How to convert commercial real estate into residential and vice versa in 2023: is it possible, how much does it cost?

Very often, entrepreneurs, especially beginners, are faced with the problem of where to open their own office or store? Often the profitable and only option is to transfer residential premises to non-residential premises if this premises is owned. In essence, this procedure gives the apartment the status of commercial real estate.

Many people wonder whether it is profitable to convert their home into commercial real estate? The answer is obvious, it is really profitable. If you compare this method of locating your own business with renting an office in the city center (the cost of which, by the way, is quite high) or with the construction of a new building, you can immediately see the advantages of transferring housing to commercial premises.

The only thing that can become an obstacle is the rather complicated and lengthy registration procedure. This article will help you clarify and create your own action plan.

What does the law say about this?

First of all, you need to refer to the legislative acts of the Russian Federation. Having studied the existing regulatory aspects, one can come to a disappointing conclusion: residential premises must be used only for living in it.

But don't be upset. There is the possibility of converting housing into commercial real estate, which will ultimately allow you to work from your home.

It is very important that the interests of all other residents living in the house are taken into account. Not a single right of theirs should be violated.

Many people mistakenly believe that the consent of all neighbors to transfer housing to commercial real estate is a prerequisite. Actually this is not true. However, if any controversial issues arise, the consent of your neighbors can have a serious impact, moving the arrow of the scale in your favor.

We comply with all necessary legal regulations

Converting an apartment to commercial real estate is not possible without meeting the following legal requirements:

The housing must be owned by the applicant. This, of course, must be a legal entity. It is necessary to have written confirmation that the apartment is owned. It could be:

will;
gift agreement;
registration certificate.

This apartment should not be taken out on credit or used as collateral. Supervisory authorities are very careful to ensure that the property is legally “clean”. She should not be involved in any fraud under any circumstances.
An apartment can be transferred from residential to non-residential status only in full, and in no case partially.
The owner must check out of the apartment before starting the procedure for changing its status. According to the law, no one can be registered in a non-residential premises, and no one can live there permanently.
If any illegal alterations have been made to the apartment, they must be legalized without fail. Otherwise, the transfer will simply not be given the go-ahead.

How to convert commercial real estate into residential and vice versa in 2023: is it possible, how much does it cost?

Is it possible to engage in commercial activities without converting an apartment into commercial real estate?

If you turn to the Housing Code of the Russian Federation, you can find a number of conditions, subject to which it is possible to carry out your activities without being classified as commercial real estate (Article 17). These requirements include the following conditions:

This activity should not make the lives of other residents of the apartment and neighbors worse.
There will be no complaints from neighbors regarding business activities.
The house is not in disrepair.
All sanitary and epidemiological requirements in the apartment are met.
The business owner has permanent residence in the apartment.

And yet, entrepreneurs are almost always forced to convert housing into commercial real estate.

What are the technical aspects of this action?

And again you need to turn to the Housing Code of the Russian Federation. It specifies quite stringent requirements that apply not only to housing, but also to the entire house. These include the following aspects:

Direct entrance to the premises from the street is required, if possible. In this case, it means that the apartment is located on the ground floor, and the windows face directly into the courtyard. There is also an additional requirement. If the total area of the apartment exceeds 100 m2, then there must be another emergency exit through the entrance.
If housing located above the 1st floor is being transferred, then all premises located below must also have the status of commercial real estate.
Housing must be equipped with all engineering and technical communications that are necessary for normal functioning.
The building where the apartment is located should not be part of the fund of cultural and historical values.
If the house in which the property is located is declared unsafe or must be demolished, then the conversion of housing into commercial real estate is impossible.

Difficulties may arise when converting into commercial real estate an apartment located in a building that needs repairs or if it is registered with the civil defense headquarters, as well as registered in cases of emergency circumstances.

All of the above requirements are relevant for both single-story and multi-story buildings.

Converting an apartment to non-residential premises: step-by-step instructions

In general, the whole process involves collecting and preparing the necessary documents and visiting the necessary authorities. To reduce translation time, you should follow the following sequence of actions.

Appeal to the Interdepartmental Commission

Only homeowners can collect all the necessary documents. The exception is a trustee. In this case, the power of attorney must be properly executed and certified by a notary. It is this paper that gives the authorized person the right to act on behalf of his principal.

Initially, you need to collect the necessary documents. Then they are provided to the property management department, which in turn relates directly to the Interdepartmental Commission. The list of documents includes:

Power of attorney to receive documents from the BTI. To do this, contact the Property Management Department. There, an application is drawn up requesting the issuance of a power of attorney. It is this that will allow you to obtain a floor plan of the premises, as well as the explanation attached to it (decoding the symbols). Such a power of attorney is issued no earlier than 30 days later. To receive it you must present the following documents:

passport of a citizen of the Russian Federation;
foundation agreement for residential premises;
property registration certificate.

