As a rule, people are not afraid to rent out an apartment if it is in a mortgage, as this is a great way and a common method of returning some of the money that was spent on buying an apartment.

But in order not to burn out on such potential earnings, you need to familiarize yourself with the current legislative framework, requirements and opportunities. Under the law, mortgaged housing is allowed to be rented, provided that the rules are followed. For example, housing, an office in the center, a shopping center or apartment in Kyiv for rent in an elite area must retain their intended purpose. If a person owns an apartment in a high-rise building, he cannot use it as a commercial space, adapting it to an office, shop or hostel.

How to draw up a lease agreement for a mortgage apartment

Before drawing up a contract for renting a mortgage apartment, you need to understand:

• how many owners the apartment has;
• whether the landlord owns the property;
• whether the apartment is in a mortgage;
• whether the tenant has drawn up another lease agreement for the premises with another individual / legal entity;
• whether property rights to the apartment are the subject of a dispute in court.

Sometimes the mortgage agreement states that the apartment cannot be rented out. In this context, it is necessary that the landlord has the written consent of the financial institution. You need to ask the bank for permission to register in housing with an encumbrance. If there are no restrictions in the loan agreement, it is possible to rent out a mortgage apartment correctly, subject to the requirements for the intended use of housing. Thus, you need:

• Determine the relevant rental price.
• Choose a taxation system.
• Get a confirmation letter from the bank and approval.
• Prepare housing documentation.
• Preliminarily agree on the terms of the contract.

6. Conclude an agreement by contacting a verified real estate agency in Kyiv and specifying all the nuances.

Advantages and disadvantages of renting a mortgage apartment

Among the pluses:

• The homeowner makes a minimum initial investment and receives money in parallel. Thus, after a while, he can redeem the apartment at the expense of his guest.
• Buying housing on a mortgage, the borrower may not worry about its legal purity.
• A long term loan under a mortgage loan is one of the pluses. Compared to a cash loan, which is issued for 5 years, the mortgage payment process can be stretched up to 30 years.
• Buying an apartment on a mortgage, a person automatically acts as an investor. The cost of housing is growing rapidly and in the end the owner is the winner.

Among the cons:

• The need for prepayment. The amount of funds that must be returned to the financial institution as a percentage of the use of the loan.
• Secondary expenses: notary services, annual property insurance.
• There is a risk that the homeowner will lose their ability to work or work.
• Until the full payment of the mortgage, the homeowner cannot donate, sell or exchange housing.