Daily rental of apartments is a business for young people. Pitfalls of daily apartment rentals: how to build a business Business in daily apartment rentals

Buying real estate is not only a way to save your own savings, but also an opportunity to make money 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 who invest money in real estate: the desire to save their cash in conditions of inflation and the desire to increase their income by reselling real estate or renting it out.

Pros and cons of renting an apartment

Purchasing housing for the purpose of further renting it out is the most common investment transaction. You won’t be able to make money quickly from such an operation, average income from rental is 3.5-5% per annum of the cost of the apartment. But this is a promising and long-term investment; over time, you can move adult children here or sell it for the purpose of construction country house. Of course, renting out an apartment requires some hassle: 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, amounted to approximately a third of all transactions on 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 purchase 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 offer low interest rates.

How much can you earn by renting out an apartment?

Let's take a look at the table, which clearly demonstrates rental income:

Apartment options Apartment cost Rental income per month, in rubles Rental income per year, in rubles
Room 800 000 7 000 84 000
1 room apartment 1 900 000 14 000 168 000
2-room apartment 2 700 000 18 000 216 000
3-room apartment 3 500 000 22 000 264 000

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

Apartment options Rent and utility bills per year, in rubles Tax (13% of rent) Redecorating Insurance Total expenses per year
Room 24 000 10 920 6 000 3 200 44 120
1 room apartment 30 000 21 840 12 000 7 600 71 440
2-room apartment 42 000 28 080 24 000 10 800 104 800
3-room apartment 60 000 34 320 36 000 14 000 144 320

The profitability and payback period are affected by the size of the initial investment in real estate, repairs, as well as distance from transport hubs. The payback period for apartments purchased with your 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 per month.

Apartment options Cost of the apartment, in rubles Net income, in rubles Income in %
Room 800 000 39 880 4,98%
1 room apartment 1 900 000 96 560 5,08%
2-room apartment 2 700 000 111 120 3,88%
3-room apartment 3 500 000 119 680 3,42%

Place matters

Tenants, and especially foreigners, are not interested in the historical location of the apartment, but in good transport links and the availability of the necessary services. If you don’t have the funds to buy an apartment in Moscow, then you can start buying an apartment in the Moscow region. The rental income from such an apartment will be 10-15% lower than in the capital, but 50% less money will be spent on purchasing the apartment.

The price of an apartment and, accordingly, the cost of rent for housing located near metro stations and railway stations. It is worth monitoring the construction of new metro lines and purchasing apartments there for rent. In Moscow, apartments in areas outside the Moscow Ring Road, where the metro arrives, are rising sharply in price. For example, in Mytishchi, the cost of buying and renting housing has increased by 30%.

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

New building or secondary construction - what to choose?

When purchasing housing for subsequent rental, you need to consider two things: how long it will take to pay back the investment, and how much the housing will cost in the future. If you put the issue of return on funds to the fore, then you need to buy housing that is old.

Most of the offers on the apartment market 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 newly built houses and apartments filled with modern furniture and appliances.

Apartments in a new building are more expensive, so their payback period 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, 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, you have purchased an apartment and you have decided to renovate it. One of the main mistakes landlords make is to renovate an economy-class apartment with a business-class renovation. Believe me, tenants will not appreciate this, and you will spend quite a lot of money. Business class apartments are another matter; they must be equipped with expensive furniture and designer renovations must be carried out here.

Apartments for daily rent

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

Of course, this business, like any other, has its negative aspects; the apartment may remain idle for some time. But during the autumn-spring period, and especially on holidays, middle-class real estate is 100% occupied, and the rental price on these days doubles.

What documents are needed to rent out an apartment?

After purchasing a home and carrying out renovation work, the apartment must be insured. We draw up a full insurance contract: we insure the walls, interior decoration, property located in the apartment, and, of course, civil liability (arson and fires due to the fault of the 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, valued at 7.5 million rubles, the insurance payment will be 15 thousand rubles.

If you rent out an apartment yourself, you must:

  1. Obtain consent from all its owners and registered persons to rent out the apartment.
  2. Place an ad and start looking for a tenant.
  3. The agreement must be 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 rent will be paid monthly or quarterly;
  • who will pay utility bills (electricity, water, etc.);
  • rules for using electrical appliances;
  • when the landlord can visit the apartment, etc.

Those who appreciate time can contact a law firm to draw up a lease agreement; this service will cost you 2 thousand rubles.

