Hourly apartment rental business plan. Apartment business – is it worth renting out housing on a daily basis? Business plan for an apartment rental company

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:

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 a residential area in Moscow 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. In this case, the rental rate will be calculated per 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 must be located in central region, in a place with high traffic levels. Finally, it must be well executed.

Generally, commercial real estate residential loses only in 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?

  1. 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.
  2. 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.
  3. Next, you need to complete the necessary documentation for the property. If this is commercial real estate and you plan to rent it out to special organizations (for example, those working in the catering industry), you must take care of obtaining additional permits and conclusions from certain services.
  4. 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 the case of commercial real estate, it is important to focus on increasing the 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 networks (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 last for 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 good high level 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.

Hello! In this article we will talk about making money from rent.

  • How much can you earn: from 10,000 rubles per month.
  • Minimum Requirements: starting capital from 1 million rubles.
  • Is it worth doing?: if there are no other investment alternatives.

General information on earning money from rent

When you rent out a residential property, you have little concern about what repairs the tenants might make. Almost nothing will change - at most, household appliances can be added. With commercial real estate, everything happens differently. Business solves different problems, so the environment may need to be completely different. This means that companies make repairs to suit their needs.

However, the owner is interested in not changing the situation for as long as possible. That is, you will have to evaluate the prospects of a business whose owner wants to rent real estate from you. And it’s not a fact that good prospects will be a plus for you. You are interested in the owner using the premises for as long as possible, which means that his business should be at approximately the same level.

The main dilemma of such earnings:

Get a client now or wait for a better offer.

Searching for clients for residential real estate is easy: hundreds of offers, hundreds of potential applicants. The lower the price, the more likely it is that a client will contact you. Commercial real estate is needed exclusively by business. The number of offers often exceeds demand. Therefore, you can search for several months for a suitable client who will be satisfied with both the price and conditions.

That is why it is best for experienced businessmen who know how the entire internal “kitchen” works to work with commercial real estate. As for income, everything is much more interesting here. Even approximate income is very difficult to predict. It depends on:

  • cross-country ability;
  • room size;
  • environment;
  • proximity to other buildings;
  • etc.

There are a lot of factors that determine the prospects, and therefore income. But one thing is for sure: commercial real estate located in the “right” location increases in value every year.

How much can you earn from renting out apartments?

The cost of rental housing is affected by:

  • location of the apartment;
  • infrastructure;
  • transport interchange.

These are the basic factors to consider. As for location, residential areas and the city center are valued significantly more expensive. Infrastructure means the presence of kindergartens, schools, shops, hospitals, etc. Transport interchange includes the nearest metro stations, all kinds of stops, and also takes into account travel time to the city center, etc.

Each plus in infrastructure and transport adds several thousand rubles to the price tag of rental housing. It’s also worth thinking in advance whether you will buy a finished apartment or purchase meters during construction.

By buying an apartment at the stage of construction of a house, you lose rental income. Take this fact into account.

The cost of basic housing repairs in the regions is 200 thousand rubles. Increase the amount of investment with this money if you are going to buy an apartment on the primary market. The repair period ranges from 1 to 2 months.

Prices in different regions vary greatly. There is no way to say for sure how much you will be able to earn. Therefore, I will analyze everything using the example of my region - the Oryol region:

The price of a new building is 38 sq. m. in the Northern microdistrict of the city - 1,038,000 rubles. It will be ready in the 4th quarter of 2018. Alternative: 1,300,000 - 1,500,000 rubles for a furnished apartment of 35 - 40 square meters. m. Rental cost: 9 - 11 thousand rubles for a fully renovated apartment.

The real cost of a new building ready for delivery is 1,240,000 rubles. Lost profit - 80 thousand rubles. The total cost of an apartment in a new building is 1,320,000 rubles. You can receive 9 - 11 thousand rubles monthly. The payback period will be 11 years, if you do not take into account the profit from the increase in cost. The term of repayment of the mortgage through monthly payments will be 20 years with a payment of 10,500.

