home General issues Rental pitfalls that can sink your business. Business idea - making money by renting housing What you can rent out a business

Rental pitfalls that can sink your business. Business idea - making money by renting housing What you can rent out a business

The rental business has been and remains popular for many years, since many people do not have the opportunity to purchase housing, and companies seek to reduce the level of one-time investments in development activities. The range of properties that can be rented is constantly growing: this moment You can even rent out such things as roller skates, skis, etc. - everything that is not in constant demand, but is an object of seasonal use.

However, the most common option is still renting a property. In order to receive a certain income from the provision of a particular premises for rent, it is necessary to take into account a number of nuances that will be discussed in this article.

It is necessary to understand that real estate is usually classified into 3 groups – land, housing and non-residential premises . The most common types of services in this market are the provision of rental housing and non-residential premises.

Among non-residential properties, commercial real estate is usually rented. At the same time, all reputable analytical agencies identify the following types of it:

office rooms;
trading;
warehouse;
industrial.

In addition, some organizations rent a separate type of premises - the category “for special purposes”. Here buildings are allocated for kindergartens, schools, hospitals, churches, etc.

In addition to real estate, you can rent out land, gazebos, equipment, cars, special equipment, inventory and much more. However, this is a rarer and more complex form of business.

What's the best deal?

If we talk about residential real estate, the average cost of a one-room apartment 10-15 minutes from the metro in residential area in Moscow it will cost 5-6.5 million rubles. At the same time, the average rental rate for such rooms is about 25-30 thousand rubles. As a result, when calculating, it can be obtained that the minimum payback period for a one-room apartment will be about 15 years.

Accordingly, this option cannot be called very profitable from an investment point of view: the only case in which this can really pay off is when the housing is inherited.

If we talk about office premises, they are somewhat more expensive than residential ones, since their location should be in more accessible places, and their area is larger. In Moscow, a small office space will cost 6.5-7.5 million rubles, provided that the area is about 60-70 square meters. At the same time, the rental rate is in this case will be counted as 1 square meter.

According to the Knight Frank agency, at the end of 2015 the rental rate for class A offices was about 25 thousand rubles, and for class B office premises - about 15 thousand rubles per year. Accordingly, the maximum payback period will be about 8 years.

Retail premises are even more profitable to rent out than office premises - their payback period is 5-6 years. But there is an important limitation: for such real estate, location is one of the key factors. The premises should be located in a central area, in an area with high traffic levels. Finally, it must be well executed.

In general, commercial real estate is inferior to residential real estate in only one parameter: the level of risk, since it depends on the economic situation in the country and a particular city.

To learn where to start and how to develop such activities, watch the following video:

How to organize such a business from scratch?

First of all, you need to find a suitable premises for rent. In the case of inheriting living space, the procedure will begin with the preparation of documents confirming that the entrepreneur is the owner of the property.
In a situation of searching for a ready-made premises, it is best to turn to the services of professional agencies who will help assess the real cost of housing or commercial real estate: an inexperienced businessman can easily miscalculate.
Next you need to fill out necessary documentation on property. If this is commercial real estate and it is planned to rent it out to special organizations (for example, those working in the field of Catering), you must take care of obtaining additional permits and opinions from some services.
After completing the initial documentation, it is necessary to carry out redevelopment and repairs: in the case of residential real estate, it is important to purchase a certain set of furniture and household appliances, since apartments in which you can live immediately after moving in can be offered at a higher cost. In case of commercial real estate It is important to focus on increasing free space and the possibility of subsequent redevelopment to suit the client’s needs.

IN Russian practice Many people rent out residential real estate without concluding a contract - this allows them to get rid of the personal income tax of 13% and reduce the payback period. However, this is associated with certain risks - in particular, those associated with the unreliability of clients. Therefore, both in the case of non-residential and residential real estate, it is necessary to formalize the relationship with the tenant.

Where to look for clients?

Finding clients through standard advertising options (placing ads in public places or print media) is not effective within the framework of rental business. Advertising can be carried out through social media(this is especially true for the situation of renting out residential real estate) – here the “word of mouth” effect will work.

