This question is asked by hundreds of people, not knowing where to start an apartment rental business. Many people think this is easy, but it is not true. As in any business, you need to plow here. This is not a "loot" button, but a serious business that requires a quality approach.
How to create your own business for renting apartments for rent?
Earlier we have already described several ways to make money on real estate. You can get acquainted with them in this. Now let's talk about how the business of renting apartments for rent is built.
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Home rental business is booming all over the world. The only difference will be in the legislation of the countries. Accordingly, the profit is somewhere more, somewhere less. But the fact that you will not have to live in poverty is 100%.
Raising bank capital - mortgage
Daily rental housing is the only business that allows you to profit from a mortgage in this segment. Monthly rent will bring a loss or go to zero. It is easy enough to calculate on any banking site. Knowing the rates in your region.
Of course, there are exceptions, for example, an entrepreneur has his own piece of land a few kilometers from the city. He takes out a mortgage and builds a house with 8-10 studio apartments. If the city is large, then the monthly rent will be profitable, taking into account all costs.
This method is used by a large number of organizations that have their own business for renting apartments for rent or private realtors.
Here, it would seem, everything is simple. Rent an apartment for a month, rent it every day. But in reality, there are many pitfalls that will reduce your profit to zero.
For example, if you do not warn the owners that you are going to be engaged in renting their property for rent, you can get a lawsuit that will cause a loss.
Work as honestly as possible with real estate owners and then troubles will not affect you.
Many people think that housing should be located in promising places near the metro or major transport interchanges, but in fact, it should be located 20-30 minutes walk from your home. If you are constantly late for a meeting with a client, then most likely he will not contact you again. Consider this point.
It is better to look for objects in your area and the transport interchange is unimportant here. People are ready to give you money, even if the housing is located on the very outskirts of the city.
When buying an apartment, pay attention to whether it can be remodeled so as to increase the number of tenants. For example, if a room has two windows, and they are located far from each other, it is possible to split it in half and make two entrances.
Thus, you will increase your profit by renting out living space to two different people at once. Believe me, there will be clients. These can be business travelers or companies of several people.
This method is ideal for monthly home rentals.
Starting your own small business for renting apartments for rent, do not chase after all the clients at once. Try to figure out the purpose of the rental. This will help avoid many problems. For example, very often young people try to rent apartments for noisy parties.
All profits from such an event will go to cleaning and minor repairs. As you guessed it, it can cause serious damage. If the apartment is subleased, you can easily lose it, plus reimburse everything from your pocket.
It is forbidden to smoke in the apartment, this is a general rule of all landlords. Make paper signs and stick them around your apartment. Warn those arriving in advance.
The emergency phone numbers of your city should also be listed on a separate sheet and pasted on the wall in the hallway or kitchen. This also includes the password for accessing the Internet.
The contracts are standard everywhere and can be easily downloaded on the net. Be sure to make an inventory of the property in the apartment. After the end of the lease, everything should be in its place. The things should be removed and the dishes washed.
Always take a deposit equal to one day's stay. For example, if guests lose their keys, they need to withhold the amount of making duplicates.
Pledge motivates people to follow your rules.
Purchase of furniture, linen and cleaning
Do not put expensive items or equipment in your apartment. Everything should be modern and inexpensive. Bed TV and even plumbing, you can buy used. Believe me, people who need to spend the night do not care, the main thing is cleanliness.
The business of renting apartments for rent involves serious cleaning. You can do it yourself or contact a special cleaning company. Linen must be clean and sealed in cellophane, like on a train. Such services are provided by any laundry.
Real estate will never depreciate. Yes, there will be price downturns, the market will sag a little, but this has been the case at all times. Housing is a reinforced concrete investment, literally and figuratively. It is always cost effective and adapts to the value of money.
For example, there was inflation and after the recalculation of the apartment the price went up by a new percentage. The only disadvantage of residential properties is their cost. Serious investment is required. Plus, the margin is not as high as in other businesses or investments.
The exception is commercial real estate, which can pay for itself in two years. But here the location or the objects themselves play a decisive role:
- warehouses;
- offices;
- retail space;
- car service premises, etc.