A floor plan along with an explanation, as well as a technical passport for it. These documents are issued to the BTI upon presentation of the appropriate power of attorney. To obtain it, you must provide the same documents as to the Department.

If you already have a technical passport, look at the date of issue. If the document was received more than 3 years ago, it will not be accepted. In this case, it will be necessary to obtain a new edition of the technical passport.

Help DEZ. It must be obtained from the management company of the building where the residential property is located. This document indicates the intended use of all premises located on the floor next to your home. To receive it, you must present the same documents as to the BTI and the Department.
Technical conclusion. To receive it, you need to contact the management company again. This could be a housing cooperative or a homeowners association, for example. This document contains all the necessary information about the technical condition of the house.
A conclusion from the fire inspectorate that the housing actually meets all the necessary fire safety requirements. This document is issued by the Department of State Supervision under the Ministry of Emergency Situations. In this case, a prerequisite is a preliminary inspection of the premises and its verification. To do this, write the necessary application.
Conclusion of sanitary and epidemiological control. To do this, you need to contact the SES. The procedure for obtaining it is identical to obtaining a conclusion from the fire inspectorate.
Consent of the owners actually living in the house. Simply registered people are not taken into account. This issue is resolved at a meeting of owners. To do this, you should contact the management company again. You can try to hold an extraordinary meeting. In this case, all residents must be notified of it at least 10 days in advance. They should also be made aware of the reason for holding an unscheduled meeting. It must have at least 50% of all owners. If 2/3 agree, the decision is considered accepted.
Extract from the house register. You can get it at the passport office. The document should not contain information that someone is registered in the apartment! This paper is only valid for 2 weeks.
Housing renovation project. This can only be obtained from commercial organizations that have the appropriate license to carry out such activities.

Contact the Property Management Department

So, all the necessary papers have been collected at the first stage, they are all relevant. Feel free to contact the Property Management Department. There, an application is filled out indicating the desire to transfer the housing to a non-residential property. You also need to provide the same documents that were provided to obtain the power of attorney.

The consideration of this issue takes place within 45 days. After the decision is made, the applicant is notified within 3 days in person or by letter.

Why can the procedure be refused?

There are reasons why the Department may deny an applicant. These include:

Lack of a number of necessary documents.
Incorrect project for refurbishment of premises.
Failure to comply with laws.
Lack of consent of neighbors and co-owners of the apartment.

At the same time, any refusal must be justified and have references to specific regulations. Otherwise, such a decision may be appealed in court.

How much will the procedure cost?

So, consent has been received. Now you need to contact the BTI again, or rather the privatization department. In this case, you must provide the following documents:

Application, in a strictly defined form.
Homeowners' passports.
Housing agreement.
A document confirming ownership of the property.
Floor plan, technical data sheet with explanation.
Protocol received from the Department.
If necessary, a power of attorney and constituent documents are provided.

After this, an appropriate calculation of the cost of the procedure for transferring residential premises to non-residential premises is made. This takes into account factors such as operating conditions, the presence of competitors nearby, the condition of the premises, and location. The final price is indicated in the protocol. Payment can be made at any of the banks.

Contact the Registration Chamber

To register ownership rights, you must contact the Registration Chamber with documents (please note that you need to provide not only copies, but also originals):

Homeowners' passports.
Housing agreement.
A document confirming ownership of the property.
Protocols from the BTI and the Interdepartmental Commission.
Cadastral passport.
If necessary, a power of attorney and constituent documents are provided.

The submitted application is signed by all homeowners. The execution of such a document requires the payment of a state fee. After submitting it, the authorized representative receives the document and writes a statement about when he will appear to receive the certificate. At the appointed time, the necessary certificate is issued according to the passport. This moment is considered the transition of housing to commercial real estate.

It is worth noting that renting such premises can bring much more money than residential ones.

What costs will you incur during the entire procedure?

Not only time is wasted when obtaining a certificate of transition from residential to non-residential. This will take a lot of money. You will have to spend your money on the following procedures:

Recalculation of non-residential premises, which is compiled in the BTI. Payment of its cost.
Preparation of a technical passport.
State fee for issuing a certificate.
Notary services for certification of documents for an apartment, execution of a power of attorney.
Creation of a project for the redevelopment or reconstruction of a premises.

If you follow the outlined sequence of steps, you can arrange the transition of housing to non-residential premises in the shortest possible time and at the lowest cost.

