Is daily renting apartments profitable as a business

Some time ago, landlords with keys stood at the stations and invited guests. This process is currently taking place online. Therefore, it is difficult to determine the demand for a particular proposal. However, as Wordstat statistics show (the number of queries in the Yandex search engine) - daily rent of apartments is one of.

Several factors influence the relevance of the business model:

• high demand
• small investment to get started
• quick payback
• low cost

All these factors are present in this sector.

In addition, the demand for daily rent of apartments is provided due to the fact that:

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

Which apartments are more in demand

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

The owners receive the maximum income:

• comfortable housing located near the center
• business class apartments
• economy overnight, the prices of which are significantly lower than 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 rent. Almost always it is either the city center or areas with the most attractions.

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

Often rented by people who first arrived in the city. Therefore, they do not know where, what is. Therefore, the question of how to get to the apartment should not cause difficulties.

When forming an offer, it should be borne in mind that most apartments are rented out at almost the same price. For one-room housing in any city there are a dozen of the same prices. How, then, to stand out from the competition?

When the area and price of the apartments are the same as other market announcements, the type and condition of the house or the proposed developed infrastructure nearby will become a competitive advantage.

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

The greatest demand (more than 60%) falls on studios and one-room apartments, which have been renovated, 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, you cannot avoid spending. It will depend on a good marketing company and the elaboration of all the nuances, after what time the entrepreneur will receive the first money. Consider the items of mandatory expenses.

Payment of utilities. The bills will have to be paid 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, it will not be possible to keep track of the cleanliness of a dozen residential premises, given that customers 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 a huge number of free boards for posting ads for renting an apartment. Through them, information is conveyed to potential customers. But any shark in this business will say that this is not enough. You will have to go for small tricks, such as contracts with taxi drivers or attracting promoters to distribute leaflets in passable places. So:

1. Leaflets, for example, work well during the holidays, when a large number of visiting citizens leave the stations and get their hands on a great offer to rent an apartment with attractive pictures.
2. With private taxis, a similar scheme is obtained. A man comes out, catches a taxi (almost always there are a dozen of them near the station) and the driver casually mentions one wonderful offer of lodging for the night 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.
3. When placing on the Internet, it is recommended to pay to classified ads so that a particular apartment is always at the top of the search, stands out and attracts customers with beautiful photos.

Any means of conveying information to customers is good.

Photographer. Few people call professional photographers and, trying to save money, sometimes make terribly funny pictures of housing. So, the exposed photos do not convey the advantages of the apartments, and can focus on the 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. It is not necessary to exclude from expenses an accidental 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 mentioned above, there is a great demand for small housing with European-style renovation. Accordingly, to make it, investments are needed.

Other expenses. Sublease payments may be included in the obligatory expense item, provided that the apartments are rented from a built person.

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

For example: neighbors from above flooded the apartment due to poor plumbing fixtures. It is necessary to force them to pay for the damages through the court, and thus make it clear that this should not be repeated!

Opening of an individual entrepreneur (IP)

As described above, daily rent of apartments is a business, moreover, it is quite profitable. Therefore, it must be drawn up in accordance with the current legislation of Russia.

Citizens who rent out rented or their own housing have the right not to open an IP. However, if there are five or more rented premises, it is advisable to play it safe and legitimize your income.

Entrepreneurs who legalize this activity have several advantages:

1. Any claim against the tenant is easy to resolve if there are contracts, through the court.
2. To prove damage from the rented person, you will need to present.

According to experts, only 40% of small businesses engaged in daily rent have legalized their activities. Most 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 state. But if information about illegal sources of income gets to the tax office, the owner of the apartment can be brought to administrative responsibility in court. In the best case, you only need to pay penalties and fines. At worst: a citizen will be prosecuted under article 198 of the Criminal Code of the Russian Federation, which means getting 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 office:

1. Completed application for registration of IP.
2. A copy of an identity document.
3. Receipt of payment of state duty.

You need to open an IP at the place of residence. When opening, the type of activity is indicated. Further, 6% of income is regularly paid in the form of taxes.

Before entering the market

When the choice of apartments for rent is made and an individual entrepreneur is opened, it is necessary to prepare housing for the tenant to move in. In daily rent, the requirement for comfort is many times higher compared to long-term rent. Before finding and settling 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 apartments along with dishes, towels, toilet paper, soap, etc.

Learn more about marketing

We have already mentioned three effective ways of advertising. But the question 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 delivery. Now the goal of the entrepreneur is not only to find a few tenants, but to ensure the greatest workload.

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

Let's first point out two wrong ways of advertising:

1. Writing your contacts on asphalt. Vandalism does not increase sales! No one in their right mind in the age of the Internet would call the number on the pavement and book an apartment.
2. 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 the local bus stop.

If such a primitive promotion worked, there would be no need for colorful photographs of apartments and repairs. 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 bulletin boards in the Russian Federation. It is desirable to be placed on them in paid ways. A small investment will greatly increase coverage and bring more tenants
• if you have five or more apartments, it is advisable to create a one-page website and look for clients on the open spaces of Yandex and Google. Continuous traffic of potential customers will fill all the premises for months to come

Underwater rocks

Daily rent of apartments as a business has its advantages and disadvantages. Before making a decision 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 of the owners will call the police, start a criminal case and waste their time on this. Some citizens can take advantage of this. The best way to avoid such losses is to insure your material assets and even your apartment. These are stable losses that may never pay off. Therefore, very few people insure housing. But in vain.

All people who settle in must take a copy of the passport, or take a picture of this document. If you have an individual entrepreneur, it is advisable to conclude an agreement where all the client's data is entered.

Often, neighbors have an unfavorable attitude towards the daily rent of housing next to them. Sometimes this is justified, since the rental is not always silent and quiet. It is desirable to acquire warm relations with 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 possibly even lose part of your income. Otherwise, they may call the police, and they will have to go and settle the conflict. Residents after this can leave bad reviews and ruin their reputation.

Entrepreneurs who are interested in renting apartments by the day will find the following tips useful:

Renting apartments by the day is a profitable and simple business. With an initial investment (for sublease or purchase), anyone can enter the business and start making money.

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Discussion: there is 1 comment

In most cities, this business is seasonal, apartments are provided to applicants or tourists and vacationers. To achieve a constant year-round load, you need the help of advertising agencies and realtors, and these costs greatly affect the profitability.

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