Organizing small living spaces
10 tips to keep compact rooms neat |
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(Image credit: Neptune)
To organize small spaces, keeping control of clutter and maintaining order is key. Developing good organizational skills will not only lead to a clutter-free space, but will also make life easier day-to-day.
Begin by setting your intentions whether you’re organizing an entryway or another compact area. ‘It all starts with having one objective in mind, and that’s to keep a small space organized – otherwise chaos will ensue. To do this, you need to ensure everything in that space really does have a home,’ says Jacqueline McLeod, director of the Association of Professional Declutterers and Organisers (APDO).
To really maximize those inches – and a great solution for small room ideas – it's wise to invest new storage ideas, especially the sort that come with internal organizing systems like dividers and caddies,
‘Look out for multi-purpose furniture, for example a stool for accessing high shelves that doubles up as a storage box. Or, for a hallway, source one piece of furniture that can store shoes, coats, umbrellas and even the mail,’ adds Jacqueline.
Below, we bring you expert advice on organizing small spaces.
Organizing small spaces
One of the best ways to keep a small space organized is to not buy too much in the first place. Really think about whether you need an item before you purchase and avoid impulse shopping. Experts recommended allowing 24 hours grace to think about whether you really need items in your online shopping cart before you hit 'buy'.
Even necessities should be shopped with caution if space is an issue. Bulk buying provisions like toilet paper or juice might save a few pennies but it shouldn’t be at the expense of living space, especially if you reside in an urban area where shops are open 24/7.
1. Edit closet contents
(Image credit: The Dormy House)
Decluttering and restoring order to an entire home can feel daunting. The best way to make organizing small spaces easier is to tackle it one room at a time.
This approach can also be broken down to organizing drawers or organizing closets one at a time.
Start by taking out all the contents and giving the interior a good wipe down with a clean damp cloth – you might need to vacuum out any dust and debris first. Then assess each item carefully. Think about when you last used it and whether you have anything else that does the same thing.
‘If you haven’t used something in a year, you don’t use it. Either plan it into your routine or get rid,’ advises author and professional organizer, Kathryn Lord of More To Organising . ‘If you are struggling to let go of some things, pop them in a box and put them somewhere in your house. If you don’t use it within the next three months, it’s time to let go.’
Next decide whether each item is being stored in the right place, or would it be more convenient kept in a different room? Once you have weeded out any broken or mis-located items, think about frequency of use. Put contents back according to how often they’re needed, with those in daily use nearest to you when opening cupboard doors or drawers.
‘Use the tallest shelves for those things you use less often,’ adds Kathryn. ‘Decluttering is not a one-time thing. But the good news is, once it’s done, it’s easier to keep on top of and the more you do it, the easier it gets.’
2. Keep countertops clear
(Image credit: Kreis Design)
When it comes to organizing a small kitchen, of course you want to ensure that cabinets and drawers are efficiently utilized – but organizing kitchen countertops is vital too: the more surfaces you can keep completely clear, the more space you’ll have to prep foods and spread out when cooking. Clear countertops are also easier to keep clean.
Use the vertical space – aka the backsplash area – to lift essentials like oils, utensils and chopping boards off the surfaces yet keep them close to hand.
‘Find storage solutions that can be hung on the wall and that can house multiple items; they’re great for immediately spotting what you need,’ adds Jacqueline McLeod of the Association of Professional Declutterers and Organisers (APDO) .
These kitchen organizers could be as simple as a peg board with flexible caddies, shelves and hooks, or you could invest in specialist wall storage designed for kitchen use.
‘Also use a sink caddy that attaches to the inside of the sink rather than in a container on the worktop. Make use of cabinet door knobs to hang tea towels, use under sink shelving, and racks to store your spices,’ adds Jacqueline.
3. Divide vertically
(Image credit: LochAnna)
While horizontal shelving and drawers work well in most scenarios, there are some instances where dividing cupboard interiors vertically will make much better use of the space. Think organizing a hall closet or organizing a linen closet, for example.
‘Tall items like ironing boards, vacuum cleaners and the mop and bucket can be hidden behind closed doors. Including vertical dividers mean they won’t fall into each other and get tangled, so getting them in and out is easy,’ says Sinead Trainor, manager, LochAnna Kitchens .
