Buying real estate is not only a way to save your own savings, but also an opportunity to earn on it by reselling or renting it out. This is one of the liquid and unique assets. There are two main aspects that guide businessmen investing in real estate: the desire to save their money in the face of inflation and the desire to increase their income by reselling real estate or renting it out.

• Pros and cons of renting an apartment
• How much can you earn by renting out an apartment?
• Location matters
• New building or "secondary" - what to choose?
• Rent apartments
• What documents are needed to rent an apartment?

Pros and cons of renting an apartment

Acquisition of housing for the purpose of further renting out is the most common investment transaction. It will not be possible to make money on such an operation quickly, the average income from renting out is 3.5-5% per annum of the cost of an apartment. But this is a promising and long-term investment, over time, adult children can be relocated here or sold in order to build a country house. Of course, renting an apartment requires certain troubles: you need to constantly look for tenants, maintain the apartment, and make cosmetic repairs.

Before the crisis of 2008-2010. the number of "investment" transactions, subsequently associated with earning income, accounted for about a third of all transactions in the Russian market. Gradually, their share decreased to 20%, and currently stands at 15%. At the same time, the number of long-term investors who buy real estate for the future has increased.

Investing money in the purchase of real estate is a long-term project, but more reliable than a bank deposit. A bank deposit can be placed at 10-12% per annum in rubles, but possible risks must also be taken into account: recently there have been many bankrupt banks. Banks with a solid reputation give low interest rates.

How much can you earn by renting out an apartment?

Let's take a look at a table that clearly demonstrates rental income:

But in addition to income, there are also fixed costs - these are: apartment renovation, rent and utility bills (if this is not included in the rent), insurance and income tax.

The profitability and payback period are affected by the size of the initial investment in real estate, repairs, as well as the distance from transport hubs. The payback period for apartments purchased with their own money is more than 10 years, and those taken on a mortgage are even longer. From a one-room apartment, you can receive up to 96 thousand rubles a month.

Location matters

Tenants, and especially foreigners, are not interested in the historical location of the apartment, but in good transport interchange and the availability of the necessary services. If there are no funds to buy an apartment in Moscow, then you can start buying an apartment in the Moscow region. The income from renting such an apartment will be 10-15% lower than in the capital, but the funds for the purchase of an apartment will be spent 50% less.

Dramatically increase in the price of an apartment and, accordingly, the cost of rent, for housing located near metro stations and railway stations. It is worth following the construction of new metro lines and buying apartments for rent there. In Moscow, apartments in areas outside the Moscow Ring Road, to which the metro comes, rise sharply in price. For example, in Mytishchi, the cost of buying and renting housing has increased by 30%.

Without losing, there will also be an option to purchase housing in areas close to airports. At not so high costs, such apartments bring a stable income.

New building or "secondary" - what to choose?

When buying a home to rent it out, you need to consider two things: how long it will take to pay off the investment, and how much the home will cost in the future. If you put the issue of payback in the foreground, then you need to buy an old building.

Most of the offers on the market of apartments are apartments of old construction. And the demand for them is quite high, renting an apartment at a lower price is more profitable than paying for renting an apartment. Although there is also a demand for them, some want to live in new buildings and apartments filled with modern furniture and appliances.

Apartments in a new building are more expensive, respectively, and their payback will be longer. But at the same time, rent in a new building will cost more. If an apartment is purchased on the primary market, then it is recommended to buy it from a large developer who has experience in commercial development, as well as joint mortgage lending programs with state banks. The developer sells apartments in accordance with federal law FZ-214.

So, the apartment is purchased, and you decide to make repairs in it. One of the main mistakes landlords make is to renovate a business class apartment in an economy class apartment. Believe me, tenants will not appreciate it, and you will spend quite a lot of money. Business-class apartments are another matter, they should be equipped with expensive furniture and design repairs should be carried out here.

