Is it legal to rent an apartment purchased under a family mortgage

The terms of family and other preferential mortgages may change if you rent an apartment without the consent of the bank. Today, the media is actively discussing the story of Konstantin, who in 2024 issued a family mortgage for a two-room apartment. With a down payment of 3 million rubles for 30 years, his monthly payments amounted to 59 thousand rubles. Since February 2025, he has been renting out an apartment for 40 thousand rubles per month, by transfer to a card, without tax deductions. Subsequently, Konstantin decided to increase the rent by 10 thousand rubles and informed the tenants about it. There was a response with a suggestion: either we leave the price the same, or they will send a message to the tax service and the bank, telling them about renting the apartment. Which is exactly what happened by providing a lease agreement and payment receipts. As it turned out, under the terms of the mortgage agreement with the bank, Konstantin could not rent an apartment without the permission of a credit institution, since the property was secured. Upon learning of the violation, the bank issued an ultimatum: either it repays the loan in 14 days at the current rate, or the rate will be increased from the preferential 6% to the standard 22%. This meant: +120 thousand rubles to the monthly payment, +55 million rubles to the total loan amount, +9.5 million rubles to interest and penalties. We break down into situations. You can rent an apartment purchased as part of a family mortgage. It is not the program itself that affects your ability to rent a home, but the terms of the loan agreement with the bank. The main requirement is to obtain the bank's consent, if this is indicated in the documents. Before renting out an apartment, first of all carefully study the loan and mortgage agreements. They may contain one of three possible formulations: • A direct requirement for approval is most common. • An outright ban on renting is rare today, but possible. • Nothing is said about renting - theoretically, you can rent without consent, but it is better to warn the bank. If approval is required, contact the bank with a written statement. It should be attached to it.: • A draft lease agreement indicating that the apartment is secured. • Passport details of the future tenant. The bank has the right to set conditions, for example, to limit the term of the contract to one year in order to avoid registration of encumbrances in the Federal Register. Important nuances and limitations • Insurance: Notify the insurance company about the rental of the apartment, as this may affect the cost of the policy. Maternity capital: If maternity capital was used to buy or pay off a mortgage, you cannot rent an apartment. This is considered an inappropriate use of funds intended to improve the living conditions of children. • Taxes: Rental income must be declared and paid personal income tax or tax as a self-employed person. Renting an apartment without an agreement, if required by the contract, is extremely risky: • Inspections: The bank has the right to check the condition of the collateral. • Penalties: If the fact of the lease is discovered, the bank may: ◦ Impose a fine. Demand early repayment of the entire mortgage amount. To initiate the seizure and sale of the apartment through the court. Before you start acting, define the terms of your contract more precisely - this will allow you to understand how difficult the approval process will be.