Profitability of daily apartment rental. Apartment rental business. Pros and cons of business

Daily rental of apartments as a business is a good additional income, but it also has its pitfalls. To save not only yours cash, but also the property being leased, it is necessary to have a clear understanding of where to start a business, what risks may exist, and for what group these services are suitable.

Where to start a business

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

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

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

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

Features and possible problems

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

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

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

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

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

What is the profit?

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

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

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

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

Daily rental of apartments: Video

Some time ago, landlords with keys stood at train stations and invited guests. Now this procedure takes place on the Internet. Therefore, it is difficult to determine the demand for a particular offer. However, as Wordstat statistics show (the number of queries in the Yandex search engine), daily apartment rental is one of the most popular options.

Several factors influence the relevance of the business model:

high demand
small investment to get started
quick payback
low costs

All these factors are present in this sector.

In addition, the demand for daily rental apartments is ensured by the fact that:

over 1 billion people travel every year (and they need accommodation)
this figure increases annually by 5.5%
in 10 years there will be twice as many travelers
more and more people prefer to travel blind (without travel agencies and excursions)
holdings and large corporations are increasingly renting housing for their posted workers in the private sector

Which apartments are in greater demand?

The income and amount of money in a business depends directly on the area where the apartments are located. It is possible to make big profits from almost all categories of housing, except old and dilapidated ones.

Owners receive maximum income:

comfortable housing located near the center
business class apartments
Economy overnight stay, the prices of which are significantly lower local hotels, but the level of housing is not much inferior to 4* hotels

In some areas of the city there is no downtime in daily rentals. Almost always this is either the city center or areas with the largest number of attractions.

In most cases, the further the apartment is from the city center, the higher the importance of transport links: from the airport, train station, etc. Availability nearby bus stop or a metro station within walking distance will increase tenants' interest in housing.

People who come to the city for the first time often rent. Therefore, they do not know where everything is. Therefore, the question of how to get to the apartment should not cause difficulties.

When forming an offer, you should take into account that most apartments are rented at almost the same price. For one-room housing in any city there are a dozen identical prices. How, then, can you stand out among your competitors?

When the area and price of the apartment are the same as other listings on the market, the competitive advantage will be the type and condition of the house or the developed infrastructure offered nearby.

If there is a cinema, a park, fitness centers and a large supermarket nearby, then they will create good first the client's impression of a particular area. For short-term rentals, amenities such as an elevator, garbage chute, intercom and concierge will help you create warm memories. Satisfied customers will almost always return to the same place, and will recommend to friends, acquaintances and will most likely leave good review in the Internet.

The greatest demand (more than 60%) is for studios and one-room apartments, which have been renovated in European style, have all the necessary equipment, and have towels and bed linen made of pleasant materials.

Property options for short-term rentals

There are three types of apartments on the daily rental market:

Initial investment

Even if you own apartments, expenses cannot be avoided. A good marketing company and working out all the nuances will determine how long it will take for an entrepreneur to receive his first money. Let's consider the items of mandatory expenses.

Payment for housing and communal services. You will have to pay your bills every month.

Payments to cleaners or cleaning companies. Naturally, the landlord will be able to fulfill these obligations. If you have one or two apartments, it makes sense to save money. However, after scaling up, you won’t be able to keep track of the cleanliness of a dozen residential premises yourself, given that clients in this business change every day. Therefore, you will need to hire other people, and spend the free time on thinking through advertising.

Marketing. Fortunately, the world wide web offers great amount free boards for posting advertisements for daily apartment rentals. Through them information is conveyed to potential clients. But any shark in this business will say that this is not enough. You will have to resort to small tricks, such as contracts with taxi drivers or attracting promoters to distribute leaflets in public places. So:

Leaflets, for example, work well during the holidays, when a large number of visiting citizens come out of train stations and receive an excellent offer for renting an apartment with attractive pictures.
With private taxis, a similar pattern emerges. A man gets out, hails a taxi (there are almost always a dozen of them near the station) and the driver casually mentions one wonderful offer of overnight accommodation at a good price. An unobtrusive third-party recommendation works very well. Of course, the driver will have to be financially rewarded, but in this case the apartment will not be empty.
When posting on the Internet, it is recommended to pay bulletin boards so that a specific apartment is always at the top of the search, stands out and attracts clients with beautiful photographs.