Rent apartments

Another type of income is renting apartments by the day. Such services are used by business travelers and tourists who do not want to overpay for hotels. The most demanded apartments are of the middle class, the cost per day is from 1.5-3.5 thousand rubles. The rental of this property is on average 50%% of the total rental. The next in demand are luxury apartments, the cost of renting which is 3.5-6.3 thousand rubles per month.

Of course, this business, like any other, has its negative points, the apartment can stand idle for some time. But during the autumn-spring period, and especially during the holidays, middle-class real estate is 100% occupied, and the cost of rent these days increases by 2 times.

What documents are needed to rent an apartment?

After purchasing a home and carrying out repairs, the apartment must be insured. We draw up a full insurance contract: we insure walls, interior decoration, property located in the apartment, and, of course, civil liability (arson and fires due to the fault of residents). For apartments that are rented out, an increased coefficient of 50% is applied. For example, for an apartment on the outskirts of the capital, estimated at 7.5 million rubles, the insurance payment will be 15 thousand rubles.

If you yourself will rent an apartment for rent, then you must:

1. From all its owners and registered persons, obtain consent to rent an apartment.
2. Post an ad and start looking for a tenant.
3. The contract is concluded for a period of 11 months, in which it is necessary to indicate:

• all persons who will live in the apartment (make copies of all passports);
• how the rent will be paid monthly or quarterly;
• who will pay utility bills (electricity, water, etc.);
• rules for the use of electrical appliances;
• when the landlord can visit the apartment, etc.

Time connoisseurs can apply to a law firm to draw up a lease agreement, this service will cost you 2 thousand rubles.

1. Draw up an act of transfer of the apartment, in which to indicate all the faults at the time of the conclusion of the contract.
2. Write receipts in which the landlord indicates that he received the money, and the tenant that he received the keys.

If your housing is municipal, then the Moscow government requires you to register it with the State Unitary Enterprise. To do this, you need to contact the Moscow City Center for Rental Housing, here you need to bring: an application, the consent of all owners to rent an apartment, an extract from a personal account or house book, a social contract. The cost of the service of the center staff will cost you 1,600 rubles. After registration, the contract will be registered with the State Unitary Enterprise.

So, in this article, we tried to highlight all the pros and cons of renting an apartment, which apartments are better to buy for rent, in which areas, we also indicated that this business is a long-term project and its payback comes in a few years, but the project reliable and liquid, because whatever the rent and demand for rent, you still have a liquid asset that you can use for your own purposes, or sell it.

If you have a living space, and it is simply idle, you should think about the business of renting apartments. Choose the type of renting an apartment and earn!

♦ Capital investment: from 20,000 rubles. (if you have an apartment).
♦ Payback: 8-12% yield per year (generally - from 10 years).

If you have your own living space or are considering buying with a mortgage, you should consider apartment rental business.

This will allow you to recoup the costs of the purchase, as well as earn "from above".

There are two options for rent - short-term (daily) and long-term.

Each of them has its own advantages and pitfalls.

It is impossible to say unequivocally which option is preferable.

You will have to make the choice yourself, evaluating all the arguments.

Rent daily or long-term: 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.

Renting for a short time is also only gaining momentum. First of all, because of the high prices in hotels.

In some situations, living in seemingly cheap hostels still costs more than a rented apartment.

But at the same time, a person gets the opportunity to independently manage the space, his schedule, cook 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 long-term or daily renting apartments is your business option, you should check the housing for compliance with the requirements.

1. The cost of the apartment is affected, first of all, by its location.
   The closer to metro stations, the center, the main transport hubs, the more you can ask for it.
2. The location on the ground floor is considered a disadvantage when renting meters for living.
   But for offices, this is the main advantage.
3. The set with which you need to equip an apartment for rent is extensive.
   This includes towels, an elementary set of dishes, a hair dryer, a microwave, an iron, a washing machine are welcome from the equipment.
   If people settle for a long time, it is assumed that they will arrange comfort for themselves.
4. An apartment for short-term rental should be under your control at all times.
   You are obliged to keep clean, clean up before each race, wash textiles regularly, replenish supplies of consumables (tea bags, sugar, garbage bags, toilet paper).
5. Renting for offices often assumes that you need the absolute minimum - walls, windows, a door, and installed plumbing and sewerage.

