Every country has different property laws. If you have decided to rent a property in Ukraine, you should know what is the procedure, requirements and main legal issues. In this article we will inform you about main juridical points during property lease in Ukraine.
What you need to know before renting an apartment in Ukraine?
- You will have to deal with a real estate agent. That is because most of property owners prefer to find tenant by using real estate agency services. But it is not a must. There is no law where is mentioned that you have to rent only via agency. Moreover there is even no law on real estate agencies. That means that such an agent has no responsibility for his mistakes, if there are any. At the same time, it doesn’t mean that such property broker activity is illegal in Ukraine. It is legal but not regulated.In 99% cases it is lessee to pay for services of property agent in Ukraine. Although it is negotiable, depending on the rental cost, conditions and property type. If your question is “how much do I have to pay for such services” the answer is almost always the same – 50% on the monthly rental fee. So if you are going to rent a house or an apartment and the monthly rental is $1000 so you will probably pay $500 one-time to real estate broker. This payment is made when the contract is signed. If you are buying property in Ukraine usually commission of real estate agent is 3-5%.
- You will have to pay in advance to the owner. Post-payment is very rare if you are renting property in Ukraine. If you are going to rent a property as an individual citizen, and not as a business or a company, be ready to pay in cash. As of 2019 business between two individuals mostly is based on cash payments. It is very unlikely that landlord will make you any bill to process the payment. Consider also, that a rental fee is often based on currency rate. Although official currency of Ukraine is UAH, people of Ukraine love USD and EUR. If the rental fee is based on USD so the payment shall be made in USD or in UAH but based on currency rate.
- It is necessary to pay a deposit to lessor when the contract is signed. This deposit is considered as a payment for the last month of rental and is always a guarantee for the property owner. So if you are going to rent a property for $1000 per one month, most probably you will have to pay $2500 when the contract is signed ($1000 advanced payment for the first month, $1000 deposit for the last month and 50% for broker services).
- Always and always lease contract is a must have document. Besides the contract, very important document is the certificate of transfer and acceptance of apartment.
What are the main points of property rental agreement in Ukraine?
Of course this is the main and basic document for both sides of rental. Ukrainian legislation is based on laws and codes of law. Legal relations between two parties during the whole period of rental is regulated rental contract that shall correspond to the law. There is no special law on lease of private property in our country. But Civil code of Ukraine has needed articles so these legal issues are well regulated. Lease contract in Ukraine in which the parties are individuals is signed in so called simple form. It means that it is not a must to certify it by the notary. But on agreement of the parties lease agreement can be signed in front of the notary. Consider also that if one party is a foreign citizen the document shall be officially translated by interpreter. Ukrainian tax identification number is not a must for this.
So the main conditions and regulations of Ukrainian property lease contract are:
- Subject of agreement which is a property itself. The house shall be described very detailed, mentioning the size, exact address, data from the ownership documents, owner and type.
- Rental period and prolongation terms. Minimal period for rental is not regulated as well as maximal. But if the rental period mentioned in the contract is more than 3 years, it is a must to have it certified by the notary. Usually Ukraine apartment rental contract is concluded for the period of one year, with condition of automatic prolongation for the same period if neither party inform other on the termination. So even if the agreement is concluded for the period of one year, still it can be prolonged multiple times and you will not have to sign a new one every year. If you want and if it is ok for the other party, it is possible to include penalties for premature and groundless cancellation of lease agreement.
- Rental cost and payment terms. This is one of the most important condition not only in Ukraine. Lessee is always obliged to pay in advance. Usually there is a condition that the payment must be conducted during some period. It is fundamental to mention the exact way of arrangement of money transfer.
- Property description and equipment in the apartment. Property owner in order to ensure that the renter will not stole or damage the movable property. It can be also written in the form of attachment to lease contract.
- In most cases there is a rule that tenant has no right to make any reconstruction works inside the apartment without prior consent of the lessee. Although it depends on term and payment regulations and can be negotiable.
What are the features of renting a commercial property in Ukraine?
Commercial or industrial immoveable in Ukraine is usually owned by a business. From other side, if you are going to rent such space, that means that most probably you intend to use it for business too. So the main thing is that we are talking about B to B relations in Ukraine. The main difference is that commercial or business affairs are regulated by economic code of Ukraine. So in order to rent commercial property to open a restaurant, or an industry or an office or any other business location you will have to register a company in Ukraine, if you don’t have it yet. Of course you will have to hire a good solicitor in order to make all the paperwork well done. Consider that industrial or commercial real estate often has needed permissions and juridical facilities.