Renting an apartment without a contract: potential risks for the home owner and tenants

Renting an apartment is a common source of additional income. However, the landlord and tenants do not always fix the transaction with the help of a contract. This is often done by owners who do not plan to pay tax on their profits. According to Russian laws, there are no sanctions for failure to submit this document, but the absence of a lease agreement is fraught with problems for both parties.

What does the owner risk

If the owner of the property rents it out without a contract, he may face the following risks. Firstly, this is the non-payment of the next rental amount: after living another month, dishonest tenants can simply move out. In addition, if the tenants themselves paid for utilities and the owner did not require them to regularly provide receipts with payment checks, he may find an impressive accumulated debt.

Another common problem is the damage of property located in the apartment: furniture, household appliances, plumbing, floor and wall coverings, etc.

It is almost impossible to force the tenant to compensate for the damage without a contract.

In the absence of a contract, unscrupulous tenants can retake housing without the knowledge of the owner, often for rent to dubious persons. It is clear that in this case, the probability of damage or theft of property increases.

Another point: some far-sighted tenants who legally rent out residential real estate prefer to insure it, for example, in case of flooding or other troubles. If a lease agreement is not concluded, the insurance company, having learned about the presence of tenants, will most likely refuse to compensate for the damage.

Risks for the tenant

The contract is no less important for the tenant, since it protects his right to live in the apartment. The main problem is fraud on the part of the landlord. Not actually being the owner, he can take the rent and hide, and the tenant will later be evicted by the real owner. Such a situation is not excluded, even if the housing was rented by its rightful owner, who suddenly needed an apartment.

Without concluding a contract, the owner, as a rule, does not issue temporary registration to the tenants. And this is important, for example, to get a place for a child in a kindergarten near the house.

Many owners hide the fact of rent from their neighbors, forcing tenants to pretend to be their relatives. In case of a conflict with ill-wishers, tenants have no rights, they are afraid of visits from the district police officer or employees of the management company, since they live in the apartment illegally.

In the absence of a contract, of course, the act of acceptance and transfer of housing is not signed. Later, the owner can accuse the tenants of breaking, for example, a washing machine and demand compensation for the damage. Also, without an important document, the owner may violate an oral promise of readiness to make repairs.

Thus, the conclusion of a lease agreement is a reasonable decision to protect your rights. After all, the relationship between the landlord and tenants is simple only at first glance.