Any means of conveying information to customers is good.

Photographer. Few people call professional photographers and, trying to save money, sometimes take terribly funny pictures of their homes. Thus, the photos displayed do not convey the advantages of the apartment, and may emphasize negative aspects. Therefore, a small amount spent on a photographer will pay off with interest. On the Internet, people often make decisions based on beautiful photos.

Force majeure circumstances. There is no need to exclude from expenses the occasional breakdown of equipment, a flood from a neighbor, the appearance of cockroaches, etc. Promising entrepreneurs always have a set aside amount of money for such cases, in order to eliminate everything as quickly as possible and continue the business.

Repair. As stated above, there is a great demand for small housing with European-quality renovation. Accordingly, to make it, investments are needed.

Other expenses. Sublease payments may be included in the obligatory expense item, provided that the apartment is rented from the person who built it.

Any problem is cheaper and easier to solve before it occurs than after it occurs.

For example: the upstairs neighbors flooded the apartment due to poor plumbing fixtures. It is necessary through the court to force them to pay for the damage, and thus make it clear that this should not happen again!

Opening an individual entrepreneur (IP)

As described above, daily rental of apartments is a business, and also quite profitable. Therefore, it must be formalized according to the current legislation of Russia.

Citizens who rent out rented or their own housing have the right not to open an individual entrepreneur. However, if you have five or more rented premises, it is advisable to play it safe and legalize your income.

Entrepreneurs who have legalized this activity have several advantages:

Any claim against a tenant can be easily resolved if there are contracts, through the court.
To prove damage from the rental you will need to present.

According to experts, only 40% of small entrepreneurs engaged in daily rentals have legalized their activities. Most people are in no hurry to pay taxes on profits.

This, of course, allows them to earn more by saving money that should have gone to the government. But if information about illegal sources of income gets into tax office, the owner of the apartment may be brought to administrative liability in court. In the best case, you will only need to pay penalties and fines. In the worst case: the citizen will be prosecuted under Article 198 of the Criminal Code of the Russian Federation, which means receiving a criminal record and a fine of up to 300 thousand rubles, or they can be sent to prison for up to one year.

The following documents must be submitted to the tax service:

Completed application for registration of individual entrepreneurs.
A copy of an identity document.
Receipt for payment of state duty.

You need to open an individual entrepreneur at your place of registration. When opening, the type of activity is indicated. Next, 6% of income is regularly paid in the form of taxes.

Before entering the market

When the choice of apartments for rent has been made and an individual entrepreneur has been opened, it is necessary to prepare the housing for the tenant to move in. In daily rentals, the requirement for comfort is many times higher than in long-term rentals. Before finding and moving in clients, you will need to spend time preparing housing.

It is necessary to adhere to five principles when preparing an apartment:

The more amenities, the higher the cost. Therefore, some businessmen rent out apartments along with dishes, towels, toilet paper, soap, etc.

More about marketing

Three effective methods of advertising have already been mentioned above. But the issue of marketing is much broader and more important, so it is necessary to delve deeper into this area. At this stage, it is assumed that the apartment is ready for rent. Now the entrepreneur’s goal is not only to find several tenants, but to ensure maximum occupancy.

Savings on marketing are reflected in the business in the form of reduced income. However, a large advertising budget is not always guaranteed to lead to results. What's the matter? The fact is that there are correct and effective channels where money should be spent on advertising and failures. For example, focusing on the number of advertisements is only worthwhile when posting on free boards.

Let us first point out two incorrect ways of advertising:

Writing your contacts on the asphalt. Vandalism does not increase sales! No one in their right mind in the Internet era would call a number on the asphalt and book an apartment.
Posting your offer at bus stops and other public places. Again, disfiguring your city with unnecessary posters will not lead to sales. At best, the police will call the number and ask what the ad is doing at a local traffic stop.

