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How to determine the rental rate of communal premises in Kyiv

Rental rates for communal premises in Kyiv

Often, entrepreneurs who choose real estate for business are faced with a difficult choice: whether to rent communal property or to prefer private premises. We already had written about who benefits to rent real estate in communal property of Kyiv. In this article we will pay attention to the question of preliminary calculation of the rental rate. With private property such a question does not arise and the amount of rent is known in advance. In the case of communal property, the situation is more complicated. The rent for such premises – the amount is calculated and depends on a number of parameters, but most often it is possible to pre-calculate it for reference. Let’s figure out how to do this.

First step. We evaluate the market value (not rent!) of premises in communal property of Kyiv.

To determine the market value of the real estate we will use one or more sites of real estate ads. Such sites are very many, so in finding and understanding their interface will not be difficult. When selecting filters to search for comparison objects, pay special attention to the following characteristics:

  1. Location (District of Kyiv).
  2. Type of premises.
  3. Total area.
  4. Floor.

An analysis of a sample of real estate objects shows the average cost per square metre of such premises. And so, by multiplying this value by the total area of the premises in communal property, you can determine its estimated market value.

Second step. Determine the percentage of the rental rate depending on the purpose of the premises.

The rental rate for communal property depends directly on the type of activity to be carried out in the premises. Percentage coefficients of annual rental rates from the market value of real estate can be found in the Regulation on the lease of property of the territorial community of Kyiv – Annex 3 Rental calculation methodology… – Table 2.

The interesting fast is that in some cases the annual rent is 1 UAH:

Rent of municipal property of Kyiv free of charge

Third step. Receive the amount of monthly rent cost.

To determine the rent for the year, it is necessary to multiply the market value of the premises (first step) by the coefficient of the rental rate (second step). Accordingly, in order to get the usual monthly rent, it is necessary to divide the amount for the year by 12.

Also pay attentiom that for the year 2019 Kyiv Council set a discount of 30% for communal real estate rental. This decision was due to the wish of the deputies to fill tenants idle premises of Kyiv. And in our opinion, the effect will not be long in coming.

The described procedure gives the opportunity to at least approximately decide whether to rent a premise from Kyiv, or to stop on a more usual variant of cooperation with private persons even before the procedure of concluding a contract for the lease of communal property. If you have decided to rent from the city, we will be happy to help with the real estate valuation to rent calculation.