Rents in Bucharest could increase significantly. The Capital city hall proposed a rate of 8 lei/sqm for AFI housing
The Capital City Hall proposes a major change in the rents for the homes managed by the Real Estate Fund Administration, by updating the basic rate to 8 lei/sqm. The project is to be debated on Thursday at the meeting of the General Council of the Municipality of Bucharest and could lead to considerable increases in rents, which have not been updated since 2007.
Major changes for the tenants of the Capital City Hall PHOTO: Adevărul Archive
According to the project, the basic rate for renting convenient homes will be 8 lei/sq m and will be applied both to the living area and to auxiliary spaces such as the entrance hall, the corridor, the veranda, the kitchen, the bathroom, the storage room, but also the terraces, the cellars or the boxes. For garages, the basic rate will be 10 lei/sqm.
This tariff will be multiplied by the zone coefficient: 3.5 for zone A, 2.5 for zone B, 2 for zone C and 1.5 for zone D. Currently, the price is approximately 0.85 lei/sqm, which means a substantial increase in rents.
The General Mayor, Ciprian Ciucu, announced that he will propose to the General Council the updating of the rents for the more than 4,000 homes managed by the Real Estate Fund Administration, where the rent currently varies between 115 lei per month for a studio and 171 lei for a three-room apartment.
Examples of increases after the update
According to the estimates presented, a studio apartment of approximately 35 square meters, for which the rent is now 115 lei, would cost 980 lei in area A (central) and approximately 560 lei in area C.
In the case of a two-room apartment of about 56 square meters, the rent would increase from 147 lei to 1,568 lei in the central area and to 896 lei in area C. For a three-room apartment of about 70 square meters, the rent could rise from 171 lei to 1,960 lei in area A and to 1,120 lei in area C.
Five-year contracts and stricter conditions
The project also provides for the approval of a framework rental contract for the convenient homes under the administration of the legal entities that operate on the basis of the CGMB decisions. The contracts will be valid for five years, with the possibility of extension for the same period, if the tenants have paid all their obligations up to date, including rent, maintenance and utilities.
To extend expired contracts, tenants will have to present their identity document and proof of income. The new rates will also apply to social housing and emergency housing managed by the entities subordinate to the CGMB, in compliance with the legal provisions.
At the same time, contracts may be terminated early if the lessee does not pay the rent or common expenses for three consecutive months, causes significant damage to the home or behaves “makes coexistence impossible” with the other people in the building.
According to the mayor, the rents for the homes managed by the Real Estate Fund Administration have not been updated since 2007.Last year, AFI/PMB collected approx. 50 million lei. Following these updates, we estimate that AFI will collect approx. 500 million lei. It's not a little at all! I will promote this project on the agenda”Ciucu said, in a post on Facebook, two weeks ago.