If such primitive promotion worked, there would be no need for colorful photographs of apartments and renovations. However, given that people primarily want to see an apartment, and that now almost everything is done on the Internet, you need to declare yourself in the following ways:

, From hand to hand, Yandex real estate and Cyan. These are the largest message boards in Russian Federation. It is advisable to post on them using paid methods. Small investments will significantly increase your coverage and bring large quantity tenants
If you have five or more apartments, it is advisable to create a one-page website and look for clients in the vastness of Yandex and Google. Continuous traffic of potential clients will fill all premises for months to come

Underwater rocks

Daily rental of apartments as a business has its advantages and disadvantages. Before deciding to enter this industry, it is necessary to assess all the risks, emerging competitors and other features.

Daily rental housing increases the risk of theft or damage to property. Few owners will call the police, open a criminal case and waste their time on it. Some citizens can take advantage of this. The best way To avoid such losses - insure your material assets and even your apartment. These are stable losses that may never pay off. Therefore, very few people insure their homes. But in vain.

All people checking in must take a copy of their passport or take a photo of this document. If you have an individual entrepreneur, it is advisable to enter into an agreement where all the client’s data is entered.

Often neighbors have an unfavorable attitude towards daily rental housing near them. Sometimes this is justified, since renting is not always silent and quiet. It is advisable to establish warm relations with your neighbors before entering the market.

Some react categorically badly to noisy companies and loud music. Consequently, you will have to refuse to rent out housing for celebrations and perhaps even lose part of your income. Otherwise, the police may be called, and you will have to go and resolve the conflict. After this, residents can leave bad reviews and damage their reputation.

Entrepreneurs who are interested in renting apartments on a daily basis will find the following tips useful:

Daily apartment rental is a profitable and uncomplicated business. If you have an initial investment (for sublease or purchase), anyone can enter the business and start earning money.

Write your question in the form below

People who own an asset such as real estate often think about what is better, renting or selling an apartment, how to organize renting as a business? It is difficult to give an unambiguous answer to this question: much depends on the market situation, region, demand, condition and type of housing.

For example, during difficult times for the real estate market (2014-2015), in the capital region, supply was almost twice as high as demand. Therefore, many owners had to reduce rental prices or sell housing that was empty without tenants. To evaluate all the pros and cons of selling or renting real estate, here is a small calculation for a 1-room apartment:

The cost of the apartment is 2 million rubles.
Rent price per month – 15 thousand rubles. excluding utilities.
Annual income – 180,000 rubles.

Let's calculate the expenses that await the owner renting out the apartment:

Tax payment (13% for individuals) – RUB 23,400. from annual profit.
Costs for cosmetic repairs – 15,000 rubles.
Insurance (0.4% of the cost of the apartment) – 8,000 rubles.

Total income per year minus expenses will be 133,600 rubles. Based on the cost of the apartment 2 million rubles. business profitability will be 6.68% per year

We talked in more detail about renting an apartment.

Which is more profitable?

The average rate on deposits in Russian banks is 7-8.5%. Let's take Tinkoffbank as an example, which offers a rate of 8% per annum. By depositing 2 million rubles into a deposit account, the annual income will be 8.84% of the value of the deposit.

Is it worth renting out an apartment? Based on approximate calculations, we can conclude that selling an apartment is more profitable than renting it out. However, when renting out housing, the owner will always be sure that in case of unforeseen situations he can count on moving to his own home.

Advantages and disadvantages

Let's look at the advantages and disadvantages of a real estate rental business.

Pros:

stable rental income;
leasing does not require registration of an individual entrepreneur;
the opportunity to receive passive income by concluding an agreement with a realtor (you can find out how much his services cost);
high demand for rentals;
minimum starting capital.

Minuses:

if you deal with renting on your own, you will need to sacrifice personal time for drawing up contracts, showings, and searching for clients;
The rental business brings the greatest benefit only to owners of several residential premises;
To legally rent out housing, you will need to pay taxes as an individual or individual entrepreneur;
there is a risk of running into scammers, as a result of losing property in the apartment or property rights (we talked about how to protect yourself);
to create a stable income, you will need to invest in advertising;
There may be expenses associated with repairs and the purchase of everything necessary for a comfortable stay for tenants.

