Rental business management: does Moscow real estate market needs agency works?

real estare - agency services

Moscow real estate gradually becomes more independent from agencies services owing to global crises, most of tenants expatriates search for accommodation in Moscow via web-sources without applying to real estate agencies.

In developed counties the amount of rental housing makes up 70-80% from the whole amount of real estate. In Moscow for the time being this figure hardly rises to 10%. Nevertheless, there is a new service launched by famous Moscow developer company group PIK. Thus unsold apartments become stable extra company income.

Renting via such a service tenant has number of advantages comparing with lease with private landlords:

  •        24/7 managers’ availably to show a property;
  •        legal apartment verification;
  •        test-drive of an apartment with possibility to buy based on the prepaid rental payment;
  •        insurance against abrupt agreement termination;
  •        apartment furniture and equipment insurance etc.


Landlords as well may take number of advantages:

  •           сheck of tenant’s capacity to pay by company specialists;
  •           reimbursement in case of preliminary termination by tenant’s initative;
  •           reimbursement in case any damage occurred to the apartment equipment or furniture etc.

    At the same time such kind of management makes rental business more transparent and landlords have to step out of the shadows and to pay taxes. It means that rental business being not so profitable becomes less profitable and most of landlords would prefer to let apartments directly to tenants. However the service would be useful amidst landlords living out of Moscow mostly. 

Rental business management is rather fresh product in the market. Previously agency services included only search of accommodation for a tenant and tenant for a landlord and working out a typical lease agreement. Now they can offer set of management services and support within whole rental period providing average market rental rate. And such service can be of great demand.

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