Earning money from renting out apartments for daily rent. Earning money from renting residential and commercial real estate. Which taxation system to choose for daily rental of apartments

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

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The renovation is simple and outdated.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:

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 The renovation is simple and outdated.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?

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 its almost designer renovation, five years of daily rental experience, 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 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.

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

How to make money on short-term rentals?

Where can I find an apartment for daily rent?

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

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

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

Where to start your rental business?

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

Which apartment is suitable for daily rent?

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

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

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

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

Short-term rental client - who is he?

Most clients are:

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

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

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

Option 1

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

Option 2

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

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

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

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

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

How to furnish an apartment for a client?

Apartment for daily rent

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

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

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

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

The most important thing is where to get clients?

In the Internet

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

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

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

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

Locally:

Daily rental advertisement

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

Business plan for daily rentals

Apartment house

Sublease

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

We make the website “on our knees” for free. We purchase decorative elements, clean sheets, towels, dishes and other small items for 5 thousand rubles.

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

Mortgage

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

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

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

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

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

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

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

Business on sublease of apartments

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

To achieve success and financial well-being, it is not enough to work hard in an office or factory. This type of income, by definition, cannot bring much income, since it will simply be unprofitable for the owner. People who understand this principle are trying to find a way out of the current situation, but at the same time they are afraid of losing their jobs.

In such cases, you can pay attention to passive ways of generating income. For those who have free living space (room, apartment, house), the option of renting it out daily is suitable. You can also invest your savings in real estate, because the banking system does not inspire much trust.

Analysis of the housing market situation

In Soviet times, the income generated by renting residential premises was called unearned and was diligently suppressed. Today the situation has changed radically. Even old grandmothers are ready to make room for a stable addition to their small pension.

What kind of profit can such a business bring? Daily rental of apartments can be a very profitable business. This has been proven in practice by people who liked this business idea.

Daily rental of elite class apartments in big cities can bring enormous income. Business class residential premises will bring less profit to their owner, but on a more stable basis, as they are more popular. Finally, renting out a room in a dorm or apartment seems to be the most appropriate activity at the initial stage.

The benefits brought by renting residential premises for a day directly depend on the availability of hotels in locality, room rates, as well as tourist flow of people. An example is seaside resorts Russia. Tourists often come there on holiday as “savages”, that is, without a tourist package. They are forced to find a place to live on their own. For the holiday period every local becomes a rentier.

At the same time, to Moscow and others big cities comes a lot business people accustomed to comfort and luxury. They prefer to stay in luxury apartments and, accordingly, are willing to pay well for it.

Lack of full competition

In our country, especially in small towns and villages, the hotel business is very poorly developed. Enterprising people take advantage of this advantage by renting out residential premises.

Indeed, if you compare the number of hotels in Russia and in the countries of Western Europe and the USA, you will find that we have 2.5 times fewer of them. However, most large hotels are concentrated in Moscow and St. Petersburg.

At the same time, the lack of competition always spurs business. Daily rental of apartments is becoming a truly popular means of generating additional income.

Advertisements about vacant residential spaces ready to accept guests can be found in almost every newspaper, at public transport stops and on the walls of houses.

Due to such a large number of offers, a false impression is created that renting out an apartment is very difficult. In fact, the niche is only 50-70% occupied, and the pace of construction of new housing and hotels has slowed down significantly. Therefore, anyone can do this business.

The first steps of a rentier

To receive income from real estate, you must have it. Therefore, the first thing a novice entrepreneur needs to do is invest in the purchase of an apartment, room or mansion. The size of the living space and its arrangement will depend only on financial capabilities.

In some cases, it is possible to build a business differently. Daily rental of apartments inherited from deceased relatives is one of the most common ways to generate additional income. Indeed, it is not advisable to sell a home if there are children in the family. They will soon grow up (as well as real estate prices) and will want to separate. At the same time, maintaining an empty apartment is very expensive. That's why many people decide to take it.

People who are less wealthy and do not have rich testators can be advised to start by renting out a room in their apartment. This method of earning money has many inconveniences, but it allows you to further develop your rental business. Where to start, everyone must decide for themselves. In this case, you need to focus on your material and volitional capabilities.

Profit and expenses

Making a profit is the goal pursued by any business. Daily rental of apartments is no exception. The income that the owner of the premises will receive can vary from 100 to 100,000 dollars monthly. As noted earlier, the numbers will depend on the class of housing being rented, its area and furnishings.

Daily rentals are always more expensive than long-term rentals, so you need to be prepared for the fact that the average rental time will not exceed 2-3 days. An apartment owner should always work for the future and constantly attract new clients.

