Against the backdrop of the recovery of the Ukrainian real estate market in 2026, when the cost of renting apartments increased by an average of 15%, and houses by 29%, the question of legalizing transactions becomes critically important. Experts warn: renting out housing "off the books" without an official contract carries serious risks for both owners and tenants. Lawyer and Master of Law Yevhen Bulyimenko explained the legal consequences of unofficial transactions in a comment to RBC-Ukraine.
Financial risks for the owner: taxes and fines
One of the main risks for the property owner is the additional assessment of taxes on the income received. According to Ukrainian legislation, rental income is subject to personal income tax (18%) and a military levy (5%), totaling 23%. In the event that unofficial rental of housing is discovered, the tax authority may demand payment of all arrears for previous periods.
In addition, fines are applied for late payment of taxes in accordance with Article 124 of the Tax Code of Ukraine. A penalty is also charged for each day of delay — it is calculated based on 120% of the annual benchmark rate of the National Bank of Ukraine. This means that the debt can grow quickly, especially with a long delay.
How does the tax authority find out about unofficial rent?
Information about the fact of renting out housing can reach the tax authority in various ways. Regular bank transfers from the tenant to the owner's account may be classified as income. Data can also be obtained through advertisements on real estate websites, complaints from neighbors, or even from the tenants themselves. In 2026, the digitization of financial operations and increased control by state authorities make such schemes increasingly vulnerable.
Legal vulnerability without a contract
The absence of a written lease agreement significantly complicates the protection of the owner's rights in court. Without documentary confirmation of the transaction terms, it may be difficult to collect rent arrears or compensation for damage caused to the property. Lawyer Bulyimenko emphasizes that the contract must clearly specify: the amount of rent, the procedure for its revision, the term of the contract, as well as the rights and obligations of the parties.
Risks for the tenant: instability and arbitrariness
Tenants who have concluded a verbal agreement also find themselves in a vulnerable position. The owner can terminate the lease at any time, restrict access to the housing, or unilaterally change the terms — for example, increase the rent. In addition, the owner may systematically visit the housing under the pretext of control, creating uncomfortable living conditions. An official contract gives the tenant legal stability and protection against arbitrariness.
Contradictory data
Although most experts agree that official rent is a necessity, in practice, many owners continue to rent out housing without a contract, fearing tax consequences. Some believe that the risk of detection is minimal, especially if payments are made in cash. However, in 2026, against the backdrop of increased digital control and rising rental prices, such practice is becoming increasingly risky. On the other hand, some tenants prefer informal transactions due to lower costs, not realizing the potential threats to their security and stability.
Real estate market trends in 2026
In the first half of 2026, the Ukrainian real estate market showed signs of recovery: apartment prices increased by an average of 3%, and demand for buying private houses increased by 24%. At the same time, the rental market developed much faster — the cost of renting apartments increased by 15%, and houses by 29%. In some cities, two-room apartments became equal in price to one-room ones, indicating a change in the structure of demand. Under such conditions, the legalization of rental relations becomes not only a legal but also an economic necessity.