Residential property pays for itself much longer, but gives a stable income and adjusts to the general market, taking into account any fluctuations in cash flows.
How do you build an apartment rental business? Looking for clients
Concluding our small review of an impromptu business plan for renting apartments, I would like to note that all conditions for the client should be transparent and negotiated in advance. This will help you avoid further trouble.
Video - renting apartments by the day from the students of Natasha Zakheim:
From the owner's point of view, daily rent is the best option. Theoretically, income from just one apartment can reach 60–70 thousand rubles per month or more. At the same time, the owner does not depend in any way on temporary tenants, he can close the business at any time and use the apartment for personal needs. But is it really that simple in reality? Let's try to figure it out.
The relevance of the daily business
A short-term apartment rental business can bring in 2-3 times more than renting out the same apartment for a long time. This is especially typical for big cities, because the main contingent of tenants - tourists, as well as people who have come for work - are not ready to overpay for a hotel room.
So, for a night in a 3- or 4-star hotel in Moscow, you will have to pay at least 2,500 rubles. And that's not counting the cost of food (lunch and dinner will have to be in a restaurant), laundry services, etc.
The cost of a double room in 3- and 4-star hotels in Moscow starts from 2500 rubles per night (travel portal Travel.ru)
There are many more offers of daily rent, so it is realistic to find a temporary housing option for almost any budget. On the site of the popular real estate base "Cyan", for example, you can find an excellent apartment with European-quality repair in the desired area for only 1500-1700 rubles. per night.
The difference in cost between a hotel room and a private apartment can reach 20-30%
The difference is most noticeable if more than one person will live in the room. In any hotel, regardless of its class, it is not the room that is paid for, but the stay of each of the guests, that is, if you are traveling together, the cost of the night will also double. For the landlord, this is not so critical.
If the landlord has indicated that the apartment has 3 beds, then for a stay of up to 3 people, usually no additional payment is taken. If there are more residents, then payment by agreement.
Alexander Petrashov, businessman
However, price isn't the only advantage from a prospect's point of view. Moreover, some landlords charge prices even higher than in hotels. And yet they have a constant stream of customers. Why is that? There are several reasons.
First, the location factor. It is not always possible to find a hotel in a specific area - almost all of them are concentrated in the historical center of the city, as well as near major entertainment venues.
Secondly, a different level of comfort. Unlike a hotel in an apartment, you can feel at home, completely relax and unwind after a busy day. In addition, apartments for daily rent are usually equipped with all the necessary equipment: from a microwave to an iron. This eliminates the need to pay for additional services.
Three start options
Actually, the first and most important question is where to get a free apartment. Here you have to build on the available start-up capital. Having decided to start this type of business, you can:
- rent an apartment for a long time, and then rent it out by the day (sublease);
- to remake your own housing for an object, renting a cheaper one on the outskirts of the city;
- get a mortgage.
The first step in organizing a rental business is to purchase a residential property
In terms of risk, the second option is optimal. After all, even if the business "does not go" for one reason or another, you do not lose anything and at any time you can return to your own apartment.
Some start by re-renting rented apartments. However, in this case, you need to make sure that this item is spelled out in the contract and the owners of the living space do not mind. In addition, you will have to approach the search for the object itself extremely seriously: if there is no certain level of congestion, your income will not be able to cover the cost of a monthly rental.
What apartments are in demand
We have touched upon the most important topic - the choice of an object. For most landlords, the main cause of loss is simple. It will hardly be possible to avoid this, but if the apartment was initially chosen correctly, you can count on a steady stream of clients.
To understand which objects are more attractive for such a business, we will rely on real statistics. What is important for potential tenants?
First of all, of course, the number of rooms. The most in demand are "odnushki", while 3- and 4-room apartments are rented extremely rarely (mainly groups of students or workers from other cities).
Table: demand for apartments for daily rent by number of rooms
The area and the transport interchange play an extremely important role. Proximity to work or sightseeing (when it comes to tourists) is a priority for most of your future clients. Therefore, the closer to the city center the housing is located, the better. Apartments located near large office centers and universities also bring good income.
Advice: if you are planning to buy an object specifically for rent, it is desirable that it be an old housing stock. Few tenants want to overpay 10-20% for a new building, while such an apartment will cost you 20-100% more (depending on the area).
