- Статьи
- Society
- The rental rule: the demand for rental housing with the possibility of foreclosure increased by 50%
The rental rule: the demand for rental housing with the possibility of foreclosure increased by 50%
In Russia, there is a growing interest in renting new housing with subsequent purchase. Since the beginning of the year, the number of such transactions has increased by 50% compared to the same period in 2025, market participants told Izvestia. The scheme is similar to a regular rental — a person moves into a selected apartment and transfers a fixed amount each month. Until the payments are completed, ownership remains with the developer, and after depositing the entire amount, it passes to the shareholder. However, such a mechanism has risks: the buyer cannot freely dispose of the housing, for example, to redevelop, and in the event of bankruptcy of the developer may be left without property and without invested funds. Why rent-to—buy is gaining popularity and how the mechanism works - in the Izvestia article.
Who is interested in rent with foreclosure
Commercial Director of the Group of Companies "Yes! Development Victoria Lesnikova attributes the popularity of such deals to the tightening of credit conditions and notes that buyers of large apartments with a huge down payment are more likely to consider rent with foreclosure.
— It has become more difficult to purchase housing due to strict limits, high rates and strict conditions of banks, - she reminded. — Many clients do not meet the criteria of preferential programs, and only a few are ready to take out a regular loan at 18-20%. For this reason, there has been a growing interest in the alternative of renting and then buying out.
Alexander Ternyushchenko, Commercial Director of Dogma Group, also told Izvestia about the multiple increase in the number of such transactions. He noted that the lease-to-buy mechanism was developed as a tool to solve the problem of overstocking the market.
— Developers thus get the opportunity to accelerate the implementation of finished facilities, while maintaining their market value, avoiding dumping. It also increases housing affordability and expands the funnel of potential customers.
The trend was also confirmed by Evgeny Shavnev, CEO of Flip LLC, an investment company in the real estate market. He noted that such a tool is becoming more and more in demand in the segment of new buildings. However, developers are experiencing difficulties: only 30-50% of apartments have been sold in the houses scheduled for commissioning this year.
— Previously, in popular residential complexes, sales were completed at least 3-4 months before the completion of the facility, — the expert emphasized.
This scheme is designed for a longer period of time — usually 2-3 years. However, ownership does not pass to the buyer until the transaction is completed.
— People who are ready for additional risks are more likely to decide on a lease with subsequent purchase. They expect to reduce mortgage rates in the future and want to fix the value of the property at the time of signing the contract," explained Evgeny Shavnev.
What are the risks?
Until the key interest rate drops to a level where mortgages become available again, alternative mechanisms will appear, but they will not become the dominant market model, says Evelina Ishmetova, Director of Consulting and Development at Key Capital, founder and head of the Developer's School.
"Everyone is at risk in this scheme," she said. — Practice shows that the "tail" of problematic cases is inevitable: some tenants do not come out to buy out and do not vacate the apartment voluntarily, which is why the issue has to be resolved through bailiffs and forced eviction. In addition, the developer does not receive the money immediately and may face a deterioration in the condition of the housing during the rental period.
The buyer, on the other hand, does not receive the protection provided for in equity participation agreements. In case of bankruptcy of the developer, he is not included in the register of shareholders and becomes an ordinary creditor in the general queue.
The emergence of such schemes is associated with changing market conditions, said Optima Development CEO David Khudoyan. He added that such mechanisms have a number of features and require careful study of the agreement.
— It is important to find out in advance which part of the payments is included in the price of the apartment, whether the price is fixed for the entire duration of the transaction and what conditions are provided for early withdrawal from the program.
It should also be borne in mind that, depending on the structure of the transaction, the final cost may be higher than when buying using a mortgage loan.
"Therefore, such mechanisms are not a substitute for classic mortgages," he said. — This is an additional tool that is convenient in certain situations for customers who need flexibility and the ability to distribute the financial burden over time.
Svyatoslav Ivanov, head of the sales department of the Rasvetay Stolitsa company, stressed that until the full payment is made, the client is only a tenant, not the owner, which means he cannot freely dispose of the property.
— If the developer goes bankrupt, there is a risk of losing both the apartment and the invested money, since the level of legal protection in such a scheme is lower than in shared—equity construction, - he added.
According to Ilya Vasilchuk, a court lawyer and an expert on the security of electronic transactions and real estate transactions, if the contract does not clearly specify which part of the monthly payment is for rent and which is for foreclosure, the court may recognize all amounts as rent in a dispute. Then, upon termination of the contract, it will be extremely difficult to return the "redeemable" part.
— Dangerous items that make the right of redemption dependent on subjective factors. For example: "the right arises when performed in good faith," "the consent of the lessor is required," or "repurchase after major repairs at the expense of the lessee." Such conditions give the landlord a reason to refuse to buy out. The correct wording is unconditional: "after such a period, the tenant has the right to buy the object at such a price," the expert emphasized.
In addition, it is important to clearly state in the contract the consequences of early termination for both parties. Often, such agreements stipulate that when a tenant withdraws from the program, the repurchase payments will not be refunded.
According to Ilya Vasilchuk, courts often recognize such conditions as null and void, but the very fact of the proceedings leads to a loss of time and nerves. Therefore, it is better to prescribe the procedure for compensation of funds in advance in the contract — for example, to provide for the refund of repurchase payments minus documented losses.
The scheme has the right to life as a temporary solution when a mortgage is unavailable, but it requires a thorough legal review of the contract, says Valery Tumin, Director of Russian and CIS Markets at Pham Properties. In his opinion, the buyer should clearly understand that he pays more than with a regular lease, without receiving the rights of the owner, such a format is justified only with confidence in financial stability for the entire term of the contract.
Переведено сервисом «Яндекс Переводчик»
