.

How can a bank punish you for renting a mortgage apartment

If the bank accidentally or intentionally discovers your amateur activity, the consequences will be as follows:

With this outcome, not only the borrower will suffer, but also the tenant, since during the eviction he will not receive compensation for the money spent on renting a home.

When buying an apartment for the purpose of its further rental, choose a bank that is loyal to such transactions. Openly discuss all the terms of such a scheme before the signing of mutual agreements. This will allow you to avoid trouble and legalize all transactions.