Organizing small spaces isn't just about storage – think practicalities, too. For example, fitting electrical sockets inside tall cabinets will allow cordless appliances to charge while they’re neatly stored away. Also consider including vertical dividers in kitchen cabinets that are used for stashing baking trays and chopping boards; no more pulling out seven trays to get to the one you need.
4. Tidy up toys
(Image credit: Charlie Kingham)
It is possible to have children and a tidy house with good toy organization. However, it really helps if you allocate dedicated toy storage ideas close to where your children play. It may sound obvious, but you really need to look at the size and scale (and awkward shape) of the toys and treasures your children currently use.
So many parents install a huge wall of cubby style boxes only to discover half the toys refuse to be wrestled inside. A large toy box with lift-up lid can often accommodate larger plastics more easily.
Also think about where you’ll 'park' the prams, scooters and other out-sized toys. Smaller tray style storage with dividers are excellent for craft supplies and Lego.
Here, Charlie Kingham made a toy box on castors that can be pulled out to wherever the children are playing and then hidden away once they’re safely tucked up in bed. More attractive toys can double as display pieces on open shelves.
5. Switch to a storage bed
(Image credit: Feather & Black)
A bed without any storage beneath is a wasted opportunity in space-starved small bedrooms and, if you’re looking to get maximum bang for your buck, an ottoman-style bed is undoubtedly the answer when organizing a bedroom.
‘Ottomans provide the most impressive storage, with the entire mattress base lifting up via an easy-to-operate hinge mechanism – perfect for those seeking extra space to store spare linens and bulky items like winter duvets or ski wear,’ says Phillipa MacDermott at Feather & Black .
However, while accessing the underbed storage inside an ottoman bed isn’t physically hard, it’s probably not something you’ll want to do every day. For storing items you use frequently, experts recommend a bed base with built-in drawers. For maximum drawer capacity, install a wall-hung bedside table or shelf that will allow drawers to open below. You can also buy storage beds with a large drawer at the end that are aimed at narrow bedrooms.
6. Utilize unseen spaces
(Image credit: Guy Stansfeld Architects/318 Studio)
When organizing small spaces, hunt down those overlooked corners, neglected blank walls or forgotten niches ripe for utilizing helpfully. It could be as simple as putting up bookshelves above a doorway or adding hooks under kitchen wall cabinets to hang cups, to a more time consuming but satisfying remodel of an empty void under the stairs.
Other ideas include shelving out an unused fireplace for books or baskets, putting lightweight but attractive trunks or rattan boxes on the top of cupboards and wall cabinets, and even hinging the bath panel to stash toiletries and cleaning products in the void under your tub.
Using unseen spaces for stylish storage solutions can make room’s feel bigger, as it draws attention to the full width or height of the space. You can also make rooms more useful, for example installing a drop-down desk in the corner near a rarely used external doorway, as Guy Stansfeld Architects has done here.
Adding a bench with storage beneath in the hallway will provide somewhere to sit when taking off shoes, and then somewhere to stash them so they’re not cluttering up your hallway.
7. Declutter your closet
(Image credit: Neatsmith)
If you have plenty of clothes but can never find anything to wear, a closet declutter is long overdue. Well-organized closets, where you can see every item and, more importantly, reach it with ease, can make a huge difference when getting dressed in the morning. To organize clothes, start by pulling out clothing that doesn’t fit or no longer appeals and send directly to the nearest charity shop or clothing bank.
Put any tatty items beyond repair into the recycling bin or reuse for dusting.
Next, assess your clothes storage ideas and make some adjustments, if necessary.
‘Double hanging rails allow you to fit in twice as many items as single hanging rails and can be used to store trousers and some long dresses, if folded over the hanger, as well as shirts and tops,’ says Philipp Nagel, director of bespoke wardrobe specialists Neatsmith . ‘To keep smaller items organized, internal drawers with dividers for hats, gloves, socks and so on will help prevent drawers from getting in a muddle. Scarf and tie rails are really useful and can store a lot, without taking up much space. We also like to include a top shelf, which is a great space for sports bags and luggage that can otherwise clutter a hallway floor.’ Organize shoes on a rack or in shoe storage bins to fit more pairs.
When reloading your closet, organize clothing by type rather than color or size, and put the most frequently used items on the most easily accessible rails and shelves.