For daily rent of an apartment with terrible repairs, you can get 900 rubles per day. The average cost of daily rent with good repairs is 1,300 - 1,400 rubles. To get an average income, you need to attract 11 clients with a bad repair and 7 - 8 with a good one.

This is roughly how we should evaluate the prospects for investing in real estate in each region. The main site for analysis is Avito.

Minimum investment to earn money from rent

It is difficult to give any specific figures, because the price of housing depends on the region and the state of the market as a whole. In 2015, there was a collapse in real estate prices, and apartments could be bought 15 - 20% cheaper than now. At the same time, the cost of housing in the regions was 1 - 2 million rubles, and in Moscow - from 5 and above.

If you use borrowed funds, you will need to determine rent, compare it with the mortgage rate and then decide whether these funds can be used, in how many years the loan can be repaid, if you pay exclusively by rent, etc.

If you want to roughly estimate how many years you will have to pay off your mortgage, use the online calculator from Sberbank. He sets the average mortgage rate. Compare monthly payments with the average rental cost and increase/decrease the term.

Earning money from real estate is an expense in any case. In Russia there are no loans at 1 - 2% per annum, unlike the West, where the following approach is common:

A citizen already at the age of 20 saves a down payment on a mortgage, and if he wants to make money on it, he rents out an apartment, repays the loan in 7-10 years and moves on to the next one. And so, by the age of 40, you own real estate worth $250,000 or more.

You should not consider renting a home as the only way to do business. You will have to deal with expenses, the banking system and huge long-term lending rates.

Conclusion

Earning money from real estate is one of the most stable and low-income ways of investing. With an income of 7 - 8% per annum, you can only compete with. The main difference from other ways of investing money is that you do not have to have your own capital. You can cooperate with a bank and use borrowed funds.

This makes it much easier to start earning money and allows you to practically avoid paying for a loan. Despite the fact that this scheme works better for Europe with its high rental prices, in Russia you can support yourself in this way of earning money if you spend 15-20 years on it. That is why, if you want to start making money in this way, start as early as possible.

Daily rental of apartments as a business is chosen by many people who are looking for easy income. It is enough to have available housing and set the right price, and there will always be clients. IN big cities There are a lot of opportunities for doing business in renting out apartments for daily rent. There are also many options for organizing it.

How to start an apartment rental business?

Having living space, a person can build a serious business renting apartments. You can offer apartments for daily rent both for workers on business trips and for ordinary travelers. There are 3 ways to build a business providing apartments for rent:

  1. Having available apartments. This is the most convenient and simplest option. Many will say that it is much easier to find permanent residents. They will pay the required fees regularly. A person does not need to constantly trust his apartment to strangers and unreliable people. Such activities will take little time and generate constant income. However, daily rent will help the home owner earn much more money.
  2. Purchasing an apartment specifically. This option is suitable for those who decide to seriously make money from it. If you don’t have money to buy a home, you can take out a loan or mortgage. Then you can’t even count on making quick money: all the funds will be spent on paying off debts. But if you are patient, you can soon make a big profit from the business of renting out apartments by the day. Moreover, a person gets an apartment forever without emptying his wallet.
  3. Arranging sublease. Not everyone is ready to do this. This option is definitely suitable for people who do not have their own home, but want to receive money from rent. You just need to rent some apartments for long term. Then they can be rented out for several days. This phenomenon is quite common in modern megacities. Having paid the owner of the apartment for a month, a person will earn the money in about 10 days of renting out housing for a day.

You need to register your business with tax office. This will help avoid unwanted problems. In the case of subletting, it is important to conclude an agreement with the owner of the property and have it notarized. The same actions need to be carried out with clients. All this guarantees the success of the daily apartment rental business.

