Is it possible to rent out an apartment with a mortgage and how to do it?

Today, real estate is increasingly purchased through mortgage lending. The main advantage of this method is that the future owner of the residential premises is provided with a profitable loan for a long time. A peculiarity of a mortgage agreement is that the collateral in it is the real estate itself, which allows minimizing the financial risks of the lender.

Many future property owners strive to repay the loan as quickly as possible. Therefore, in order to obtain additional funds, purchased apartments are often rented out. Therefore, the question of whether it is possible to rent out an apartment taken on a mortgage is very relevant.

Rich dad's investing: features and benefits of daily studio rentals

Rich dad investing (according to the books of Robert Kiyosaki) allows you to squeeze the maximum out of every square meter of space. The daily studio rental strategy has a number of serious advantages. With its help, investors can increase their profitability compared to long-term rental of an apartment by 7-8 times or more.

The standard scheme for making money on rent - buying housing and renting it out to tenants - gives a profitability that does not exceed 6-7% per annum for the regions. In Moscow and St. Petersburg this figure is even lower – up to 5%. And this is provided that the tenants live permanently and regularly pay rent - otherwise the apartment is idle, income falls, and the owner must pay utility bills from his own funds. Due to this, profitability becomes even lower.

This conservative strategy is not very profitable for investors: you can sell the apartment and put the money in the bank at a higher interest rate and at lower costs. Apartment owners do not do this only because they do not trust banks, and they consider real estate a reliable way to save capital. And although rent does not bring high income, they rent out the apartment in order to get at least something from it.

Conclusion

How profitable is it to take out a mortgage on an apartment and rent it out to tenants? It is quite difficult to answer unequivocally. The result depends on many circumstances. The terms of the mortgage loan and the housing itself play an important role here, and how in demand it will become among tenants. If the rent exceeds the monthly loan payment, this measure will bring undoubted benefits.

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Mortgage specialist Maria Yurievna Sokhan

Publication dateJuly 9, 201July 9, 2019

Should I rent out the apartment daily? The main advantages of daily studio rental:

Many investors doubt whether to rent out an apartment on a daily basis. Let's look at what this gives.

1. High income per square meter due to division into studios.
   The smaller the apartment, the higher the rental yield. The cost of rent varies depending on the region, the location of the apartment and other factors, but on average the yield per 1 square meter of a studio is 1.5-2 times higher than the cost of renting a one-room apartment in the same area. Cost of long-term rental of studios in the Moscow region:

   
   The cost of renting apartments in the Moscow region:

   

2. Increasing income through daily rentals.
   Income from daily rentals is approximately 3 times higher than income from long-term rentals - minus utilities, maid services and other expenses.
   Here is the cost of daily rental of studios in the Moscow region. The price depends little on the area: But the cost of renting apartments in the same region: For example, in the region a one-room apartment with an area of ​​37 square meters costing 1,300,000 rubles can be rented out for about 9,000 rubles per month. Utility bills in this case are usually paid by the tenants. Minus income tax, monthly income will be approximately 8,000 rubles. If you divide the same apartment into two studios and rent it out for long-term at 8,000 per studio, this will give 16,000 income instead of 9,000 rubles. Net income minus tax is 14,000 rubles. These same studios can be rented out daily for 1,500 rubles per day, thus receiving 45,000 from one studio and 90,000 rubles from the entire apartment. After deducting utility bills, taxes, payment for the services of a manager and maid, the net income will be 60-70 thousand rubles per month, that is, due to division into studios and daily rent, the cash flow will increase 8 times.

Materiel: is it profitable to rent?

Now let’s calculate how profitable it is to rent out an apartment with a mortgage and what needs to be taken into account.

Let's take, for example, a one-room apartment in Moscow with an area of ​​approximately 40-45 square meters, resale, from the owner. The cheapest options, according to the Cian website, start at around 2.75-3.5 million rubles. Let there be 3 million rubles for a convenient account.

Let's say a certain Vasya has 750 thousand rubles for a down payment (this is 25% of the cost of housing). It’s quite enough to get a mortgage from Sberbank. In this case, the mortgage parameters will be as follows:

• loan amount – 2,250,000 rubles;
• rate – 9.8%;
• payment – ​​23,905 rubles.