Continuously editing your wardrobe, and removing items not getting sufficient wear, will make keeping it neat more manageable.
8. Think like a minimalist
(Image credit: Neptune)
Minimalism is probably best known as a design style. In practice, it is more about committing to owning less and needn’t be at the expense of comfort, color or personality. Adopting a minimalist living room mindset is a great move if you live in cramped conditions. Any new thought patterns and behaviors take time to become second nature though, so be prepared to be patient. Consistency is important, as is willingness and the enthusiasm to change.
A minimalist mindset involves questioning the existence of belongings, both existing and future purchases. It teaches us to only own things that serve a purpose or enhance our lives. Embracing a one-in, one-out approach will help stop the clutter from building up. Taking a slower, more purposeful attitude to consumerism will have obvious environmental benefits but it doesn’t mean getting rid of thing you love.
Try to think of it as getting rid of things you don’t need, to make more room for the things you do.
9. Embrace vacuum storage
(Image credit: Dunelm)
One of the simplest ways to save space in the bedroom is by scheduling a seasonal switch-out of clothing. If space allows, make it a biannual event whereby your fall/winter clothing is replaced by spring/summer as the days get longer and vice versa.
‘Vacuum packing clothes when the seasons change is a great way to save on space as suctioning the air out will compact clothing down, allowing it to be stacked neatly away or even stored in the attic until they’re required,’ says Juliette Thomas, founder and director of Juliettes Interiors .
There are a few rules to successful vacuum storage. The first is to invest in quality bags, which can be recognized by their thick plastic construction, sturdy zips and durable valves. Cheap, flimsy vacuum bags often lose their sealing powers meaning clothing won’t stay airtight and protected for long.
The second is not to overfill the bags, which again can result in a broken seal. Avoid storing delicate clothing, such as cashmere and silk, in vacuum bags as the compression can ruin their fibers. Finally, always wash and thoroughly dry clothing before vacuuming into the bag.
10. Stack it up
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Stacking containers will allow you to fit much more into any cabinet, whether you’re organizing a bathroom cabinet, under-sink unit or even organizing a refrigerator. You can also get freestanding shelving units that are designed to slot into cabinets to make the most of the full height inside.
Being able to find everything you have stored away is essential to any home – and especially when organizing small spaces. It will help prevent unnecessary repeat purchases and, in the case of food, helps reduce waste. Try to do regular inventories to check there is nothing stashed away that you really don’t need. Weed out and donate or sell anything you haven’t required in the last 12 months.
Clear containers are best for easily spotting what you need in one glance, and you can also get creative with the label maker or chalk pens to indicate what’s inside.
How do you organize a small space?
To organize a small space, first empty everything out and be completely ruthless with your belongings. Create piles for keeping, donating, binning/recycling and a final one for storing elsewhere. This last pile is for the items you’re not sure about. Put them in the loft or a similarly out of the way location (in an airtight container) and then transfer to a charity shop if you don’t need within the year.
Schedule regular clear outs of closed storage and alternate with quick tidy ups of display style storage like bookshelves and coffee tables. Put it on your calendar with alerts and don’t let it slip to the bottom of your to-do list. ‘Use separators or organisers; drawer dividers are the best organizing tool for keeping everything under control and easily accessible.
They are an essential storage product if you have any drawers,’ enthuses Lizzie Grant of Declutter on Demand .
How do I organize a small space so it feels relaxing?
To organize a small space so it feels relaxing, it's important to get rid of clutter and to invest in good storage.
For example, ‘a bedroom should ultimately be a place for relaxation so it’s vitally important to plan in enough storage space when designing the room. If all you can see when you walk in is clutter, clothes, and things that need tidying away, it can be hard to relax and switch off,’ says David Norman, director, Furl .
Maximize available space by choosing furniture that has multi-uses, for example, storage beds and ottomans that sit at the end of the bed – great for stashing bulky items like bed linen, jumpers and bath towels.
‘If you don’t want to upgrade to a bed with built-in storage, look out for compartmentalized storage space savers that are designed to slide under a regular bed frame,’ adds professional organizer Kathryn Lord of More To Organising.
‘Make sure you can see every item; this saves you from making a mess looking for that one item.’
