Renting municipal property is considered a fairly common option for obtaining premises for temporary use. And this is not at all surprising, because this method has a number of advantages. In particular, with regard to payment for the operated area. True, the conclusion of an agreement with the municipality is preceded by auctions and competitions, based on the results of which the future tenant is identified.
In general, the process is considered to be quite labor-intensive, so before submitting an application, you should carefully prepare and study the materials in any way related to the procedure.
The essence and benefits of renting municipal property
The procedure for leasing municipal property consists of signing an agreement with the municipality, the subject of which is non-residential or other premises transferred for temporary use to the interested party. Moreover, recently there has been an active increase in the level of popularity of this method of obtaining space for conducting any type of activity.
In most cases, the tendency to enter into an agreement with municipal authorities is associated with the high stability of this type of transaction, as well as with the peculiarities of the rent, namely, its lower value. It is noted that a similar transaction with one or another commercial organization entails much more expenses in terms of payment for the operated area. But the municipality is more loyal in this regard.
Such benevolence on the part of the authorities is due to the fact that a considerable part of the local budget is formed precisely through the acquisition of revenue for renting non-residential premises. Accordingly, the government, both at the regional and local levels, is trying with all its might to promote the development of small businesses to a higher level.
Article 215 of the Civil Code of the Russian Federation explains that municipal property means non-residential or residential type objects belonging to one or another entity Russian Federation based on property rights. In particular, the owner and manager can be any administrative-territorial unit of the country - a city, town, village and any other entity, or rather, its authority. The main thing is that local self-government is carried out at the subject level.
In this case, municipal property can be assigned to individual enterprises and organizations, which receive the right to own and dispose of the object. If this does not happen, the property is included in the municipal treasury of the constituent entity of the Russian Federation.
Typically, information about objects provided for rent is posted on specialized Internet sites, in particular, on the websites of local authorities. If such information is not available for some reason, anyone can send a corresponding request to the local administration. Data must be provided upon request and free of charge.
Who can become a tenant
The tenants of municipal property are usually small business owners. The latter means conducting business activities within small enterprises and firms that are not associations.
Medium-sized businesses are recognized as:
- individual entrepreneurs (IP);
- different kinds cooperatives (consumer, production, agricultural);
- peasant and farms;
- partnerships or economic-type communities.
In most cases, the goal of potential tenants is to use municipal premises for a store, office, or warehouse. An ordinary citizen is not prohibited from applying for a lease.
Contractual support of the transaction
The provision of space for rental use is always accompanied by the conclusion of an appropriate agreement. The operation of municipal premises is not considered an exception.
In a legal sense, a lease agreement establishes the fact of transfer of property to the temporary disposal of a third party (tenant). The contents of the document necessarily include the terms of the transaction, the amount of the fee, the timing of contributions and other points. Moreover, such an agreement acquires real force only after it is signed by both parties - the owner of the property and the tenant directly.
And here it is worth identifying the existing types of lease agreements for municipal property. Highlight:
- agreement with the possibility of subsequent purchase of the premises;
- long-term lease agreement, when the validity period of the document is several years;
- a current lease agreement involving temporary use of the premises;
- a contract for gratuitous use, when no rental payment is provided, but the other party undertakes to return the object, taking into account acceptable wear and tear or on the terms specified in the agreement;
- a contract for trust management of property, implying the transfer of any premises to an enterprise for an indefinite period on the terms of disposal of the property, taking into account the interests of the original owner (the municipality);
- agreement for storage and simultaneous operation of property.
Although there are many options for lease agreements, a standard contract is usually used. True, the self-government bodies of a particular subject of the Russian Federation have the right to adjust and establish their own procedure for conducting such transactions. The main thing is that the actions of administrative bodies do not contradict the law.
Legal Act No. 135-FZ determines that if the property is not assigned as an economic possession to an entity at the local government level, it can be handed over to an entrepreneur exclusively on a competitive basis.
A similar procedure will apply if the premises are owned by:
- municipal unitary enterprise;
- autonomous government agency;
- municipal authority, subject to operational management.