At the same time, you should not forget about the expenses that the rental business implies. Where to start the calculations? Firstly, arranging the room with furniture and household appliances. Secondly, purchasing personal hygiene products: toothpaste, shower gel, shampoo, toilet paper. Thirdly, paying taxes and rent. Expenses may also include advertising in newspapers and magazines.

Payback

In the case when your own apartment is rented out, there is no point in talking about payback, since the business begins to generate income almost immediately. But you can make money in another way. Some resourceful people use a scheme where they rent out premises they have on a long-term lease for a day.

The payback period will be different in each specific case. So, with an average monthly rental payment, furniture costs, household appliances and personal hygiene products will have to be invested at the initial stage of about 100,000 rubles for one apartment. You can receive up to 2,000 rubles per day from business class residential premises. Thus, a successful businessman will be able to receive income for 2 months.

Renting out apartments on a daily basis is considered a fairly profitable business. The main advantage is earning money from scratch without any special investments if you have at least one apartment for rent. It can be inherited or previously purchased with a mortgage. In this article we will look at a business plan for daily rental of apartments by the owner.

Project Summary

An example of a business plan will be presented based on daily rental apartments in big city. This business has good prospects in big city, where the target audience is quite wide. However, this business is no less profitable in a small tourist city. The essence of the business is to rent out 3 apartments, the owner of which rents out living space for daily rent in different areas of the city: two in central region and one in a residential area. Accordingly, clients will be both middle and high class, and below average.

General characteristics of the apartments:

1. 1-room studio apartment on the 3rd floor with total area in 30 sq. m in the central area.
2. 2-room apartment on the 5th floor with a total area of ​​45 sq. m. m next to the metro.
3. Apartment in a residential area, 1-room with a total area of ​​30 sq. m. m on the 2nd floor.

It should be noted that there will be many prospects and competitors. However, the demand for this type of service allows you to take your place in the niche and develop your business, receiving passive income. Competitors are individuals who rent out similar living space and real estate agencies. The main criteria that will allow us to fight with competitors are an individual approach to the client, a high level of service for apartments in the city center and an affordable price for an apartment on the outskirts of the city.

To start implementing the idea, you need to purchase furniture and equipment. Also at the starting stage it is necessary to draw up a business plan for daily rental of apartments with calculations. In order to invest in a more promising project, it is recommended to rent out one of the apartments daily for at least six months with minimal investment in consumables (bed linen and utilities). In this case, it will be possible to pay off the starting costs for middle and VIP class apartments.

First, you should study the risks that are a stumbling block to acquiring a stable income:

• Unstable demand.
• Unscrupulous tenants (theft of small equipment, interior elements, damage to property).
• A decrease in the solvency of potential residents due to the decline in the economic situation in the country.
• Aggressive competitors.
• Unfortunate neighborhood, which can worsen the service and quiet living of residents.

It is difficult to predict the number of tenants per month in advance, but success largely depends on an active search and proper communication with potential tenants. They need to be offered what they want to receive: complete information about the apartment, advantageous aspects (proximity to the metro, number of floors no lower than the 2nd floor and no higher than the 10th, availability of everything necessary in the apartment, balcony, good view).

To properly search for clients, the entrepreneur himself must analyze the volume of competitors and understand who will be his key client and to whom to direct maximum efforts. For apartments in the city center, you should look for tenants of the following categories: couples, business travelers, tourists. The best way to look for them is on popular Internet resources where these people look for apartments. The target audience for apartments on the outskirts of the city are young companies, tourists and business travelers with lower incomes.

Registration of activities

For legal activities in the field of rental real estate, the owner of 3 apartments should undergo legal registration. By registering as an individual entrepreneur, the owner of the apartments will relieve himself of the risk of being brought to tax liability and will receive guarantees of protection in legal disputes. When moving tenants into an apartment, the landlord has the opportunity to protect himself from unnecessary costs in the event of damage to the property by agreement. In addition, you can attract business travelers, because employing organizations require an official document confirming the living expenses of employees.

An entrepreneur can choose a simplified income tax system, where he will deduct 6% of net income. In this case, the individual entrepreneur is obliged to make a fixed amount of insurance contributions to the Pension Fund and the Social Insurance Fund, subject to the presence of hired employees. In our case, the entrepreneur will do without staff. To register an individual entrepreneur, you need to submit documents to the local tax authority, pay a state fee and, having received a certificate, begin to move in residents and make a profit.

Registration will require a small cost, up to 3 thousand rubles, and will take no more than a week. On average, 3-4 days.