In addition, posting on thematic sites and forums is suitable. For retail premises, especially those located in shopping centers, it is possible to post a “for rent” ad with the owner’s phone number. This will expand the circle of potential customers to all visitors to the shopping center.

Finally, there are 2 more fairly effective ways to find clients - maintaining a thematic website or blog with unobtrusive advertising of services as a landlord, as well as distributing brochures and business cards.

Necessary costs

If an entrepreneur is going to engage in such a business, he must understand that among the main cost items it is necessary to include redevelopment costs: in this case, clients are ready to enter into rental agreements at much higher rates (the difference can be up to one and a half times). This happens because after redevelopment, the percentage of usable area most often increases, in addition, the room can be changed to suit your own needs.

Among the costs it is also necessary to highlight:

Expenses for construction or acquisition of premises.
The cost of services of a specialist who can estimate the market price of real estate.
Expenses for maintenance and security of the premises.
Costs for electricity, water supply, etc.

Underwater rocks

One of the pitfalls is determining the optimal investment of money. Often, inexperienced entrepreneurs incorrectly assess the value of a particular premises, thereby investing in illiquid objects, losing a large number of funds.

In addition, it is important to pay attention to the legality of the business, changes in legislation and the process of paperwork (primarily this applies to commercial real estate).

Please note that tax legislation in the rental business is constantly changing.

When calculating costs and the level of payback, it is necessary to determine several development options - optimistic, most realistic and pessimistic in order to determine the approximate payback period of the object, as well as the fact of how to diversify risks. It is imperative to have other sources of income in order to insure yourself against a situation of lack of money.

Pros and cons of this area

This type of business, like others, has a number of advantages and disadvantages that arise from its characteristics. Among the disadvantages, the main one can be highlighted - the search for a tenant can take many months (primarily this applies to industrial facilities and retail real estate in impassable places). As a result, even a high rental price will not be able to compensate for the financial costs that the lessor will have to bear during the entire period of downtime.

Also among the disadvantages are:

a fairly long payback period;
not very high level of profitability;
high level of initial costs.

In this situation, the only rational option is to purchase liquid property (one for which there is always a certain level of demand). To do this, it is important to have a good understanding of this area or seek the services of a specialist.

Among the advantages of business are:

long-term contracts for a period of one year or more;
stable level of profit;
the income will be received by the lessor constantly;
passive nature of making a profit (the landlord does not need to expend any effort after signing an agreement with the tenant);
the possibility of organizing a business without registering as a legal entity.

Thus, the rental business is quite an attractive area for earning money. However, it is best to combine it with other sources of income in order to insure yourself against possible risks.

There is a room. What business to open? Most businesses, regardless of their size, require specific premises to provide their services or produce their products. Any premises in good condition are suitable for running a business - be it a garage, hangar, basement, Vacation home, apartment or something else. This article takes a closer look at running an apartment and basement rental business.

In order to start your own business, you will need to purchase an apartment or a basement, which will already become a fairly large investment. Do not forget that purchasing real estate is one of the best views investment instruments and that is why the cost of ready-made apartments is quite high. The best options for purchasing would be real estate at the initial stage of construction. At this point, the real estate will save from 20 to 40% of the cost in the future.

Purchase and registration of real estate

Of course, the most popular option for opening an office remains business centers, whose infrastructure is entirely aimed at optimizing the work process. However, the cost of premises in such centers is quite high and many medium and small businesses cannot afford such acquisitions.

The second most popular option is renting premises on the ground floors of residential buildings and the so-called street-retail (premises on the ground floors with a separate entrance and their own showcases). Former utility premises are also in high demand. Very often you can find various businesses in the basement. Often these are grocery stores, cafes and restaurants, beauty salons and small household appliance stores.

When considering the option of opening a business for renting premises, you should familiarize yourself with the demand and supply of the real estate rental and sales market, the infrastructure of the area in which the planned purchase is located and the “traffic rate” (approx. the coefficient shows a value based on the number of people visiting the adjacent territory over a certain period of time).

Buying real estate involves manipulating large sums of money, and such transactions are often targeted by scammers.