  1. Draw up an act of transferring the apartment, which indicates all the defects at the time of 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 out the apartment, an extract from the personal account or house register, a social tenancy agreement. The cost of the center staff service will cost you 1,600 rubles. After registration, the agreement will be registered with the State Unitary Enterprise.

So, in this article we tried to highlight all the pros and cons of renting out 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 occurs in a few years, but the project reliable and liquid, since no matter what the rent and rental demand are, you still have a liquid asset that you can use for your own purposes or sell it.

Some citizens consider renting out apartments as a source of income. For some it is more profitable to let tenants in for a long time and receive regular payments, while for others it is more profitable to rent them out on a daily basis for temporary use. The second option often brings more income and it is much easier to stop such a business. How easy is it really?

Options for starting a daily business

Any business relies on start-up capital. Therefore, you must first have a free apartment that will generate profit. You can start a business in one of the following ways:

  1. Own housing, located in the central area, rent out by the day, and then move to a cheaper one on the outskirts of the city. This option is a win-win, since you can stop the business at any time and return back.
  2. Buy an apartment with a mortgage and rent it out daily. This option will allow you to earn money on the loan fee and, under good circumstances, receive additional profit.
  3. Design long-term rental apartments from the owner and rent them out daily. To do this, you need to stipulate in the lease agreement the possibility of sublease, i.e. obtain the owner's consent. But then it is necessary to carefully calculate the economic benefits so that the workload and the income generated allow the monthly rent payment to be covered.

How to open a short-term apartment rental business?

The most popular way to provide daily housing is considered the third option in large cities and their central regions. At its core, daily rental of an apartment is equivalent to hotel conditions. Therefore, it is popular among tourists who do not want to stay in the city at the obviously overpriced hotels.

For the landlord, this option is beneficial in that the daily fee ultimately exceeds 2-3 times what is charged to residents renting an apartment for long term. It is quite simple to implement such a business; all you need to do is have free living space and place an ad on popular real estate resources.

How profitable a business will be is influenced by the following factors:

1. Location of housing (most tourists prefer central areas or houses located close to transport stops and metro stations);

2. Comfort level:

  • good repair;
  • clean, working plumbing;
  • electrical appliances (TV, washing machine, microwave, electric kettle);
  • air conditioner;
  • often ask about the availability of a double bed;
  • a sofa that can be folded out (this is convenient if a company or family comes over),
  • closet;
  • dishes;
  • The availability of wi-fi is an important factor when renting housing today.

Which apartments are in great demand?

The profitability of a business directly depends on demand. Therefore, it is important to avoid downtime if you want to get more benefits. Therefore, the apartment should be attractive to that category of clients who are willing to rent it daily.

  1. Pay attention to the statistics on the popularity of housing depending on the number of rooms. The most popular are one-room apartments, followed by two-room apartments. A larger number and area may only be of interest to groups of students and out-of-town workers. But these are isolated options that will not be given up often.
  2. Check out the price component of daily rentals:
  • The most willing to rent apartments are in the middle range (1500 - 3500 rubles per day), where there is a decent renovation, normal furniture, plumbing and household appliances.
  • Business-level housing (3,500 - 6,500 rubles per day) is no less popular today. It can be located in central areas, near large office centers or universities. Convenient transport links and proximity to attractions are exactly what tourists need.
  • Luxury apartments (from 6,500 rubles per day), which approximately 15% of tenants can afford.
  • And the rating is completed by economy apartments (up to 1,500 rubles per day), they are chosen by no more than 10% of citizens, since such housing does not have sufficient comfort.

How can an entrepreneur negotiate a sublease with an apartment owner?

When planning a business for daily subletting of an apartment, you need to know that this fact should not be hidden from the apartment owner. It is important to present this information to him correctly in order to convince him that there is nothing wrong with it. How to do it?