Is it worth doing?

The profit received from renting out real estate can be a good addition to your salary or become a separate income that allows you to ensure a comfortable existence. You can rent out your home and not work. In this case, you will receive sufficient profit. There are two reasons to open a business:

This is one of the niches that does not require large investments, knowledge and experience.
There is almost constant high demand in this area.

How to earn?

How to make money from this? Is it profitable or not? What First you will need to organize a profitable rental business:

Prepare housing for rent.
Compare competitors' offers for similar real estate in your region to assess the real situation and set the rent.
Determine the option for renting out housing: with an agency or independently, daily or long-term. If you want to organize the rental of living space as a business, then it is advisable in the first stages to search for clients and conclude transactions on your own. This way you can get to know the whole “kitchen” from the inside.
To complete the transaction, you will need to competently draw up documents - a rental agreement, an inventory of property, a transfer and acceptance certificate, etc. ( full list documents can be found)
Many landlords evade taxes by renting out housing under gray schemes. If you do not want problems with the law, then it is better to register an individual entrepreneur and pay 6% (you can also purchase an annual patent), or pay taxes as an individual (13%).

Where to begin? In order for a rental business to generate income and not expenses, you should:

insure the apartment;
correctly structured in such a way as to make a loss due to the dishonesty of the residents;
establish a flow of clients (the apartment should not stand idle without tenants for weeks, as this is a loss of your money).

How to get more profit?

Setting an inflated price for rent is a failed option. The cost of the services provided must correspond to the quality. In order to rent out your home as expensively and profitably as possible, you need to use several methods:

Make repairs. Not necessarily expensive. The main thing is to create coziness and comfort. If the apartment has an old renovation, then you should definitely carry out cosmetic work: hang wallpaper, change plumbing, hang new curtains, etc.
Equip the apartment with everything necessary for living: furniture, internet, dishes, Appliances. This will significantly increase the cost of rent.
What is more profitable to rent? If we are talking about a multi-room apartment, then you can rent it out 1 room per tenant (you can find out how to rent out a room).
Is it profitable to rent out living space daily? This type of rental will allow you to get twice as much profit.

Is it a business activity?

An apartment is a person’s property, which, according to Art. 209 of the Civil Code of the Russian Federation, he has the right to dispose of it at his own discretion, including renting it out.

Entrepreneurial activities are actions aimed at obtaining systematic income received from the sale of goods, provision of services, etc. by a person registered as an individual entrepreneur. The letter of the Ministry of Taxes and Duties No. 04-3-01/398 dated 07/06/2004 explains whether the rental of real estate is a rental business.

The document states that although the landlord receives income in the form of rent, he does not carry out any economic activity. Nevertheless, there are often cases when tax authorities and courts recognize this activity as entrepreneurial. The conclusion is the following: if the owner considers his actions as entrepreneurial activity, then he can register an individual entrepreneur. If not, then he has the right to remain in his previous status and pay taxes as an individual.

REFERENCE: Despite the fact that renting can be done as individual, you still have to pay taxes. Income from rental property is subject to taxation (Article 208 of the Tax Code of the Russian Federation).

What is in greatest demand?

What kind of housing, according to real estate experts, is in greatest demand? New construction or secondary market? There is no difference in price in this case. However, if in order to move tenants into a new building you will need to make repairs and buy furniture, then a secondary market apartment almost never requires large expenses. This should be taken into account by those who are planning to buy real estate for the purpose of renting it out.

What is the optimal size of a rental property? The optimal area is from 30 to 40 square meters. m. As a rule, these are one-room apartments or studio apartments. The most in demand are 1-2 bedroom housing. Apartments with 3 or more rooms will be more difficult to rent to one tenant. In this case, it is much easier to look for a separate tenant for each room (you can find out how to draw up a room rental agreement).

Requirements for residential premises for rent:

Is it possible to make money on daily rentals? Daily rental housing has a number of advantages and disadvantages. On the one hand, this option will bring more income. On the other hand, daily rentals require a lot of time, experience and expense. Let's consider this option from the point of view of benefits for the owner.