Cost of Converting Non-Residential Premises to Residential 2023

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05.04.2022

and even taking into account the high cost of translation, it should be borne in mind that the return on investment for commercial real estate is approximately three times higher than for residential real estate. First of all, in order to transfer an ordinary apartment to non-residential stock, the following conditions must be met: it must be possible to organize a separate entrance, obtain a fire certificate and a sanitary-epidemiological conclusion.

The courts of the first and appellate instances considered the refusal illegal, since, in their opinion, the construction of a doorway in the wall separating the disputed premises would not have a negative impact on the technical condition and serviceability of the residential building.

What is the cost of converting residential premises into non-residential premises and is it possible to reduce costs

production of the project;
ordering technical documentation from BTI (prices can be found there);
preparation of geological basis;
preparation of a situational plan in the Committee on Architecture and Urban Planning;
coordination of the project with authorities (for example, fire supervision);
approval and protocol for a separate entrance;
obtaining permission from the DGI.

The arrangement of such an entrance is consistent not only with housing services. The consent of neighbors will also be required (“at least 67% of all residents must be in favor”).

Next, you will have to say goodbye to the apartment, you will be discharged from it - no one can be registered on the territory for non-residential purposes, and it is only possible to turn an inhabited premises into a non-residential one completely. It won’t be possible, say, to live in one room and have a shoe workshop in the other two.

In this case, all engineering systems must be present and in perfect order.

Also, conversion will be denied if the house is a cultural property or is intended for demolition.

And finally (but not in last place) - spending money. Here is their main list:

ordering technical documentation from BTI;
design bureau services;
legal and technical work of a notary;
payment of state duty for registration of rights in Rosreestr;
intermediary company;
construction works.

How to convert non-residential premises into residential ones

It should be understood that performing the translation process independently in difficult situations (the room has some peculiarities, reconstruction is needed, etc.) will require a lot of time and effort. For example, it took Valentina Petrovna Leonova from the Ryazan region a year to transfer the premises.

The property owner collects and submits the necessary documents (list below).
An examination of the real estate is carried out by the housing commission to make a decision on the transfer of the premises.
The design office develops and approves a project for changing the status.
If everything is in order, then a permit is issued.
Changes are being made to the database of the design and inventory bureau.

How to convert non-residential premises into residential ones

Drawing up technical and design documentation also requires payment for services. The price of such a service consists of the following factors: region, scale of work, technical condition. Also, most of the material costs are borne by the redevelopment of the premises.

If the property is not considered part of real estate located in a zoned residential area that is equipped with utilities.
If property structures are not in proper operating condition, they have cracks and other damage that pose a danger to the health of citizens.
If communication systems are located in places accessible to people and pose a risk to their health.
It does not have a water leakage protection system that is used in everyday life.
If the property does not have utilities, electrical networks, a security system, heating gas and water supply.

How to convert residential premises into non-residential premises

Collecting information, applying to various commissions, hiring assistants - all this can be quite expensive. But, if you turn to professionals who can guarantee a quick solution to your problem in one round of collecting documents and obtaining permits, then you will not have to pay twice.

Payment to a company that will draw up documentation for the redevelopment of the premises, if you need it in the future for successful and convenient business. You should know that redevelopment is required if there is no separate entrance to the room ;
Payment of the difference in the cost of the premises, which will be calculated by the BTI upon application to draw up a conclusion for the privatization commission;
Payment of state duty;
Services of a notary who must certify all available copies of official documents;
Services of an organization that will draw up a technical passport and description of the operation of the premises;
Certificate from emergency situations and civil defense about the sanitary and fire safety condition of the premises.

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The procedure for transferring non-residential premises to residential premises

In addition to the established norm of living space per family member, a property transferred to the residential category must include premises for auxiliary use to meet the household and sanitary needs of the citizens living in it (kitchen room, bathroom).

The premises transferred to the residential category must be completely free from restrictions and encumbrances, and also belong to its owner by right of ownership. It is impossible to change the purpose of non-residential premises if an individual or legal entity owns it on the basis of a fixed-term lease agreement, or if the premises are under mortgage.

The procedure for transferring residential premises to non-residential premises in 2023

The bank will not approve a change in the status of housing if it was purchased with a mortgage, is collateral for obligations, or is put up for auction for non-payment of debts.
The consent of neighbors is a barrier. It is difficult to achieve a majority of votes, but you can guarantee residents in advance: the absence of noise, unpleasant odors, and garbage.

When transferring premises from residential to non-residential, contact the HOA or management company. Write a statement with a request to consider the issue at the next meeting of residents. Another option is to initiate an extraordinary event. Citizens will have to be notified in writing about the event 10 days in advance, indicating the reason and date. Almost a difficult task. The optimal solution is to personally communicate with people and deliver a letter.
The meeting is considered legal when more than half of the owners took part. There must be at least 2/3 votes in favor of the translation.
A protocol containing the results of the meeting is drawn up.