You can rent out such an apartment in Moscow for at least 20-25 thousand rubles, and if you try (furnish it properly, redo “grandmother’s renovation” to look like Euro or high-tech, drag in a microwave and run the washing machine in the right direction according to Feng Shui), then for 30. Let there be these same 30 thousand.

What are the costs? A mortgage is understandable, here we pay 23.9 thousand rubles. Other expenses are utilities + taxes (we are honest landlords).

Utility costs are already included in the rent, i.e. the tenant does not pay for them, so they fall on the shoulders of the owner. Let a communal apartment in a Moscow one-room apartment cost 5 thousand rubles (for good measure). Meters are paid separately, they will be paid by residents, so we do not take them into account.

Now the tax. Profit from renting out – 30 thousand. We subtract 5 thousand - the cost of maintaining the apartment. What remains is net profit - 25 thousand. Tax – 13% of this amount, i.e. 3250 rubles.

Total expenses:

• mortgage – 23,900 rubles;
• communal apartment - 5000 rubles;
• taxes – 3250 rubles.

Total: 32150 rubles.

From 2021, you can register as a self-employed person and rent out an apartment paying a lower tax - 4% if renting out housing to an individual and 6% if renting out to a legal entity. Let's assume that you rent out an apartment to another person (individual) and pay a tax of 4%.

And here’s another interesting article: What is passive income and how to really get it

But the tax will have to be paid not on net profit (i.e. income minus expenses), but on all profit, i.e. from 30,000 rubles. At a rate of 4%, the tax will be 1200 rubles, and the total expenses will be 30100 rubles (savings 2050 rubles).

Obviously, renting out such housing for 30 thousand is unprofitable. You need to ask for at least 33 thousand, or better yet 35 thousand, in order to be able to pay for unplanned expenses (repairs, painting, purchase of equipment, etc.).

And so the same CIAN shows that such prices exist. And I would not say that such apartments shine with renovation or unique location.

Conclusion: first calculate the costs, and then plan how and at what price to rent out a mortgaged apartment.

Naturally, each city and even a separate region of Moscow will have its own prices - I just gave an example of how an investor should think.

Additionally, you need to include expenses for individual entrepreneurs if you take out a commercial mortgage. Therefore, you either need to raise the rent or look for an option with a cheaper mortgage.

By the way, if you don’t know where to get a down payment for a mortgage and you have a small salary, then read this article.

How to rent out an apartment at an expensive price and where does the income come from?

There are several ways to rent out an apartment at an expensive price. The location of the property, its appearance, and the manager’s ability to negotiate with potential clients also matter. The area of ​​the apartment does not matter much.

If housing is purchased on credit, the investor's net income is the difference between rental income and the monthly mortgage payment.

If you simply buy an apartment on credit with a minimum down payment and rent it out for a long-term lease, the mortgage payment will almost always be higher than the rental rate, which is why you need to divide it into two studios. This assault strategy allows you to purchase an apartment in a new building at essentially the price of a down payment and investor renovations - all other funds will be contributed from rental payments, and the remainder remains in the investor’s pocket every month.

After paying off the mortgage, the investor's income will increase significantly. He will be able to keep the entire amount of rent minus mandatory payments (taxes, utility bills, maid payments).

Renting an apartment purchased with a military mortgage

Another important issue is the rental of an apartment purchased with a military mortgage. The relevance of this issue is explained by the fact that very often a serviceman purchases real estate with a military mortgage in the city in which he intends to live only after retiring. Having purchased such housing with a military mortgage, he continues to serve in another region. Naturally, in order to cover the cost of utility bills, many people seek to rent out apartments.

The question in this case is due to the fact that, according to the law “On the Status of Military Personnel,” a person does not have the right to engage in commercial activities. Therefore, it is necessary to understand whether the transfer of residential premises for rent is considered entrepreneurship.

• The definition of entrepreneurship is contained in the Civil Code of the Russian Federation. It states that this is an activity carried out at your own risk, involves the receipt of income and requires registration in accordance with the current legal order.
• On the other hand, Article 608 states that registration is not required for the owner of a residential premises who rents them out.
• And finally, the Ministry of Taxes and Duties of the Russian Federation, in its letter No. 04-3-01/398 dated July 6, 2004, clarifies that operations related to leasing one’s own residential real estate do not relate to entrepreneurial activity.