Short-term rentals are much more profitable than long-term rentals. To verify this, let’s calculate the approximate profit received per month on daily rentals and compare it with the income from:

Rent for an apartment at long term rental– 30 thousand rubles.
for a day in the same area of the city costs an average of 2 thousand per day.
If, with a long-term rental, the housing will bring the owner only 30 thousand rubles. per month, then for daily rental, with the condition that people will live in the apartment for the entire month, the owner will receive 60 thousand rubles.

Where to begin?

To start You need to prepare your home for occupancy: carry out cleaning, necessary repairs, buy additional things to improve your stay. Next, you should think about advertising and find sites on which to post rental advertisements in the future. Then you will need to create a good advertisement in which you indicate all the advantages of your living space.

IN big cities daily rentals are in great demand, so you need to be prepared for the phone to ring off the hook with calls from potential employers.

How to make a plan?

To make a business plan, you need to determine the cost of daily accommodation. To do this, you need to familiarize yourself with the offers of competitors. In a business plan for renting out an apartment, you should not significantly increase or decrease prices, as this may alert potential tenants or completely deprive them of profit.

advertising;
payment for housing and communal services (for daily rent the amount of utilities will be higher);
cleaning expenses (detergents, washing powder, etc.);
expenses for household needs for tenants (toilet paper, dishes, hair dryer, etc.);
taxes (for individuals – 13%, for individual entrepreneurs – from 6%).

How to make money by renting apartments daily? A rental business can be quite effective. The effectiveness of daily rentals largely depends on the occupancy of the property. The average occupancy rate should not be less than 80%. This means that the apartment should not be empty for more than a week without tenants. With this indicator, the owner will fully recoup the costs and receive a normal income.

IMPORTANT: To organize a profitable daily rental business, one apartment will not be enough. Realizing this, many owners, in addition to their real estate, sublease the housing of other owners. To get a good income, it is advisable to have at least 5 apartments for daily rent.

Possible risks and difficulties

What are the pitfalls, risks and difficulties in this niche:

Instability. Insanely in demand daily apartments usually occurs during holidays and the summer season. To establish a stable flow of customers, you need to constantly invest in advertising and improve the service.
Lack of clients due to bad location apartments. The best housing rentals are in areas with developed infrastructure. If the object is located on the outskirts, far from the metro or stops, then the demand will be small. In this case, you should think about long-term hiring.
You need to be prepared for the discontent of your neighbors. They are unlikely to like the fact that the apartment often changes tenants.
Risk of theft and property damage. The owner should provide for all the nuances of using the apartment in the contract in order to avoid unpleasant incidents.

From the video you will learn about the risks when renting apartments on a daily basis:

Office space organization

Is it possible to rent out residential property for office use? Another way - organize office space in it and rent it out to business owners. Is it possible to rent an MLM and rent out residential premises for an office? Is this legal? allows the use of residential premises for business and professional activities under the following conditions:

the rights and interests of the residents of the house are not violated;
a person conducts professional activities on the basis of an existing or document of ownership of the premises.

Is it worth opening such a business? Rental business or renting out an apartment as a business requires in most cases minimum costs, but a lot of time and some legal knowledge. However, the business can ultimately bring high profits if you approach it wisely and responsibly.

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What to do if you have no cash savings? Many people believe that for real estate investment you need to have a large initial capital. Actually this is not true. Business on daily rental of apartments is a real estate investment strategy that can be started without initial capital.

How to make money on daily apartment rentals?
What determines the effectiveness of daily rentals?
One of the ways to invest in real estate using the example of Zelenograd
How to test the location of an apartment?
Rental business - What to invest in in Moscow and the Moscow region?
Tips from seasoned investors:

Let's figure out how to work with the daily apartment rental market.

Business related to rental housing is the ability to “play” with numbers. Most people think that renting out apartments every 25 days is impossible. However, these are real numbers for this market. If you rent out the property for fewer days, the profit will be minimal. After all, there are expenses for rent, advertising and salaries for service personnel.

How to make money on daily apartment rentals?

If no savings and you can't get a mortgage. There is a simple and effective way - you can make money by renting out housing on a daily basis.