How to open a business for renting apartments for rent
Among the main advantages of this business idea is that it does not require huge start-up capital, special education, or special skills or knowledge to implement it. Everyone can start making money on daily rent. The circuit is extremely simple:
- Determine which apartment you will rent - your own or rented.
- If desired, register an individual entrepreneur in order to officially engage in entrepreneurial activity.
- Assess the condition of the premises, carry out cosmetic repairs.
- Furnish your home with furniture and appliances.
- Purchase 5-6 sets of bed linen and towels.
- Select target audience (tourists, families with children, students).
- Take high-quality photographs of the apartment and prepare a description of the property.
- Draw up the text of the lease agreement.
- Place your advertisements in all available sources (newspapers, message boards, the Internet).
Let's take a look at the points that raise the most questions for aspiring entrepreneurs.
Documents for renting an apartment
To conclude agreements with guests "according to all the rules", you will have to prepare a large package of documents:
In advance, ask the client to prepare a photocopy of the passport (registration page and home page).
The main points of the agreement with the tenant
It is advisable that a professional lawyer helped you to draw up and prepare the text of the lease agreement. It may seem that this is an unnecessary expense, but in the event of any problems and conflicts, it is this document that will allow you to make claims to the guests and compensate for the damage. And in order for this to be possible, the document must be drawn up legally competently.
A standard short-term lease agreement includes the following sections:
- Subject of the contract. The address and characteristics of the apartment are indicated here, as well as the purpose of the lease - living for a certain number of days.
- Rental price (for 1 day and for the entire period).
- Check-in procedure (exact time when the tenant must check in and leave the premises).
- Rights and obligations. This part should be structured so that you win in any case. It is necessary to prescribe the tenant's obligations to maintain order, pay timely, do not sublet housing, etc. However, remember that the absence of this section in the contract does not deprive the parties of their rights and does not relieve them of their obligations - they are all still enshrined in civil law.
- A responsibility. In case of damage to property, the tenant must compensate for its value at his own expense. Here you can also specify penalties for late payment.
- Details of the parties (full name, passport number and signature).
In addition, you can add other clauses to the lease if you wish. For example, indicate who will pay in case of force majeure (neighbors flooded).
The contract is drawn up in such a way that the landlord of the apartment will win in any case.
Business expenses
Even if you are the owner of a rented apartment, you will not be able to avoid expenses. Moreover, most of them will be permanent, so it is better to include them in the rental price. What does this include?
- payment for "communal";
- cleaning company or cleaning service;
- advertising;
- taxes (13 or 6% of income, depending on your legal status - an individual or individual entrepreneur).
If you are not renting your own apartment, but renting a home or purchasing it on a mortgage, the costs increase even more. And accordingly, the cost of rent, because you need to cover all monthly payments and keep something for yourself.
Important! Be sure to set aside some of the money for force majeure circumstances that require significant costs (equipment breakdown, "flood" from neighbors, etc.).
Registration of rental activities
Do I need to register an individual entrepreneur? This is one of the main organizational issues faced by those who decide to start a rental business. The difficulty is that the law does not give a clear answer, that is, in theory, no one bothers you to rent apartments as an individual.
But what if the income you receive from renting out your home has become constant and systematic? In fact, this is already a full-fledged business that must be properly formalized.
Experts advise those who rent out several real estate objects at once and have a well-functioning scheme of work, nevertheless, to play it safe and register as an individual entrepreneur. Yes, it will add a lot of paperwork to you, but it will also give you a huge advantage. Working as an individual entrepreneur, in the event of a conflict, you can document any claims against the guests. In addition, while an individual entrepreneur makes payments to the Pension Fund, his work experience is growing, which is important for those who have decided to make the rental business their main activity.
How and what taxes to pay
One of the most difficult moments in organizing a daily business is related to the legalization of activities and the payment of taxes. This market is traditionally "gray", and deciding to rent an apartment, many do not even think about the need to pay any taxes in principle. But if you want to avoid problems in the future, it is better to start working right away. So, how much of your profit should be given to the state?