You must buy real estate either from a trusted person (relatives, friends or colleagues), or from agencies (the least profitable option), or with the participation of a realtor (in this case, you will have to pay for his services in the amount of a certain percentage of the purchase amount). To protect yourself when purchasing, you should carefully read all documents and become thoroughly familiar with the seller himself. Safety in such a business should come first. After purchasing real estate, you should register it so that you can rent it out on a commercial basis.

The final stage of preparation will be the renovation of the premises. Rich filling is not required, since many companies redesign the premises to their liking. It should be taken into account that the transformation ordinary apartment on the ground floor in a street-retail class premises will require documentary evidence, since the installation of a street door or large display windows will affect the integrity of the building.

Renting out premises

Almost any room in the street-retail category is suitable for the central part of the city. Such premises are gladly rented by various shops or restaurants. In residential areas, apartments on the first floors do not have an established list of tenant companies, which is why the demand here is even lower central regions, but remains at a decent level.

From time immemorial, advertising has been the engine of business. To find clients for your real estate, one of the best ways there will be active advertising. Placing advertisements on Internet resources or in newspapers, placing an advertising sign on the building in which the premises are located, or submitting information about your services to target agencies (although in this case there is a chance that you will have to share a percentage of the income).

The amount of rental income depends on the premises and its location. For example, from a small two-room apartment in the center of Moscow you can get from 100,000 rubles per month. According to statistics, most rental apartments pay for themselves in about eight years. When buying an apartment on credit, monthly payments will be almost the same amount as income, which will allow you to own an apartment with virtually no costs.

Daily rental

Daily rental of apartments as a business arose not so long ago. The main difference from regular rentals is a more frequent change of clients, which will ultimately require greater advertising activity. Initially, daily renting was not considered as a type of business and was exclusively a way to earn money periodically.

Nowadays, renting out your own housing stock is one of the most simple way receive funds commercially without much effort. Long term rental gives constant income, but in this case the level of profitability is lost. Daily rent will give a good daily profit, but there are a lot of worries with the constant search for clients and more time spent on arranging short-term rentals.

The second most popular way to make a profit from a business based on renting premises is the targeted purchase of real estate for subsequent rental. The process of purchasing, registering and searching for clients is almost identical to the acquisition of premises for conducting commercial activities with other entrepreneurs and companies. However, in this case, you will need an apartment in a prosperous area, with good infrastructure and within walking distance from public transport. All this will have a positive effect on the amount of profit generated.

The third option for creating a rental business is the so-called subleasing. In essence, the entrepreneur will become an intermediary between two links - the landlord and the clients. This method is suitable for those who do not have enough funds to purchase real estate and do not have their own. The essence of the process is to register housing in long-term rental and subsequent retake on a daily basis. In this way it is possible to “beat off” rental payments in the first ten days. The income for the remaining twenty days will become the entrepreneur’s net profit.

Organization of the process

In addition to the availability of real estate, several aspects will need to be taken into account. Firstly, any commercial activity requires mandatory registration with the tax authorities Russian Federation. When registering an enterprise, two types are suitable legal forms– individual entrepreneurship and limited liability company.

Secondly, documentary registration of real estate for the possibility of conducting commercial activities. If we are talking about sublease, then all agreements with the owner of the apartment should be notarized and all points should be taken into account - cost, terms, possibility of re-letting, etc. Any show Money It is better to do it in the presence of a notary.

Third - arrangement of living space (minor repairs, purchase of consumables, furniture, etc.) and start of an advertising campaign. Advertising should be maximized - active work with newspapers, Internet resources and third parties. Third parties can be understood as various legal and individuals, through which information about services is disseminated (for example: placing business cards and booklets at train stations or transport agencies).

The business of renting apartments by the day is quite a difficult task in terms of the time spent.

A large number of clients will require a lot of attention and caution. In order not to make mistakes and not miss payment deadlines, you should sign an agreement with each new client. The keys to the rental property are handed over after signing. Upon completion of the contract, the apartment should be inspected for damage or theft of property.

Any enterprise is created in order to bring profit to its owner. And a higher level of profitability will only be available if the entrepreneur is interested in its development and modernization. There are two ways to increase profits - updating the housing stock (purchase of modern household appliances, repairs, improving apartment infrastructure, etc.) and purchasing additional real estate. In the first method, an increase in amenities will cause an increase in rental costs, but the number of clients may decrease due to the high cost. The second method is guaranteed to increase profits, but will also add more work.