Pros and cons of business

People who rent out their homes do not need to think about how to make money. This business will always thrive. After all, not all people buy their own housing or pay for hotel rooms. Renting an apartment daily has the following advantages:

  1. Benefit. An active person who wants to get serious about his business can earn several times more than someone who rents out apartments for a short time.
  2. Convenience. Without signing a long-term contract, you can quickly and painlessly get out of business. What if distant relatives arrive and you need to urgently accommodate them. Daily rental housing can also be done by those who are planning to sell it. While this process lasts, there is an opportunity to earn a little money.
  3. Relevance. Room in good hotel usually very expensive. Not all companies can pay it to their employees. And then people come to the rescue, ready to offer housing for several days. It is cheaper and even more convenient, because individual apartments have a kitchen and many other advantages. Therefore, such a business will flourish even in times of crisis.

However, renting apartments for daily rent also has pitfalls. They must be taken into account when engaging in such activities. It has the following disadvantages:

  1. No guarantees. To be successful, you need to be very active. A person will have to constantly look for new tenants and advertise the apartment in every possible way. Otherwise, it’s better not to wait for a stable income.
  2. Trouble. After the departure of each client, the apartments must be cleaned and bed linen changed. If the guests did not want to carefully use the furniture and various devices, then the apartment will have to undergo cosmetic repairs periodically. And it is unlikely that such housing will be insured.
  3. Responsibility. The owner of the property must provide clients with complete comfort and safety. In case of malfunction of sockets or electrical appliances, he is responsible for everything. Various frauds and thefts are also possible. In such cases, you can get into serious trouble that will be associated with law enforcement agencies.

Renting apartments has not only obvious advantages, but also some pitfalls.

When starting such a business, it is worth considering all the risks and also taking care of its legality.

Earnings from daily rental There really can be quite a lot of apartments. But it is important to remember that such a business requires constant active participation.

How much can you earn

Renting out your own home on a daily basis can bring good profits throughout the year. For example, by renting out a room in a two or three-room apartment, you can count on a profit of 500-1000 rubles per day. With a good location of the apartment and a high flow of clients, your monthly profit will be from 15 to 30 thousand rubles. If you don’t plan to rent out your room, you can try to make money by subletting. At the same time, the net profit will be slightly lower, at the level of 5-10 thousand rubles in the first stages, but this will allow you not to be crowded with roommates in your own home. Over time, by concluding contracts for several apartments around the city, your net profit can amount to more than 100 thousand rubles per month.

How much money do you need to start a business?

To start a business, you need your own home or a long-term lease agreement. The first option will not require significant financial costs from you. It is necessary to ensure that furniture and appliances are available. If you don’t have one for comfortable living conditions, then it’s worth purchasing it. To sublease, you must conclude an agreement and make an advance payment. Depending on the region, the location of the apartment and the renovations made inside, this amount will vary from 75 to 200 thousand rubles per year. Additional costs will include notary services, documentation, and an advertising campaign.

What equipment to choose for daily renting of apartments

In order to rent out an apartment daily, you need to furnish it with furniture and appliances. If you already have one, then you won’t have to spend much. In addition, it is advisable to install a security system as well as durable steel doors to protect it from theft and burglary.

Which OKVED code to indicate when registering a business?

Registration of a business with the tax service requires filling out an application with the obligatory indication of OKVED code 68.20 - Rent and management of own or leased real estate. This group includes daily rental of both own and rented housing to other visitors.

Which taxation system to choose for daily rental of apartments

The easiest way for an entrepreneur to work is under the simplified taxation system.

Do I need permission to open?

To open a business, you need permission from the tax service and registration of an individual entrepreneur. In addition, you should conclude a rental agreement for the apartment with its owner in advance if the sublease option is used.

Business technology

To increase income from renting out apartments, they can be rented out not only daily, but also hourly. Another option is to rent out an apartment on holidays. On New Year or Christmas, the cost of an apartment for a day increases several times, which you should take advantage of by placing appropriate advertisements on the Internet in advance. Basically, your clients will be business travelers, tourists or couples in love. To do this, you should place advertisements and banners in appropriate places: train stations, bus stations, airports, etc. You can also enter into an agreement with taxi drivers who transport people from destinations of long-distance transport. In the future, the business can be scaled according to a simple scheme, purchasing as many apartments for rent as possible, having previously assessed the profitability of the project.