Yuri Medushenko is a professional investor, expert on Apartment Buildings No. 1 in Russia. Recently, he and his partner Matvey Nadezhny organized business on daily rental of apartments.

We take and rent an apartment or townhouse for a long time, for example, for 30,000 rubles per month. Of course, inform the owners in advance that you are going to sublet the property.

And we rent it out daily, for example for 3,000 rubles, and you make a profit from the difference. If you rent out an apartment 25 days a month, you can provide a cash flow of 35,000 rubles. per month.

What determines the effectiveness of daily rentals?

First of all, it depends on the occupancy of the selected object.

The average occupancy of the facility must be at least 80%. Because By getting only such numbers, you will be able to recoup your own investment.

In a classic business, the scheme is quite simple: today you can sell two pairs of felt boots, and tomorrow – twenty. Due to the next day you make a profit. IN hotel business everything is different: if you haven’t filled two studios today, then tomorrow you won’t be able to rent two more. Therefore, the profit will be lower in this month.

One of the ways to invest in real estate using the example of Zelenograd

Case of Andrey Zelensky participant

How to test the location of an apartment?

It's very simple, you place a sales ad about renting out housing and indicate the desired area. And then look and count how many calls you receive per day based on this ad.

For those schemes when you indicate a non-specific address, and the nearest large facility, it is better to select clients with a car. When a person realizes that he can rent a house 1000 rubles cheaper than the average market price, then it will not be difficult for him to travel an extra 2-3 kilometers.
There is the following scheme: testing is considered successfully completed when thirty-eight clients a day expressed a desire to rent our apartment.

There is no such thing as number of clients consistently amounts to ten people per day. Fifteen people called today, and thirteen tomorrow. These downturns are unacceptable for a quality business. Therefore, for a complete result, we accept there are more applications than we have available.

If occupancy rate began to account for 70%, then sooner or later this company will leave the market. The market also becomes inefficient if you set your price slightly higher than your competitors. Thus, we can lure clients to us if we make the price even lower. The flow of people will increase, and the apartment will not be left without tenants. All these points need to be tested.

Rental business - What to invest in in Moscow and the Moscow region?

Case of participant Tatiana Khmelnitskaya live meeting of investors Territories Investing

When you have 1-3 apartments, then you can debug this process yourself. And it is much easier than hired work, because it does not require your constant presence in the office for eight hours a day.
When we rent out housing on a daily basis, then it is necessary to constantly manage business processes. It will be better to have ten studios in one place, because this object is much easier to control than ten apartments in different places. Moreover, you can reduce costs because... a minimum number of maintenance personnel will be required.
To receive passive income, need to find manager, establish a flow of clients. Also take care of quality advertising. Select an employee who will update advertisements on the site, as well as a manager who will control the direction of service.

This is just one strategy for how you can increase your income. This method implies that you act with the help of other people's objects. Look from a different angle. You can buy properties and pay off your mortgage using other people's funds. That is, combine business with investment strategies. More on this in the next article.

23.08.18 77 643 82

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

Minuses	pros
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:

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

Minuses:

The apartment is not in the center, but in an ordinary residential area.
The renovation is simple and outdated.
The apartment is small, 35 m².
There are no bed linen or towels - for long-term rentals, residents use their own.
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 a month in advance: cleaning and detergents, paper towels, soap, toilet paper, mop and other useful items 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?

Website	Commission	Additional terms
Booking	15%	You can independently increase the commission in the settings, then the site will promote you and recommend you in searches.
Daily-ru	15%	The commission remains in your virtual wallet on the site, and you can use this money to promote your ad.
Air BBC	3%	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.
Cyanogen	0%	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	0%
Yandex real estate	0%	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, and gets scratched. Even the most careful people do not treat rented apartment as carefully as you treat your own. And those who rent an apartment for a short time simply do not have time to break or break anything. Their the main objective- 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:

The man booked and paid for a day through Booking, but then was unable to show up. 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.
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.
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

For a long-term lease, I received 21,000 RUR per month, public utilities The residents paid - 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 renting out an apartment by the day all year round.

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.

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