Own business: daily rent of apartments. How to start a rental business
Daily apartment rentals are beneficial for clients who are looking for affordable housing for a short period of time, as well as for landlords who want to earn more than with long-term rentals. Renting housing for a day or more in a year brings income that is 2 times higher than the amount that can be earned for a long-term apartment rental.
How to start a daily rent business
Before starting, choose a concept for your future business and decide whether you will rent your own apartments or sublease. Further algorithm of actions:
If you can’t show the apartment in person, you can make a video review and send it to potential clients
After waiting for the first call, politely but firmly explain to the guest the conditions of living in the apartment and announce the cost. If he agrees to the proposed conditions, draw up an agreement and take an advance payment with a deposit. Having worked out the rental mechanism once, in the future you will be able to adjust your behavior, the clauses of the contract and the sequence of renting out housing for a short time.
Business plan for an apartment rental company
Thinking about your own business, you can simply rent an apartment for a year and agree with the landlord on the possibility of subleasing. After that, without investing a penny, rent it out for a short time to everyone, earning on the difference. But to start a real business, think about how to provide a quality service: apartments resembling hotel rooms, as a rule, rent faster than gray Soviet communal apartments with shabby furniture and leaking taps.
Business concept and market analysis
There are three options for organizing a daily rental. The first, optimistic, is when you own 2-3 well-renovated apartments. In this case, you can organize a business with minimal financial risk: it is enough to correctly draw up a lease agreement and provide for all the nuances.
Two more ways to start a business:
By choosing the last option for organizing the case, you will have to inform the owners of the premises about how you plan to use the housing. Otherwise, it will not be possible to formally conclude contracts with tenants, and this is a risk.
Analyze demand and competition in the daily rental market. Visit popular sites:
View the ads available there, evaluate the condition and cost of the apartments, as well as the terms of the lease. Take note of the ideas you like - it is better to write them out. Compare the offers of hotels and hostels with apartments - the results of the analysis will be useful in identifying competitive advantages.
The demand for daily rent depends on the season - in the summer, the number of people wishing to rent a house increases, and tenants raise prices
Find out who in your city is interested in daily rent. It can be:
Choose the segment you will target - do not try to cover the entire market at once. Everything will depend on which audience you target - from the design of the apartments to the choice of advertising channels.
Company registration
Register a company and do not evade taxes - the daily rental business brings enough income to share with the state, and the risks are too high for illegal work.
You can rent apartments as an individual entrepreneur or on behalf of a limited liability company. An individual entrepreneur differs from an LLC according to the following criteria:
Despite the fact that the financial responsibility is higher for individual entrepreneurs, the fines for LLC are 2-3 times more
Having decided on registration, select OKVED - activity codes. Options closest to the area of daily rent:
Determine the tax regime that you will apply:
The terms and amount of taxes paid, as well as the forms of reporting, depend on the chosen mode. In addition to taxes, be prepared to pay contributions to pension and insurance funds for yourself and your employees.
If you do not decide to register an individual entrepreneur or LLC, pay at least a tax on the income of an individual - 13% of the proceeds. To do this, contact the tax office, find out when and what declarations you need to submit, as well as when to pay.
Sanctions for conducting illegal business include:
Search and preparation of premises
Focusing on the selected target audience, start searching for premises. Think about what is important for a banker who came on a business trip? Most likely, rent a quiet one-room apartment closer to the place of internship or business negotiations. And a young couple for a romantic evening? Cozy well furnished apartment in a small house.
You can find premises for long-term rent on classifieds websites like Avito
Choose the location of the objects in such a way that you can quickly get to each for the check-in and check-out of guests. If you don't have a car, rent an apartment closer to your own home.
The demand for daily rent of an apartment depends on:
Tenants in 57% of cases prefer to stay in one-room apartments with a good repair, new furniture and a working Internet. It is extremely rare to book places in apartments with more than three rooms, as well as in economy class apartments - 1% and 8%, respectively.
The location of the apartment affects the cost of rent. Proximity to the center still plays a decisive role in the choice of housing by tourists, company employees, and students. A good income can be obtained from an apartment located near a major shopping or business center, university or train station.