  1. You should come to the meeting in a decent manner (neat, in good clothes), otherwise the owner is unlikely to be able to trust you. Communication should be calm and cultural.
  2. You shouldn’t say that the apartment will be rented daily; these words scare the owners; it’s better to say about subletting.
  3. Come up with a legend that people will live in the apartment different people. For example, you are relocating guests in our city. Various people come on business trips, to forums and exhibitions, and your company provides accommodation for these guests. You can also add that you have signed agreements with large companies and their employees also come to our city and need to be accommodated.
  4. It is important for the owner that the person moves in for a long period of time, that the apartment remains in good condition and that he pays on time. It is important to put yourself in the shoes of the apartment owner and present based on these points.
  5. Next, you need to emphasize all the advantages of renting an apartment daily from the disadvantages of a married couple or student friends who will rent a house. Explain to the owner:
Pros of daily rentDisadvantages of renting a married couple, etc.
Conducted general cleaning once every 5 days, the apartment is maintained in proper condition (cleaning is done after each person)Cleaning is rarely done here, general cleaning is not carried out at all.
The apartment is not heavily depreciated (adhesive wallpaper, buy or repair equipment if it breaks), there is a service departmentIt is heavily depreciated: children draw on wallpaper, animals damage furniture. You'll have to pay money for damaging property.
Rent payment is paid on time, same day, to a card, to a current account or in cash, without delays.There may be constant delays due to various situations: wages were delayed or laid off, etc.
Renting an apartment for a long time with signing a long-term contract for 11 months with extensionVarious unforeseen circumstances: fired - moved to a cheaper place, or students quarreled - moved out.

Tell us about the costs and loss of time when people move out, what is needed again:

  • give advertisements;
  • call real estate agencies;
  • show ride apartment;
  • pay a percentage to realtors;
  • you lose profit due to the apartment being idle.

Step-by-step instructions for starting a daily apartment rental business

To start a business, an entrepreneur will need about 25,000 rubles of initial capital: 15,000 (rent) + 5,000 (purchase of necessary things: pillows, bed linen, etc.) + 5,000 (advertising). Possibly less depending on the region.

Follow simple rules:

  1. Find an apartment in good area city, which will most likely be in demand for daily rentals. At the same time, focus on such categories of clients as tourists, business travelers, students, etc.
  2. It is advisable to find an apartment with good repairs, furniture and appliances. If something is missing, you will have to buy more - creating comfortable conditions for customers.
  3. Agree with the owner of the apartment to re-let it to other tenants; the contract must include a sublease clause.
  4. Take high-quality photos of apartments with a wide-format lens, so they will look bigger and more beautiful.
  5. First, submit an ad on the Avito website, describing the advantages of the property as much as possible. Next, you can additionally advertise on online platforms:
  • Booking;
  • Airbnb;
  • Ostrovok.

Moderation of advertisements takes about 2 weeks.

Lifehack: Make the bed yourself with clean linens, thereby increasing service. Some competitors have customers make their own beds.

At the initial stage, one person will be required for cleaning and washing. After 2 apartments work successfully for you, you can think about an individual entrepreneur to serve corporate clients and enter into contracts with large companies.

After expanding your business to 5 apartments or more, you will need a management system - OtelMS. Where it is convenient to monitor the eviction and check-in of clients. Its cost is 2,500 rubles per year for 7 apartments.

And if there is no initial capital, what then? How to start a business on daily rental apartments, no money? Watch the video and find out how you can earn extra money in a really working way.

What documents are required to rent out an apartment?

To formalize the contract, the landlord (lessor) will need the following documents:

  • an extract from the Unified State Register confirming the right to own the apartment;
  • basis for the emergence of the right: transaction agreement, deed of gift, certificate of inheritance, etc.;
  • notarized consent from the property owner;
  • long-term lease agreement and consent of the owner if the apartment is rented out on a sublease basis.
  • for business travelers - cash receipt order in form KO-1.

On the part of the employer (tenant), it is necessary to provide the original and a copy of the passport (pages with photo and registration).

Professional lawyers will help you draw up a legally competent contract - contact a legal consultant.

Contract clauses

Even daily rent must be documented. This is the only way both parties to the transaction can protect themselves. Therefore, it is very important to comply with all legal nuances and to prepare the text, you can contact a competent legal consultant.

The main points of the contract must include:

  • complete and exact description subject of the contract (housing for rent);
  • a certain period of residence;
  • the amount of rent per day and for the entire period;
  • check-in procedure indicating the exact time and check-out from the premises;
  • the rights and obligations of the parties, where all aspects of maintaining order, paying fees and other issues should be specified;
  • liability in case of damage to property, as well as the possibility of applying a fine for late payment;
  • full details of the parties indicating full names, passport details, contact numbers.

It is permissible to introduce additional conditions that do not contradict the law. For example, the landlord has the right to establish the procedure for collection and the amount of compensation in case of unforeseen situations (for example, residents flooded their neighbors below).

Official registration of apartment rental activities

The legislation does not prohibit deriving income from renting out an apartment to an individual without registering as an individual entrepreneur. However, citizens are required to pay tax on any income.

