Rental housing the state can become a reality in Ukraine. The Ministry of regional development has developed and published for discussion the draft law “On rental housing”, which is going to legalize the process of building the state real estate for rent.
It is suggested that rental housing will be able to take the pressure off the housing problem. According to the Ministry of regional development, rent in the queue on improvement of living conditions is now worth about 650 thousand families, including every tenth young family. The rental market is virtually non-existent. Whereas in neighboring Belarus, the construction of rental housing is defined as top priority in solving the housing problem of the citizens. In Germany, the proportion of rental housing is 60% of the total housing stock in the US and the UK with around 30% in France and Switzerland respectively about 40 and 70%.
The bill of the Ministry of regional development of the framework, it identifies only some moments of the development of this sector of real estate. All comments and suggestions to the document are made on the website of the Ministry.
It is assumed that rental housing can be built or reconstructed not only from the state and local budgets, but also through private investors. Fund rental housing can include both new buildings and renovated buildings. The customer of such construction or reconstruction shall become the newly created financial state structure (yet unnamed) or local organizations. Houses should be built on lands owned by the state or municipal property, for the state funds must be run and connected communication. The government hires a construction expert and conducts quality control in construction. The customer is exempted from transfer of share contribution in the infrastructure development of the settlement.
It is accepted that the buildings can be smaller than in a traditional tenement (now the minimum area permitted by the law of 23 sqm).
To serve the housing and rent apartments to rent are management companies. The rental fee will replenish local budgets (after deducting fees of the management company and utilities).
Theoretically, the experts suggest, similar rules are expected to reduce construction costs by 20-30%, and thus increase the ROI in General and investment in rental housing in particular.
However, everything depends on the actual rent. What it will be to solve the social function of rental housing, but it does not deter from the project investors? The bill provides that the methodology of the rent for residential premises is established by the Cabinet of Ministers, as to who and how sets the amount of rent actually for apartments in the text of the bill so far said nothing. Experts suggest that the price of rent in these houses “new lease” is unlikely to be significantly below average.