In short, in most cases it is possible to obtain a municipal property for rent only after a competition or auction. The first option assumes complete confidentiality of information about competitors. Bidding involves the public submission of an application. That is, interested parties can first study the terms of offers from other applicants and formulate a more profitable option.
The procedure for conducting tenders is set out in Order No. 67 of the FAS Russia. It also contains a list of property objects in respect of which holding a tender is considered mandatory. However, the provisions of the order may be supplemented by regulations issued at the level of local municipalities. Typically, the procedure and related adjustments are publicly available on the websites of local administrations.
Procedure for renting on a competitive basis
Regardless of which option is chosen - bidding or a competition, first of all, the authority convenes a commission, which subsequently collects information about the participants, examines applications and identifies the winner. In turn, applicants will need to voice their desire to take part in the auction. For this, you should prepare a written application and collect a package of documentation.
A typical list of papers includes:
- constituent documents of the enterprise, certificate of registration of the legal entity;
- papers certifying the status of a citizen authorized to sign a lease agreement if the company wins the competition;
- bank details of the candidate for renting the premises;
- accounting documentation reflecting information about the balance sheet of the enterprise.
It is important to understand that the procedure may differ slightly depending on the location of the object. Accordingly, you should first clarify the rules of the process with the local administration.
The winner of the competition or auction will be the participant who outlined the most favorable conditions for the execution of the transaction agreement. Simply put, the premises will be given for use to the applicant who announced the highest rent amount.
Is it permissible to rent without holding a competition?
Paragraph 17.1 of legal act No. 135-FZ contains an exhaustive list of options when it is allowed to transfer municipal property for rent without prior holding a competition.
The list includes the following cases:
- There are state or municipal preferences that are valid on the basis of Chapter 5 of Federal Law No. 135.
- A competition within the framework of the municipal contract has already been held previously. Moreover, the rental period should not exceed the validity period of the relevant agreement.
- The property is leased for a period of no more than 30 days within six months. In this case, it is not allowed to conclude a repeated agreement after the end of the specified period.
- An extension of the existing agreement concluded between the municipality and the enterprise is required.
- The right to rent is granted on the basis of an international treaty of the Russian Federation, acts of the President of the Russian Federation, acts of the Government of the country, a federal legislative act establishing a different procedure for disposing of the property, as well as specialized court decisions.
In addition, without holding a competition, the premises can be leased to the following institutions and associations:
- religious organizations;
- unions;
- political parties;
- public funds;
- lawyer and notary offices;
- medical and educational institutions;
- post office, post office.
As well as other authorities of municipal or federal significance, extra-budgetary funds, the Central Bank and institutions of forestry, land, water funds of the Russian Federation.
Privileges
In 2019, preferences are provided for small business owners when renting municipal property. Federal Law No. 209 in Article 18 reveals the essence of such privileges. First of all, authorities can provide premises or other facilities for use free of charge or on preferential terms.
Local governments can independently regulate the procedure for special rental programs, but usually preferences consist of renting out an object to an enterprise for a period of 5 years or more with the possibility of subsequent purchase. Moreover, lists of property that are subject to lease on preferential terms should be available to everyone. For example, they are posted on the Internet, printed publications, on information stands and announced on TV.
Taxation
Another point that should not be forgotten is the calculation of VAT when renting. The subject here is the tenant company.
The tax amount is calculated by summing the rental cost for each real estate property. The invoice must be prepared within 5 days from the date of payment. Another obligation of the tenant is to submit a VAT return to the tax authorities by the 20th day of the month following the tax period.
Renting municipal property is not a simple procedure, but for small business owners this option is the most optimal, because the cost of using the premises in this case will be somewhat lower than, for example, when renting a property from a commercial entity. In addition, there are a number of preferences and benefits for entrepreneurs. The main thing is not to forget that a lease agreement of any type is subject to mandatory registration in Rosreestr. Only after the procedure has been completed will the contract become legally binding and the facility can be operated at its own discretion.
Any business is aimed at making a profit, and the first rule of making a profit is to reduce the organization’s costs as much as possible. Renting and maintaining non-residential premises is often one of the main expenses of an enterprise, and for small and medium-sized businesses in Moscow, the amount of rent is sometimes a matter of survival. Rent of non-residential premises from the city – The best way reducing costs in such cases.