After targeting business travelers, find out what reporting documents they may need and be prepared to provide a contract, as well as a receipt or invoice for rent.
The rental invoice may include additional services, as well as early and late check-in
Having picked up the premises, conclude long-term lease agreements with the owners. Do not hide the fact that you will rent apartments by the day, but rather offer a mutually beneficial agreement. Tell us that you don’t just rent an apartment, but take it under management and undertake to make cosmetic repairs, install appliances, install the Internet and keep order. Explain that goodwill is important to you, so the apartment will be kept clean. Back up what has been said with the clauses of the long-term lease agreement. Show the owner and the daily contract so that he understands the seriousness of the approach to business.
After renting the objects, proceed to the repair. Choose materials and equipment in the middle price segment, furniture too. The main thing is that it is new and clean. The minimum set of equipment for a business class apartment:
Order disposable cosmetics in bulk for several months in advance - buying a large batch will cost less
Pay attention to details and be sure to buy for each apartment:
Free the apartment from personal belongings - your own or permanent owner. In the design of rooms, adhere to the principles of minimalism. Organize a general cleaning - wash the floors and windows, wash the curtains, bedspreads and furniture covers, check the plumbing. Wipe off dust even in hard-to-reach places.
Order a professional photo session of the premises - the interiors captured on a smartphone camera repel rather than attract customers.
Paperwork for work
Form a package of internal documents that will regulate your activities and living conditions at the facilities. Design:
If you plan to hire employees, write job descriptions. You can focus on typical examples, but rework them for your activity. Writing one clear instruction can take 2-3 days.
In the "daily" contract, write:
Before concluding a rental agreement with a guest, explain to him all the points in order
Standard daily rental agreement - .
Attach an inventory of the property and the rules for living in the apartment to the contract. The rules must provide for the following:
In each apartment, place the rules in a prominent place, and next to them place a flyer with a Wi-fi password, administrators and emergency numbers.
For especially demanding and suspicious tenants, be prepared to present a set of documents confirming your right to rent out the premises, namely: a certificate of ownership or a lease agreement with the owner and his written consent to sublease, certified by a notary.
Where to promote a business - the choice of advertising channels
Later, you will design a business card site with the possibility of online booking, but in the early stages you can do without it. If the site is still created, set up contextual advertising in Yandex and Google.
On some sites, in order to place rental ads on behalf of a legal entity, you will have to create a paid account
Work on ads offline. Print and post flyers, place ads in the city's most popular newspapers, find taxi driver friends and arrange with them to offer your services to passengers. Order advertising on transport by selecting routes departing from the station. Develop a client profile and include in the list a question about how he heard about you - this will help weed out ineffective promotion channels.
Recruitment
Alone, you will be able to cope with 2-3 apartments, while linen and towels will have to be handed over to the laundry, and the cleaning will be entrusted to a cleaning company or carried out on your own. To expand the business, you will need employees:
The number of employees depends on the number of apartments in management. One administrator can serve 3-6 apartments at the same time, the cleaning lady - the same number. The manager will cope with the load of 15-18 objects.
Calculation of expenses and planned income
The calculation is given for an individual entrepreneur on the simplified tax system who wants to sublease two apartments in the city center - one-room and two-room. The target audience is seconded employees, solvent, who prefer to live in comfortable conditions close to those of a hotel. There are no employees, but it is planned to conclude contracts with a cleaning company, laundry and dry cleaning.
Table: Costs of starting a business
Table: monthly expenses
Calculation of planned income and payback period
The price of accommodation should include: the cost of rent, laundry and cleaning services, advertising costs and the purchase of consumables.
The average price for renting a one-room apartment is 2050 rubles / day. The cost of renting two-room housing is 2850 rubles / day. The occupancy in the first month is 60%, that is, 18 days a month, from the second month - 70%, that is, 21 days.
The average income for the first month is 88200 rubles. Tax deductions - 5292 rubles. Profit for the first month - 22093.5 rubles. The average income for the second and subsequent months is 102,900 rubles. Tax deductions - 6174 rubles. Profit in the following months - 36793.5 rubles.
The payback period for a business is 5-7 months, with low occupancy of apartments - 1-1.5 years.