23.08.18 73 313 76

Hotelier experience

I have a free one-room apartment in St. Petersburg, and I rent it out.

Marina Smetanina

rented out an apartment daily

Previously, I rented for a long time, and then I decided to check how much I would earn if I rented for a day or a week. That's what came out of it.

How I rented out an apartment

Preparing the apartment

What worried me most was that the apartment would be idle. When it is rented for a year or two, there are fewer problems with clients: hand it over and forget it. But when it is rented for a day or a week, there should be a lot of clients. When one leaves, the other should already be knocking on the door. So I tried to make my offer more attractive.

Initial data of the apartment

Minusespros
The apartment is not in the center, but in an ordinary residential area.Apartment near the metro. 20 minutes by metro to the center.
The renovation is simple and outdated.Modern furniture.
There is no coffee maker - the previous residents did not need it.There is plasma, Wi-Fi, microwave, washing machine.
There are no bed linen or towels - for long-term rentals, residents use their own.There are many supermarkets and shopping centers around.
The apartment is small, 35 m².House according to an individual project.
Beautiful view of the city from the balcony on the 24th floor.
Green area, not overloaded with transport.

Pros:

  1. Apartment near the metro. 20 minutes by metro to the center.
  2. There are many supermarkets and shopping centers around.
  3. Green area, not overloaded with transport.
  4. House according to an individual project.
  5. Modern furniture.
  6. There is plasma, Wi-Fi, microwave, washing machine.
  7. Beautiful view of the city from the balcony on the 24th floor.

Minuses:

  1. The apartment is not in the center, but in an ordinary residential area.
  2. The renovation is simple and outdated.
  3. The apartment is small, 35 m².
  4. There are no bed linen or towels - for long-term rentals, residents use their own.
  5. There is no coffee maker - the previous residents did not need it.

What did I buy?

For long-term rentals, the main thing is that the apartment has large equipment and the Internet. Residents usually buy the rest themselves.

People who rent an apartment for a few days are usually on vacation or a business trip. On such trips they rarely take anything for living with them - it is believed that all this is already in place. Therefore, the first thing I did was check that the apartment had all the equipment, dishes, linen, towels, and toiletries. I had to buy a coffee maker and some dishes.

There won’t be time to wash clothes between stays, so I immediately bought 4 sets of good bed linen and towels. At the same time, I found a beautiful bedspread to make the room look more elegant in the ad.

RUB 30,000

I spent on additional purchases

I also bought supplies for the month in advance: cleaning and detergents, paper towels, soap, toilet paper, a mop and other useful little things for cleaning.

The apartment is not in the city center - this disadvantage cannot be corrected. But it is on the 24th floor, with a wonderful view from the balcony. I bought bar stools and flowers for the balcony - it turned out to be an impromptu lobby bar overlooking the city.

The area of ​​the apartment is 35 m², the room has a large double bed. This is enough for a couple who came to see the city on the Neva, but if they have a child, then it will be more convenient for her with my competitors. This arrangement did not suit me, so I bought a chair-bed and wrote in the ad that I had three sleeping places.

Then it turned out that it was convenient for small groups of tourists. For the third guest, I asked for only 300 rubles per day, and sharing the costs between three is more profitable than sharing with two.

All purchases cost approximately 30,000 RUR.


width="1000" height="750" class="outline-bordered" style="max-width: 1000px; height: auto" data-bordered="true"> I bought bar stools at Maxidom for 1500 RUR per piece, flowers - in “Lenta” for 350 R

Registration on sites

I posted advertisements for renting an apartment on Booking, Air BBC and several lesser-known sites. In total there were 6 sites for booking accommodation.