Developing a client base

The best client is a regular client. The apartment rental business confirms this rule like no other. The constancy of the client base will reduce the time spent on rent registration and downtime.

The first thing you need to pay attention to when selecting clients is the condition of the proposed premises. If the stated characteristics do not correspond to reality, the entrepreneur will most likely lose the client.

Under no circumstances should you lose communication capabilities. Daily rental of apartments as a business is quite dynamic and clients should be given the opportunity to contact them at almost any time. Timely provision of information and the ability to book premises in advance will play a positive role in the growth of business reputation.

If the business is not limited to one or a couple of apartments, it makes sense to sign up for a client program.

Various promotions, such as free transfer, 2+1 or discount periods will give an increase in customers, as well as increase the number of regular tenants.

Short-term rentals are popular among those who come to the city for short periods. From this we can conclude that the client may be new to the city. This is another plus for an entrepreneur. The release of your own products, which include a logo, contact information and price list, will be a good step in developing a customer base. All this can be combined with necessary things in an unfamiliar city - printing information on city transport maps, calendars, etc.

One of the most popular topics on business forums is daily apartment rentals. This could be an empty granny flat, a house taken on a mortgage, or simply a desire to rent cheaper and sublet at a higher price. As a rule, young people who do not have serious funds to start another business are interested in this topic. Indeed, there is no need for large investments here. But is it so easy to build your own? hotel business? IQR studied the issue.

How to make money on short-term rentals?

Where can I find an apartment for daily rent?

So, initially there is no free apartment. Where can I get it? You have few options:

rent someone’s apartment on a monthly basis and sublet it on a daily basis;
take out a mortgage;
make an object out of your apartment, renting a cheaper one on the outskirts.

This is exactly what Dmitry Filimonov does, who built a business in this area from scratch. He is still far from even thirty. Dmitry came to Yekaterinburg several years ago, got a job from scratch and spent a year gaining experience. Then he took out the first apartment on a mortgage, already knowing that he would rent it out on a daily basis, and he continued to live in the rented apartment. Today he has 3 apartments with a mortgage, from which he has made a mini-hotel chain. The income ranges from 180 to 400 thousand rubles per month, which allows him to freely pay the mortgage, and in a few years he will own a lot of real estate without being encumbered with collateral.

Where to start your rental business?

First you need to thoroughly know the rental market of the selected area. You need to ring up advertisements, walk around apartments, write down prices and understand what they offer. It is better to tell the owner openly that you are looking for an apartment to sublet to avoid problems in the future. Not everyone will agree, but many will be interested, provided that you offer a little above the market price.

Which apartment is suitable for daily rental?

The main thing is the location, it should be convenient, close to the metro, railway station and infrastructure. Clients often travel from a train station or airport tired; few people want to walk to who knows where.

The apartment itself should be modern and pleasant to look at. That is, either you take initially nice apartment, or you are doing repairs in a “dead” one. “So-so apartment” - the most bad option. At the same time, you should not be afraid of “Khrushchev” buildings; they can be renovated quite well.

Naturally, not the first floor - no one will like this. The view from the window is not important, but it’s better not to be in a trash heap. The most important element is the absence of a musty and old smell in the apartment - no one will rent this one.

In terms of area, small two-room apartments (you need to break down the walls) or large one-room apartments are preferable. This is due to the type of clientele.

Short-term rental client - who is he?

Most clients are:

young couples;
business travelers and businessmen passing through the city;
quarreling spouses;
tourists.

They can rent an apartment either for a few hours to spend the night or for a couple of weeks. Lots of regular customers. If your apartment is good in price and quality, people will remember the convenient option and come back or recommend it to their friends. Therefore, it is important to unwind, it will be easier later.

How much money do you need to start in this business?

Option 1

Typically, new entrepreneurs start with renting someone else's apartment. This is, at a minimum, a deposit, a month of payment in advance, there may be another 50 to 100% agent fee if you do not find a suitable apartment from the owner. As a rule, no one will allow you to make various changes in the apartment (repairs, change of furniture) if you are renting. The exception is to agree with the owner of the “killed” apartment for partial repairs as payment. In this case, it is necessary to stipulate this point in detail in the contract so as not to lose the investment. For advertising at first, 5 thousand rubles is enough. In general, you can start with an investment of up to 100 thousand rubles.