Apartment equipment

To increase the price of renting an apartment, you need to purchase new equipment, comfortable and practical furniture, check plumbing, electricity, water supply, etc. The premises should not only be in good repair, but also have basic and additional equipment. Accordingly, certain investments are needed in the design and furnishings of the apartment. This is especially true for apartments for middle and top level residents' income. Costs for 2 apartments in the city center:

Name	Price	Quantity	Sum
Purchase of materials for cosmetic repairs	200 000	2 apartments	400 000
Carrying out repair work	150 000	2 apartments	300 000
Large folding sofa	40 000	2	80 000
Double bed	25 000	1	25 000
Soft chairs	15 000	2	30 000
Kitchen set	50 000	2	100 000
Mini-fridge INDESIT TT 85	11 000	2	22 000
Washing machine INDESIT EWUC 4105	11 000	2	22 000
Microwave	5 000	2	10 000
TV	30 000	2	30 000
Internet	4 000	2	8 000
Air conditioner	10 000	2	20 000
Wardrobe	10 000	2	20 000
Plumbing	17 000	2	34 000
Electric kettle	2 000	2	4 000
Blinds for windows	1 000	5	5 000
Nightstands	1000	4	4 000
Decor elements	10 000	2	20 000
Bed sheets	2 000	5	10 000
Dishes	1 500	2	3 000
Total			1 147 000

To rent out an apartment on the outskirts of the city, subject to an average level of renovation and the presence of new furniture and some equipment, minimal investments will be required:

You should spend at least 15 thousand rubles per month on utility bills for 3 apartments.

You can hire people to service apartments and find clients, but to keep costs to a minimum, at first you can do it yourself or with the help of family members. The main function - searching for clients and posting advertisements, communication, correspondence, calling and updating advertisements - can be solely the responsibility of the business owner. But moving residents into apartments, moving them out and cleaning the premises will be the responsibility of one of the relatives. As the number of apartments increases, the cleaning and check-in system will be revised, and this will be handled by a separate employee.

In this case, there will be no employee costs. All income will go to the family business, so profitability will be positive.

Marketing and advertising

Despite the fact that the daily apartment rental business can hardly be called an organization in the full sense, the use of marketing and advertising tools directly affects the profitability of the business. They are necessary in the fight against competition, which, as we have already said, is quite strong.

Advertisements for apartments for daily rent will be posted monthly:

Name	Sum
On free message boards	0
On the Avito board in the paid section	5 000
In newspapers	5 000
IN social groups in top places	5 000
Advertisements on the street	500
Flyers for distribution in places where target audience gathers (railway and airport)	7 500
Cooperation with a taxi service, printing information on daily apartment rentals on the back of the business card	5 000
Total	28 000

Income and expenses

General table of starting costs for 3 apartments:

It is planned to allocate 1,721,000 rubles to start the business. Thanks to previous rental income for Last year and personal investments, this money needs to be invested for appreciation rent all 3 apartments.

Monthly expenses

General table of monthly expenses from the 2nd month:

Income

To calculate the return on investment, it is necessary to plan the pricing policy and the average number of residents per month. Naturally, this figure will vary markedly depending on seasonality. For example, in the warm season there will be more tourists, and in winter – a little less. If you are located in a city with active winter tourism, everything may be the other way around.

During holiday periods - New Year's and May holidays– there will be many times more people wanting to rent an apartment daily than on ordinary days. Let's make a calculation taking into account average demand indicators:

At 50% occupancy of apartments, income for the 2nd month will be 190,500 rubles. However, every month the number of applicants will grow:

• A system for attracting clients will be developed.
• There will be regular customers who will systematically use rental services and recommend it to friends.

In addition, on New Year and May holidays, prices for daily rental apartments will be increased by at least 20-30%. These indicators should be taken into account when planning the payback period.

Let's carry out the calculation based on average profitability indicators.

Let's determine the difference between income and expenses in order to calculate tax deductions:

183 000 – 48 000 = 135 000.

We calculate the tax payment:

135,000 x 6% = 8,100 rubles.

Thus, the net profit will be:

135,000 – 8100 = 126,900 rubles per month.

We calculate profitability:

(126,900 / 48,000) x 100 = 264%. At first glance, the profitability is quite high. However, let’s determine the payback period for investments:

1,721,000/ 126,900 = 13.56 months (more than a year).

It is worth taking into account the increase in tariffs for holidays and increasing the number of residents to a maximum of 90% of the month, then income will at least double. Therefore, the plans for six months are to create a strong base of regular customers, at least 15% of the total volume, and actively work on finding tenants, using all of the above advertising tools.