Booking has the most inconvenient conditions. Registration of the ad took a week and a half, the platform takes a 15% commission from each transaction, and then adds 18% VAT on it, if you are not an individual entrepreneur. In addition, Booking pays money only on the 15th of the month following the guest’s check-out date. This means that if a guest arrived at the end of April and left on the first of May, then I will receive the money only on June 15 - 40 days after arrival.

For comparison, Air BBC pays money after 3 days, its commission is only 3%. But we have to put up with all the inconveniences, because 80-90% of clients come through Booking.

On other sites, ads begin to appear immediately after registration. To make them more trustworthy among potential clients, you can earn badges like “verified ad” and “real owner” - they are different on all sites. To do this, they usually ask you to confirm that you are the owner of the apartment.

On all sites you can indicate a deposit for the safety of property, which guests pay upon check-in. I decided that I would take 2000 RUR, and it justified itself: once I withheld money from the deposit for a broken key, another time I was fined for smoking in the apartment. But I almost always returned the money. Perhaps the clients were disciplined by the very fact of collateral, even if the amount was small. On the other hand, my main competitors work without collateral.

2000 R

I take from clients as collateral

Where did I post the ads?

WebsiteCommissionAdditional terms
Booking15% You can independently increase the commission in the settings, then the site will promote you and recommend you in searches.
Daily-ru15% The commission remains in your virtual wallet on the site, and you can use this money to promote your ad.
Air BBC3% The first money may be frozen until they are convinced that you are not a fraudster. They can also raise the price for the apartment themselves - this is inconvenient when the housing is idle and you want to find clients faster.
Cyanogen0% If you pay for placement, the ad is shown above others and highlighted in color. The ad must be raised at least once every two weeks, otherwise it will be removed from the search.
Apartment0%
Yandex real estate0% You can promote your ad for money.

Booking

Commission

Additional terms

You can independently increase the commission in the settings, then the site will promote you and recommend you in searches.

Daily-ru

Commission

Additional terms

The commission remains in your virtual wallet on the site, and you can use this money to promote your ad.

Air BBC

Commission

Additional terms

The first money may be frozen until they are convinced that you are not a fraudster. They can also raise the price for the apartment themselves - this is inconvenient when the housing is idle and you want to find clients faster. You can promote your ad for money.

Cyanogen

Commission

Additional terms

If you pay for placement, the ad is shown above others and highlighted in color. The ad must be raised at least once every two weeks, otherwise it will be removed from the search.

Apartment

Commission

Additional terms

You can promote your ad for money.

Yandex real estate

Commission

Additional terms

You can promote your ad for money.

Rental advertisement

When I thought about renting out an apartment daily, I looked at how many competitors I would have. Booking alone shows almost 7 thousand ads like mine. If you look only at the city center, you get the feeling that all the housing is for rent. In residential areas, things are a little better, but renting an apartment there is cheaper.

I was afraid that there wouldn’t be enough clients for everyone, and no one would come to me - after all, I didn’t have any ratings or reviews yet. Therefore, in the ad I tried to indicate everything that could attract tourists.

To begin with, I decided not to reduce the price much - I set it 100 rubles less than a competitor two blocks later with his almost designer renovation, five years of experience daily rental, with a rating of almost 10 stars and 40 reviews. But I’m two blocks closer to the metro, I have an almost designer balcony on the 24th floor overlooking the city!

The first client came from Booking. Before I even received my reservation notification, some guy called me and said that he had just reserved my apartment. He did this from a cafe opposite the house and was ready to come in 5 minutes.

This was unexpected for me: at that time I did not yet know what instant bookings looked like in practice. I had to return halfway to the gym and meet the guest.



Ratings and reviews

I was lucky with my first client: the demand for an apartment strongly depends on the rating and reviews of guests. Much later, when I already had a stable rating of 9.8 out of 10, one couple suddenly gave it 5.8 without any apparent reason or explanation. My rating immediately dropped to 8.2 - fewer clients came for some time.

Gradually the rating increased again, everything returned to normal, but I realized that these are not just numbers. Therefore, I tried to keep the guests happy: my place is always clean, and I remain friendly, even if I don’t feel like it at all.