Linda graduated from university with a First in Journalism, Film and Broadcasting. Her career began on a trade title for the kitchen and bathroom industry, and she has worked for Homes & Gardens, and sister-brands Livingetc, Country Homes & Interiors and Ideal Home, since 2006, covering interiors topics, though kitchens and bathrooms are her specialism.
20+ Brilliant Ideas For Organizing Small Spaces
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Living in a small house or apartment can certainly have its perks, but having enough places to store everything may not be one of them. But don’t worry!
That just means you have to get a little creative with your organizing, and these brilliant ideas will certainly help!
Pegboard OrganizersLiving in a small space means that you’re going to be short on floor space. The solution? Go vertical.
Pegboards are a great way to create a functional use of wall space. And if you think they have to be the run of the mill pegboards that you can get from a big box tool store, you’re wrong.
Modern DIY Pegboard via Vintage RevivalsHere is a great example of how you can make a modern version of pegboards for your own home. Functional storage that’s also pretty? That’s a win in my book!
Utilize Binder Clips For Hanging or Organizing Small ThingsA quick search on Google or Pinterest, and you’ll see the amazing small space organization hacks that you would never have thought of by using … what? Binder clips!
This little hack is what happens when a command hook and a binder clip have a baby. It’s so darn smart and cheap, too!
Hang gloves with binder clip hack via The Borrowed AbodeHopefully by now you know how much I love an organized kitchen but this is a super budget friendly hack that you can do to give yourself some more storage in your kitchen, laundry room or bathroom.
Always to try to think outside the box when it comes to organizing your rooms. Keep items close to where you need them and find areas like the backs of cabinets or doors to hang items where possible.
Again, utilizing this idea of vertical storage space.
Use Corner ShelvesIf you’re using other wall space for something like pegboards, don’t forget about your corners! Even small shelves in corners can give you some storage options to help organize things like books or items in a bedroom, office or kid’s room.
DIY Floating Shelves via Shanty 2 ChicIn this example of floating shelves, you can see this is a bedroom and office all in one space, so this goes to show you that you don’t have to have a giant office to be functional!
Giving one room multiple purposes is always a good idea when you’re short on space. Especially in the case of a guest room that rarely gets used, make sure it’s doing double duty!
Add A Utility CartThis is another one of those genius ideas that can help you with maximizing organization space in just about any room of your house! A nursery, craft space, bedroom, kitchen, or even bathroom will benefit from one of these handy dandy rolling carts.
The great thing about it is that you don’t have to keep your craft supplies (or whatever supplies) in the middle of your dining room if that’s where you craft. You can just wheel the cart in and when you’re done, go pop it back into the corner of the guest room/closet/office.
Herb Garden via This Little StreetOr how about this fun little idea of a rolling herb garden? Brilliant and SO cute!
Add Wall Hooks For Jewelry Organization
Wall hooks are another way to get in that vertical storage and use extra wall space to organize your jewelry.
Jewelry Wall Hooks via Girl In The GarageI love this idea because with all the different options that are available for purchasing hooks, you can make this fit into any type of decor style you have in your home.
Plus, I think this may be my teenage dream. So if your teenage daughter is looking for a fun way to spruce up her room but ALSO needs some jewelry storage, this might be the perfect solution!
I’ve also seen strong 3M command hooks used on a kitchen backsplash to hold utensils, which means one more thing off the kitchen counters and more space for food prep.
Whether you build it or DIY it, using the doors of closets for storage space is so helpful. Closet door storage has come a long way from just the over the door hanging shoe pockets.
Craft closet door organization via Hymns and VersesTalk about stunning! This craft organization is just one of the many ideas that can hopefully spark inspiration for you when it comes to closet door organization solutions.
Baby’s Closet OrganizationWe’ve installed storage racks on the backs of all our closet doors, too. From storing extra diapers in the nursery, to office supplies and even books, they have been one of the best organizational items we’ve added in our home!
Office Closet OrganizationCreate A Tool Closet If You Don’t Have A GarageMany times, smaller homes mean no garage. But what do you do if you’re a crafter or a DIYer and don’t have room for tools? Get creative!
Tool Organization Closet via Living Letter HomeMaking room in a small closet can really help when it comes to having organized tools in a small space.
Don’t be afraid to DIY some simple closet shelves too. They are easy to make and don’t cost much, but give you a lot more storage options in a closet.