Potential customer analysis

Interesting fact:
Music lessons for more than two hours a day are unacceptable in relation to neighboring tenants and are equated with noise - such are the laws governing rental housing in Germany.

For a long-term lease, the range of potential business customers is quite wide. In general terms, it can be imagined as solvent people aged 18-30.

As for renting square meters for offices, the demographics here are also extensive.

Actually, the gender and age of the tenants in this case will not matter much. The main thing is the type of their occupation - entrepreneurial activity.

But as for the daily rental business, four main categories can be distinguished:

What are the pitfalls of business apartments for rent?

• As a rule, when signing a lease agreement, they take passport data from tenants - they ask them to make a photocopy or simply photograph the pages (for short-term rentals).
  But the law says that it is forbidden to do so.
  And if you accept another, less important document, the risk of being deceived or with damaged property increases even more.
• To earn a good reputation and have a regular flow of customers, you need to constantly 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 decently the tenants will behave.
  A noisy "party" can result in problems with neighbors and additional costs for cleaning and even repairs.
  In general, residents of old houses are usually quite critical of apartments in which new people constantly appear.
  This is especially dangerous if you're renting out your property under less-than-legal circumstances.
• If you decide not to use the services of an intermediary agency, the likelihood of 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 expense item.
• The biggest pitfall is the risk of fraud.
  Of course, it exists in any field.
  But when renting out housing, it is especially high.
  However, you should not focus on the worst situations.
  It is enough to remain vigilant and cautious.

If you are only going to buy an apartment in order to rent it out and earn money on it,

for a successful and profitable purchase:

1. Business needs to be known from the inside.
   If you have never rented an apartment, it will be difficult to understand how to efficiently rent yours.
   You can rent a house for a day or two in your own city and play the role of a “mystery shopper”.
   Evaluate what prices are average and how landlords behave.
2. If you are planning to take an apartment on a mortgage specifically to rent out to tenants, it is better to abandon this thought now. The current conditions of economic instability can play a cruel joke on you.
   In addition, the overpayment is too large.
3. Without apartment insurance, you should not start any business.
   This is especially true for short-term leases of space.
4. If the loading of the apartment has become regular, it makes sense to delegate washing to the laundry or.
   It's an extra expense, but a big time saver.
5. Feel free to ask potential tenants questions, talk to them, take a closer look.
   From 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.
6. Set yourself on the fact that calls at "indecent" times will become the norm for you.
   And there is a chance that you will have to call tenants more than once to solve some problem.
   If you are not ready for this, put the responsibility "on the shoulders" of the agency.

From the foregoing, it can be concluded that the specific business apartment rental 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 all issues to a real estate agency.

In this case, you will have to forget about high earnings, because you will have to pay a rather big commission.

But if there are square meters and you don’t need them for some reason, it’s much more reasonable to rent them out for a settlement or offices, and not just leave them idle.

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The category of "business from scratch" can safely include the activity of renting apartments for rent. At the same time, you can not own apartments, but also earn money on short-term rentals. All that is needed for this is to find housing, the owners of which are ready to provide it on a sublease basis. Sublease is a form of agreement in which the right to rent an apartment is assigned.

Such a business may seem understandable and easily organized. But not everything is so smooth and calm. There are a lot of apartments for daily rent, but not all of them bring normal money, and some do not justify the money invested in them at all.

Well, if the property already has a couple - three apartments. Even if it is one-room (the most popular on the market), then the profitability will be higher. If there is no such property, you will have to rent housing for a long time and already rent it out for daily or hourly rent.

The whole difficulty in organizing the case comes down to finding suitable housing. Many owners, having heard the word "daily rent", immediately associate it with drunkenness, prostitution and other negative things. And no amount of persuasion can change their minds. Although, in fact, such apartments rarely need further repairs, unlike apartments in a long-term lease.