As soon as the income from the start-up costs is paid off, the net profit can be used to increase the amount of living space; options for additional purchase of housing will be considered: investing in construction or purchasing an apartment with a mortgage.

Eventually

The daily apartment rental business is even very profitable, but mainly if you already own one or more apartments. If you are planning to purchase living space for rent, then it is better to focus on this income as additional income. Demand may suddenly drop for a month or two, and if you do not have a source of income with which to repay the loan for an apartment, you will find yourself without a livelihood. Therefore, take the path of making money by renting real estate carefully.

The category of “business from scratch” can safely include the activity of renting out apartments for daily rent. At the same time, you may not own apartments, but also make money on short-term rentals. All you need to do is find housing whose owners are willing to provide it on a sublease basis. Sublease is a form of agreement in which the right to rent out an apartment is, as it were, assigned.

Such a business may seem clear and easy to organize. But not everything is so smooth and calm. There are many apartments for daily rent, but not all of them bring good money, and some do not justify the investment in them.

It’s good if the property already has a couple or three apartments. Even if they are one-room apartments (the most popular on the market), then the profitability will be higher. If there is no such property, you will have to rent housing for long term and rent it out on a daily basis or hourly rental.

The whole difficulty in organizing a business comes down to finding suitable housing. Many owners, upon hearing the word “daily rental,” immediately associate it with drunkenness, prostitution and other negative things. And no amount of persuasion will change their opinion. Although in fact, such apartments rarely need subsequent repairs, unlike apartments in long-term lease.

It is not profitable for subtenants to keep housing in poor condition, because they simply will not have clients. After each check-in, the apartment is thoroughly cleaned. The same cannot be said about long-term rentals: in 90% of cases, tenants (and many of them are young) do not monitor the condition of the apartment. And they party and drink in such apartments no less.

“To conclude a sublease agreement for an apartment you like, you have to lie a little to the owners. I say that I have agreements with some companies to accommodate people who come on a business trip. And in this case, residents will change frequently. If you agree to these conditions, then I will pay you a little more for rent. Homeowners are worried at first, but when they see that everything is in order with their apartment, they calm down. And they no longer care about the opinions of neighbors and HOA chairmen,” says user “Rasklad” on the nasutki.borda.ru forum.

It is best to look for apartments closer to the city center. Finding clients here is much easier. And advertising costs are much lower. It is also worth renting apartments as close to each other as possible - this will reduce transport costs. If one apartment is located 15 km from another, then transportation costs will be much higher.

Legalization of activities

The peculiarity of the daily apartment rental business is that it is difficult to control by the state. Therefore, a considerable part of businessmen work without registering business activities and do not pay taxes. In some cases, this is justified, especially when we are talking about 1 to 3 rented apartments and the income from the activity is not so large that it makes sense to legalize the business.

With the growth of the organization’s turnover, when the organizer no longer has one or two apartments, but at least 5–6, it is better to register an individual entrepreneur or LLC. Once a business is registered, it will be easier to find new apartments (homeowners trust organizations more than ordinary individuals). Work will become calmer, since no one has canceled fines for illegal business activities. There will always be envious people, including the chairmen of homeowners' associations, who can report this to the police or prosecutor's office. And in this case you will always have documents. Everything will be within the law..

Such a business is most often registered as an ordinary individual entrepreneurship. To register a business at the tax office, you need to present an application, a photocopy of your passport and Taxpayer Identification Number, and a receipt for payment of the state duty. In the application for registration, you should indicate the OKVED codes: 55.23.5 “Activities of other places for temporary residence” and 70.20.1 “Renting out your own residential real estate» (several codes can be specified). Within 5 working days after submitting the documents, you can receive a certificate of registration of individual entrepreneurs. And you are the legal representative of the business.

Separately, it is worth mentioning the choice of taxation system. All three well-known special regimes are suitable for such activities: patent (patent taxation system), UTII (imputation) and simplified tax system (simplified). The most profitable option is a patent. You pay a fixed fee (about 10 thousand rubles) and work quietly for a whole year. You do not need to provide reports, keep accounts, etc. But the patent system is not accepted in all regions, which means you will have to choose between UTII (can be used up to 500 sq. m.) or simplified tax system. These special modes are also beneficial (although they are somewhat more expensive), but you will have to keep accounts and submit reports on schedule.

It is also worth considering the fact that, having registered a business, you will have to pay income tax for apartment owners, which is 13% of the rental price. In order not to offend yourself, this issue should be discussed with the homeowners at the stage of concluding a sublease agreement. This same 13% should rightfully be deducted from the cost of renting an apartment.