The assistance of specialists from the law firm “Mosty” in concluding a lease agreement from the city is in great demand among small and medium-sized enterprises. Our specialists help to understand all the terms of the auction and, at the request of the client, provide legal support for the entire process. The result of such joint activities is the successful signing with you of a lease agreement for premises from the Moscow Property Department.
What are the advantages of renting from the city?
It so happens that rent from the city for entrepreneurs is both attractive and unaffordable. The lack of specialized lawyers on staff who can understand all the intricacies, the deliberate bureaucratization of processes, the difficulties of gaining access to electronic trading - all of these are artificial barriers that hide the main advantage of such a lease - low rental rates and the price of the property. The difference between commercial and urban rental costs for premises is sometimes 4-5 times different.
Prices
In addition to low cost, renting premises from the city of Moscow has a number of other advantages:
- the possibility of purchasing the premises after 2 years (special condition, must be specified in the contract);
- stable rental rate for the entire term of the contract (10 years), the prospect of long-term use of the premises;
- long-term agreement with the state;
- guaranteed advantage upon subsequent renewal of the contract.
The only disadvantage of renting premises from the city is the inability to sublease them. However, this inconvenience is offset by the opportunity to assign lease rights to real estate in accordance with the civil code on favorable terms.
Who can rent premises from the Moscow Property Department
Both legal entities and individuals can enter into lease agreements with the city. Organizations of any organizational and legal forms participate in auctions on an equal basis with individual entrepreneurs and citizens. The difference lies in the package of documents that must be collected and submitted to participate in bidding for the selected premises. Naturally, the list for individuals is much smaller than for an LLC.
Specialists of the Bridges company have extensive experience in preparing tender documentation. Due to the specifics of our activities, we monitor all changes in federal and city legislation in this area. Our assistance in preparing documents for bidding allows us to reduce the time by more than half and eliminate errors that could lead to refusal. In addition, we will tell you how best to submit documents and, if necessary, re-issue the contract with individual to legal.
How to rent non-residential premises profitably
In order to profitably conclude a lease agreement for premises in the city of Moscow from the City Property Department, you must successfully go through several stages.
- On the official bidding website, select premises that correspond to the intended purpose of your business.
- Obtain permission to inspect it and study all tender documentation regarding it (rules for bidding and terms of the lease agreement).
- Apply for an electronic signature and, with its help, obtain accreditation on the electronic trading platform.
- Apply for bidding and take part in the auction for the selected premises.
- At the end of the auction, sign all the necessary protocols, the lease agreement and the acceptance certificate of the premises.
- Register the lease agreement with the state authorities of Rosreestr.
- Perform other necessary actions after concluding the contract (for example, calculate and pay VAT if necessary).
After successful completion of all these stages, you receive a lease agreement for state or municipal property for a period of 10 years for a very favorable conditions. In addition, if necessary, you can buy the premises from the city of Moscow without an auction and raising rates, which is a definite advantage.
Nuances of participation in tenders for the lease of state property
To participate in the auction, a deposit is required to be deposited into a special account. If you are not the winner of the auction, the deposit will be returned within 10 days. If you win and subsequently refuse to conclude a lease agreement, the deposit remains with the auction organizer. This is why it is important to review your lease agreement with the city before deciding to participate.
When submitting an auction application, pay attention to the category of persons with whom a lease agreement may subsequently be concluded, and to information about the intended purpose of the non-residential premises. These two conditions significantly affect the number of bidders. From the practice of employees of the law firm "Mosty", the most in demand are "vacant" premises on the first floors of residential buildings in the city.
If there is no economic benefit from doing business, the tenant has the right to terminate the lease agreement with the Moscow Property Department. The standard condition for termination is to notify the lessor at least 3 months before the expected end of the contract. It is better to find out about the existence of penalties for early termination before concluding a lease agreement.
IMPORTANT! If only one participant competes for the rental of premises at the auction, the lease agreement is concluded with him on the originally stated conditions.
Our advantages
No prepayment
Compliance with the law
Team of licensed specialists
Individual approach
Affordable prices
Why do you need the help of a lawyer?
