In Ukraine, there are plans to change the approach to drafting contracts and forming rental prices for housing.
The rental market in Ukraine will not emerge from the shadows solely by reducing the tax burden; clear and predictable rules are needed.
This was reported by RBC-Ukraine, citing a statement from MP and head of the relevant committee of the Verkhovna Rada, Elena Shulyak.
Read also: The real estate market redefined: Will Ukrainians be required to pay intermediaries and what will happen to prices?
Main points:
- New rules: The rental market is set to be brought out of the shadows through clear housing standards and legal protection for the parties involved.
- Timeframes: It is proposed to establish a minimum term for long-term contracts of 3 years.
- Taxes: A differentiated model is being considered, with lower rates for long-term rentals and higher rates for short-term rentals.
- Standards: Ukraine aims to introduce quality criteria for housing to ensure rental prices are justified and predictable.
- Goal: To make official work economically beneficial for landlords and conditions safe for tenants.
What is the problem with the rental market
According to her, the key problems in the sector remain informality, unpredictability, and lack of protection. Moreover, there is effectively no specific legislation governing housing rentals in Ukraine.
This is why the market requires not only fiscal solutions but also a comprehensive regulatory reboot.
Shulyak emphasized that people should view renting as a clear and safe process, rather than a situation of constant risk—where landlords can change conditions or withdraw from obligations at any moment.
What is currently lacking
In Ukraine, there are no clear standards for rented housing, nor are there rules governing the relationship between price and quality. Additionally, there is no defined responsibility for landlords for failing to meet conditions. This creates a situation where tenants do not understand what they are actually paying for.
According to Shulyak, without basic standards, the market becomes chaotic: prices detach from quality, and the weakest party remains the tenant.
How to change the situation
One of the key steps should be to encourage long-term rentals.
In particular, a Cedos study suggests establishing a minimum term for long-term contracts—for example, three years. There is also talk of changing the tax model: a higher rate for short-term rentals and a lower rate for long-term rentals.
This approach, according to the MP, will not only facilitate tax collection but also shape market behavior—encouraging stable contracts that provide more protection for tenants.
As Shulyak explained, the combination of clear housing standards, minimum rental terms, and differentiated taxation will make the market more predictable.
In such a model, it is more beneficial for landlords to operate officially, while it is safer for tenants to enter into formal contracts.
Why this is insufficient without comprehensive changes
Parliament emphasizes that the formalization of the market cannot be limited to requirements for showing contracts or paying taxes. According to Shulyak, “a market becomes ‘white’ not when it is forced out of the shadows, but when the rules are clear, the conditions are predictable, and legal work is economically and legally viable.
This is why Ukraine needs a comprehensive approach: housing standards, long-term contracts, differentiated taxation, and clear rules for all market participants.
Recall that in February of this year, it became known that a draft law is being prepared in the Verkhovna Rada to formalize the rental market and implement transparent rules for realtors, which should protect clients from unscrupulous intermediaries.
We also previously reported on the risks of renting housing without the involvement of a realtor—for both owners and tenants.