Taking into account all of the above, it can be argued that an apartment purchased with a military mortgage is permitted by law to be rented out. Such activities are not commercial and do not contradict the law “On the Status of Military Personnel.”

Should I rent out an apartment daily: what income and for what period can daily rent bring?

The answer to the question of whether to rent out an apartment by the day is determined by the ratio of profitability, invested funds and work done.

An investor’s income depends on various factors, the main ones of which are:

• in which region is the apartment located?
• what amount was invested in it.

Let's look at real options for purchasing a one-room apartment in a new building in Moscow and in the region.

Why can a bank or insurance company refuse?

Categorical refusals by banks and insurance companies are rare. They are not required to explain the reasons. The most likely:

• the amount of the debt is close to the appraised value of the housing, and if the tenants turn out to be careless, the amount of the collateral (=the cost of the apartment) will no longer cover the loan issued;
• identifying in the client’s history facts of abuse, violation of the law, directly or indirectly related to real estate transactions;
• If you apply verbally, there is a chance that you will end up with a specialist who is not sufficiently competent in the question of whether it is possible to rent out an apartment with a mortgage.

The insurance company will likely refuse to pay if an insured event occurs and the fault of the tenant living without the knowledge of the insurer is proven. To avoid this situation, notify the agent of your intention to rent out the apartment. The cost of the insurance policy will increase. The expenses are reasonable, and the rent will cover them in the first month.

Recommended article: How to transfer a mortgage to another person: procedure and conditions

Rich Dad's Investing: How to Increase Your Return on Investment

Rich dad's investing involves accurately calculating all expenses and expected returns. A correctly chosen apartment should bring a profit significantly higher than the market average.

Particular attention should be paid to the location. Since we are talking about short-term rentals, it should be convenient for people to get to the place. Even before purchasing, look through rental ads, talk to realtors and place a free trial ad on Avito to measure the number of calls and understand whether this studio is in demand.

What is the minimum amount you can enter with?

If you find a mortgage with no down payment, you only need money for repairs and remodeling. The amount of costs will vary depending on the city, area, building materials used and other factors. You can focus on the amount of 500-600 thousand rubles. If you don’t have this money, you can find a sponsor or take out two or three consumer loans.

Since the apartment is purchased for investment purposes, investor renovations are done. The apartment should look bright and clean, all furniture and appliances should be new. Focus on an inexpensive, but not the cheapest option - this should be the bare minimum.

How to rent out an apartment with a mortgage: investor cases

Let's look at cases of people who know how to rent out a mortgaged apartment and make money from it.

Case 1. Up to 90 thousand rubles per month from a Moscow “odnushka”

Investors turned one apartment into 2 studios with individually designed designs and high-quality, expensive renovations.

1. The cost of renting an apartment is 25-30,000 rubles.
2. The cost of renting 2 studios is 60,000 rubles.
3. The duration of the project is 2 months (more than the average period due to good repairs).
4. The planned income for a mixed rental system (long-term + daily) is 70-90,000 rubles.

Case 2. Apartment in Korolev, generating up to 150,000 net income

Buying an apartment with a mortgage, making repairs there and getting a high income on daily rent is available to almost anyone, regardless of age and abilities. As Robert Kiyosaki says, “Every person has arms, legs, a head and 168 hours a week to do everything that he truly desires.” If your goal is to make a real estate investment that will generate a high, stable income, this strategy will work great.

Do I need to notify the tax office?

By law, you are required to report income when you rent out an apartment with a mortgage or free of encumbrances. Tax evasion is difficult to prove when paying in cash. A contract shows only the intentions of the parties. The fact of delivery is confirmed by the following documents:

• Act;
• check;
• receipt of money;
• income statement;
• employer's statement;
• neighbors' testimony.

Conditions often arise in which none of the listed documents appear.

Recommended article: Questions when applying for a mortgage

Where to start investing in an apartment

Step-by-step action plan to make money on daily rent:

1. Search for an object.
   The key factors for finding an apartment are its location and layout. Layout is important to divide apartments into studios. In some objects this is easy to do, in some it is more difficult, in others it is impossible. Ideally, choose a “vest” apartment, which is the easiest to cut.