For individuals
If you do not want to register as an individual entrepreneur yet, you are required to pay personal income tax annually - personal income tax in the amount of 13% of what you earned. To do this, you need to submit a tax return at your place of residence by April 30 (it will indicate your income for the last year), and then, by July 15, calculate the amount of tax and pay it to the bank according to the details of the tax office.
For example, you rent an apartment for 2000 rubles / day. When you download an average of 20 days a month per year, you received income in the amount of 2000 * 20 * 12 = 480,000 rubles. The size of personal income tax will be 13% of this amount, that is, 480,000 * 0.13 = 62,400 rubles.
Important! If the tenant pays for utilities, this amount must also be included in the amount of income when calculating the tax.
Individual entrepreneurs
As a rule, individual entrepreneurs who indicate the rental business in their documents operate under a simplified taxation system. In this case, the amount of tax deductions can be 6% of income or 15% of “income minus expenses”.
Important! At first glance, it seems that this option is definitely more profitable. However, despite the lower percentage of the tax itself, individual entrepreneurs also have to pay contributions to the pension fund, accountant services, etc.
Video: taxation when renting an apartment
What is the threat of illegal renting of housing
According to experts, only 40% of landlords respect the law, and most are in no hurry to share with the state. On the one hand, this makes it possible to make a big profit. On the other hand, if information about unofficial activities gets to the tax authority, the owner of the apartment may be brought to administrative responsibility in court. At the same time, in addition to the principal amount of the debt, you will also have to pay the accrued fines and penalties. In the worst case, a criminal case under Art. 198 of the Criminal Code of the Russian Federation, which is fraught with a criminal record and a fine of up to 300,000 rubles. or imprisonment for up to 1 year.
Preparing the apartment for the arrival of tenants
If in the "long-term" version it is possible to rent out a half-empty apartment (many families have their own furniture), then the requirements for the level of comfort are much higher. Before looking for clients, you will have to spend several weeks and prepare the premises itself. What is meant?
- Redecorating. No peeled wallpaper or yellowed, cracked ceilings! Everything should be fresh and tidy, albeit inexpensive. Freshen up the whitewash, replace burnt out light bulbs, replace leaking taps.
- Space. Stick to the principle of minimalism. The future tenants clearly do not need your grandmother's old sideboard. It is better to immediately get rid of all the old and unnecessary trash, as well as the excess furniture cluttering the room. Personal belongings also need to be taken from the premises (as a last resort - put in a separate closed place, for example, on the balcony or in the pantry).
- Cleanliness and tidiness. Before looking for tenants, you need to do a general cleaning: wash windows and lamps, wash curtains, polish furniture. On an emotional level, it is these "little things" that greatly influence the decision to rent your apartment.
- Furniture and appliances. Even economy-class housing should be minimally comfortable. From the "essentials" items - a sofa, a kitchen set, a wardrobe, a table, chairs, a refrigerator. In recent years, the overwhelming majority of tenants also require a washing machine.
- Internet. This is no longer an additional advantage, but a necessity. Ideally, you need to immediately connect a Wi-Fi router (on Avito you can find good used routers for 700-1500 rubles).
The more comfortable it will be in your rented apartment, the more clients will want to return to it.
The more there is in the apartment, the higher the price you can set. Many landlords rent out their home with dishes, towels and personal hygiene products (soap, toothpaste, etc.), that is, according to the same principle as hotel rooms.
Effective advertising sources
So, your apartment is ready for the arrival of the first guests. This is where the fun begins. After all, your task is not just to find tenants for a few days, but to ensure the maximum occupancy of the apartment (especially if the housing was taken on a mortgage).
Since the fall, Dmitry K. decided to rent out his apartment in the center of St. Petersburg for daily rent. And from my own experience I was convinced that in practice this business is not as profitable as it seems in theory. “When I rented it under a long-term contract, I always had a guaranteed 30 thousand rubles. per month. Now there is more trouble and less payback, ”he says. Month by month does not come. Once Dmitry was very lucky: one family rented an apartment for 20 days, which was doing repairs in their own housing, and, since it dragged on, they had to extend the rent for the same period. But this was the only case. The rest of the time the apartment is occupied on average ten days a month.