If daily rental of housing becomes your permanent business, it would be good to formalize it. Especially when it comes to several real estate properties. For individual entrepreneurs, the advantage will be the opportunity not only to work legally, but also to count the period of activity into the insurance period through the annual payment of insurance contributions to the Pension Fund.

What taxes do you need to pay?

The daily housing rental market is mostly shadow. Citizens receiving income are in no hurry to pay taxes on it. Those who plan to legalize their business should know its size.

1. For individuals— Personal income tax in the amount of 13% on the amount of income received:

  • submit an income statement by April 30, 2019.
  • pay the tax by July 15, 2019.

Example. Let's consider a situation where a citizen rented out an apartment for 2,000 rubles during 2018. per day. As a result, his annual income amounted to 480 thousand rubles, on which he must pay personal income tax in the amount of:

480,000 × 13% = 62,400 rubles.

1. For an individual entrepreneur— it is mandatory to select a taxation system according to which the tax amount will be calculated. This can be only income taxed at a rate of 6%, or income minus expenses at a rate of 15%.

Additionally, for individual entrepreneurs there are mandatory insurance payments to the Pension Fund and Social Insurance Fund, the amount of which does not depend on whether they made a profit in the current year -.

What happens for non-payment of taxes?

Illegal business can cause trouble with the law. You can benefit from this type of business for years and not know any problems, or you can suddenly become involved in a criminal case.

If the tax authorities become aware that you are running your own business and do not pay taxes, then administrative liability will inevitably be imposed in the form of collection of the principal amount of the debt + penalties for the debt and fines.

The worst case scenario would be the initiation of a criminal case under Article 198 of the Criminal Code “Evasion individual from paying taxes, fees and (or) an individual paying insurance premiums from paying insurance premiums,” which threatens with a fine of 100 to 300 thousand rubles or imprisonment for up to one year.

Pitfalls when renting apartments by the day

Any business is not without risks. Let's mention a few of them:

1. Safety of property (the apartment itself and everything in it):

  • draw up a competent contract;
  • Once you get promoted, register yourself as an individual entrepreneur, it will be easier to defend your interests in court.

When renting out housing, ask your tenants for a copy of your passport and check it with the original or take a photo of your passport;

2. Problems with neighbors. Try to establish relationships with them, as temporary residents can be quite noisy and this will lead to conflicts. Talk to your neighbors to see how much they are against your plans to rent out the apartment. If peace and quiet is important to them, try to keep tenants away during the holidays;

3. The need to regularly clean after each tenant, wash clothes, and also be ready to adapt to the client’s desire to move in or out even at night.

Mistakes in the daily rental business

We list the most common mistakes:

  1. The apartment is located in an area without demand for daily rent. To do this, you should first analyze the places with maximum demand (this can be done by placing an ad on Avito in the area where you want to rent an apartment and see how many calls there will be).
  2. They recruit a lot of apartments for rent, but in the end it turns out that they do not have the flow of clients as much as we would like. For example, a businessman subleased 2 apartments and saw that there was demand for them. He decided to expand to 5, but demand remained the same. As a result, only 1-2 apartments are occupied, the rest are standing. Therefore, it is necessary to first have a sufficient client base, only then expand.
  3. No attention is paid to marketing. Ads must be placed on all the most popular Internet sites.
  4. No attention is paid to service. The advertisement must be accompanied beautiful photos, the guest needs to be met, told where everything is, and the infrastructure nearby.
  5. The contract with the guest is not signed. The contract must be signed with each guest. There must also be an agreement with the owner, where there is a sublease clause.
  6. Does not have partnerships with colleagues. In every big city There are chats and communities of daily wage earners. Such chats help, if there is a high demand for housing and its actual absence at the moment, it is possible to agree with another colleague about accommodating guests in an apartment that may be available to him. In this case, you can agree with a colleague on a small commission.

Running a short-term rental business is profitable, especially when there are several available apartments. It is important to place the right emphasis on their location and advertising.

Owners of vacant real estate often consider a daily apartment rental business. In this area, it is important not only to find a unique way to attract clients, but also to take care of the legal features that will ensure the legality of the activity and preserve the property.

Renting out an apartment for daily rent is a very profitable business. There may be two options for implementing the proposal:

  • Renting out the full area of ​​the apartment;
  • Partial rental (for example, in a two-room apartment, only one room will be rented, and the second one will be locked).

In practice, the following types of proposals exist:

  • Directly from the owner of the property (the apartment belongs to the person who sells it for business);
  • Sublease (the person offering daily rental is itself its tenant and in this way pays off rental obligations in full or in part).