Transferring residential premises to non-residential premises, step-by-step instructions

an application drawn up in the prescribed form;
owners' passports;
foundation agreement and property ownership document;
protocol issued by the Department;
floor plan, technical passport and explication;
if necessary, a power of attorney and constituent documents (if the owner of the apartment is a business entity).

The apartment must belong to the individual applicant on property rights. Registration of ownership of an apartment is described separately. To do this, you must have documentary evidence - a gift agreement, a will or a registration certificate.
The property must not be encumbered by credit or collateral. Employees of regulatory authorities are especially careful to ensure that there is no possibility of any fraud with the housing, that is, it must be “clean” from a legal point of view.
Before you begin transferring an apartment, you should check out of it, since no one can live in non-residential premises permanently or even be registered.
It is not allowed to change the status of part or just one room in the apartment.
If illegal redevelopments have previously been carried out in a residential premises, then before submitting documents they must be legalized in the prescribed manner.

We recommend that you read: Sanatorium Sochi Moscow Region Vouchers for 2023

How to convert non-residential premises into residential ones

The law does not prohibit the transfer of non-residential premises to residential ones, however, the rules prescribed in sanitary, urban planning and housing legislation must be observed.

Sometimes a number of restrictions may be imposed on the procedure, which are necessary and used to ensure the safety of the owners of adjacent premises, in the event of a possible threat to the life and health of people, as well as in the event that the transfer causes damage to the property of enterprises or other persons.

In legal practice, the transfer of non-residential premises to residential premises is not common. This happens because it is very labor-intensive and requires not only time, but also material costs. As a result, it is easier in all respects to purchase an apartment or house than to bring the premises into a habitable state, which is not intended for this purpose.

How to convert non-residential premises into residential ones

Rosreestr, within five working days from the date of entering information into the Unified State Register of Real Estate, in the manner of interdepartmental information interaction, at the request of an interested person, sends such a notification to such person (Part 5, Article 33 of Law No. 218-FZ; clauses 2, 3 of Appendix No. 2 to the Order Ministry of Economic Development of Russia N 173).

The technical plan is prepared in the form of an electronic document, certified by an enhanced qualified electronic signature of the cadastral engineer and transferred to Rosreestr for cadastral registration of changes in the technical characteristics of the premises (clause 7, part 2, article 14, part 12, article 24 of the Law of July 13, 2015 N 218 -FZ; Part 2, Article 36 of Law No. 221-FZ).

Cost of Converting Non-Residential Premises to Residential 2023 Link to main publication How to convert commercial real estate into residential and vice versa in 2023: is it possible, how much does it cost?

Should you buy commercial real estate in 2023?

How to convert commercial real estate into residential and vice versa in 2023: is it possible, how much does it cost?

Investors who want to use their money profitably and reduce the risk of losing it try to invest in commercial real estate. With reasonable planning and understanding of commercial real estate market trends, the investment will quickly pay off. We are trying to figure out whether commercial real estate is profitable or not for an investor, how to find that very object and rent it out.

What is more profitable: commercial or residential real estate?

If in the early 2000s the question of profitability of commercial or residential real estate did not arise in principle, now less than 35% of investors want to invest money in an apartment for the purpose of resale or further renting it out.

The statistics are inexorable: the profitability of objects for future business exceeds residential real estate by one and a half to two times.

The significant difference is that when investing in commercial real estate, you will have to wait quite a long time for the first news of income. At the same time, the funds are relatively safe.

If you want your money to work, give preference to non-residential real estate.

Portrait of an attractive commercial property

Since you have given preference to commercial real estate, a reasonable question immediately arises: what kind of premises will be in demand among the future tenant?

Most often, tenants are looking for premises with an area of 80-120 m2. Such square footage makes it possible to find a tenant even in times of crisis, when large premises are unoccupied.

The so-called hall layout is well suited - it makes it possible to engage in any type of trade or sale of services. If your premises are located on the ground floor, it is better to have a separate entrance for visitors.

You can make an initial assessment of the profitability of renting out commercial real estate yourself by measuring the height of the ceilings (at least 2.75 m after finishing) and verifying the presence of your own bathroom. A more in-depth analysis and selection of commercial properties will reduce search time and money spent.