Expert Online
- submit advertisements to 2-3-local newspapers;
- print leaflets, post them around the city or scatter them in mailboxes;
- write your contacts on the asphalt in crowded places - train stations, public transport stops, etc. (all you need is a stencil and a spray paint can);
- negotiate with taxi drivers to recommend your apartment to visitors.
However, you understand that the Internet will be the most effective source of potential customers for you. Its capabilities must be used to the maximum.
To increase the efficiency of your rental business, you just need to use all the possibilities of the Internet
First, place your offer on message boards like Avito, Hand to Hand, Cyan, etc. (and through the international portal Airbnb, for example, you can even attract foreign customers who pay in dollars and euros). The main thing is that your apartment is closer to the city center and looks spectacular in the photo.
Secondly, in your free time, be sure to make a small business card site. There are a huge number of free constructors on the net with which you can make a pretty nice resource without resorting to web designers and programmers. The site must have your contacts and high-quality photos of apartments. To attract visitors from the first days, use contextual advertising Yandex.Direct and Google Adwords.
Pitfalls of the daily business
As in any activity, this area has its own risks. First of all, they are associated with the safety of the apartment itself and property (furniture, equipment, etc.). The only way to minimize the danger is to work officially, having issued an individual entrepreneur, and draw up competent contracts. Only in this case you will be able to prove the fact of the persons living in the apartment and causing damage to property in order to compensate for the losses.
Important: always ask the tenants for passports, even if they only check in for 1 day. It is advisable that you have copies checked against the original in your hands.
Another important point is relations with neighbors. Before renting an apartment for rent, it is advisable to meet with them and make sure that they are not against such activities. Most apartment buildings (especially old ones) have excellent audibility. And if tenants, for example, start listening to music loudly, those who live “through the wall” may not like it very much. Do not forget that any claims will ultimately be in your direction.
Advice: if peace and quiet are important for your neighbors, it is better to donate part of the profit, but not rent out an apartment for celebrating birthdays, New Years, etc.
In addition to these risks, the daily business is inevitably associated with certain everyday difficulties. After all, it is you who will have to clean the room after each guest, wash the bed linen, clean carpets, etc. In addition, you need to be prepared for constant calls (including in the middle of the night) and for the fact that you have to adapt to customers - for example , go at 5 a.m. to give / pick up keys, etc.
Despite the fact that the daily business has its own difficulties, it is one of the most highly profitable with relatively low risks. However, in order to get a really tangible profit, it is advisable to rent at least 2-3 apartments. However, if you were not mistaken with the area and organized the activities correctly, in just 9-12 months you can really make money on the down payment on the mortgage in order to buy the next apartment and gradually expand your network.
Daily renting of an apartment can bring a good and stable income if everything is organized correctly. This service is very popular due to the fact that it is much cheaper for visiting tourists to rent an apartment than a hotel room.
Since this area of earning money is not new, it has already been well studied. One-room apartments or four-room apartments are especially popular. Of course, from a rational point of view, one-room apartments are considered an ideal option - the owner of the area saves not only on electricity and heating, but can also afford to make a luxurious renovation.
The owner of a one-room apartment will not lose money for money, since the price of housing is calculated not for one tenant, but for the entire area.
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Apartments located near the train station, schools and hospitals are very popular. Since it often happens that such housing is empty, it is better to buy an apartment on the third and fifth floors, this will significantly reduce the risk of criminal activity.
Daily rent - business features
From time immemorial, real estate was considered the most profitable investment, because many citizens, having free money, buy real estate. With the correct and accurate conduct of business, you can significantly improve your financial situation without risks.
The best option is to rent your own living space, of course, there are businessmen who start their business in a rented area, but this is not the case.
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Some citizens even take out an apartment on a mortgage, and then they safely rent it out to tenants, thereby not only covering the monthly mortgage loan, but also managing to earn a little on it.
Pros and cons of such earnings
For owners of rented apartments, the advantages are as follows:
- good income without risks and investments;
- if necessary, you can use the housing yourself;
- when selling an apartment at a time when a potential client is being searched, you can rent an apartment to newcomers;
- if the owner of the area cooperates with realtors, he will be provided with a flow of clients;
- no need to issue an individual entrepreneur, which significantly reduces the financial costs of paying taxes.