It is not profitable for subtenants to keep housing in poor condition, because they simply will not have customers. After each check-in, the apartment is carefully cleaned. What can not be said about long-term rent: tenants (and among them there are many young people) in 90% of cases do not monitor the condition of the apartment. And they walk and drink in such apartments no less.

“In order to conclude a sublease agreement for an apartment you like, you have to lie a little to the owners. I say that I have contracts with some firms to accommodate people who come on a business trip. And in this case, the tenants will often change. If you agree to these terms, then I will pay you a little more rent. Homeowners are worried at first, but when they see that everything is in order with their apartment, they calm down. And the opinion of the neighbors and chairmen of the HOA is already indifferent to them, ”says the Rasklad user on the nasutki.borda.ru forum.

It is best to look for apartments closer to the city center. It is much easier to find clients here. And advertising costs are much less. It is also worth renting apartments as close to each other as possible - this will reduce transport costs. If one apartment is located 15 km from another, then the transport costs will be much higher.

Legalization of activities

The peculiarity of the daily apartment rental business is that it is difficult to control the state. That is why a considerable part of businessmen work without registration of entrepreneurial activity and do not pay taxes. In some cases, this is justified, especially when it comes to 1 - 3 rented apartments and the income from activities is not so large that it makes sense to legalize the business.

With the growth of the organization's turnover, when the organizer no longer has one or two apartments, but at least 5 - 6, it is better to register an individual entrepreneur or LLC. With the registration of the business, it will be easier to find new apartments (homeowners trust organizations more than ordinary individuals). It will become calmer to work, since no one has canceled fines for illegal business activities. There will always be envious people, including in the person of the chairmen of the HOA, who can report this to the police or the prosecutor's office. And in this case, you will always have documents. Everything will be within the law.

Such a business is most often registered as an ordinary individual entrepreneurship. To register a business at the tax office, you need to present an application, a photocopy of your passport and TIN, a receipt for payment of the state fee. In the application for registration, the OKVED codes should be indicated: 55.23.5 “Activities of other places for temporary residence” and 70.20.1 “Rental of own residential real estate” (several codes can be indicated). Within 5 working days after the submission of documents, you can receive a certificate of registration of IP. And you are the legal representative of the business.

Separately, it is worth mentioning the choice of taxation system. All three well-known special regimes are suitable for such activities: patent (patent taxation system), UTII (imputation) and USN (simplification). The most profitable option is a patent. You pay a fixed fee (about 10 thousand rubles) and work quietly for a whole year. You do not need to provide reports, keep accounts, etc. But the patent system is not adopted in all regions, which means that you will have to choose between UTII (up to 500 sq. M. Can be used) or USN. These special modes are also beneficial (although they cost a little more), but you will have to keep accounts and submit reports on schedule.

It is worth considering the fact that, having registered a business, you will have to pay income tax for apartment owners, which is 13% of the rental price. In order not to offend yourself, this issue should be discussed with homeowners at the stage of concluding a sublease agreement. These same 13% should rightly be deducted from the cost of renting an apartment.

Hiring

If we are talking about building a business, and not about work "for the sake of work", then the issue of employees should be resolved. If you have 2 - 3 apartments at your disposal, then somehow you can manage it alone. And if you work with 5 or more apartments, you can’t manage it alone.

Imagine a picture: you have found a client, you are going to show him an apartment. While you are negotiating, you receive a call from the second client - you are distracted by the conversation. At this time, the third client moves out of the apartment, which already has another client, and you urgently need to clean up the apartment, etc., etc. And there can be a dozen or two such small vain things a day. Your head will spin, which will affect the quality of work and the number of customers. Therefore, with the increase in the number of orders, you should consider hiring a maid to clean the apartments and a customer service manager. A cleaning lady can only be paid a percentage of the work done, without registering it in the state (so as not to pay insurance premiums). Manager - salary and a small percentage for motivation. Let him work with clients, answer calls, hold meetings, check the condition of apartments after guests, etc.

In this case, you have a lot of time that can be spent on finding new apartments, on solving accounting and legal issues, on advertising services, on monitoring the work of staff. There will be time for personal life, and business will bring pleasure.