If you decide to participate in an auction for renting premises from the city, you need to enlist the support of professional lawyers who specialize in leasing non-residential premises from the Moscow Property Department. The law company "Mosty" offers comprehensive support for participation in bidding and the subsequent conclusion of a lease agreement. To minimize costs, you can use certain services of the company, for example, to study the terms of a future contract or prepare the necessary documentation.
By collaborating with our company, you can significantly save time on preparing, collecting documents and obtaining digital signatures. In addition, we will translate the future lease agreement from legal language into Russian, which will allow you to assess all the risks in its execution in advance, as well as understand how suitable the proposed conditions are for your business.
Our specialists in as soon as possible will issue state registration of a long-term lease agreement and will ensure that the property department complies with all the conditions specified in the agreement strictly and in a timely manner. From the practice of the Bridges company, filing a complaint about the inaction of property department employees is sometimes the only effective way to speed up the process of concluding a profitable lease agreement after winning the auction.
1. The conclusion of lease agreements, agreements for gratuitous use, agreements for trust management of property, and other agreements providing for the transfer of rights of ownership and (or) use in relation to state or municipal property that is not secured by the right of economic management or operational management can be carried out only based on the results holding competitions or auctions for the right to conclude these agreements, with the exception of granting the specified rights to such property:
1) on the basis of international treaties of the Russian Federation (including intergovernmental agreements), federal laws establishing a different procedure for disposing of this property, acts of the President of the Russian Federation, acts of the Government of the Russian Federation, court decisions that have entered into legal force;
2) state bodies, local government bodies, as well as state extra-budgetary funds, the Central Bank of the Russian Federation;
3) state and municipal institutions;
(see text in the previous edition)
4) non-profit organizations created in the form of associations and unions, religious and public organizations (unions) (including political parties, social movements, public funds, public institutions, public amateur bodies, trade unions, their associations (associations), primary trade union organizations), associations of employers, homeowners' associations, socially oriented non-profit organizations, provided they carry out activities aimed at solving social problems, developing civil societies in the Russian Federation, as well as other types of activities provided for in Article 31.1 of the Federal Law of January 12, 1996 N 7-FZ “On Non-Profit Organizations”;
(see text in the previous edition)
5) lawyers, notaries, chambers of commerce and industry;
6) medical organizations, organizations carrying out educational activities;
(see text in the previous edition)
7) for the placement of communication networks, postal facilities;
(see text in the previous edition)
8) a person who has the rights to own and (or) use a network of engineering and technical support, if the transferred property is part of the corresponding network of engineering and technical support and this part of the network and the network are technologically connected in accordance with the legislation on urban planning activities, the person , which has been assigned the status of a single heat supply organization in heat supply price zones in accordance with Federal Law of July 27, 2010 N 190-FZ “On Heat Supply”;
(see text in the previous edition)
10) a person with whom a state or municipal contract was concluded based on the results of a competition or auction held in accordance with Federal Law No. 44-FZ of April 5, 2013 “On the contract system in the field of procurement of goods, works, services to meet state and municipal needs ", if the provision of these rights was provided for by the tender documentation, auction documentation for the purposes of the execution of this state or municipal contract, or to the person with whom the state or municipal autonomous institution concluded an agreement based on the results of a competition or auction held in accordance with the Federal Law of July 18 2011 N 223-FZ "On the procurement of goods, works, services of certain types legal entities", if the provision of these rights was provided for in the procurement documentation for the purposes of the execution of this contract. The period for the provision of these rights to such property cannot exceed the period for the execution of a state or municipal contract or agreement;
(see text in the previous edition)
11) for a period of no more than thirty calendar days over six consecutive calendar months (granting the specified rights to such property to one person for a total period of more than thirty calendar days over six consecutive calendar months without holding competitions or auctions is prohibited);
12) in exchange for real estate, the rights in respect of which are terminated in connection with the demolition or reconstruction of the building, structure, structure of which such real estate is or part of, or in connection with the granting of rights to such real estate to state or municipal organizations carrying out educational activities, medical organizations. In this case, the real estate, the rights to which are granted, must be equivalent to the previously owned real estate in location, area and value determined in accordance with the legislation of the Russian Federation regulating valuation activities. The conditions under which real estate is recognized as equivalent to previously owned real estate are established by the federal antimonopoly authority;