The location of the apartment is of fundamental importance. Apartments near train stations, hospitals, and business centers are good for daily rent. Good transport accessibility is required - no one will have to make two transfers to get to temporary housing.

1. Obtaining a loan and making a purchase.
   When an apartment is chosen, you need to find a bank and get a mortgage. According to the general rule of investing in real estate, a loan must be issued for the longest possible period and with a minimum down payment. It’s very good if you can find an option with no down payment at all. It makes sense to submit applications to several credit institutions and choose the best option.

It is believed that to receive a loan you need to be employed. In fact, if you wish, you can get a loan without providing proof of income.

By the end of each year, both home prices and lending rates traditionally fall to historic lows. Developers offer good conditions, give discounts, and organize seasonal sales. If you wish, you can buy an inexpensive apartment in a good area. If you don't have enough money and an approved loan to purchase a completed home, consider purchasing a home in the final stages of construction. If the house has not yet been rented out, prices will be lower. But in this case, you will have to pay the mortgage from personal funds until the house is put into operation.

1. Redevelopment and repair.
   Standard investor repairs take 2-3 weeks. If you want a luxury option, repairs may take about 2 months. But in this case, you need to be prepared to pay the mortgage while no one lives in the apartment.

The apartment is divided by a partition and turns into two studios isolated from each other. Each studio has a bathroom with shower and an open kitchen. The balcony can be insulated and turned into an additional small room. It turns out to be a full-fledged small-sized studio apartment in which you can live comfortably.

It is very important to make high-quality repairs and wisely manage limited space. The market is overflowing with offers of dilapidated furniture and crumbling plaster. To be competitive in this niche, your offering must win over others. It will not benefit in terms of space (since you are renting out a small studio), but this is easily compensated by its good location, zoning, specialized furniture and neat renovations.

Investor renovation is a separate issue. Some nuances can significantly reduce the time it takes and save a lot of money without any damage. An investor gets a good apartment by investing much less in it than others.

1. Check-in of residents.
   If you do not want to do this yourself, at this stage you need to hire a manager. If you were correct in the previous two points, the first tenants will appear immediately. High-quality studios (well renovated and well located) are in good demand in any city.

Legislative norms

Registration of a mortgage is regulated at the legislative level. The regulatory framework, namely the Law “On Mortgage,” states that real estate within the framework of mortgage lending is the property of the borrower. Consequently, a citizen has every right to dispose of the object at his own discretion.

The borrower can:

• Live on the territory of the purchased property.
• Receive income from operations with the pledged property.

Important! Renting mortgaged real estate will not be considered a violation of current legislation.

The Civil Code states that the disposal of property should not infringe on the rights and interests of third parties. In this situation, the role of a third party is the financial organization that previously issued a loan for the purchase of the designated apartment.

There is no direct ban on renting out mortgaged real estate in the laws. In this case, it is necessary to coordinate your intention with the bank that holds the apartment as collateral.

The agreement may specify how the property is allowed to be used:

• The document may not indicate that the bank imposes any restrictions on the use of the property.
• The financial institution allows housing to be rented out, but a number of requirements must be met. As a rule, one of the main conditions is the writing of a written agreement.
• The mortgage agreement clearly states the prohibition of renting out the mortgaged apartment. Ignoring such a rule may lead to a conflict situation with the creditor.

In most cases, banks use the wording from the second paragraph. Renting is permitted with written permission from the bank.

What do you need to buy an apartment, divide it into studios and rent it out daily?

It’s not difficult to start investing in an apartment if you know the features of the rental market, the nuances of investor renovations and other details. All that is required from the investor is a desire to engage in this business and an initial investment of 500,000 rubles (if you take out a mortgage without a down payment).

Knowing the intricacies of the daily rental market can significantly reduce profitability and even reduce it to zero. Details can be found in training courses.

Some investors put off purchasing an apartment for years “until better times.” Some are afraid of mortgages, while others think there will be no demand. Most often, these fears are explained only by lack of confidence in one’s abilities. As George Lucas said, “If you want to do something great one day, remember: that one day is today.”

At the training courses you will not only find answers to all your questions, but also like-minded people who will support you in implementing this strategy.

