Municipal Property Leasing Efficiency

Parliamentarians adopted in the second final reading amendments to the law “On the lease of state and municipal property” proposed by the Government. Amendments to the law will provide local authorities with the opportunity to apply a reduction factor of at least 0.5 to the amount of rent for investment-unattractive municipal property. Which, in turn, will reduce rent by no more than 50%.

Some municipal property is not in demand among tenants, and does not currently meet the requirements for such property. It requires significant financial costs for repairs. It is proposed in order to effectively use municipal property to use a reduction factor. It will make it possible to attract additional tenants and accordingly both accommodate additional social facilities and eliminate downtime of existing space.

Almost a third of the total area of municipal property, almost 15 thousand square meters is currently unclaimed by potential tenants in Tiraspol. The reduction factor will reduce the rent for such premises and will become a source of income for local budgets and eliminate the downtime of existing space.

The authority to determine uniform criteria at the initiative of parliamentarians for all cities and districts to recognize municipal property as unattractive for investment and the procedure for assigning the appropriate value of the reduction coefficient are assigned to the Government.

The norm will begin to work on January 1, 2025 to eliminate shortfalls in income.