Is illegal housing rental coming to an end? Are penalties really being prepared in parliament?
10 February 13:45
The Verkhovna Rada is discussing the introduction of mandatory registration of all housing lease agreements. Landlords who ignore the new rules will face significant fines. Ukraine plans to reform the rental market to make shadow rentals economically unprofitable. The state intends not only to control agreements but also to offer incentives to landlords.
This was announced by Olena Shulyak, a member of parliament from the Servant of the People party.
According to Shulyak, the state is looking for mechanisms to bring income from real estate rentals out of the shadows. They plan to offer landlords a reduced tax rate, but at the same time, they are considering strict penalties for refusing to legalize rental relationships.
“We have decided to start by reducing the tax burden and then move on to mandatory registration of contracts in the relevant system. The need for a notary’s participation is still being discussed, but the fact of registration itself is fundamental. This can be implemented through “Diy” or by integrating with other state registries,” the MP explained.
Penalties for non-registration
She also clarified what is meant by mandatory and how the state plans to encourage homeowners to comply with the new rules.
“If we are talking about mandatory rules, then there must also be responsibility. Failure to register the contract in the registry will result in a serious fine. People will not want to take risks, because there are always neighbors, the tax service, and inspections. Awareness of possible financial losses will force many to choose the legal path,” Shulyak noted.
The politician is convinced that the introduction of mandatory registration is a matter of time. According to her, the state is preparing a set of incentives for property owners. Legal, “white” income from rent opens up access to banking instruments: mortgages, car loans, and confirmation of financial solvency.
“Of course, some people will not want to declare such income. It is for them that we are planning a different system of incentives that will make illegal renting unprofitable and encourage mandatory registration of contracts,” the MP concluded.
Mandatory registration of housing rental agreements has not been introduced: what the law says
Information is actively spreading in the media and on social networks about the alleged adoption by the Verkhovna Rada of Ukraine of a law that requires the registration of all housing rental agreements. However, these reports are not true.
Lawyer Igor Feshchenko explained this exclusively for "Komersant Ukrainian".
Where did the rumors about mandatory registration come from?
According to the lawyer, the confusion arose due to the provisions of a draft law submitted to parliament for consideration in early 2025.
“The draft law of Ukraine ‘On the Basic Principles of Housing Policy’ dated January 6, 2025, No. 12377, in its original version, did indeed provide for mandatory state registration of the right to use housing arising from a lease agreement,” explains Igor Feshchenko.
This referred to part three of Article 22 of the draft law, which required the registration of lease agreements (with the exception of social and service housing) in accordance with the Law of Ukraine “On State Registration of Real Rights to Immovable Property and Their Encumbrances.”
At the same time, the lawyer emphasizes that this provision was excluded from the final version of the law.
“In the Law of Ukraine “On the Basic Principles of Housing Policy,” which was adopted on January 13, 2026, and has now been sent to the President for signature, the provision on the mandatory state registration of housing lease agreements is no longer present,” he notes.
What requirements remain in the law
Instead, the document enshrines another provision concerning the registration of housing, but does not establish a direct obligation for all landlords.
“The law stipulates that information about social housing in the state housing fund and the housing fund of local communities, as well as about private housing whose owners intend to conclude social housing lease agreements, shall be entered into the Unified Information and Analytical Housing System,” Feshchenko explains.
This refers to part eight of Article 29 of the law. At the same time, as the lawyer emphasizes, the obligation for private landlords to do so is not directly established by law.
Thus, as of today, there is no general obligation to register housing lease agreements in Ukraine, and the thesis circulating in the information space is the result of a misinterpretation of an early version of the draft law.
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