Seasonality

Demand is greatly influenced by the time of year. In St. Petersburg, the season for daily apartment rentals is summer, May and new year holidays. It happens that demand increases on other holidays: March 8, “Night of Museums”, City Day, “ Scarlet Sails" But these are bursts for a couple of days, and not always.

The rest of the time is off-season. In order for the apartment not to stand idle, you have to get out of it: reduce prices, promote an ad, come up with promotions and discounts.

The period for which an apartment is rented also depends on the season. During the season, people come for a long time: they often rent apartments for 5, 10, or even 20 days. In the off-season, they often stay for a couple of days - to see the city, have a romantic meeting or on business.

As a result, you have to work harder than with a long-term lease.

Guests service

When I rented out an apartment for a long time, it was passive income: I had to do almost nothing. I called the agent and talked to the candidates, and then just checked from time to time to make sure everything was okay.

With short-term rentals, I found myself tied to the location. Before guests arrive, everything must be clean, linen washed and ironed, and all equipment must be working. The hardest thing is in the off-season, when the apartment is often booked for just a day. I’m lucky that the gym, apartment and main residence are nearby.

With the safety of the apartment, everything turned out to be easier than I thought. When people rent an apartment for a long time, in any case, something breaks, gets dirty, gets scratched. Even the most careful people do not treat their rented apartment with the same care as their own. And those who rent an apartment for a short time simply do not have time to break or break anything. Their main purpose is to spend the night. This is especially noticeable for tourists who spend all day walking somewhere in the city.

3 times

I rented out the apartment in a day. This is my record

If you want to reduce the load, you can arrange for guests to rent an apartment for a longer period - you won’t have to change linen, clean and iron every day. All sites allow you to specify a minimum number of nights. But in the off-season, bookings for a day are approximately 30% of income.

I have one interesting record: in one day I rented out an apartment 3 times. Watch your hands:

  1. The man booked and paid for a day through Booking, but then could not come. According to the rules of the site, if you cancel less than 24 hours in advance, the money for the reservation goes to the landlord as a penalty.
  2. After talking with the man that same morning, regular clients called me and I rented the apartment to them. They had already left during the day.
  3. In the evening, other guests who had booked the apartment during the day arrived.

Of course, this is a lot of hassle. But also a lot of money. Another thing is that this happened only once - usually there is no more than one client per day.

Income

With a long-term lease, I received 21,000 RUR per month, utilities were paid by the tenants - this saved another 4,500 RUR. I started renting out an apartment daily in March, during the off-season. In the first month, minus site commissions, I earned 21,300 RUR. But now I paid for utilities myself, so in the end I was left in the red by 4000 RUR.

Then things got better, in the off-season I earned from 20 to 40 thousand a month. Demand was heavily dependent on advertising and discounts. For example, if you make a discount of 30-50%, there will always be customers. But you will have to work almost every day.

In addition, the price turned out to be a kind of adequacy filter. Those who paid much lower than usual often gave me problems: for example, they refused to leave because they didn’t get enough sleep, or they tried to move in without a deposit. After several similar situations, I stopped lowering my prices.

50,000 R

I earn a month in the summer and on holidays

During the season, things went even better: in the summer and on holidays I was able to earn 50-60 thousand a month. During this period, you forget what advertising is.

The main expenses are bed linen and towels. They have to be washed and ironed often, so they quickly become unusable. The approximate service life of good linen is 8 months. If you add here the costs of cleaning and detergents and toiletries, it turns out to be approximately 10-15 thousand per year. With a long-term lease, all these purchases are on the conscience of the tenants.

What's the result?

It is more profitable to rent an apartment daily than for a long term, especially in the summer and on holidays. But at the same time you have to work a lot.

I would not be able to combine this business with a full-time job, so for now I decided to rent out an apartment daily during the season, and for a long time during the off-season. Due to utility bills, this turns out to be even more profitable than all year round rent an apartment daily.