What to do if the bank refuses to rent out a mortgaged apartment

Some banks allow the rental of an apartment with a mortgage; this is even stated in the agreement. In this situation, the borrower should not have any difficulties.

However, sometimes the contract contains a ban on surrender. You should not neglect the creditor’s requirements so as not to create a conflict situation. It is better to use one of the suggested methods:

• It is recommended to file a petition to change the terms of the contract. The main motive should be the fact that without renting out real estate you will not be able to fulfill your debt obligations in a timely manner. Most lenders are cooperative and allow the apartment to be rented out; this helps them minimize their own risks.
• Renting out an apartment without drawing up a lease agreement. This is an illegal activity. In addition, the borrower undertakes a number of obligations to restore the property if damage occurs during the delivery period.

How to choose an apartment for daily rent

Choosing the right apartment is the main task of the investor. Not every apartment is suitable for daily rent and redevelopment. Sometimes even apartments in neighboring houses can be rented out differently: one will bring a high income, the other - several times less.

Here are the main characteristics of the apartment that you need to pay attention to:

• Layout.
  The easier it is to divide the apartment into studios, the better. Of great importance is the location of the so-called “wet points”, which cannot be moved or placed above residential areas. It makes sense to consider an apartment on the ground floor - wet spots can be transferred there. There are other elements that can make remodeling easier or more difficult.
• Location.
  The key factor for such an apartment is where it is located. If you plan to rent out square meters to businessmen, the apartment should be located near the office area. If this is an apartment for students coming for a session, it is close to universities. If you buy an apartment near the hospital, relatives of the patients can rent it. Apartments near train stations rent very well, because such studios are rented on a daily basis mainly by business travelers. It is best to choose an option that is suitable for several categories of potential tenants.
• Transport accessibility.
  It is extremely important that this area is easily and quickly accessible from the center. In megacities, the apartment should be located near the metro, outside the metropolis - next to the station.
• Infrastructure.
  Since the apartment is rented daily, the presence of kindergartens and schools will not be relevant. But the presence of shops, office and shopping centers, cinemas will be a plus. This should be a well-developed and promising area.
• Floor.
  For investment, you can consider apartments on the ground floor - when purchased, they can be 10-15% cheaper, and this has almost no effect on the rental price. The first floor has its advantages - for example, independence from the elevator, the absence of neighbors below (who can be flooded) and more freedom in redevelopment.

During the training courses, investors receive a long checklist with which they can easily check an apartment before purchasing.

How to calculate return on investment

Net income is calculated simply - rental income minus mortgage payments and other obligatory payments.

In the above case from the city of Korolev, an apartment worth 4.3 million rubles with a monthly mortgage payment of 32 thousand rubles brings in 180,000 rubles per month. (3,000 rubles per day for one studio). If fully occupied, the investor will receive an income of 148,000 rubles; if taxes and other expenses are subtracted from here, the net income can be about 120,000 rubles per month.

What is the benefit

In the previous section, we compared options for renting a Moscow one-room apartment, but everything is not so bleak. Not everyone has an extra $3 million to put down a mortgage down payment.

The great benefit of a buy-to-let mortgage is the fixed mortgage payments. They will not change not in a year, not in ten years. But the cost of rent, like the cost of housing itself, is constantly growing. Therefore, after 10 years, it is possible that rent will completely cover the amount of any monthly payment.

Let's take as an example a small studio for 2.5 million rubles, with a good location relative to the metro and other infrastructure. We will take out a mortgage for 15 years at 10% per annum and the down payment is also 10%. Now our monthly contribution will be 24,178 rubles. At the same time, mortgage payments will amount to 4 million 602 thousand rubles. in 15 years.

Thanks to a good location and marketing tricks, we will be able to rent out this living space for 25 thousand rubles. per month without downtime. Based on simple calculations, this acquisition will pay for itself in 18 years.

And if, taking into account inflation, the rent increases, then a full refund of the funds spent will occur in 13 years.

Recommended article: Military mortgage without a bank or loan

This option showed that renting out mortgaged housing fully covers all loan payments. It turns out that tenants will help pay off the mortgage in full through rent.