Pitfalls of the apartment rental business
Renting apartments by the day is a risky business. Starting a business, you risk from all sides:
The only way to minimize the risks is to formalize the business, work out contracts with a lawyer and prescribe in them all possible circumstances, including force majeure.
When checking in, be sure to ask guests for passports and make copies, let's sign an inventory of property and rules of residence. Warn your neighbors in advance and present permits for the daily rent of an apartment from the owner. Do not rent out the premises for parties if you do not want the neighbors to complain about the noise. Be prepared to adjust your work schedule to the time of arrival and departure of guests - often you will have to get up at five in the morning and go to bed after one in the morning. Keep your phone with you - with any problem, customers will call you, and you must answer.
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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 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
- 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:
| Apartment options | Apartment price | 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 costs - these are: apartment renovation, rent and utility bills (if this is not included in the rent), insurance and income tax.
| Apartment options | Rent and utility payments 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 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.
| Apartment options | The 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% |
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:
- From all its owners and registered persons, obtain consent to rent an apartment.
- Post an ad and start looking for a tenant.
- 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.
- 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.
- 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.
Daily rent of an apartment can bring a good and stable income, if everything is organized correctly. This service is very popular due to the fact that it is much cheaper for visiting tourists to rent an apartment than a hotel room.
Since this area of earnings is not new, it has already been well studied. One-room apartments or four-room apartments are especially popular. Of course, from a rational point of view, one-room apartments are considered an ideal option - the owner of the area saves not only on electricity and heating, but can also afford to make a chic renovation.
In terms of money, the owner of a one-room apartment will not lose, since the price of housing is calculated not for one tenant, but for the entire area.
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Apartments located near the railway station, schools and hospitals are very popular. Since it often happens that such housing is empty, it is better to buy an apartment on the third and fifth floor, this will significantly reduce the risk of criminal activity.
Renting an area by the day - business features
From time immemorial, real estate has been considered the most profitable investment, because many citizens, having free money, buy real estate. With proper and clear business management, you can significantly improve your financial situation without risks.
The best option is to rent out your own living space, of course, there are businessmen who start their business in a rented area, but this is not the same.
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Some citizens even take an apartment on a mortgage, and then they safely rent it to tenants, thereby not only covering the monthly mortgage loan, but also managing to make some money on it.
Pros and cons of such earnings
For owners of rented apartments, the benefits are as follows:
- good income without risks and investments;
- if necessary, you can use the housing yourself;
- when selling an apartment at the time when a potential client is being searched, you can rent an apartment to visiting people;
- if the owner of the area cooperates with realtors, he will be provided with a flow of customers;
- no need to issue an IP, which significantly reduces the financial costs of paying taxes.
How to make money on the daily rent of apartments? Disadvantages of this business:
- if the apartment is mortgaged, then the bank can prohibit its delivery to other people, it can not only fine the owner of the property, but also take the apartment altogether;
- conflicts arise with neighbors, as a constant flow of customers can disrupt the habitual life of the inhabitants of the house;
- there are unscrupulous clients who can simply ruin property - break a window, tear wallpaper, break equipment, and so on.
Underwater rocks
Often there are unscrupulous clients who damage the property and do not want to pay for it later, so that such unpleasant situations do not arise, it is necessary to issue an individual entrepreneur and draw up a lease agreement with each client. Also, when checking into an apartment, you always need to take a passport from the guest, make a copy of it with the registration address.
It is a very profitable business in our time, but you will think that this is impossible and you will be wrong. By clicking on the link, you will find detailed instructions on how to start this business and make it profitable.
At the same time, we want to emphasize that even if a photocopy of the client’s passport is on hand, if the property was damaged, he owned the premises, he will not be able to make a claim if he does not have an agreement. Therefore, here you need to choose - saving money or the safety and security of property.
Rental business: how and where to start
The first thing to do is to study carefully all legal regulations. First, of course, you need to go through the banal registration of a legal entity, in other words, you need to open an individual entrepreneur if you plan to do this business for a long time. Thus, it is possible to significantly reduce the cost of accounting, today it costs about 5,000 thousand rubles to open an IP.