How to determine whether it is profitable to buy commercial real estate

You can find out whether it is profitable to rent out commercial real estate by calculating the optimal rental rate with the help of a broker, but you can draw preliminary conclusions about the profitability of the premises yourself:

Assess the location Selling or renting commercial real estate will be profitable if the location of the property allows for the profitability of the business. High pedestrian and/or vehicle traffic, the presence of convenient paths, parking, etc. are desirable. The specific list of location requirements depends on the purpose of the premises.

Payback To determine whether it is profitable to buy commercial real estate, divide the price of the property by the cost of rent and by 12. This will determine when your investment will fully pay off. The optimal option is considered to be about 8 years.

Demand Analyze the demand for a specific area to determine whether it is profitable to purchase commercial real estate of a particular type.

To guarantee a profitable lease of commercial real estate, you can purchase premises that can be used not limited to a specific type of business.

Clients will arrange the space themselves. If you want to choose a reliable, in-demand option that suits your budget, contact professional brokers who will not only quickly help you find a suitable property, but also calculate the payback period and find tenants.

How much does it cost to convert residential premises into non-residential premises?

17.08.2022

Duration and cost of the registration process . The time period can be up to one and a half years with an average investment of over a million rubles.
High maintenance of commercial premises. The amount of utilities will immediately increase from 10% to 25% , depending on its type. In addition, once a year you need to pay property tax, which will amount to 2.2% of its value.
A long process of realizing opportunities. This applies to both renting out a property and selling it.

The difference in the cost of a non-residential apartment after calculating it in the BTI;
Payment for the services of the bureau for the production of a technical passport and a certificate of difference in prices before and after the transfer of housing;
Remuneration for the notary when preparing documents;
Payment of state duty;
If redevelopment or reconstruction is necessary, payments to the designers will be made.

The main costs, provided that the owner goes through all the stages independently, will be on ordering technical and design documentation. It includes an explication and floor plan of the building, a technical passport and a technical plan. Also, a significant amount will be the difference in the cost of the premises after recalculation into the BTI. In addition, you will have to pay a state fee for registering property rights .

Collection of documents necessary to submit an application to the interdepartmental commission.
Submitting an application to transfer the premises to non-residential or residential status to the Property Management Department (you can find out what is included in the package of documents for transferring the premises from non-residential to residential and how to write an application here).
Wait for permission. In case of refusal, the reason is indicated, after eliminating which the previous steps should be repeated.
Contacting the Bureau of Technical Inventory in order to determine the cost of transferring premises from residential to non-residential. This can be done either directly at the BTI or through the Multifunctional Center.
Wait for the commission's decision on the cost of transferring the premises to a new status.
Pay the resulting difference.
Register ownership of the property with the local Rosreestr Office.

How to correctly transfer residential premises to non-residential premises

After this, BTI employees review the submitted documents and prepare the appropriate protocol. If it turns out that the price of an apartment in a residential building is less than in a non-residential one, the owner is obliged to transfer the cost difference to the state in any bank and only after that he will be able to obtain a certificate.

The period for consideration of this application is no more than 45 days, based on the results of which a special commission will make a decision to approve the transfer or refuse it, indicating the grounds. The commission's decision can be received in person or requested to be sent by mail.

How to convert residential premises into non-residential premises

Changing the status of a premises is possible only in compliance with the Housing Code of the Russian Federation and the Town Planning Code.
It is impossible to make a residential premises non-residential if access to it is impossible without access to residential premises, or if this premises is used by someone (including the owner himself) for living.
The premises located in an apartment building must be either on the ground floor or in the basement. A location on higher floors is allowed only if no one lives below it.
It is impossible to transfer an apartment in a rented building for social use.
You cannot transfer if the premises are intended to be used for religious purposes.
The transfer will not be carried out if the premises do not meet the specified requirements or the ownership is in some way inconsistent with the law.

availability of room access to utilities;
whether this premises is included in future plans for reconstruction of the building or major repairs;
whether the building is an architectural monument;
whether the building is under civil defense surveillance;
whether the building is in disrepair, and whether it is going to be demolished soon.

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How is the transfer of residential premises into non-residential and non-residential premises into residential premises carried out, the price of the project and the cost of transfer

Government Decree No. 692-PP proposes regulations for the provision of services by the Property Management Department for the transfer of housing to another category. The question of who the applicant may be and possible reasons for refusal to provide the service are considered.

Very often on thematic forums, users ask the following question: “How to transfer residential non-residential premises to non-residential residential premises?” This formulation is not entirely correct; everything on the issue of transferring residential premises to non-residential and non-residential premises to residential - later in our article.

How to convert residential premises into non-residential premises - step-by-step instructions and how much it costs

This activity should not make the lives of other residents of the apartment and neighbors worse.
There will be no complaints from neighbors regarding business activities.
The house is not in disrepair.
All sanitary and epidemiological requirements in the apartment are met.
The business owner has permanent residence in the apartment.