Should you rent out an apartment by the day: 4 main risks and how to minimize them

The main risks of investing in an apartment for daily rental:

1. The risk that there will be no demand for an apartment
   This is the most important risk for any real estate investor. Before buying a home, analyze the market and advertise for rent. Demand testing will help you ensure that the studio is in demand. If there are no calls or there are few of them, the apartment is not suitable.
2. The risk of not getting a mortgage.
   This is true for people without official income or with low salaries. In practice, there are ways to approve a loan with any credit history and do without proof of income. Details are available in the training courses.
3. The risk of not paying off your mortgage.
   If you choose an apartment wisely and make good repairs, tenant payments can cover the mortgage by 5-6 times. That is, you will receive 5-6 times more from the apartment than you pay to the bank. In addition, mortgage payments are fixed in rubles, and every year the ruble inflation will play into your hands - the rental rate and cost of the apartment will increase.
4. Risk of damage to property by unscrupulous tenants.
   From a legal point of view, this risk is removed by a well-drafted daily rental agreement. In fact, suing tenants is a thankless task. Therefore, what is more important here is not the legal, but the psychological approach. It is important to understand who you are renting an apartment to and what you can expect from these people. Experienced managers can tell at a glance who is not worth dealing with. If the apartment is aimed at serious businessmen who come to the city on business, then the risk of property damage is minimal. There are other categories of tenants who can be trusted.

With daily rentals, the risk of property damage is higher than with long-term rentals. Tenants can move in for just one day and still rob the apartment or severely damage the furniture. How can you minimize this risk:

• be able to communicate with potential tenants and form an opinion about them before concluding a contract;
• do not allow in for a period of less than 2 days;
• take a deposit of at least $50 and return it when the tenant moves out;
• draw up a competent agreement;
• sign the acceptance certificate of the apartment indicating all the furnishings and household appliances,
• take a copy of your passport (or at least a photo on your smartphone);
• ideally, live in the same house or nearby (as an option, have a manager nearby);
• choose an apartment in a building with a concierge and video surveillance.

The need to pay at least two days in advance, a deposit, and video surveillance will scare away scammers.

Before renting out the apartment

It would be appropriate to get to know your neighbors and tell them that you bought apartment No. X and want to rent it out. In case of complaints, leave your phone number. Often among the neighbors there are people who will happily look closely and listen to see if there is order behind the wall.

Recommended article: How to calculate a mortgage with maternity capital using an online calculator

Relations with tenants

Letting strangers into your apartment and avoiding signing an agreement is frivolous. The more valuables there are in the room, the higher the risk of losing them. Even re-pasting wallpaper takes time and money. Furniture and household appliances cost more, but they are easier to remove.

The contract defines the parties' responsibilities to each other. It is in the interests of the landlord to indicate:

• reliable passport details of the parties, or details of the organization if you rent out housing to a legal entity;
• liability for damage to property;
• an inventory of valuables, if any (relevant for apartments with increased comfort);
• payment period;
• meter readings if utility bills are not included in the rental price.

Be sure to check the information with your passport (individual) or extract from the Unified State Register of Legal Entities and power of attorney (legal entity). Request a copy for yourself (optionally, in exchange for a copy of your passport). If you suddenly have to contact the police, they will look for the tenant using the information specified in the contract.

A lease transaction with an organization is always registered in Rosreestr. An agreement with an individual for a period of up to 1 year is considered short-term and does not require mandatory registration. If the parties are satisfied with everything, after the expiration of the term they sign a new contract - for 11 months or long-term.

Sometimes owners create luxury conditions in apartments. As individuals, they cannot reduce the tax base by spending on furniture and equipment. Some landlords agree with tenants on an amount in the contract that is comparable to the market price. In fact, they receive a higher payment.

The first 11 months are a good time to start dating. If the relationship is successful, in the agreement for the next term you can propose to indicate an amount equal to the market average. Sometimes landlords also ask to retroactively re-sign the first contract with a lower price.

Tax

The owner is required to report income from rental housing. It is subject to a 13 percent tax. The report form is 3-NDFL declaration. A copy of the rental agreement must be attached to it. The amount and term in both documents must correspond to each other.

Important! If the contract specifies a period longer than the one for which you show income, the tax office may request additional documents (for example, a termination agreement) or conduct an audit.

If you have an unused tax deduction, you can use it and legally reduce your financial burden.

Is it possible to do redevelopment when the apartment is under mortgage?