It is important to take into account the fact that when subleasing, permission from the owner of the property is required, since the circle of responsible persons increases and, in the event of a controversial situation, it becomes more difficult to find the culprit.

The amount of income for daily rentals directly depends on the location of the property. The most profitable options are:

  • Apartments located near resort areas;
  • In areas with a large number of students (“student towns”, near universities, colleges);
  • Apartments in big cities(the constant flow of tourists and city guests creates a need for comfortable housing that will provide home comfort).

Pros and cons of renting an apartment daily

Advantages of daily housing rental:

  • The income received is higher than when renting for a long time;
  • Good demand for supply;
  • No need to hire staff;
  • The business can be suspended at any time, at the request of the owner.

Disadvantages of the daily apartment rental business:

  • In order for housing maintenance costs to be covered and a net profit to remain, the apartment must be located in an active part of the city;
  • Options with good repairs and the full amount of necessary equipment, furniture and other things are more in demand (this requires significant investment);
  • Thorough cleaning is required after each guest;
  • There may be advertising costs to maintain the flow of customers;
  • There is a high probability of encountering scammers or robbers.

Step-by-step instructions for renting housing

  • Conduct an analysis of similar offers on the market (read information on the Internet, print media, or call real estate agencies and find out the average price);
  • Determine the optimal cost per day (it will be based on the general condition of the housing and the area in which it is located);
  • Prepare the apartment for rent (if possible, carry out repairs, equip it with appliances, kitchen utensils, textiles);
  • Submit an advertisement or seek help from a realtor;
  • Prepare a lease agreement;

Business income and expenses

Renting out an apartment on a daily basis brings not only profit, which is generated by receiving rental payments, but also entails some costs. These include:

Business legalization and taxation

Any activity that generates periodic income must be registered or reflected in the declaration in order for state taxation to be formed correctly.

At the legislative level, in relation to daily rentals, there are several ways to legally conduct business:

  1. Registration in the form of an individual entrepreneur;
  2. Registration of a patent;
  3. Carrying out activities without registration and submitting personal income tax reports.

When assigning the status of an individual entrepreneur, there is an obvious advantage - a simplified taxation system. The Tax Code sets a rate of 6% of the amount of annual income, and the amount of insurance premiums is also subject to payment.

To register as an individual entrepreneur you must:

When choosing a patent, taxation is carried out as follows:

  • The cost of the patent is payable (patent costs = potential profit * 0.6%);
  • An amount equal to 50% of the insurance premiums is paid.

If there is no question of registration, then the tax is payable as personal income tax. In this case, it is important to consider the following points:

  • A tax of 13% of the total profit is subject to annual payment;
  • Reporting is submitted according to Form 3 Personal Income Tax (by April 30);
  • It is likely that the tax rate will increase for entities whose income exceeds 30 thousand rubles.

Responsibility for shadow business

Most tenants prefer to shelter such businesses from paying taxes. Today, representatives of the tax service have organized activities to identify such tenants. Information may come from:

  1. from disgruntled neighbors on the landing;
  2. through personal actions of tax officials (renting housing under the guise of a tourist or city guest);
  3. message from other government bodies and officials (according to the district police officer who arrived at the apartment after the tenants violated the order of silence).

If tax evasion is discovered, the lessor will be held liable in the form of a fine and a requirement to conduct tax reporting. Failure to comply with these sanctions or periodic violation of the rules may result in criminal prosecution.

As an appendix to the contract, you can draw up an inventory of all the property located in the apartment, indicating its value. Before the tenant begins to live in the apartment, he can be given a transfer and acceptance certificate for signing, by signing which he will indicate his consent to the presence of all the agreed upon property in the apartment, agreement to its approximate value and condition.

Basics of a successful rental business

The market for daily rental housing is literally overcrowded, which can affect consumer demand. To quickly achieve net profit and form a permanent customer base, you need to show entrepreneurial spirit and activity, and also take into account some tips:

How to equip the room

For comfortable stay in the apartment, it should have some furniture and equipment. Among them:

  • Refrigerator or cold room;
  • Washing machine;
  • TV;
  • Electric kettle;
  • Sleeping places (bed, sofa, sofa);
  • Electric stove;
  • Microwave;
  • Table and chairs for eating;
  • Ironing board;
  • Iron;
  • Free Internet access;
  • Set of cutlery and dishes;
  • Textile accessories (bed linen, towels, curtains and drapes, pillows, blankets, rugs, etc.).

