New bill by Russian lawmakers could significantly effect short-term rental market
Date
11/14/2023 4:31:07 AM
(MENAFN) A new bill under consideration by Russian lawmakers could significantly impact the short-term rental market, requiring apartment owners to obtain permission from their neighbors before renting out their properties on a per-day basis. The legislation, which recently passed its first reading in the State Duma and is advancing to the second, aims to enhance courtesy among residents and ensure compliance with the Housing Code governing the use of residential premises. While supporters argue that this measure will foster a more harmonious living environment, critics assert that it may jeopardize the thriving daily rental business.
According to the proposed legislation, a minimum of 75 percent of block residents must vote in favor of allowing short-term rentals within their building. This provision seeks to strike a balance between the interests of property owners and the residential community, promoting a more collaborative decision-making process. It's important to note that the legislation specifically targets short-term rentals, with long-term rental arrangements remaining unaffected.
The impetus for this legislation originated from a decree disallowing the classification of short-term apartment rentals as part of the hotel business. To address the regulatory gaps in this area, Russian lawmakers were prompted to draft a standalone bill. The intention is to create a framework that ensures better governance and clarity in the short-term rental sector.
The proposed legislation has elicited a range of opinions from officials and business leaders. Rifat Garipov, a commission head at the Ministry of Construction, sees the bill as a means to restore "normal life" for residents and prevent potential "chaos" in residential buildings. Garipov emphasizes that the goal is not to create conflicts but to encourage landlords and house communities to find common ground.
On the other hand, Maria Zhukova, the director of the Miel real estate agency, strongly criticizes the initiative. Zhukova argues that the bill could have severe repercussions, effectively wiping out the daily rental business and limiting property owners' flexibility in generating additional income.
As the debate over the proposed legislation continues, it underscores the delicate balance between individual property rights and the broader interests of residential communities. The outcome of this legislative initiative will likely shape the future landscape of short-term rentals in Russia, with implications for property owners, tenants, and the evolving dynamics of the country's real estate market.
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