Tax system

If you earn income, you must declare it and pay taxes. In the case of daily rent, the best option is to register an individual entrepreneur and buy a patent. In this case, the tax will be 6% of income.

Without registration of a patent, an individual entrepreneur will also pay 6% of income, but he will have to keep accounts, prepare reports, etc. Purchasing a patent will eliminate paperwork.

If you do not register as an individual entrepreneur, the tax rate will be standard - 13% of the income received.

Is it possible to take it unofficially?

Many people have a question: is it possible to rent out a mortgaged apartment unofficially? After all, bank representatives will not go to all the apartments and check whether the owners live there. This is generally illegal - except for the authorities, no one can oblige residents to show documents for the apartment.

Therefore, quite a lot of people rent out their apartments purchased with a mortgage unofficially. Many residents do not even know that they live in a mortgaged building.

What will happen if such a setup is revealed:

• the lease agreement will be terminated, and the tenants illegally occupying the premises will be evicted, and the owner will have to return their money;
• the owner will be forced to calculate illegally obtained income, declare it and pay tax + fine;
• the bank may demand early repayment of the mortgage due to violations of the terms of the contract.

And here’s another interesting article: Conditions for refinancing a loan in Uralsib: how to get a rate of 11.9%

Thus, it is better not to run into trouble, but to ask the bank to allow you to officially rent out the apartment. Yes, you may have to incur additional expenses in the form of registering an individual entrepreneur and obtaining a commercial mortgage (the rate for it is slightly higher than for a regular one), but if you are going to make renting out an apartment your business, it is better to do everything according to the law.

Daily rental of studios: our choice

Dozens of investors have already bought an apartment with a mortgage and are successfully renting it out for daily rent.

Case 3. 45,000 rubles of net income from daily rental of a mortgaged apartment in Zelenograd

The investor bought two one-room apartments and divided each into 2 studios.

• Mortgage payment – ​​33,000 rubles.
• The cost of daily rent is 1500 rubles.
• Profitability from 1 apartment (2 studios) – 90,000 rubles.
• Net income from 1 apartment – ​​45-47,000 rubles (minus mortgage and other mandatory payments)

Since apartments rise in price, you can sell it even before paying off the loan and exit this business with a profit. But in the current economic situation, it is not profitable to simply hold money. Even a bank deposit will not protect your investments from inflation. It makes more sense to put your savings to work and generate additional income.

Renting out an apartment for daily rent divided into studios is an assault strategy for those who want to invest in real properties without risk and at the same time receive a high income. At training courses, you can receive a ready-made step-by-step action plan from those investors who have already implemented this strategy.

This table outlines the main pros and cons of the daily rental strategy, as well as recommendations for investors.

What are the pros and cons:

Easy start (low investment).
The apartment is rising in price. Income in the first days after repair. Investor renovation - fast and cheap. The assault strategy will allow you to significantly increase profitability twice - by dividing the apartment into studios and through daily rentals. The mortgage is paid by someone else's hands. After paying off the mortgage, the investor's income increases further. High cash flow - 90-120 thousand rubles from each apartment, divided into studios. Risks when purchasing a building that is not put into operation. Risks of damage to property by temporary residents. The need to personally participate in this business or hire a manager.

Which banks allow you to rent out an apartment with a mortgage?

It turns out that many banking institutions are opposed to mortgages with the possibility of renting out an apartment purchased with a loan issued by them. Since when the borrower stops making monthly payments, the apartment becomes the property of the bank for further sale and repayment of the loan debt. In this state of affairs, the condition of the home is very important for the financial institution.

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Renting an apartment with a mortgage is possible under the following conditions:

1. If a rental mortgage is permitted by the bank or there is no mention of a prohibition in the mortgage agreement.
2. If the lease terms are specified in the bank agreement. This may be a limitation on the term of the contract, or the impossibility of extending it.

If the bank completely prohibits the delivery of mortgage housing, inspections may be carried out without warning. If the borrower violates the terms of the loan, he may be subject to a fine, and in case of systematic violation, termination of the banking agreement.

Everything is not as hopeless as it seems. Some banks allow you to take out a mortgage and rent out mortgaged housing. Such as:

• Sberbank;
• VTB;
• Svyazbank;
• Alfa Bank and other major financiers.