(see text in the previous edition)
13) to the legal successor of a privatized unitary enterprise in the event that such property is not included in the assets of the privatized unitary enterprise subject to privatization, but is technologically and functionally connected with the privatized property and classified by federal laws as objects civil rights, the circulation of which is not allowed, or to objects that can only be in state or municipal ownership;
14) being part or parts of a premises, building, structure or structure, if the total area of the transferred property is no more than twenty square meters and does not exceed ten percent of the area of the corresponding premises, building, structure or structure, the rights to which belong to the person transferring such property ;
15) the person who submitted the only application for participation in the competition or auction, if the said application meets the requirements and conditions provided for by the competition documentation or auction documentation, as well as the person recognized as the only participant in the competition or auction, on the terms and at the price, which are provided for in the application for participation in a competition or auction and the competition documentation or auction documentation, but at a price not less than the initial (minimum) price of the contract (lot) specified in the notice of the competition or auction. At the same time, for the auction organizer, the conclusion of the contracts provided for in this part in these cases is mandatory;
16) transferred for sublease or for free use by a person to whom the rights of ownership and (or) use in relation to state or municipal property were granted based on the results of an auction or in the event that such an auction is declared invalid, or in the event that these rights are granted on the basis of state or municipal contract or on the basis of paragraph 1 of this part.
2. The procedure for concluding contracts specified in part 1 of this article does not apply to property, the disposal of which is carried out in accordance with the Land Code of the Russian Federation, the Water Code of the Russian Federation, the Forestry Code of the Russian Federation, the legislation of the Russian Federation on subsoil, the legislation of the Russian Federation on concession agreements, legislation of the Russian Federation on public-private partnership, municipal-private partnership.
(see text in the previous edition)
3. In the manner prescribed by Part 1 of this article, lease agreements, gratuitous use agreements, and other agreements providing for the transfer of ownership and (or) use rights in relation to:
1) state or municipal real estate, which belongs to state or municipal unitary enterprises by the right of economic management or operational management;
2) state or municipal real estate assigned to state or municipal autonomous institutions with the right of operational management;
3) state or municipal property, which belongs by right of operational management to state or municipal budgetary and government institutions, state bodies, local governments.
(see text in the previous edition)
3.1. Conclusion of lease agreements in relation to state or municipal property of state or municipal educational organizations that are budgetary institutions, autonomous institutions, budgetary and autonomous scientific institutions is carried out without holding competitions or auctions in the manner and under the conditions determined by the Government of the Russian Federation, while simultaneously complying with the following requirements:
(see text in the previous edition)
1) tenants are business companies created by the institutions specified in paragraph one of this part;
2) the activities of the tenants consist in the practical application (implementation) of the results of intellectual activity (programs for electronic computers, databases, inventions, utility models, industrial designs, selection achievements, topologies of integrated circuits, production secrets (know-how), the right to use which contributed as a contribution to their authorized capital;
3) lease agreements establish a ban on the sublease of this property provided to business companies under such lease agreements, the transfer by business companies of their rights and obligations under such lease agreements to other persons, the provision of this property for free use, and the pledge of such lease rights.
3.2. The conclusion of lease agreements, agreements for gratuitous use in relation to state or municipal property of state or municipal organizations engaged in educational activities is carried out without holding competitions or auctions if these agreements are concluded with:
1) medical organizations to protect the health of students and employees of organizations carrying out educational activities;
2) public catering organizations to create the necessary conditions for organizing meals for students and employees of organizations carrying out educational activities;
3) physical education and sports organizations to create conditions for students to engage in physical education and sports.
(see text in the previous edition)
5. The procedure for holding competitions or auctions for the right to conclude contracts specified in parts 1 and this article, and the list of types of property in respect of which the conclusion of these contracts can be carried out through bidding in the form of a competition, are established by the federal antimonopoly body.
5.1. In accordance with Part 6 of this article, a notice of a competition is posted no less than thirty days before the deadline for submitting applications for participation in the competition, a notice of an auction is posted no less than twenty days before the deadline for submitting applications for participation in an auction.