How to make money on daily rent of apartments? Cons of such a business:
- if the apartment is a mortgage, then the bank can prohibit its leasing to other people, it can not only fine the owner of the real estate, but also take the apartment altogether;
- conflicts with neighbors arise, since a constant flow of customers can disrupt the usual life of the residents of the house;
- there are clients who are not conscientious, who can simply ruin property - break a window, tear wallpaper, break equipment, and so on.
Underwater rocks
Often there are dishonest clients who spoil property and do not want to pay for it later, so that such unpleasant situations do not arise, you need to issue an individual entrepreneur and draw up a lease agreement with each client. Also, when checking into an apartment, you always need to take a passport from the guest, make a copy of it with the registration address.
Nowadays it is a very profitable business, but you will think that this is impossible and you will be wrong. Following the link, you will find detailed instructions on how to start this business and make it profitable.
At the same time, we want to emphasize that even if there is a photocopy of the client's passport on hand, if the property is damaged, the owner of the premises will not be able to make a claim if he does not have a contract. Therefore, here you need to choose - saving money or safety and security of property.
Rental business: how and where to start
The first thing to do is to study all legal regulations carefully. First, of course, you need to go through a banal registration of a legal entity, in other words, you need to open an individual entrepreneur if you plan to do this business for a long time. Thus, it is possible to significantly reduce the costs of accounting, today it costs about 5,000 thousand rubles to open an individual entrepreneur.
If the apartment will be rented exclusively for legal entities, then in this case it will be necessary to register as a Limited Liability Company. In this case, such a procedure will cost a little more, about 15 thousand. In order to calmly and consistently earn in this area of business, you need to pay about 15% of the profit to the tax service every month or twice a year.
This video will tell you how to start a business in the field of daily rent of an apartment:
Of course, not all apartment owners can make good money. In order for a living space to bring a good and stable income to its owner, it must meet the following requirements:
- Long lease term, at least one year.
- Good location. The apartment should be located in the city center, where the infrastructure is developed.
- Nice and modern renovation.
- The presence of the necessary furniture in the apartment: sofa, air conditioner, refrigerator, microwave oven, TV, washing machine. This is only the minimum that should be in a rented apartment, otherwise there will be no people wishing to move in at all.
Step-by-step instructions for renting an apartment
Previously, the requirements that the apartment must meet were announced. When the premises are completely ready to receive guests, you need to take care of the legal side of the business. It is imperative to open an individual entrepreneur in order to be able to draw up a lease agreement with each client, this will protect the owner of the property from unexpected troubles.
After all legal issues are resolved, you can start looking for a potential client. To do this, you need to use the Internet: you can place an ad on a popular site, for example, Avito. In order to attract customers as much as possible, it is necessary to present the information correctly.
In the announcement, it is necessary to indicate the location of the apartment, its cost, the availability of furniture, as well as additional services, if any. You can advertise your apartments via the Internet, for which you can use groups in contact or classmates.
Do you have free space, but you do not want to rent it out, and its maintenance is not cheap? You can and the maintenance of the premises will definitely pay off. All details on the link.
Local newspapers and magazines also do not need to be bypassed; there you can also submit a similar ad with a phone number and an apartment address. There is no need to save on advertising, spending a couple of thousand can get much more customers.
Business plan based on income and expenses
In the beginning, the owner of such real estate, of course, will have to spend a little, 30 thousand rubles will be enough, with this money you can draw up documentation, pay for advertising and buy the most necessary things for the apartment: disposable slippers, soap, shampoo, toilet paper, and so on.
An example of an apartment for rent. The average daily rent of a one-room apartment is about 1,500 rubles. We multiply this amount by 30 days and get 45 thousand rubles, now we subtract 15% of the tax and get a net profit per month of about 30 thousand.
But again, it all depends on the number of rooms, the furnishings in the apartment, and so on. You can rent it much more expensive and more profitable, everything is purely individual. And if a person has not one, but several apartments for rent, this increases profits at times.