Option 2

You have more money and determination, you take out a mortgage. As a rule, this is a contribution of 30%. Monthly payment may vary, see mortgage calculators. Usually this is one and a half times the rental price of a similar apartment, which means the income should be higher! Therefore, in this option you need to have another source of permanent income; it is not worth recommending to beginners, you can lose money. On the other hand, you get expensive real estate in a few years, having already “recovered” the costs!

In this case, it is best to take a “killed” apartment, perhaps “from under” alcoholics or a grandmother. Such an apartment will be cheaper than the market, and with the right approach you can make good repairs. The cost of repairs may vary. In general terms it is:

the cost of dismantling old furniture, plumbing, flooring and other things, plus garbage removal;
payment for work;
purchase of materials, plumbing and decorative elements;
replacement of furniture.

Dmitry manages to sell old furniture on Avito and buy decent, slightly used furniture there for pennies. This takes a lot of time - you need to carefully study the advertisements, call them, go and see them live, but it saves a lot of money. Sometimes there are scratches and chips, in which case it makes sense to contact a restorer and buy covers. However, you can also buy beautiful furniture inexpensively at IKEA.

You can find out more about resolving issues related to repairs on his blog.

How to furnish an apartment for a client?

Apartment for daily rent

First, study a significant array of photographs of beautiful apartments and note for yourself their common features. Typically, this will include the following items:

spacious living space - there is no unnecessary furniture or junk, clients love studio-type apartments;
the apartment is furnished in a modern style;
the design is made in bright colors (under no circumstances should you tear your eyes out, choose colors harmoniously);
sterile cleanliness, always clean windows;
absence of yellowed plumbing elements, window frames, window sills, etc.;
no drips.

What does Dmitry do to make the apartment look “cool” and please the client?:

selects a beautiful design;
puts large double beds everywhere;
pays great attention to detail;
Be sure to install a new kitchen with full equipment.

The most important thing is where to get clients?

In the Internet

First, create a business card website. This is a simple site consisting of 1-5 pages. You can google manuals and do it yourself (up to 1000 rubles), you can order it (3-5 thousand) or from a web studio (from 5 thousand). Your phone number and photos of apartments must be visible on the site. Photos must be of good quality, beautiful, and taken in the right lighting. Hire an amateur photographer or get free advice on a photography forum.

You can promote a website, but this is not very effective if there are already competitors in your city. So start with contextual advertising. The largest networks are Direct and Adwords from Yandex and Google, respectively. Select all relevant keywords and direct advertising traffic to your site. As a rule, Direct is more effective, but more advertising means more clients. If you only have one apartment and it’s rented for a week, you can pause advertising.

Add your apartment to bulletin boards. The largest free one is Avito, but don’t be lazy to post on smaller boards - “From Hand to Hand”, city forums and other platforms. The largest paid board is Cian, don't forget it. The more sources, the more clients.

Airbnb's international portal will help you attract foreign clients who pay in dollars and euros. The main thing is that the apartment is close to the city center, looks beautiful in the photo and is cheaper than local hotels.

Locally:

Daily rental advertisement

place advertisements in local newspapers;
print flyers and stick them everywhere;
You can post on commercial notice boards at entrances. This is paid, but your ads will be throughout the area or even the city;
try advertising on the asphalt in crowded places, preferably near public transport stations. You need a stencil and a can of spray paint.

Business plan for daily rentals

Apartment house

Sublease

Here everything is counted on fingers and a business plan is not required. It is clear that there is no extra money, we count everything at the minimum. Take the price of a good one-room apartment in your city. You will pay it back for the first month, and the same amount for the deposit. We avoid realtors. For the second month, money must be kept in reserve. Total - 3 prices. Let’s say the rental price is 25 thousand per month, that’s 75 thousand.

We create a website on our own for free. We purchase decorative elements, clean sheets, towels, dishes and other small items for 5 thousand rubles.

