The Ministry of Construction is preparing fines for illegal renting of apartments

The Ministry of Construction has prepared a draft state information system, where the real estate owners must enter information about the lease.  If the information is not entered, penalties will follow.

According to Kommersant, the state budget loses 162 billion rubles a year due to the shadow housing rental market.  It is assumed that the property owners will add information about contracts for the lease of apartments, parking spaces and apartments in the new system (GIS).  Otherwise, landlords face fines: up to 5,000 rubles for individuals and up to 50 thousand rubles for the companies.

According to the text of the document, information about the lease must be entered within 30 days from the date of the conclusion of the contract.

What is more, 30 days are given to amend the contract. The Ministry of Construction expects that the bill will be sent to the State Duma in the spring of 2022.

Vladimir Putin ordered to developer the GIS system in August 2021.  The system will belong to the Russian Federation, the Ministry of Construction will become the operator.  The development of GIS will take about a billion rubles, 100-200 million rubles more will be required for its work and maintenance.

The explanatory note says that GIS is necessary to whitewash the market and protect the tenants.

According to the All-Russian Public Opinion Research Center, about 7% of the housing stock is leased in the Russian Federation, and almost 7 million families use rented housing.  The authorities plan to stimulate the registration of contracts in the system with the help of fines.  However, a number of experts believe that the initiative may backfire and residents of the country will continue to hide their lease data.