How to advertise a service

Finding clients is one of the first tasks that you should put all your efforts into solving. If there are no customers, there will be no income, and the obligation to pay rent will not go anywhere. The following options will help you build your client base:

• Placement of advertisements in newspapers. An old and proven way, although with the advent of the Internet it is becoming less and less relevant. But this does not mean that the media should be completely abandoned. Very many business travelers upon arrival in an unfamiliar city buy newspapers and find apartments there.
• Posting leaflets in places popular with tourists and visitors. These are exits from the metro, bus and tram stops, bus and railway stations, the central streets of the city.
• Placing information on bulletin boards on the Internet: avito, slando, city portals, etc. Do not forget about compiling a competent description, with an abundance of high-quality photographs.
• Try unique ways of advertising, like writing ads on the pavement. All you need is a stencil and a can of paint.
• You can negotiate cooperation with local taxi drivers, as visitors often hire a taxi at the airport and ask the driver to suggest where they can rent inexpensive accommodation.

Pitfalls in the "daily" business

Finding an apartment, legalizing a business and settling issues with tenants are far from all the problems that await an entrepreneur in this area. One of the main problems is the lack of customers. In order for the business to generate income, each apartment must be filled at least 70%. That is, out of 30 days - 21 days in the lease.

Demand for housing may be low not only because of high competition, but also simply because of the seasonal downturn. In the summer in the central part of Russia, the demand for daily rental housing drops sharply. People go on vacation, there are fewer business trips. For this reason, you should not open a business for the summer season. Some experienced entrepreneurs in this business give up part of their rental housing during the off-season to reduce fixed costs.

At the same time, for resort cities (Sochi, Gelendzhik, Anapa, etc.), summer is just the season. And in autumn and winter, such a business is idle.

Separately, it is worth mentioning the mortgage and the purchase of apartments on credit. On the forums, you can read ideas like this: “You can buy several apartments with a mortgage and rent them out on a daily basis. It's better than paying the landlord." The idea looks tempting, but not feasible for a number of reasons:

1. To get a mortgage even for one apartment, you will have to like the bank a lot. They will require a certificate of income from you, look at your credit history, ask you to find guarantors, etc. Your official income does not reach 30-50 thousand rubles. per month and the bank refuses you. If you want to arrange two apartments, then you will already need an income of 80 thousand rubles. And if you have such an income, then why do you need a mortgage and daily rent.
2. From an investment point of view, this option looks extremely unprofitable. The return on investment will be about 8-10 years, which is unthinkable for a normal, working business.

How much can you earn. Brief business plan

Long-term rental of a one-room apartment in Moscow will cost 25-30 thousand rubles. per month. This should take into account the costs of cleaning, advertising and depreciation (replacing broken appliances and furniture) - about 5 thousand rubles. per apartment per month. You can rent such apartments for an average of 2 - 2.5 thousand rubles.

Roughly the picture in the season should look like this:

The profit from renting six apartments will be about 120,000 rubles. per month.

To determine the return on investment, the initial investment in the business should be considered. Each apartment will need to be brought to the necessary comfort - to make repairs, purchase furniture and appliances. For each apartment, a minimum of 100,000 rubles should be laid. Therefore, six apartments will require investments of 600,000 rubles.

Hence, the return on investment, according to the calculations given above, will be from 6 months. But it is necessary to take into account the fact that in the first months there will be few customers. It will take more than one month to work before a permanent client base is built up and word of mouth begins to work. Therefore, the payback period of investments can be safely multiplied by two.

To achieve success and financial well-being, it is not enough to work hard in the office or at the factory. This type of earnings, by definition, cannot bring a lot of income, since it will simply be unprofitable for the owner. People who understand this principle try to find a way out of this situation, but at the same time they are afraid of losing their jobs.

In such cases, you can pay attention to passive ways to generate income. For those who have free living space (room, apartment, house), the option with its daily rent is suitable. You can also invest your savings in real estate, because the banking system does not inspire much confidence.