If the apartment will be rented out exclusively for legal entities, then in this case it will be necessary to register as a Limited Liability Company. In this case, such a procedure will cost a little more, about 15 thousand. In order to earn money calmly and stably in this area of business, it is necessary to pay about 15% of the profit to the tax service monthly or twice a year.
This video will tell you how to start a business in the field of renting an apartment:
Of course, not all apartment owners can earn good money. In order for the living space to bring a good and stable income to its owner, it must meet the following requirements:
- Long term lease, at least one year.
- Good location. The apartment should be located in the city center, where the infrastructure is developed.
- Nice and modern renovation.
- The presence of the necessary furniture in the apartment: a sofa, air conditioning, refrigerator, microwave, TV, washing machine. This is only the minimum that should be in a rented apartment, otherwise there will be no one who wants to move in at all.
Step-by-step instructions for renting an apartment
Previously, the requirements that the apartment must meet were announced. When the premises are completely ready to receive guests, you need to take care of the legal side of the business. It is imperative to open an IP in order to be able to draw up a lease agreement with each client, this will protect the owner of the property from unexpected troubles.
After all legal issues are resolved, you can start looking for a potential client. To do this, you need to use the Internet: you can place an ad on a popular site, for example, Avito. In order to attract as many customers as possible, it is necessary to correctly submit information.
The ad must indicate the location of the apartment, its cost, the availability of furniture, as well as additional services, if any. You can advertise your apartments via the Internet, for which you can use groups in contact or classmates.
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Local newspapers and magazines also do not need to be bypassed, there you can also submit a similar ad with a phone number and apartment address. No need to save on advertising, spending a couple of thousand you can get much more customers.
Business plan taking into account income and expenses
In the beginning, the owner of such real estate, of course, will have to spend a little, 30 thousand rubles will be enough, with this money you can draw up documentation, pay for advertising and buy the most necessary things for the apartment: disposable slippers, soap, shampoo, toilet paper and so on.
An example of an apartment for rent. The average daily rent of a one-room apartment is about 1,500 rubles. We multiply this amount by 30 days and get 45 thousand rubles, now we subtract 15% of the tax and get a net profit of about 30 thousand per month.
But again, it all depends on the number of rooms, the situation in the apartment, and so on. You can rent much more expensive and more profitable, everything is purely individual. And if a person has not one, but several apartments for rent, this increases profits at times.
How is IP registration
As mentioned earlier, it is possible not to open an IP when conducting such a business, but in this case there are high risks, for example, a tenant will ruin furniture or break a window. If there is a lease agreement, if such a situation arises, it will be possible to return the money for the damage caused.
Features of payment for sublease
A sublease is a process in which two tenants are involved. For the correct execution of a sublease, a document must be drawn up that looks like a lease agreement and does not have a long validity period. The subtenant is fully responsible for the rented property and will be responsible for its damage to the real owner.
If a suitable apartment is subleased, you must carefully study all the terms of the contract. It often happens that the true owner of the apartment raises the price for the tenant, and he, of course, in order not to go negative, raises the price of the living space to the client.
Today, many citizens of Russia consider realtors crooks. This perception was further reinforced by frequent cases of fraud by real estate firms. But if a person is determined to start a business in the field of renting apartments, then one cannot do without the help of realtors and a plan.
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Such firms allow the owner to find a paying client. The result is a stable income and no downtime. The most important thing is to contact a trusted company that has proven itself on the positive side.
Monthly income and expenses
Some of the most common housing expenses include:
- Tax (if an IP was issued).
- Renting an apartment (if it is not owned).
- Advertising (you can also find free, but it will not be very effective).
- Cleaning the apartment and washing bed linen (in order to save money, you can do it yourself).
- Payment of utility services.
You can learn everything about the daily rent of apartments from this video:
The amount of potential income and the direct payback of this project depend on such factors:
- original condition of the apartment;
- advertising quality;
- the work of the realtors themselves;
- location of the apartment.
As a rule, a daily rent of an apartment with a full load pays off all expenses in less than five months, subject to the cost of repairs.
Renting out housing purchased with a mortgage
Anyone who has purchased a property with a mortgage is already a full-fledged owner, despite the fact that you have to pay for the loan every month.
