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The main differences and risks of rental housing followed by its subsequent ransom

At first glance, the rental housing mechanism with the possibility of subsequent redemption of one to one is similar to the purchase of housing in installments, but it is worth noting that there is a significant difference. And first of all, this difference is manifested in the regulatory component, and therefore is regulated on the basis of different laws. In addition, there are financial aspects of the transaction. For the party providing housing rental services, it is much more profitable to implement it in installments, since in this case the total amount of real estate is paid much faster than when transferring housing for rent. Installment terms, as a rule, are from one year to three years. It is also worth noting the initial amount of investment for the implementation of installments. There are some more factors that can be attributed: in essence, speaking, the real estate market has never been stable, and rental rates can grow, like the market value of housing. In such a situation, it is unlikely that whoever wants to establish fixed rental rates for a long term, because according to the legislation, it is possible to obtain a revision of prices only on the basis of an additional agreement on a voluntary agreement of both parties. The risk here is obvious to the lessor, as a rule, no one will want to lose money from profit. The likelihood of changing prices in connection with inflation or other negative phenomena are quite large, and the fact that in such a situation it will be unlikely to achieve a compromise, therefore, the transactions of this type are not always justified. In addition to the risk of the lessor, there are certain risks for the tenant, since the object of the agreement is nowhere to be registered and is not recorded in the property of the tenant. For example, if the tenant will make permanent payments for the rent, this will not cause the lessor will not lay the apartment on bail in one of the banks. The requirement is that the landlord will not lay the real estate object anywhere, but this moment should be discussed without fail and indicate a separate line in the contract. This issue remains completely at the discretion of the lessor. In general, expressing, renting housing with its subsequent ransom resembles mortgage lending, only without providing an additional package of documents, pledges, overpayments and guarantors.