Hiring employees

If we are talking about building a business, and not about working “for the sake of working,” then the issue with hired workers should be resolved. If you have 2–3 apartments at your disposal, then you can somehow manage it alone. And if you work with 5 or more apartments, there is no way you can manage it alone.

Imagine the picture: you have found a client, you are going to show him an apartment. While you are negotiating, you receive a call from the second client - you are distracted by the conversation. At this time, the third client moves out of the apartment for which there is already another client, and you urgently need to put things in order in the apartment, etc., etc. And there can be a dozen or two such small, hectic tasks a day. Your head will be spinning, which will affect the quality of work and the number of clients. Therefore, as the number of orders increases, you should consider hiring a maid to clean apartments and a customer service manager. The cleaner can be paid only a percentage of the work done, without registering it with the state (so as not to pay insurance contributions). The manager gets a salary and a small percentage for motivation. Let him work with clients, answer calls, hold meetings, check the condition of apartments after guests, etc.

In this case, you have a lot of time, which can be spent on searching for new apartments, solving accounting and legal issues, advertising services, and supervising the work of staff. There will be time for personal life, and the work will bring pleasure.

How to advertise a service

Finding clients is one of the first tasks that you should put all your efforts into solving. If there are no clients, there will be no income, and the obligation to pay rent will not go away. The following options will help you create a client base:

• Placing advertisements in newspapers. An old and proven method, although with the advent of the Internet it is becoming less and less relevant. But this does not mean that we should abandon the media completely. Many business travelers, upon arrival in an unfamiliar city, buy newspapers and find apartments there.
• Posting leaflets in places popular with tourists and visitors. These are metro exits, bus and tram stops, bus and railway stations, and central streets of the city.
• Posting information on bulletin boards on the Internet: Avito, Slando, city portals, etc. Do not forget about drawing up a competent description, with an abundance of high-quality photographs.
• Try unique advertising methods, like writing signs on the pavement. All you need is a stencil and a can of spray paint.
• You can agree on cooperation with local taxi drivers, since visitors often hire a taxi at the airport and ask the driver to tell them where they can rent inexpensive housing.

Pitfalls in the daily business

Finding an apartment, legalizing a business and resolving issues with tenants are not all the problems that await an entrepreneur in this area. One of the main problems is the lack of clients. For a business to generate income, each apartment must be at least 70% occupied. That is, out of 30 days, 21 days are rented.

Demand for housing may be low not only due to high competition, but also simply due to the seasonal decline. In the summer in the central part of Russia, the demand for daily rental housing drops sharply. People go on vacation, there are fewer business trips. For this reason, you should not open a business summer season. Some experienced entrepreneurs in this business give up part of their rental housing in the off-season in order to reduce fixed costs.

At the same time for resort towns(Sochi, Gelendzhik, Anapa, etc.) summer is just the season. And in the fall and winter, such a business is idle.

It is worth mentioning separately about mortgages and buying apartments on credit. On the forums you can read ideas with the following content: “you can buy several apartments with a mortgage and rent them out for daily rent. It's better than paying the landlord." The idea looks tempting, but is not feasible for a number of reasons:

1. To get a mortgage even for one apartment, you will have to really like the bank. He will require a certificate of income from you, look at your credit history, ask you to find guarantors, etc. Your official income does not reach 30 - 50 thousand rubles. per month and the bank refuses you. If you want to register two apartments, then you will already need an income of 80 thousand rubles. And if you have such an income, then why do you need a mortgage and daily rent.
2. From an investment point of view, this option looks extremely unprofitable. The return on investment will be about 8-10 years, which is unthinkable for a normal, working business.

How much can you earn? Brief business plan

Long-term rent of a one-room apartment in Moscow will cost 25 – 30 thousand rubles. per month. This should take into account the costs of cleaning, advertising and depreciation (replacement of broken equipment and furniture) - about 5 thousand rubles. per apartment per month. You can rent out such apartments daily for an average of 2 – 2.5 thousand rubles.

Approximately the picture during the season should look like this:

The profit from renting out six apartments will be about 120,000 rubles. per month.

To determine your return on investment, you should consider the initial investment in the business. Each apartment will need to be brought to the necessary comfort - make repairs, purchase furniture and appliances. For each apartment you should put at least 100,000 rubles. Therefore, six apartments will require an investment of 600,000 rubles.

Hence, the return on investment according to the calculations given above will be from 6 months. But it is also necessary to take into account the fact that in the first months there will be few clients. You will need to work for more than one month before you develop a permanent client base and word of mouth begins to work. Therefore, the payback period for investments can be safely multiplied by two.