How to convert residential premises into non-residential premises

The advantages are that non-residential properties have higher rents , so you can get more income and benefits. Also, the price per area is much higher than for residential premises.
The disadvantages are that such an area may take longer to sell. Maintenance of non-residential buildings is also expensive. Utility bills will increase by about 20% on average.

Once a year you will have to pay property tax, and it will be expensive and time-consuming to re-register the transfer itself, about a year and a half.

In principle, you can turn to third-party organizations and instruct them to handle all stages of your transfer by proxy. The cost in this case of their services will be approximately 350,000 rubles for everything, or for one square meter. meter. The price will be 250-350 conventional units.

A huge number of entrepreneurs and lawyers are familiar with the intricacies of re-registration. Non-residential premises mean buildings that are not suitable for human habitation. They are used for various industrial and domestic needs. There are especially many such areas located on the first floors of apartment buildings.

There is no compliance with technical standards and sanitary rules.
The building is under mortgage.
The owner is a minor child.
The application can only be submitted by the person who is the legal owner.
They will not accept documents from the tenant, despite the long lease period.
The building must be located within the city limits, the infrastructure must be developed.
The building must not pose a danger.
There must be a separate ventilation system, water supply, and sewerage.
The documentation was not submitted in full.

What is the cost of converting residential premises into non-residential premises and is it possible to reduce costs

The arrangement of such an entrance is consistent not only with housing services. The consent of neighbors will also be required (“at least 67% of all residents must be in favor”).

We recommend reading: How many square meters should there be per person?

It won’t be possible, say, to live in one room and have a shoe workshop in the other two.

In this case, all engineering systems must be present and in perfect order.

Also, conversion will be denied if the house is a cultural property or is intended for demolition.

And finally (but not in last place) - spending money.

Here is their main list:

ordering technical documentation from BTI;
design bureau services;
legal and technical work of a notary;
payment of state duty for registration of rights in Rosreestr;
intermediary company;
construction works.

In practice, everything turns out to be much more complicated. You will have to visit a large number of authorities, and accordingly there will be expenses and state duties, so “somewhat” turns out to be a very impressive amount. Yes, and it will take quite a lot of time. Let's find out how much it will cost to transfer an apartment in an apartment building to non-residential premises, what determines the final price and how it can be reduced.

Transfer of residential premises to non-residential premises

Non-residential premises must have their own entrance. This applies to offices, shops and so on. If it is impossible to make a separate entrance for a given premises, then converting it into non-residential space will become impossible. Buyers or visitors should not enter non-residential premises through the entrance of the house.
It is impossible to partially convert housing into non-residential. If this is an apartment, it must be completely transferred to non-residential status. A separate room cannot be transferred.
It is not permitted to convert residential premises into non-residential premises above the first floor of a multi-storey apartment building.
Premises or houses for demolition are not converted into non-residential ones.
The necessary communications must be present in the premises.
The house does not have to be a cultural property or value.

The apartment must belong to the applicant. There must be documents that confirm ownership of the living space.
The apartment should not be on credit.
Extract. You need to check out of the apartment. Since there cannot be registration in non-residential premises.
Housing must be completely converted to non-residential. Individual rooms cannot be transferred.
Change of layout. It is necessary to notify special authorities in advance about the redevelopment of living space.

How much does it cost to convert residential to non-residential premises?

The BTI Commission calculates the cost of transferring housing to non-residential premises. This indicator is influenced by many factors: convenience of location and operation, the presence of other companies in the neighborhood, the technical condition of the facility, etc. The cost of the translation is indicated in the protocol. It can be paid at any bank.

Transfer of premises from non-residential to residential: rules, order and subtleties

Question: why not just buy a regular home? It's all about the price. You can often find apartments 15–25% cheaper than an apartment of the same size. Plus the attractiveness of the premises and, for many, the convenience of the location. Therefore, now you can find a lot of advertisements from companies offering to help convert apartments into housing stock.

Minus: you cannot register in the apartment, either permanently or temporarily. If the owner of such premises has an apartment in the same city, this state of affairs will not bother him. But out-of-town buyers want not only to live in an apartment, but also to officially register there. This is where the need arises to convert such areas into housing stock.

How much does it cost to convert residential to non-residential premises Link to main publication How to convert commercial real estate into residential and vice versa in 2023: is it possible, how much does it cost?

Practical advice on how to convert residential premises into non-residential ones and vice versa. How much is it?

When transferring residential real estate to non-residential status, or vice versa, it is necessary to go through several stages. You will have to collect a large package of documents, go through approvals with the authorities responsible for this, and obtain the consent of the majority of neighbors if this is an apartment building.

