Portrait of a landlord

This stuff continues the series of research results of the Russian rental market, conducted by the Foundation for Social Development and the independent think tank, "The first St. Petersburg Humanities and Technology Corporation" in 2010. The full title of the work - "Institute of rental housing in Russia: current status, trends and possible role in the implementation of public housing, personnel, and migration policy." In the study, were assessed rental market in the major cities of Russia, held round-table discussions, expert workshops and focus groups with tenants and landlords. Customer research by non-governmental organization Institute of Public Projects. Consider what is a portrait of the Russian landlord on the basis of analysis of the source of the main resource of income that is flat. The analysis showed that the sources of housing, landlords are divided into the following categories: - Housing, inherited the owner or lessor without buying. Landlord Group "Owners." - Housing purchased in order to invest, without functional expectations. Landlord Group "Owners" - Housing, purchased specifically for lease. Landlord Group "Investors" Among the various types of lessors allocated motivation for rental to. Sometimes it is an additional source of funding for operating costs, sometimes rented apartment has an investment character, sometimes these funds are spent on rent or buy an apartment larger or better quality. So, there is a group of lessors who give temporarily used excessive housing, the origin of which can be quite varied - from leaving on a long trip to get the inheritance. "Owners," Small basic income does not prevent members of this group of investor to own real estate, rent it, while portraying themselves as poor. These include investor who received property from privatization or other non-market mechanisms. The need for income pushes them to surrender apartments, but the lack of available funds does not allow these apartments in the slightest sanitary condition. This group of rentiers - the main source of rental housing "economy class", and the only source of such housing in the city center. Most of them - senior citizens. Critically important for this group of rentiers is the lack of taxation of their "pocket income." No tax breaks will not make them go to the "white" form of payment. Any attempt to bring this business out of the shadows will be seen as something that "the state gnobit pensioners." As an analogy, you can remember the reaction to the monetization of benefits. This group of rentiers is the most disorganized and unmanageable. They are not in principle be embedded in the quality of the environment, homes and cities. In any union they will not join at all. In the market they will always be a source of dumping, as part of their marketing strategy is poaching tenants from the "comfort class" due to low prices. The increase in rental rates in their market behavior does not affect. This segment is divided into two groups: • Group 1, for which the apartments are a source of basic income, • Group 2, where the apartments, which shall be due - "to not empty", although the owners while also appreciated the fact of the additional income. Housing is used for rental purposefully (for a basic income or a substantial increase to the existing) Housing used for rent as a residual (not empty), the subset is composed of people, the crucial questions of allocation of labor at different time projects. Extremely low-cost option, is not always available housing, often trade-informally, and not for money but for the work. Unusual enough, but certainly present in the Russian elite as well as economy-class rental subsegments reality is - the elderly, who are no longer able to contain their own homes, say, or a house, complete a large house or large apartment. They are ready to give up a large home and move into rental housing, but with greater comfort, with great service. This is the soil in which the past, and now flourishes are many cases of crime. It should be protected by law ... one way or another (for example, with the assistance of the institute of nursing homes, if possible in the Russian reality.) Some experts allocate a small proportion of owners, especially in the elite sector. This category can, in principle, include people who rent housing in other parts remaining after death or removal of relatives. Also, there are people who are hesitant to sell their surplus housing and are waiting for a new rise in prices. "Owners" An important group of landlords are the owners of residential investment, which acquired it on purpose, and see this investment as a promising investment. Such housing is not always it is leased, there may be times when it is idle, including, for objective reasons - for example, the owner can not afford to do the final finish. As rentier, "owners" significantly reduce the elasticity of supply prices. Since the rent for them often is not the only source of income, they are not interested in cutting rates, they are willing to wait a long time, "his client." At the same time, they are able to act, of self-pressure. But to do this will never be as it is not core business. Transparent and stable taxation, general transparency of the market play into their hands and they are willing to support initiatives in this direction. Flats to rent this population, as a rule were purchased for investment purposes. Renting apartments for rent - not an independent business and source of additional income. The logic of their investment in housing is often dictated by the fact