Let’s say the price is 2 thousand rubles per day, occupancy in the first month is 40%. Revenue - 24 thousand. We pay bills monthly. If we get 40%, we will almost never go broke. Another minus 2 thousand. By the second month, you can gain profit by studying all the nuances and problems from your own experience. After a couple of months, the costs will be recouped (plus the deposit will still be returned to you if you don’t spoil anything). Dmitry speaks of a stable occupancy rate of about 70-80%.

Mortgage

Let's take Moscow as an example. A well-located, but “killed” one-room apartment can be purchased from 5 million.

You will spend a minimum of 200 thousand rubles on repairs. A realtor is not necessary, but it is better to contact one to accompany the transaction - from 30 thousand rubles. Taking into account this amount and advertising costs, we must consider the mortgage.

Advice: in 2015, mortgage rates rose by several percent, and now they are not best time to get involved with a mortgage - the final overpayment is huge compared to last year if your income is in rubles. It is better to start with subletting or buy an apartment for cash if possible.

You must have 1,575 thousand rubles for the entry fee. Be sure to set aside an amount no less than six months’ payment in advance! This is approximately 400 thousand.

The revenue calculation is the same. The risks here are higher; let’s take a pessimistic forecast: you will not be able to raise the occupancy rate above 60%. This is 35-50 thousand revenues per month (at a price of 2-3 thousand rubles per day), depending on the price. With current rates, you won’t be able to cover your mortgage - the monthly payment with utilities will probably exceed 60 thousand, but this is higher than rental prices (about 28-32 thousand are now being charged for such apartments). The question is that when you invest 2 million, you want more!

If the apartment was purchased at your own expense, 12% per annum with a pessimistic forecast is not bad at all! If you keep the occupancy rate at 80%, that’s 24 days a month, for example, 3 thousand per day, we get almost 65 thousand after deducting expenses. Not every job in Moscow pays that much. You can use this money to rent similar housing nearby and have a difference of 35 thousand.

However, this is a pessimistic option. Alexander Zhinkin from Krasnodar, another practicing entrepreneur in this area, in his seminars laid out a much more promising table of actual income and expenses for his objects:

Business on sublease of apartments

Probably the reason is lower competition in the regions and the ability to bet more high prices for a day at low prices monthly rent and mortgage. You can watch the full seminar (it's quite long).

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 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

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:

Obtain consent from all its owners and registered persons to rent out the apartment.
Place an ad and start looking for a tenant.
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 will it be paid rent 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.

Draw up an act of transferring the apartment, which indicates all the defects at the time of conclusion of the contract.
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.

Dmitry Fokin - about what can be rented out, and how the era of consumer activity is being replaced by the era of rental

Entrepreneur from Omsk Dmitry Fokin believes that the current economic crisis will radically change the consumer behavior of Russians: in his opinion, more and more people will rent necessary things, rather than buy them and stand in queues. Dmitry and his partners launched Rentalist - a website for renting out and renting almost any thing. People can choose and rent different good options- from toys to cars. The main advantage for the client is the cost of the service, and for the organization - constant income and goods in property. Dmitry Fokin told the Biz360 portal about what kind of profit you can get, how to open a business, find premises and equipment.

Dmitry Fokin, entrepreneur, co-owner of an online rental service Rentalist.me. Born in 1979 in Omsk. Graduated from the Moscow State Construction University and the Institute of Real Estate and Construction Business. Gained experience in various fields - consulting, economics, trade, law, e-commerce, etc. Since 2015 - one of the founders and head of the Rentalist.me rental service.

Dmitry Fokin

Russians are cautious about rentals

This is not our first business. After completing the next project, we began to think about where to move next. By that time, the dollar began to jump.

My partner and I simultaneously came up with the idea of creating a rental service, combining a large number of offers on one site. At that time, we believed that everyone desperately needed a service where they could rent something, and as soon as people found out that there was such a place, all our servers would immediately go down.

In fact, people need rentals, but many don’t think about it, they simply don’t allow the idea that they can just call and rent from other people for half a day, for example, a saw or a bicycle for the weekend. There is a stereotype that if you need something, you can find it from friends, or go buy it, or borrow it from work

After New Year holidays In 2015, we composed everything, and in April we started. Quite quickly we realized that people themselves were not yet ready to make money on the things that were lying on their balconies. There are professional services that provide rental items, some owners of these businesses willingly cooperate with us, but there are also those who say - why, we have our own website, why duplicate somewhere else.

