Adler Rentals

The rental process for workforce accommodation in Sochi is not simple and should not be undertaken without consulting and having legal support from a qualified attorney.  There are cautionary tales...

This week we have been working on an accommodation contract for a western company relocating a number of employees to Sochi through the Games.  We are offering our "homefinding services"  which include preliminary discussions on price, location and desired features, preselection, advice, showing apartments, negotiation of price and lease terms, as well as preparation of the lease and visa registration.

We showed a number of apartments through real estate agents to employees.  A preliminary agreement was reached on Tuesday for a new apartment on Kirova street.  All appeared to be on track and we forwarded the lease to the agent.  At the meeting to sign the lease, the employee and his wife expressed concern about the water, which they had heard could be shut off for extended periods and that the cable television was not working, despite being told by the agent it would.  The leasing agent, who represents a number of owners in this building, suggested angrily that they could look elsewhere.  

Then she retutrned the lease with the passages relating to protections on rental increases and time frame crossed out, saying that the owner could increase the rental price at any time.  This was a surprise and our attorney pointed out that employees were given a fixed rental budget.  Since the price agreed upon was slightly above market, it was good for the owner, too. and the employee and his family could not afford to be tossed out if the rent demanded exceeded their budget.  

It was clear that the tenant would be faced with rent increases at any time.  The agent was motivated because she is paid her fee every time the apartment is rented to a new tenant.  And with a tight and very uncertain market, there was no doubt of her plans.

The conclusion was a loud tirade from the agent.  Word quickly spread to the other employees and we and the firm both decided to have no further dealings with this agent. And in a self-serving manner, we have subsequently realized that this particular agent is attempting to poison the water by suggesting other agents and apartment owners do not work with our client, a reputable international company that seeks binding two year leases.

The angry and unprincipled behavior shocked both Russian and our client.  We have her name on file and will make sure that all of our customers are warned away from doing business with her. Fortunately, we  found another suitable apartment and the employee signed the two year lease required by his company. 

Incidently, a foreign employee of another firm rented a home without our services our any legal advice on the contract.  This employee signed an unfavorable lease and has no protection against indiscriminate rental increases.  This agreement will almost certainly not conclude well.  We think that renters without good leases or protection will be forced out before the Games, assuming that rental rates rise.  With housing in short supply and long, slow commute times from other areas, this will be a disaster for some.

Any foreign individual or company must have impartial advice and legal representation renting property in Sochi. legal service must be local to negotiate and conclude the lease.  A long distance attorney is usually much more expensive and requires more time, with less local knowledge.

Friday, we came to an agreement with another agent.  The employee knew events related to the other employee and immediately deferred all questions on the lease term, other than price to our attorney.  Although he works for a foreign company, he is Russian and still felt he needed our legal support.

Comments

[Salman]

Very interesting post you have here.. thanks for posting!