that representatives of this group has enough resources to buy cars, but still not enough for the real estate business class. Available funds is limited to 2.4 million rubles, so they focus on relatively inexpensive real estate. The experts (mostly real estate agents or employees of intermediary firms) have noted that if a person has several apartments luxury segment, the 99% probability that these apartments were one way or another privatized or bought in the 1990s. Because in today buying luxury apartments under extremely disadvantageous to surrender. Such people are always near their city. In the purchases are guided by their own ideas about what and how it will evolve (often technical education, which has a certain effect on the thinking). This group generally law-abiding investor, however, since this activity is not their core, a strong association and long term business relationship, they will not join. This group is most interested in the growth in property prices and rents rise, but a conscious game lead in this direction will not. This group is simultaneously interested in the stability of the market situation and market development, because stability allows them to build their own strategies. In general, these people are interested in creating a civilized and growing rental market, but "not willing to pay." "Investors' rentier investors - people who commit to buying a property investment or speculative purposes. For them, renting apartments for rent - most core business. At the same time, these people, clearly imagining the economics of the business, and often serve the tenants of apartments. The normal practice - to take a few apartments, and most live in small rented apartments in Russia and Europe, regularly changing them. Real estate investments in Russia, particularly in Moscow is not always stimulated by the desire to earn on reselling. Quite often the impetus for the purchase of real estate is a need for somewhere to invest, to save them from inflation. In addition, a number of reasons, securities and investment projects in manufacturing are not popular, but very popular real estate. The need to recoup investments made causes these people to think about renting the apartments. "Investors" are based on the number of units: 1. "Real estate will always go up." Confirmation of approval at the consumer level can be found in any magazine. 2. "Real estate markets in the region will rise to the level of cities." This theoretical extrapolation has been refuted in practice the behavior of the market, but as a unit - has remained. Group is quite heterogeneous in its internal structure. It includes: • Private Investors • Representatives of the financial group of private investors. People often from Moscow, specially engaged in buying property for the purpose of resale or lease. Buy point, particularly attractive facilities: New construction, entire floors or doorways in the old fund. Have a fairly decent means. Are active in the Russian regions. Representatives of this group are actively buying housing in Kaliningrad, St. Petersburg and Leningrad region. They play a significant role in increasing the popularity of a certain region of the market. Within regions, about them saying "come to Moscow and bought up everything." Private investors in choosing to purchase the object oriented by a factor of prestige. Kudos, preferably - a widely recognized, determines the success of the subsequent resale of the object. The pumping mechanism of prestige, "elitism" has created such "bubbles" as Repino-Leninist (worthless in itself, a piece of the Karelian Isthmus, with no large bodies of water and forests, but also enjoys extremely popular for the construction of elite settlements) or high-rise residential complexes psevdoelitnye . However, the reverse mechanism also works: these people are not interested in objectively good real estate simply because it is prestigious. Representatives of interest groups. In fact, they are separate people involved in buying real estate in the interest and the means of formal and informal financial groups. Buy in bulk pools of apartments in new buildings, entire homes and entrances to buildings, etc. The purpose of buying - or the subsequent resale of its own projects minihotel or apartments for rent. Have considerable means. Such structures, for example, are the financial backbone of much development projects cottage development of Leningrad region. The main motivation of Representatives financial services groups - to invest money at a profit, but how this income will be received - not essential. Therefore, they often find themselves in a situation of "we have a property that we have to do with it?" Or "We want to build something, no matter what, the main thing to sell well." Most membership development project these people can be defined precisely in such a motivation is clearly legible in the project. The transformation of property in the rented object - an increasingly popular solution. "Investors" are the engine of the qualitative development of the market rent. Only they have the resources and consider it as a long-term rental business. In this sense, they are capable of meaningful dialogue with the state as a regulator of housing policy. Stability and growth of the market - in their immediate interests, but clear and understandable tax is perceived as the norm. This group can become a trigger for qualitative changes in the rental market because of quality control facilities, which leases. It can make the transition from single flats to larger blocs - the floors, porch or home.