Even in the smallest of houses, most times you will have a linen closet of sorts. This is a great place to hang your blankets or heavy bed linens instead of having them out and rolled in a basket.
Hanging Blankets via Rambling RenovationsIn my house, we rarely have guests, but when we do we have my entire family. I don’t have the space to have comforters and duvets in my closets, so instead I use vacuum bags and have them stored in the attic until I actually need them.
Clear containers for vanity/bathroom drawer storageHaving things in clear containers removes the need of having to dig through things to find stuff because you can see it all through the container itself.
Just like we did in our small vanity bathroom organization, these clear containers have come in handy more times than I can count.
Even if all you have is a small space under a sink or kitchen cabinet, you can still use vertical storage by doing clear stackable bins.
A pro tip especially if you’re doing this under a sink, make sure you use clear storage bins and use labels. Again, this prevents you from having to dig for things and make an even bigger mess.
Have A Closet Organization SystemWe have severeal of these in our home and I can’t say enough about how much I love them!
I can’t say enough good things about how much this closet organization system changed our lives!
Even if you have a small closet, you can maximize the space by making sure the space is organized to its full capacity and every inch is used the way it should be.
Our nursery closet is teeny tiny but the system we installed has allowed us to maximize the space we do have.
Organize Your RefrigeratorIt doesn’t matter how big or small your fridge space is, nobody likes to throw away old or expired food.
If you organize your fridge, it will be way easier to see things you need, but also make sure you’re eating the food you have before it goes bad.
As a little added bonus small space organization tip, get creative for the little ones. We recently just redid our sons’ bedroom and just changing the layout alone made the space feel almost twice as big.
My favorite part? These corner beds have a storage unit behind them where we can hide all the “stuff” that my son likes to bring up to his room. It’s a win-win situation – I don’t have to keep complaining about toys in his room cluttering the place up and he still gets to have them!
Trying to keep as much clutter at bay with minimal floor space? Get the books off the clunky bookshelves and up on the walls. These book ledges are a really easy beginner DIY project and you can make them any color or size you like.
Toy storage can be a hassle, especially when you are short on space.
I love cubbies and baskets labelled with what’s inside to not only organize the toys but keep everything visually appealing.
If you don’t have a dedicated toy room, this same idea can apply to your living room. Just grab some pretty baskets and get those toys hidden! As part of my daily routine for keeping a clean house, several times a day I will walk around the house and grab any toys that are lying around.
Final Thoughts
If you’ve wondered how people keep small spaces organized, now you know! I can’t wait to see how you get your house, apartment, or condo organized using these ideas!
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10 original ways to organize your workplace at home - INMYROOM
Workspace place at home - the necessary space in almost every apartment.
But, unfortunately, not everyone has a separate office. therefore the question arises where to find and how to equip a workspace in a residential apartment so that it:
1. was convenient;
2. contained everything you need;
3. organically fit into the overall interior of the apartment.
To answer the question: how to organize a working place at home, you need to know a few rules for creating a comfortable space. nine0006
Regulations organizations
No. 1. First you need to decide how much you need places and what will be included in this zone. If you are sitting at a computer, then it will suit you small computer table. If it deals with papers or books, then you need to think in advance where you put these accessories so that they always were at hand.
#2. Look at your apartment and see if there is space suitable for the working area. If there is, then you will only have select the desired desktop design places in the apartment.
If there is no such zone, try to make a permutation. nine0006
#3. Be sure to consider how the light on your table: from a window, from lighting fixtures, etc. Think you can whether you install and connect the lamp in such a way that you do not suffer then from lack of light.
#4 . If you decide to organize a workplace at home, then its design should not go against the overall interior of your apartment or room.
Single room
The best option would be a separate room. Then you can decorate the room the way you want. Install the required number of racks, use the table of the dimensions you need, arrange an additional seating area by placing a small sofa or easy chair. nine0006
B living room
In today's world, not everyone has the opportunity organize your workspace in a separate room. As a rule, for these goals have to be done in one of the living rooms, for example, in the living room. For so that the working area is organically inscribed in the total area of \u200b\u200bthe living room, you need to think about the design of the desktop, racks and shelves that you will need.
You can separate the space with the help of partitions or large floor racks that will become and partition, and a place to store the necessary things. nine0006
B bedroom
If your family members can interfere with you in the living room, then the bedroom is a more secluded place. Here it is necessary to fence off the area for sleeping. To do this, just hang a curtain between the bed and the table, put partition or install a canopy.