How is the registration of an individual entrepreneur
As mentioned earlier, it is possible not to open an individual entrepreneur when conducting such a business, but in this case there are great risks, for example, a tenant will ruin furniture or break a window. If there is a lease agreement, if such a situation arises, it will be possible to return the money for the damage caused.
Features of payment for sublease
Subleasing is a process involving two tenants. For the correct registration of a sublease, a document must be drawn up that looks like a lease agreement and does not have a long validity period. The subtenant is fully responsible for the rented property and will be responsible for its damage to the real owner.
If a suitable apartment is subleased, you must carefully study all the terms of the contract. It often happens that the true owner of an apartment raises the price for the tenant, and he, naturally, in order not to go into the negative, raises the price of living space to the client.
Today, many Russian citizens consider realtors to be swindlers. This perception has also been reinforced by frequent cases of fraud by real estate firms. But if a person is determined to start a business in the field of renting apartments, then it is definitely impossible to do without the help of realtors and a plan.
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Such firms allow the owner to find a solvent client. The result is a stable income and no downtime. The most important thing is to contact a trusted company that has proven itself on the positive side.
Monthly income and expenses
Of the frequently occurring housing costs, the following can be distinguished:
- Tax (if an individual entrepreneur was issued).
- Renting an apartment (if it is not owned).
- Advertising (you can also find free advertising, but it will be ineffective).
- Apartment cleaning and bed linen washing (in order to save money, you can do it yourself).
- Payment of utility services.
You can find out all about the daily rent of apartments in this video:
The size of the potential income and the direct payback of this project depend on the following factors:
- the initial state of the apartment;
- quality of advertising;
- the work of the realtors themselves;
- location of the apartment.
As a rule, renting an apartment by the day with full workload pays for all costs in less than five months, subject to the cost of repairs.
Renting out a living space purchased with a mortgage
Anyone who bought real estate with a mortgage is already a full-fledged owner, despite the fact that he has to pay for a loan every month.
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If you have a living space, and it is simply idle, you should think about a business for renting apartments. Choose the type of renting an apartment and earn!
♦ Capital investments: from 20,000 rubles. (if there is an apartment).
♦ Payback: 8-12% profitability per year (in general - from 10 years).
If you have your own living space or are considering a mortgage purchase, you should think about business for renting apartments.
This will allow you to recoup your purchase costs, as well as earn “from above”.
There are two options for renting - short-term (daily) and long-term.
Each of them has its own advantages and pitfalls.
It is impossible to say unambiguously which option is preferable.
You will have to make the choice yourself, evaluating all the arguments.
Daily or long-term rent: what to choose?
The idea of a long-term rental business is as old as the world.
In addition, square meters can be rented not only for living, but also for offices.
Short-term rentals are also gaining momentum. First of all, due to the high prices in hotels.
In some situations, living in seemingly cheap hostels is still more expensive than a rented apartment.
But at the same time, a person gets the opportunity to independently dispose of the space, his schedule, prepare his usual food in the kitchen. And, in general, you can feel at home.
Positive aspects of business
Negative aspects of business
How to start an apartment rental business?
If you have analyzed all the arguments and decided that renting apartments for a long-term or daily rent is your option for a business, you should check the housing for compliance with the requirements.
- The cost of an apartment is primarily influenced by its location.
The closer to metro stations, the center, the main transport hubs - the more you can ask for it. - The location on the ground floor is considered a disadvantage when renting meters for living.
But for offices, this is the main advantage. - The set that you need to equip an apartment for daily rent is extensive.
This includes towels, an elementary set of dishes, a hairdryer, a microwave oven, an iron, and a washing machine are welcome.
If people settle in for a long time, it is assumed that they will arrange comfort for themselves already. - An apartment for short-term rent should be under your control at all times.
You are obliged to monitor cleanliness, put things in order before each ride, regularly wash textiles, replenish supplies (tea bags, sugar, garbage bags, toilet paper). - Renting for offices often assumes that you need the absolute minimum - walls, windows, a door and running water and sewerage systems.
Analysis of potential clients
Interesting fact:
Playing music for more than two hours a day is unacceptable for neighboring tenants and equates to noise - such are the laws governing rent in Germany.
For a long-term lease, the circle of potential clients of the business is quite wide. In general terms, he can be imagined as solvent people 18-30 years old.