The whole process is quite complex and requires a lot of time, patience and money to implement. You will learn more about this in our article.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

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When might it be required in an apartment building?

The first floors of houses in residential areas are perfect for opening offices, organizing a business in the service sector or retail trade. However, the law allows you to engage in business activities in residential premises without changing their legal status in rare situations. The entrepreneur must be registered and live in the apartment .

At the same time, by his activities he must not violate the rights of other people living in this premises, as well as neighbors. These provisions are spelled out in Art. 17 Housing Code of the Russian Federation. Other apartment owners whose activities are not permitted by law in residential premises will have to change the status of the premises in order to organize offices, beauty salons or shops.

We talked in detail about the nuances of converting residential premises into non-residential premises for different real estate, as well as in what situations changing the purpose of an object is not allowed in this article.

How to translate: procedure

The Office of the Housing Fund of the Department of Municipal Property , the Department of Housing Policy and Housing Fund and other local government bodies for But the easiest way to deal with this issue is through the local Multifunctional Center.

The procedure for transferring premises from residential to non-residential status is regulated by Article 23 of the Housing Code. It looks like this:

Collection of documents necessary to submit an application to the interdepartmental commission.
Submitting an application to transfer the premises to non-residential or residential status to the Property Management Department (you can find out what is included in the package of documents for transferring the premises from non-residential to residential and how to write an application here).
Wait for permission. In case of refusal, the reason is indicated, after eliminating which the previous steps should be repeated.
Contacting the Bureau of Technical Inventory in order to determine the cost of transferring premises from residential to non-residential. This can be done either directly at the BTI or through the Multifunctional Center.
Wait for the commission's decision on the cost of transferring the premises to a new status.
Pay the resulting difference.
Register ownership of the property with the local Rosreestr Office.

Read in detail about how to change the status of housing from residential to non-residential, as well as what documents are needed for this, and from this article you will learn about in what cases it is not allowed to change the purpose of an object and what to do if you receive a refusal .

How much does it cost to transfer an apartment: approximate prices and total cost

The main costs, provided that the owner goes through all the stages independently, will be on ordering technical and design documentation.

It includes an explication and floor plan of the building, a technical passport and a technical plan. Also, a significant amount will be the difference in the cost of the premises after recalculation into the BTI.

In addition, you will have to pay a state fee for registering property rights .

The difference in the cost of a residential and non-residential property when calculated in the BTI will be about 40%. When calculating the cost, the Technical Inventory Bureau takes into account the location of the object, the year of construction, the surrounding social infrastructure and special coefficients. Most often, you have to pay extra if a residential property is assigned non-residential status.
Payment for services for preparing a technical passport for premises in the BTI will start from 1000 rubles. If you don’t have time to wait, you can pay extra for urgency, in which case the cost can rise to 5 thousand.
A certificate about the difference in prices before and after the transfer of real estate will cost 200-500 rubles, depending on the region.
Payment for notary services to certify copies of title documents for premises in Moscow costs about 60 rubles per page. If the transfer of real estate is not carried out by the owner, then you will have to issue a power of attorney. The cost of such a service is 1,400 rubles for individuals, and 2,000 rubles for legal entities. Depending on the region, notary fees may vary slightly.
The state fee for registering ownership of premises is 2,000 rubles for individuals and 22,000 rubles for legal entities. Payment details can be obtained from the Rosreestr office or on the official website of the organization.
If it is necessary to carry out redevelopment in accordance with the requirements of the law, you will have to pay for design work from 1,500 rubles per square meter. The final price depends on the complexity of the task.

Important. The total costs of converting residential premises into non-residential ones will be 600-700 thousand rubles if you do this yourself, and if you turn to lawyers for help, the costs will increase by another 10-20%.

Transferring real estate from residential to non-residential status, or vice versa, is a long and tedious process that requires serious financial expenses. However, if it is necessary to conduct business in such premises, there is no other way, especially since commercial activity, sale or rental of such an object will quickly recoup the investment.

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How to convert an apartment from residential to commercial real estate?

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Alexey Semin, CEO of the Uphill consulting group, answers:

Now it has become much more difficult to convert residential premises into non-residential ones, even if the property is owned.

The tightening of the regulations was made to protect residents, since previously many forged the signatures of neighbors or even bribed government services to obtain permission.

In new buildings, things are better: here, a certain percentage of premises on the ground floors are usually allocated, intended for commercial purposes and already equipped with separate entrances, canopies, etc.

If the loan for the property has not yet been paid, then it is in principle impossible to convert it into non-residential property - usually the mortgage agreement contains a clause prohibiting changing the purpose of the property and even making redevelopments.