Analysis of the situation in the housing market

In Soviet times, the income that the rental of residential premises brought was called unearned and was diligently suppressed. Today the situation has changed radically. Even old grandmothers are ready to make room for a stable addition to their small pension.

What kind of profit can such a business bring? Daily rent of apartments can be a very profitable business. This has been proven in practice by people who liked this business idea.

Daily rental of elite class apartments in big cities can bring a huge income. Business-class residential premises will bring their owner a smaller profit, but on a more stable basis, as they are more popular. Finally, renting out a room in a hostel or apartment seems to be the most appropriate activity at the initial stage.

The benefit that renting residential premises for a day brings directly depends on the availability of hotels in the village, the cost of rooms, as well as the tourist flow of people. An example is the seaside resorts of Russia. Tourists often come there to rest as "savages", that is, without a tourist voucher. They are forced to look for a place to live on their own. During the holidays, each local resident becomes a rentier.

At the same time, many business people who are accustomed to comfort and luxury come to Moscow and other large cities. They prefer to stay in luxury apartments and, accordingly, are ready to pay well for it.

Lack of full competition

In our country, especially in small towns and villages, the hotel business is very poorly developed. Entrepreneurial people take advantage of this advantage by renting out residential premises.

Indeed, if we compare the number of hotels in Russia and in the countries of Western Europe and the USA, we will find that we have 2.5 times less of them. At the same time, most of the large hotels are concentrated in Moscow and St. Petersburg.

However, the lack of competition always spurs business. Daily rent of apartments is becoming a truly popular means of extracting additional income.

Advertisements for free residential areas ready to receive guests can be found in almost every newspaper, at public transport stops and on the walls of houses.

Due to such a large number of offers, a false impression is created that it is very difficult to rent an apartment. In fact, the niche is only 50-70% occupied, and the rate of construction of new housing and hotels has slowed down significantly. Therefore, anyone who wants to can do this business.

Rentier's first steps

To earn income from real estate, you must have it. Therefore, the first thing a novice entrepreneur needs to do is invest in buying an apartment, room or mansion. The size of the living space and its arrangement will depend only on financial capabilities.

In some cases, it is possible to build a business in a different way. Daily rental of apartments inherited from deceased relatives is one of the most common ways to generate additional income. Indeed, it is not advisable to sell housing if there are children in the family. They will soon grow up (as well as real estate prices) and want to separate. However, maintaining an empty apartment is very expensive. Therefore, many decide to take it.

People who are less wealthy and do not have rich testators can be advised to start by renting a room in their apartment. This way of earning has many inconveniences, but allows you to further develop the rental business. Where to start, everyone must decide for himself. At the same time, it is necessary to focus on your material and volitional capabilities.

Profits and expenses

Making a profit is the goal pursued by any business. Daily rent of apartments is no exception. The income that the owner of the premises will receive can vary from $100 to $100,000 per month. As noted earlier, the figures will depend on the class of housing for rent, its area and arrangement.

Daily rent is always more expensive than long-term, so you need to be prepared for the fact that the average rental time will not exceed 2-3 days. The owner of the apartment must always work for the future and constantly attract new customers.

However, do not forget about the costs involved in the rental business. Where to start counting? Firstly, the arrangement of the premises with furniture and household appliances. Secondly, the purchase of personal hygiene products: toothpaste, shower gel, shampoo, toilet paper. Thirdly, paying taxes and rent. The costs also include advertising in newspapers and magazines.

Payback

In the case when your own apartment is rented out, you should not talk about payback, since the business almost immediately begins to generate income. But there are other ways to make money. Some resourceful people use the scheme when they rent out the premises they have on a long-term lease for a day.

The payback period in each case will be different. So, with an average monthly rent, the cost of furniture, household appliances and personal hygiene products, you will have to invest about 100,000 rubles per apartment at the initial stage. You can receive up to 2,000 rubles per day from a business-class residence. Thus, a successful businessman will be able to receive income for 2 months.