In the kitchen
proximity to a stove or sink will become dangerous for equipment or documents. Therefore, you can zone the kitchen with floor racks or use double table: on one side - written, on the other - kitchen. nine0006
On the balcony
As a rule, in each the apartment has balconies, but often they are used as storage space unnecessary things. You can use the balcony in a more useful way and make him in his office. But before that, it is necessary to insulate and glaze it in order to use It was possible not only in summer, but also in winter.
Underfloor heating and quality windows will make a balcony comfortable place to work. The dimensions of the table and shelves must be selected based on the size of the balcony, try to use all the free space in order to to put things in there. A huge plus of this room is that there is a lot of light and fresh air, and working in such an environment is much nicer. nine0006
In the pantry
Organize work the space in the pantry is lighter than on the balcony, because there is no need to insulate and carry out additional heating devices, but it is necessary to show more creativity. Pantry rooms are usually smaller than balconies, but they are usually have doors that allow you to separate this area from the rest of the residential space.
You can install a small table in the pantry, and leave the rest of the place under the shelves and additional storage organizers. For finishing in the pantry, choose light colors and think about the lighting system. Unlike the balcony, here you will not be able to use natural light, so install some lighting appliances.
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Options accommodation
We offer your Here are some original ideas for desktop, which will help to competently organize the zone, while not taking up a lot of space.
In a niche
In many apartments there are wall niches, they are usually taken away for decorative elements, but you can use it more practically: place there is a small desk and set a few shelves.
In the cabinet
Placing the table in the cabinet is a good option for those who do not have a closet. You can not only save space in your apartment, placing a table in the closet, but also hide your work area at the moment when you becomes necessary: simply by closing the cabinet doors. This placement idea is quite also successful because there will be enough space in the closet to clean necessary accessories. nine0006
Folding table
If you have a small apartment and need to save money space, then you can not buy a massive desk, but use a small folding. They are usually installed against walls and "recline" when necessary.
Window sill
Window space, usually does not perform any functions, but you can organize a working zone. The workplace by the window is continuation of the window sill, its increase. In this case, you will not lose square meters, but you will get excellent lighting and a comfortable place to work. Flowers that will organically fit into this space will help brighten it up. A workplace by the window can give you also a great view. nine0006
For two persons
If there are several people in the apartment who need workspace, you can organize a workplace for two. For this use, as a rule, long tables along one of the walls of the room. If you don't have such an opportunity, then you can resort to a more economical option, a table for two, separated by a rack. Thus, you organize your table and place for storage.
Interesting ideas
Wrong way to organize your workspace at home difficult as it may seem. nine0003 #1. In order to use room, fix shelves and small organizers on the walls to “unload” work surface.
#2. The printer can be installed not only on a table, but also on a fixed shelf, thus leaving it at hand, but freeing place to work at home.
#3. Use chalkboards to write down important ideas.
No. 4. Add flowers to your work area to help Refresh and revive the design of your space. nine0006
Photo gallery
Workplace in the interior of the apartment.
Video
Organization of a home office.
What you need to know about renting non-residential premises
We talk about the features of taxation, inspections, fines for owners of commercial space, as well as the impact of the pandemic on this business
Photo: Dmitry Serebryakov / TASS
One of the most popular types of income among Russian private investors — the acquisition of small commercial premises for subsequent leasing. Non-residential areas can be rented out for offices, lofts, beauty salons, shops or cafes. nine0006
We tell you who can buy commercial real estate, the specifics of its taxation, fines, as well as the impact of the pandemic on this business.
Taxes
adv.rbc.ru
Any taxpayer - individuals and legal entities, as well as individual entrepreneurs - can acquire non-residential premises for subsequent leasing. However, the tax consequences of the results of the use of this property are different by type of status. nine0006
“Individual entrepreneurs and legal entities, when receiving income from the rental of property, are required to pay taxes provided for by the chosen taxation regime. Legal entities - income tax and VAT, IP - UTII (Single tax on imputed income) or STS at a rate of 6% or 15%, depending on the selected accounting object. For an individual, this income is subject to personal income tax. However, if there are assessment circumstances that indicate the entrepreneurial nature of the activities of an individual who does not have the status of an individual entrepreneur, VAT must be paid on this income, ”said Mikhail Begunov, lawyer, managing partner of the law firm Tax Compliance.