By violating these conditions and not notifying the bank about it, the borrower is at great risk - the bank's collateral services may come with an inspection, and then fines will follow, a requirement for early repayment of the loan or the return of the property to its original condition.

The bank rarely gives the go-ahead for such actions, since the object in this case may lose its liquidity. After all, the bank is, first of all, interested in its quick implementation and reimbursement of the loan amount.

It is also necessary to inform the municipal government agencies in which the premises are registered - and they are also unlikely to give permission, since the object is encumbered.

Does the HOA receive income from businesses in the building?

Is it possible to remove the fence around a high-rise building?

In addition to all this, the difficulty is obtaining the consent of two thirds of the residents of the house. Just according to the new regulations being developed, it will be necessary to provide not just an extract with the results of surveys of residents, but a full report with signatures, and officials will also check the accuracy by calling.

It is worth noting that the procedure of converting it into non-residential premises is not cheap - redevelopment, construction of a separate entrance (which is usually done by cutting through a window) and ramps for the disabled. In this case, it will be more profitable to rent out - this will cover part of the loan payments, and the chance of doing everything legally is much higher.

Oksana Moiseeva, head of the commercial real estate department at NDV-Real Estate, answers:

From January 1, 2016, the procedure for transferring apartments located on the first floors of residential buildings to non-residential buildings has become more stringent. This situation is associated with complaints from dissatisfied residents.

The problems identified are the cutting down of trees, disorder in the local area, proximity to points of sale of alcoholic beverages, as well as odors that appear during cooking.

Restrictions were introduced based on the type of activity, so first of all the opening of cafes and food stores was prohibited.

The second problem is the need to provide a protocol for agreement with residents. At least two thirds of residents must agree to the presence of non-residential premises on the site of the former apartment.

Therefore, in-person and absentee meetings are held, during which it is necessary to obtain the consent of residents for such a change. The next stage is an appeal to municipal deputies, who check the application for legitimacy. Another difficulty is that previously approval was issued by the Moskomarkhitektura.

Now this issue is under the jurisdiction of the DGI. Due to structural changes, all processes have not yet been fully developed.

In your case, transferring to a non-residential fund is impossible, since the apartment is pledged by the bank (encumbrance in the form of a mortgage). To carry out the transfer procedure, you need to pay off the existing debt. The bank does not approve the transfer of housing to commercial real estate, which is due to concerns about the liquidity of the collateral.

How do you know if commercial organizations on the 0th floor are legal?

How can we avoid paying for housing and communal services for offices and cafes in our home?

Evgenia Vladimirova, head of the Rambler.Real Estate project Rambler&Co, answers:

The transfer of residential premises to non-residential premises is currently a frequent and understandable procedure. The transfer scheme is regulated by Chapter 3 of the Housing Code “Transfer of residential premises into non-residential premises and non-residential premises into residential premises”.

Article 22 of the Housing Code specifies that when transferred to non-residential premises, the apartment must be located on the ground floor or above the non-residential premises. It is also important that the premises have a separate entrance and that no one lives in it or is registered.

It is worth noting that after the transfer the entire premises must become completely non-residential, that is, one room cannot be left for permanent residence.

If all the requirements for the transfer are met, the apartment owner must submit an application to the municipal department that deals with changing the status of the premises (Department of Housing Policy in Moscow). It is necessary to provide the authority with a package of necessary documents, which are listed in paragraph 2 of Article 23 of the Housing Code of the Russian Federation.

With the transfer to non-residential stock of an apartment that is burdened with a mortgage, the situation is much more complicated. Article 22 of the Housing Code of the Russian Federation states that the apartment should not be under arrest, mortgaged or leased.

And, as you know, when applying for a mortgage, the bank is the mortgagee of the property until the loan payments are fully repaid. However, in practice, transferring a mortgaged apartment to non-residential premises occurs.

To do this, first of all, you need to obtain written consent from the bank to carry out this procedure and to refinance the loan.

Next, you need to remove the encumbrance, change the purpose of the real estate, re-register all the documentation, and pledge the non-residential premises as security for obligations under the new loan. Meanwhile, it is worth warning that sometimes even the bank’s consent does not save – the regulatory authorities involved in the transfer refuse, citing Article 22 of the Housing Code of the Russian Federation.

If you want to purchase an apartment with a mortgage and transfer it to a non-residential property, it is better to focus on special banking programs.

They allow you to get a loan to purchase an apartment on the ground floor of a residential building and transfer it to a non-residential property (or a loan secured by an existing apartment with a further transfer of the premises to a non-residential property during the mortgage period).

Rates for such programs will be more profitable than when applying for a loan to purchase commercial real estate.