Thickness gauge for rent

If our project is compared with something, then it can be compared with Avito - of course, in terms of structure, and not in terms of scale yet. On Avito, an auto store can display its own cars, and an ordinary person sells Zhiguli. It’s the same here: there is an opportunity for rental businesses to exhibit their range, and anyone can rent out their skates through us, which they’ve had on their balcony for 20 years. Accordingly, you can rent anything - from mixers and board games to construction formwork, cranes, and heavy equipment.

The assortment is quite wide, we included almost the entire product range, made catalogs - you can find everything from rakes to helicopters. For example, renting a hookah per day costs 300 rubles. Or here’s a thickness gauge to see if the car is painted or not, 300 rubles a day. Soap bubble generator for events - 400 rubles per day. Go-pro camera - 500 rubles. From the original - a set of hex keys, 5 rubles per day. Books, board games, roller skates, photographic equipment, lenses, tripods, carnival costumes, wedding accessories, historical uniforms, life-size puppets, wigs, evening dresses, cocktail dresses, etc.

At the start, we devoted a lot of time to creating a digestible catalog so that a person could find what he needed. We have divided all this into 11 large sections, and they also have subsections that include more categories.

Marketing and promotion

As for promotion, we probably haven’t invented anything here, SEO promotion, content marketing, etc. The project is federal, we implemented geolocation, that is, if a person is from Yekaterinburg, for example, then he sees proposals for Yekaterinburg. While the programmers were finalizing the service, we were collecting a database of rental companies that do this as a business. We collected about 2 thousand companies across the country and sent out a newsletter. The result was this: website traffic increased, but the amount of content at the very beginning did not meet our expectations. That is, rental services decided that they probably don’t really need it now.

We went to the second round of promotion, sent out press releases to local and federal media. An online news platform responded and we recorded an interview. Then the local TV channel, then the Metro newspaper. Attendance has increased twenty times.

The bulk of visitors are people who want to take something, because demand is now leaning from purchases to the consumption of rental items. But ordinary people don’t want to rent them out yet.

When we launched the project, we studied how things were with rentals, for example, in Soviet time. There was a system of rental shops, many people used rental TVs for several years, this was due to a total shortage. In the 90s there was nothing at all, in the 2000s there was a surge in consumer activity, people simply forgot about rentals. Now, due to the economic situation, people will remember him little by little.

When we launched, we were aware that this culture needed to be developed - both by people who are consumers of rentals and by those people who provide things for rental.

This is a forgotten story, but if you remember it, people will start using it. A couple of months ago I took part in a comparative interview, where the guys studied how things were going with box office in Russia and America. They said that in America they rent out a lot of things, and it is very popular. When they receive their diplomas, those famous gowns with tasseled caps, for example, are also rented. There is a whole industry there, there are things that are needed once in a lifetime and there is no point in buying them. This has been an idea for more than one year to somehow develop this topic.

“We need to reach high speeds”

Now there are more than 1.5 thousand products on the site. The main cities are Omsk, Moscow, Krasnodar, Irkutsk, Krasnoyarsk, St. Petersburg. At the same time, more people from neighboring countries are joining us - Ukraine, Belarus, Kazakhstan.

So far there is only an investment in the service. This is a kind of investment in the future, it will work someday. When some quantitative limit is passed, it will begin to bring in money.

The system of interaction between the tenant and the landlord works through our service; settlements are also carried out through us, so that people do not exchange money. Reserving deposits on the website, signing lease agreements, providing some paid services, advertising. The commission percentage is 5-10%, the question is in turnover. Now the question is not about self-sufficiency, but about reaching some high speed. We set a deadline of a year or two. Investments in the site amounted to around 100 thousand rubles.

We are currently developing a system for automatically adding products to the service to expand the range. I see that there are many requests for products in cities where we are not present. That is, people go to search engines, they see us, go further and don’t find what they were looking for. It turns out that there is demand, but we cannot satisfy it yet. As soon as we satisfy it, the client flow will grow and recognition will expand. When people start renting, they will be able to rent.

Rentalist project team.