Sunday, November 6, 2011

Practices in the market rental housing (first part)

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. Selection Criteria The study highlighted several criteria, which are considered by people when choosing a rental housing. The criteria include the following parameters: o Price o General characteristics of housing (a good location, safety, accessibility, adequate environment) o Quality o home state apartments, including o availability of telecommunications relationship with the landlord most important thing when choosing an apartment for removal, according to focus group participants, as landlords and tenants - is the price. In general, the criterion of prices prevailing in the lower price segment, and is especially important for cost-effective (available) apartments. With the increasing cost of housing are beginning to play a role other (non-price) factors. Among the characteristics of housing are important when deciding to rent, are the following: convenient location, safety, accessibility, adequate environment. An important criterion for affordable housing for renters is its location relative to the nearest metro station. Among other significant factors influencing the choice of rental housing, allocated money at home, repair, and state court dress. The state apartments are also noted as an important factor. There are the following significant factors: home improvements, furnishings, household equipment availability, purity and availability of communications. Gradually emerging demand for apartments, equipped with modern telecommunications infrastructure. The next criterion - the presence of human relationships with the owner, his dogovorosposobnost and predictability. Much of the current market rent is not based on civil law, but on personal relations, "tenant" and "master." Search techniques housing tenants and potential tenants search strategy of housing for employment in this group may be different. As already noted, the agency firms and real estate agencies often causes criticism and distrust of the search results. Despite receiving information about a potential landlord agent, tenants often prefer to self-organize and then additional meetings and have them negotiate "with an eye for an eye" to negotiate a rental. Internet today is full of poor quality or outdated information, usually leading all to the same brokers and agencies. As a result, the most common search strategy in the housing can be reduced to self-employment crawl home, searching through a friend, street ads, newspapers, etc. Later, after exposure to the lessee and the lessor, or that the relationship model design is chosen based on their personal relationships and subjective prior experience. Upon delivery of housing in the hiring of friends (or friends and acquaintances, etc.) to make a profit, the following strategies: a) Search for landlords and tenants through a friend - a kind of marketing approach, avoiding a risk of uncontrollable actions of strangers ( as one or the other), and extra costs for distribution, collection and analysis of relevant information. Further confidence can be the dominant factor in the relationship, not requiring, in the opinion of the participants, additional legal registration. Of course, it is cultivated in the background of a general distrust of the practice of law protecting the civil interests of our country, and even more distrust in the ability to protect their own rights and interests in the design of contractual relations Housing recruitment. b) At the time of housing for rent to people after a "trial period". So as a result of the study revealed some cases where the accommodation at first rented landlords with registration of written contracts, and then they moved to the practice of trusting relationships. The ratio of people to specialist agencies rather skeptical. Recognizing that, in this case the client receives some sort of advantage (variety of options, lease, etc.), agencies are not responsible for the continued compliance by the parties to the treaty. In general, for the agency characterized the provision of rental housing in medium and long segments, where the tenant for the price criterion is no longer the pressures and it is ready to pay for the services of the agency. But problems with the law neprorabotannym lead to arbitrary behavior of market agents. Today's real estate agency trying to please people who migrate to the country, but they have this only commercial incentive. They can not encourage people to greater freedom of movement, because they themselves are limited in supply of housing "their" customers. The work of realtors, real estate agencies and brokers of various causes complaints from customers due to lack of transparency or inefficiency of the former. In today's regulatory role in the event of dispute grievances tenant / landlord takes most agency that has had, say experts from the segment, note the service of two people. There are two extremes: either the lessee and the lessor agree in person, or a few documents are rushing to court. There are still dark technology, for example, if a tenant who has entered into an agreement with the landlord informally, was something very annoyed, there were times when he included a contract or a receipt of money in tax to "punish" so her abuser. However, there are also cases where the agency is on the unresolved rules and agents are potentially at risk. Even if one is in a relationship landlord tenant mediation, everything proceeds without complications, as living in an apartment may have a variety of force majeure conditions. Then the lack of diversity of services and procedures required for the acquisition of housing for rent is also critical. For example, lack of insurance practices. Elasticity of demand question about the ideal price of rental housing - highly debatable and depends on many factors - the quality of housing: location, square footage, quality homes, quality apartments, supply and demand balance. Subjective estimations of the surveys conducted during the study, a comfortable cost rental housing is one-quarter to one third of monthly income tenants. Around this price, they tend to and looking for a flat. Thus, there is a high demand elasticity. Thus, at lower income tenants often quickly move to cheaper accommodation, while their growth - a more expensive one. Continuation of the article

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