I will lose regular clients, but if you rent out the apartment only during the season, then there will already be enough clients. But the rating and reviews will not go away: ads can simply be paused and then opened again. On some sites you can do this yourself, on others you have to call support.

In Booking you can close a booking for an indefinite period, but the ad continues to be shown in search and on the map. To remove the ad from the search, you need to call them. And in “Cyan” the ad must be raised every two weeks, otherwise it becomes inactive. In the off-season, you can simply not do this.

In this material:

Renting apartments by the day as a business can provide a stable income, which will be many times greater than with long-term rentals. This is explained by the increased popularity of the service, because its cost is more affordable than hotel room, so it won’t be difficult to find clients. As a rule, apartments are rented daily business people, who came to the city for 1-2 days to resolve business issues, or tourists who want to see the sights.

Features of “daily” delivery

Real estate has always been one of the most profitable sources of income, so most citizens prefer to invest their money in this economic niche. With the right approach, you can organize a stable business renting out apartments by the day, gradually expanding it and thereby increasing financial profit. You can do this in several ways:

  • rent out your own home;
  • rent real estate;
  • apply for a mortgage.

The best option is to rent out your own square meters for temporary use, but often beginning businessmen use real estate that they themselves have rented. Some citizens approach the issue globally and take out a mortgage, after which they begin to rent out the purchased apartment. Thus, the newly minted home owner provides himself with a constant income, which is enough not only to pay off the loan, but also for his own needs.

Renting an apartment daily as a business has the following advantages:

  1. Good income, which can be much higher than with long-term rent.
  2. You can use your own housing at almost any time, but if you rent out your housing monthly, you will have to wait until the end of the contract.
  3. If you plan to sell real estate, then while you are looking for buyers you can earn a little extra money by housing visiting people for a day or several days.
  4. If you cooperate with a real estate agency or several individual realtors, you will ensure a constant flow of clients, which means a stable income.
  5. There is no need to register as an individual entrepreneur, which reduces tax costs and increases profits.

Organizational aspects

It will not be possible to create a highly profitable business for renting out apartments without investments, because... To attract customers, it is necessary to give housing a “marketable appearance”.

The first thing you need to do is a high-quality and modern renovation. It is not necessary to purchase expensive fabric wallpaper and mahogany parquet, but you should not skimp on finishing materials either.

The furnishings in the apartment are extremely important: it should be attractive and cozy, because even when staying for a day, a person wants to relax in comfort. Each room should have all the necessary furniture and household appliances. In addition, clean bed linen, pillows, blankets and several towels should be prepared for temporary guests. Bathroom supplies, such as soap, toilet paper and shampoo, will also not be superfluous, because many tourists often forget basic personal hygiene products.

Another important condition for a comfortable stay for tenants is the availability of the necessary utensils in the kitchen. It is unlikely that they will prepare full dinners or lunches, but nevertheless, you need to take care of having a kettle, a pot, a frying pan, several plates, cutlery and other utensils. In addition, there must be:

  • fridge;
  • gas or electric stove;
  • dinner table;
  • trash bin and bags;
  • broom and dustpan;
  • dishwashing detergent and washcloth.

Search for tenants

When the apartment is ready, you can start looking for clients by placing advertisements in city newspapers, in social networks, on specialized Internet sites and street stands. As practice shows, applicants for temporary housing are most attracted to advertisements with real photographs of the apartment, so they must be taken. Advertising requires a lot of time, and in some cases, insignificant financial costs. But if you cover as many information sources as possible, you will be able to attract a huge number of tenants.

It should be noted that it is necessary to constantly distribute advertisements for renting your own apartment for daily rent in order to ensure a continuous flow of clients.

To save yourself from unnecessary hassle, it is recommended to contact a real estate agency. After concluding the contract, professional realtors will independently post advertisements for daily rental housing and communicate with interested people. Inspection and actual delivery of apartments is carried out in the presence of their owners. The agency charges a small fee for its work, which can be a fixed amount or a percentage of the daily cost of living.