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A patent for a rental business can also be used, the value of which is calculated based on the area of the property and the area. In this case, the amount will be fixed. “But the owner of only one premises can issue it, which is not suitable for professional investors. If the lease agreement is not terminated during the validity of the patent, and the premises are not sold, then such a scheme will be more profitable for the investor - the cost of the patent will be lower than the tax at a rate of 6%, ”explained Ivan Tatarinov, commercial director of Glincom. According to him, if the lease agreement was terminated for some reason or the premises were sold, then no one compensates for the money paid for the patent. nine0006
Fines
The most common violation of commercial property owners is tax evasion. Usually, a fine of 20% of the unpaid tax amount is set for this, said Denis Zaitsev, head of the tax practice at BMS Law Firm. He explained that interest is also charged in the amount of 1/300 of the refinancing rate (although this is not a measure of responsibility, but a measure to ensure the proper fulfillment of the obligation).
After a certain amount of time, the rate becomes 1/150, which is tougher than regular lending. nine0006
There is also a 40% penalty that applies if the tax authority can prove that the person has intentionally failed to pay the tax. “Moreover, the tax authority, upon reaching certain financial indicators for unpaid taxes, can transfer information about detected violations to law enforcement agencies. In this case, the issue of initiating a criminal case will be decided. Punishment under Part 2 of Art. 199 of the Criminal Code of the Russian Federation - up to imprisonment for up to six years," Zaitsev said. nine0006
Tenants can be sanctioned if they fail to meet their obligations to the landlord, such as missing payment deadlines or damaging property. However, any lease agreement requires a security deposit, usually equal to two to three rents. Most often, in the event of a violation, the owner takes from him the amount that he did not receive from the tenant, while the latter must still make up for it, said Roman Amelin, director of the commercial real estate department at the Point Estate agency.
He stressed that at the end of the contract, after signing the act of acceptance and transfer of the premises, the owner returns the insurance deposit to the tenant - either in full or minus fines. nine0006
Inspections
Recently, inspections of owners of non-residential premises who rent them out have become more frequent, Begunov said. The result of inspections are fines and penalties, as well as bringing an individual to administrative and, possibly, criminal liability. “A series of additional VAT charges followed after the Supreme Court of Russia confirmed in July last year that a citizen must pay VAT if he is engaged in entrepreneurial activity in renting out his own non-residential premises without registering as an individual entrepreneur. In particular, they are the focus of an individual on making a profit, that is, the acquisition of property for the purpose of its subsequent use for making a profit, as well as the systematic receipt of this income,” said the Tax Compliance lawyer.
He explained that the one-time nature of the transaction in itself does not indicate the conduct of entrepreneurial activities by an individual. nine0006
As a general rule, the tax authority initiates an on-site tax audit if the company or individual is in the plan. Such a plan is developed and approved at the level of departments in the region. “That is, the tax authority does not randomly select a subject for verification, but at the time of its conduct it already has information about the taxpayer and suspicions that a violation has been committed. You can get into the plan for a variety of reasons. So, there are criteria that indicate that the taxpayer behaves suspiciously, performs dubious transactions, etc. An audit is carried out if a sufficient amount of such information is collected, including from the results of desk tax audits, but the questions raised are not resolved. For example, the taxpayer does not respond to the requests and requirements of the tax authorities,” said the lawyer of BMS Law Firm.
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Cash is the king
The coronavirus epidemic and quarantine will significantly change the commercial property rental market. “We see processes in which corporations and small companies send employees to work remotely. In the future, top managers and owners will face the question of how this experience can be used in the new reality. We will see even more significant penetration of online services, online stores, restaurants, online education, online cinemas. People will get used to and appreciate these services even more, which will further reduce the demand for offline services,” predicts Nikita Ryabinin, managing partner of the international consulting company KRK Group. nine0006
A further decline in oil prices and the economic consequences of COVID-19 will seriously affect the economy of our country in general and the ruble exchange rate in particular, Ryabinin believes. “For investors considering purchasing real estate to rent out, I would advise you to be patient and monitor new offers on the market this summer and autumn, taking into account global changes.