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Renting an apartment is becoming a popular business. And for people who have visited the city for tourism or business purposes, renting such housing is a very profitable option. Often it comes out cheaper than a hotel room, with a better quality of service. The benefit for the owner is the opportunity to earn more than with a long-term lease.
However, the option of renting housing for a short period of time also has negative aspects, and first of all they concern the landlord. So is it worth renting an apartment by the day or better for a long time?
general information
Living space requirements
The real estate market for rent is vast, so your apartment must meet certain requirements for the success of the business. Of course, you can rent out living space without repairs and household appliances - for some, a bed, a shower and a toilet are enough. But there should be a small refrigerator. Still, most people, choosing an apartment, expect service. What you need to have in the apartment, renting it out by the day?
And the main thing is cleanliness. Perhaps for someone it will play a decisive role in favor of choosing your apartment.
Taxation
When renting an apartment as an individual, it is necessary to pay tax on the income received. Every year, by April 30 (or until the evening of the first working day, if April 30 falls on a weekend), the owner must submit a declaration in form 3 of personal income tax and pay 13% of the income received to the budget (30% if the period of permanent stay in Russia is less than 180 days ). If the owner is registered as an individual entrepreneur, the rate will be different.
An individual entrepreneur can choose the following taxation options:
- General system of taxation. Unlike an individual, an individual entrepreneur makes advance payments during the year (on demand) and can reduce his main income by professional deductions.
- Simplified tax system. A rate of 6% "income" or 15% "income minus expenses" is chosen. Moreover, an individual entrepreneur can make his income less by the amount of insurance premiums paid for himself in 100% of the amount and by 50% of the amount of insurance premiums paid for an employee.
- IP on the "patent". In this case, an individual entrepreneur pays 6% of the estimated income established by law for this type of activity.
If an individual entrepreneur is already open or there is such an opportunity, you can pre-calculate and choose the most advantageous option for paying taxes to the state.
Features of the contract for daily rent
Such an agreement is not much different from a contract for an apartment, which is rented out for a long time. You can download a standard form on the Internet, changing it if you wish: someone removes items that are unnecessary in his opinion, someone supplements. But there are basic data that should be in it:
- Subject of the contract.
- Full name and passport details of the parties.
- Rent price.
- Rental period (with specification of the time of arrival and departure).
- Responsibility of the parties.
It is necessary to make an inventory of the situation so that there is no dispute in case of property damage (the risk increases with daily rent). The contract must be signed by both parties and drawn up in two copies. If you rent out housing through an agency, the employees will take care of these chores.
Room cleaning
When renting an apartment for any period, it should be cleaned before each new guest. If you're renting out a property, you'll need to do it often. If there is a long period of time between tenants, then wet cleaning is necessary before settling new guests.
During the season, if the apartment is located in an interesting place from a tourist point of view, tenants can often change. In this case, it is important to think over the time for the eviction of some tenants and the settlement of others, so that there is a gap of a couple of hours for cleaning. It is useful to prescribe in the contract that tenants must leave a clean apartment after themselves. You don’t need to force them to vacuum the floor, but it doesn’t hurt to wash the dishes.
Advantages of daily rent
- Potentially higher profit compared to long-term rentals. Especially if the apartment is located in a tourist-attractive part of the city.
- If you suddenly need housing (relatives came to visit), you can settle them in an apartment without specifically evicting anyone.
- If you decide to sell an apartment, permanent residents are unlikely to agree to regular visits by a realtor with potential buyers. In the case of daily rent, finding the time to show the living space is much more realistic.
Cons and possible risks
- The risk of falling for scammers, the likelihood of damage to property. Yes, and the neighbors will worry about changing tenants.
- With daily rent, you will have to spend a lot of time cleaning the premises, monitoring its condition.
- If the city is unattractive for tourists and the location of the apartment is inconvenient, you can hardly count on a stable flow of customers.
How to make money on short-term rentals
To make money on daily rent, you need to decide how exactly you want to rent an apartment: on your own or through a realtor. If you decide to use the services of an agency, all the hassle of finding clients, demonstrating housing, controlling check-in and check-out, drawing up a contract, and collecting payment will be entirely on the realtor. At the same time, he needs to give part of the income for work. If you do not want to share, you will have to do all this on your own. Where to start?