Despite all the advantages of working with professional realtors, most people who start a real estate business prefer to work independently, because... in this case they receive a higher income. It is not difficult to calculate the profitability of daily rental housing: for example, if you rent out a 2-room apartment at an average cost of 2,000 rubles, then the profit in 30 days will be 60,000 rubles. It is important to note that the level of earnings directly depends on the location of the property and its level of comfort.

Do not forget that the daily rental housing business, like any other type of activity, has pitfalls. Often you come across tenants who spoil or steal things, so before moving people in, it is recommended to conclude a formal agreement in order to receive compensation in the event of force majeure. In addition, the object and all property located in it should be insured.

Order a business plan

Investments: from RUB 350,000.

Like Hostel is a dynamically developing network of hostels. We already have about 88 partners, and about 50 open hostels in Russia and the CIS. Over the course of our work, we have accumulated vast experience in financial management and guest services. It all started in 2013 when a young entrepreneur Ayaz Shabutdinov opened the first hostel in Izhevsk. And by the beginning of 2014...

Investments: from RUB 1,500,000. up to 2,500,000 rub.

The company "Hostels RUS" is the leader of the hostel market in Russia. To date, we have successfully opened 112 hostels in Moscow and 25 regions of Russia (Moscow, St. Petersburg, Sergiev Posad, Voronezh, Vladivostok, Volgograd, Sochi, Krasnodar, Leninakan, Muravlenko, Yekaterinburg, Nizhny Novgorod, Novosibirsk, Novorosiysk, Norilsk, Pskov, Kazan, Yaroslavl, Irkutsk, Kingisepp, Rostov-on-Don, Uglich, Yakutsk and others). We open European-level hostels and…

Investments: Investments 600,000 - 1,200,000 ₽

The HiLoft hostel chain is a project that meets the high standards of the international association Hosteling International. Our hostels reflect Hosteling International's eco-concept: * Provide a framework for maintaining and continuously developing social and cultural connections within the community. *Contribute to the popularization of safe tourism that does not cause damage to the environment. *Promote the development of accessible tourism. We provide our franchisees’ hostels with high occupancy rates in…

Investments: Investments 70,000 - 900,000 ₽

Investments: Investments 990,000 - 1,500,000 ₽

Senor Doner is a regional chain of grill cafes. We use modern analytics and optimization technologies to create a business that will operate for decades, improving every day. Our Menu consists of wide choice dishes. The main dishes include locomotive goods - doner kebab (shawarma) and shaverbox, there are also other groups of goods - snacks (Potatoes...

Investments: Investments 1,000,000 - 9,000,000 rubles.

In 1909, Richard Shearman opened the first hostel in Germany, changing the way travelers could find affordable accommodation. The idea, born during a night thunderstorm on August 26, 1909, became one of the German inventions that became popular throughout the world. We hope that our hostels will forever change the perception of what…

Investments: Investments 300,000 - 700,000 rubles.

The 9 Nights company has been successfully operating since 2012 and during this time has managed to serve more than 20 thousand guests from different parts of the world. The company manages more than 25 of its own home hotels, which operate in the city of Petrozavodsk with a population of 250 thousand people. At the end of 2015, we opened representative offices in Russia and Belarus! Description of the franchise WHAT...

Investments: 400,000 - 550,000 rubles.

The NICE hostel network is a special project of the international hostel association Hostelling International. NICE hostels meet all the tasks and goals of the association and were created for their implementation on the territory of the Russian Federation. Work on the franchise program was completed in 2014, at which time the offer became available to interested investors. Those wishing to become a NICE Hostel partner must share and support the mission of Hostelling International:…

Investments: from RUB 1,300,000.

Bear Hostels is the No. 1 hostel chain in Russia. Bear Hostels is not just a place for inexpensive accommodation, but also a platform where people from different cultures meet and get to know each other. For some, this is a student hostel, others stay with us during a business trip, and others simply travel the world without spending extra money on accommodation.…