In some cases, landlords even provide hygiene products in the apartment (disposable shampoos, soap, toothbrushes, slippers).

Search for clients

There are several ways to find potential clients. Among them:

  • Seeking help from a realtor;
  • Transfer of real estate into trust management of a real estate agency;
  • Independent search.

The services of a realtor or real estate agency for trust management can be based on either a fixed rate or as a percentage. Both options have significant advantages:

  1. The landlord does not need to make any effort;
  2. The relationship with the tenant will be formalized through an agreement;
  3. The realtor and real estate agency are responsible for the tenant's trustworthiness.

When searching for clients on your own, you can leave an ad:

  1. In periodicals;
  2. IN in social networks and on specialized websites (Avito, Sutochno, Yurenta, Domofond, Kvartirka).

Renting an apartment daily as a business is very profitable and quite simple to organize. To attract maximum profit, it is necessary to create living conditions in the apartment that are comfortable and profitable for the client. For regular visitors, they often use a system of discounts or flexible payment for services.

When checking in, each new guest must comply with the legal formalities associated with formalizing the relationship through an agreement. In addition to the essential conditions, the agreement should indicate the client’s possible costs for damage to property.

Daily rental of apartments as a business is a good additional income, but it also has its pitfalls. In order to save not only your money, but also your rental property, you need to have a clear understanding of where to start a business, what risks may exist, and for what group these services are suitable.

Where to start a business

Before you start building a business renting apartments, you need to find out the following points:

  1. Is there any living space available that can be rented out daily? If you own an apartment, then you need to be prepared for the fact that strangers will live in it and could cause damage to the property.
  2. You can rent an apartment and rent it out to others. Such a business will be considered a sublease of apartments. There are no additional risks and costs in this option; at first, you can immediately find out whether you will be able to build a business or not.

To start developing a business in daily rental apartments, you should draw up a rough business plan that will help you build a clear idea of ​​where to start. This document defines the following points:

  1. Find out which apartment will be rented - your own or rented.
  2. Carry out cosmetic repairs if necessary.
  3. Furnish the living area with furniture.
  4. Stock up on sets of replacement bed linen and towels.
  5. Decide to which category of citizens the premises will be rented (for example, only to married couples or citizens on a business trip).
  6. To submit an advertisement for daily rent of an apartment, you need to take good photographs and write down a description of the living space.
  7. The finished advertisement should be submitted to newspapers, the Internet, or you can create your own website or page on social networks.

Features and possible problems

When you decide to build a business renting out apartments by the day, you should understand that certain risks may arise.

In practice, there has not yet been a court hearing of cases where a person who organized an apartment rental business and was not registered as an individual entrepreneur would be brought as a defendant.

What are the advantages of registering a business through an individual entrepreneur:

  1. In the event of conflict situations, it can be proven that all actions were carried out legally.
  2. Registration as an individual entrepreneur disciplines the maintenance of documentary records, which means that all papers, from contracts to checks, will be executed properly.

It follows from this that any claims against guests will be documented. This will be a definite plus in court if the conflict comes to trial.

What is the profit?

Based on expenses, you should focus on the approximate cost of rent. It must be taken into account that it must cover expenses and leave something for the business organizer to live on.

The average rental cost ranges from 600 rubles per night to 1,500 rubles per day. It all depends on the condition of the housing and in what area it is located.

In this regard, it’s worth immediately calculating how many people need to rent an apartment per month in order to get a decent income. It’s good if the apartment is located in a large city that is in demand among business travelers, then there is a chance of making good money. Renting residential premises of several apartments at once will bring more profit. Then on average you can earn from 50 to 70 thousand rubles per month.

Do not forget that competitors in this business are hotels and hostels offering their services at reasonable prices.

Daily rental of apartments: Video

Daily rental of apartments is increasingly gaining popularity among landlords. This is due to the increased profitability compared to long-term rental housing. Service popular with business travelers, part-time students, tourists, couples with children, for whom a hotel may not be affordable, and a hostel may be unacceptable for a number of reasons.

Let's look at the details of this business one by one.

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Property options for rent

The most common option is renting out vacant housing. For example, relatives leave a free living space. If you have neither the desire nor the opportunity to sell it, organizing your own business and renting it profitably is not a bad idea.

A profitable investment of free capital would be the purchase of a separate apartment, specifically for the purpose of further renting out.

If you want to learn how to bargain correctly when buying an apartment, then it will be useful to you. Sublease – re-letting of the lessor's property