When it comes to renting square meters for offices, the demographics are also extensive.
Actually, the gender and age of the tenants in this case will not matter much. The main thing is their kind of occupation - entrepreneurial activity.
But as for the daily rental business, there are four main categories:
What are the pitfalls of a business apartment for rent?
- As a rule, when signing a lease agreement, they take passport data from tenants - they ask to make a photocopy or simply photograph the pages (for short-term rentals).
But the legislation says that it is prohibited to do this.
And if you accept another, less important document, the risk of being cheated or with damaged property increases even more. - In order to earn a good reputation and have a regular flow of customers, you constantly need to invest.
In cleaning, washing, improving living conditions and solving various problems.
This must be taken into account even when deciding on the delivery of square meters. - It is difficult to control how well the tenants will behave.
A noisy "party" can turn into problems with neighbors and additional costs for cleaning and even repairs.
In general, tenants of old houses are usually quite critical of apartments in which new people constantly appear.
This is especially dangerous if you are renting out your home under not entirely legal circumstances. - If you decide not to use the services of an intermediary agency, the likelihood of an apartment downtime increases.
But even a realtor, to whom you will pay an average of 20% commission, is not a guarantee of a regular influx of tenants.
Additionally, you will have to advertise, and this is another item of expenses. - The biggest pitfall is the risk of fraud.
Of course, it exists in any area.
But when renting out housing, it is especially high.
However, you shouldn't focus on the worst situations.
It is enough to remain vigilant and careful.
If you are just going to buy an apartment in order to rent it out and make money on it,
for a successful and profitable purchase:
- You need to know the business from the inside.
If you have never rented an apartment, it will be difficult to understand how to rent out yours effectively.
You can rent a house for a day or two in your own city and play the role of a "mystery shopper".
Assess what prices are average and how landlords are behaving. - If you plan to take out an apartment on a mortgage specifically in order to rent it out to tenants, it is better to give up this thought now. The current conditions of economic instability can play a cruel joke on you.
In addition, the overpayment is too large. - You shouldn't start anything without apartment insurance.
This is especially true for short-term lease of space. - If the loading of the apartment has become regular, it makes sense to delegate the washing to the laundry or.
This is an additional waste, but a big time-saver. - Do not hesitate to ask questions of potential tenants, talk to them, take a closer look.
After several conversations, it is difficult to understand what kind of person is in front of you.
But often it turns out to weed out the most suspicious and inadequate. - Set yourself up for the fact that calls at "indecent" time will become the norm for you.
And there is a possibility that you will have to call the tenants more than once to solve a problem.
If you are not ready for this, leave the responsibilities "on the shoulders" of the agency.
From the above, we can conclude that the specific business apartments for rent- this is not a "golden" ticket.
In any case, you will have to invest your efforts in its development constantly. Then the earnings will be more or less solid.
Or delegate the solution of all issues to a real estate agency.
In this case, you will have to forget about high earnings, because you will have to give a rather big commission.
But if there are square meters and for some reason you do not need it, it is much more reasonable to rent them out for a settlement or offices, and not just leave it idle.
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Daily rent of apartments is gaining more and more popularity among landlords. This is due to the increased profitability compared to renting out housing for a long time. Service popular with business travelers, part-time students, tourists, couples with children, for which the hotel may not be affordable, and the hostel is unacceptable for a number of reasons.
Let's take a look at the details of this business in order.
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Real estate options for rent
The most common option is renting out vacant housing. For example, after relatives there is a free living space. If you have neither the desire nor the opportunity to sell it, it is not a bad idea to organize your business and profitably by the day.
A profitable investment of free capital will be the purchase of a separate apartment, especially for the purpose of further delivery. An obvious plus - real estate always grows in value. In addition, in addition to insuring your own funds, you get a stable and considerable income.
If you want to know how to bargain correctly when buying an apartment, then it will be useful for you.
Sublease - re-lease of the landlord's property... For example, if a tenant rents a two-room apartment, he can rent one room to other people for rent, thereby saving, and in some cases fully recouping the money spent on rent. It should be noted that this must be discussed with the landlord in advance and in all details.