Sample business plan for daily rent
What is the best way to rent - daily or long-term?
It is difficult to answer this question unambiguously. In a resort town or in a town that is attractive to tourists, it is more profitable to rent an apartment by the day, especially in the center. But what about the provinces?
The average price for an apartment in the center of Chelyabinsk is 2000-3000 rubles per day. The average price per month is 20,000 rubles. In the case of daily rent, if the apartment is rented at least 10 days a month, this is already more than when renting housing for a long time. For 15 days, the owner will receive 30,000 rubles, for 20 - 40,000 rubles. It seems that the benefit is obvious. However, there is no guarantee of constant demand, but there is a possible damage to property due to frequent changes of tenants, additional advertising costs, taxes. With a long-term lease, income is more stable.
But if you are lucky enough to buy a free apartment in a tourist-attractive place, you can make good money on daily rent.
Expert opinions about such a business
If you listen to real estate experts, you can understand that their opinions are radically different.
For example, a private investor Georgiy, who invests in apartments, believes that renting housing by the day is a thankless task, and the profit is minimal. To really make money on this, you need to have several apartments in close proximity to each other. A big role is played not only by the popularity of the area, but also by the city itself.
Realtor Yuri, on the contrary, considers this type of business profitable. In addition to renting out his own apartment, he was able to establish relations with his neighbors and also rent their apartments by signing a sublease agreement with them. He takes care of all the main chores, while receiving a good percentage of the total income. Such earnings allow Yuri to pay the mortgage for his apartment and receive additional benefits.
Rentier Alice, on the contrary, believes that it is not worth taking an apartment on a mortgage in order to rent it out by the day. Perhaps the profit will be greater than with a long lease, but this is a constant search for customers, cleaning, washing and ironing clothes, and the difference in output may be minimal.
The most cost-effective forms of daily rent
There are several housing options available:
- Own apartment (inherited, bought for cash, donated, and so on).
- Mortgage apartment.
- An apartment that you have the right to rent under a sublease agreement.
The most profitable option for the landlord is own housing. True, renting an apartment under a sublease agreement at first may be more profitable. This happens if your own living space requires a major overhaul. However, subsequently, your apartment will begin to make a profit that you don’t have to share with anyone.
If you plan to take an apartment on a mortgage and repay it with the profit received from renting, it is better to choose a long-term lease. Renting by the day, you can get a big profit, but in the case of renting for a long time, the income will be stable.
If you have chosen the sublease option, inform the owner of your plans. At first glance, it may seem that few apartment owners will agree to such conditions. But if you correctly draw up a contract, there will be no difficulties in the search.
How to make money renting an apartment for the 2018 FIFA World Cup
In the summer, eleven cities of our country will host the World Football Championship. And now the fans are looking for hotels, apartments, rooms. If you analyze the proposals, you can see that housing in Chelyabinsk for a day from June 15 to June 16 will cost an average of 10,000-20,000 rubles.
If you choose the dates March 18-19, the average price tag will be 2500 rubles. That is a difference of almost five times. It follows that you can make good money renting an apartment for the World Cup. Experienced landlords advise not to inflate prices too much. After analyzing such proposals, you should stop at the middle option.
If there is no separate living space - it does not matter. You can rent a room or a bed by going to your country house on the days of the championship. To avoid damage to property, mark this point in the contract in advance and request a deposit that you will return to the tenant upon eviction - this disciplines. It is also useful to insure the premises, although this is more relevant for those who are engaged in business on an ongoing basis.
It is better to submit an ad in advance. There are already a lot of offers for "hot" dates. But if you don’t know, at the right time, you shouldn’t get upset - the demand for accommodation will be from the first to the last days of the championship. And this is exactly the case when the location of the apartment does not matter - people successfully rent out housing even in the suburbs.
In conclusion, we can say that renting an apartment, like any other business, must be taken with great responsibility - to assess all the risks before making a final decision. If you still decide to rent an apartment, make repairs, buy the necessary things, insure your home, register a business and give catchy advertising. Get ready for difficult times, as this business will take a lot of time.
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