Daily rent of apartments is beneficial for clients looking for inexpensive housing for a short time, as well as for landlords who want to earn more than long-term rentals. Renting out housing for a day or more per year brings an income that is 2 times higher than the amount that can be obtained for a long-term rent of an apartment.
How to open a business for renting apartments for rent
Before starting, choose a concept for your future business and decide whether you will rent out your own apartments or sublet. Further algorithm of actions:
If you can't show the apartment in person, you can shoot a video review and send it to potential clients.
After waiting for the first call, politely but firmly explain to the guest the living conditions in the apartment and announce the cost. If he agrees to the proposed conditions, complete the contract and take an advance payment with a deposit. Having worked out the rental mechanism once, in the future you will be able to adjust your behavior, clauses of the agreement and the sequence of renting out housing for a short time.
Business plan of the firm for the delivery of apartments
Thinking about your own business, you can simply rent an apartment for a year and agree with the landlord about the possibility of sublease. After that, without investing a penny, rent it for a short time to everyone, earning on the difference. But to start a real business, think about how to provide a quality service: apartments resembling hotel rooms are usually rented faster than gray Soviet communal apartments with shabby furniture and leaking taps.
Business concept and market analysis
There are three options for organizing daily rent. The first, optimistic, is when you own 2-3 well-renovated apartments. In this case, it is possible to organize a business with minimal financial risk: it is enough to correctly draw up a lease agreement and provide for all the nuances.
Two more ways to start a business:
Having chosen the last option for organizing the case, you will have to inform the owners of the premises about how you plan to use the housing. Otherwise, it will not be possible to officially conclude contracts with tenants, and this is a risk.
Analyze the demand and competition in the daily rental market. Visit popular sites:
Look through the ads available there, evaluate the condition and cost of the apartments, as well as the rental conditions. Take note of the ideas you like - it's better to write them out. Compare offers of hotels and hostels with apartments - the results of the analysis will be useful in identifying competitive advantages.
The demand for daily rent depends on the season - in the summer, the number of people willing to rent an apartment increases, and tenants raise prices
Find out who in your city is interested in daily rent. It can be:
Choose the segment you will target - do not try to cover the entire market at once. From what audience you target, everything will depend - from the design of the apartments to the choice of advertising channels.
Company registration
Register a company and do not dodge taxes - a daily rental business generates enough income to share with the state, and the risks are too high for illegal work.
You can rent out apartments as an individual entrepreneur or on behalf of a limited liability company. An individual entrepreneur differs from an LLC according to the following criteria:
Despite the fact that individual entrepreneurs have higher financial responsibility, fines for LLCs are 2-3 times higher
Having made a decision on registration, select OKVED - codes of activities. The options that are closest to the area of daily rent:
Determine the tax regime that you will apply:
The terms and amount of taxes paid, as well as the forms for submitting reports, depend on the chosen mode. In addition to taxes, be prepared to pay pension and insurance contributions for yourself and your employees.
If you hesitate to register an individual entrepreneur or LLC, pay at least an individual income tax - 13% of the proceeds. To do this, contact the tax office, find out when and what declarations you need to submit, as well as in what time frame to pay.
There are sanctions for conducting illegal business:
Search and preparation of premises
Focusing on the selected target audience, start searching for premises. Think about what is important to a banker who is on a business trip? Most likely, rent a quiet one-room apartment closer to the place of internship or business negotiations. And a young couple for a romantic evening? Cozy well furnished apartment in a small house.
You can find premises for long-term rent on classified sites like Avito.
Choose the location of objects so that you can quickly get to everyone to check in and check out guests. If you do not have a car, rent apartments closer to your own home.
The demand for daily rent of an apartment depends on:
In 57% of cases, tenants prefer to stay in one-room apartments with a good repair, new furniture and a working Internet. It is extremely rare to book space in apartments with more than three rooms, as well as in economy-class apartments - 1% and 8%, respectively.
The location of the apartment affects the rental price. The proximity to the center still plays a decisive role in the choice of accommodation by tourists, company employees, and students. A good income can be obtained from an apartment located not far from a large shopping or business center, university or train station.
Having selected business travelers as a target audience, find out what reporting documents they may need, and be ready to provide an agreement, as well as a receipt or invoice for rent payment.
Rental invoice may include Additional services as well as early and late check-in
After picking up the premises, conclude long-term lease agreements with the owners. Do not hide the fact that you will rent apartments for daily rent, but rather offer a mutually beneficial agreement. Tell us that you do not just rent an apartment, but take it into management and undertake to make cosmetic repairs, install equipment, connect to the Internet and keep order. Explain that goodwill is important to you so the apartment will be kept clean. Support what has been said with the clauses of the long-term lease agreement. Show the owner the daily contract so that he understands the seriousness of the approach to business.
Having rented objects, proceed with the repair. Choose materials and equipment in the middle price segment, furniture too. The main thing is that it should be new and clean. The minimum set of equipment for a business-class apartment:
Order disposable cosmetics in bulk for several months in advance - buying a large batch will be cheaper
Pay attention to detail and be sure to buy for each apartment:
Free the apartment from personal belongings - your own or the permanent owner. In the design of the rooms, adhere to the principles of minimalism. Organize a general cleaning - wash floors and windows, wash curtains, bedspreads and furniture covers, check the work of the plumbing. Wipe off dust even in hard-to-reach places.
Order a professional photo session of the premises - interiors filmed with a smartphone camera are more likely to repel than attract customers.
Paperwork for work
Form a package of internal documents that will regulate your activities and living conditions at the facilities. Develop:
If you plan to hire employees, write job descriptions. You can focus on typical examples, but rework them for your work. Writing one intelligible instruction can take 2-3 days.
In the "daily" contract, write down:
Before concluding a rental agreement with a guest, explain to him all the points in order
Typical daily rental agreement -.
Attach an inventory of the property and the rules for living in the apartment to the contract. The rules should stipulate the following:
In each apartment, place the rules in a conspicuous place, and next to it place a leaflet with a password from Wi-fi, phones of administrators and emergency services.
For especially demanding and suspicious tenants, be prepared to present a set of documents confirming your right to lease the premises, namely: a certificate of ownership or a lease agreement with the owner and his written consent to sublease, certified by a notary.
Where to promote your business - the choice of advertising channels
Later, you will issue a business card site with the possibility of online booking, but at the first stages you can do without it. If the site is still created, set up contextual advertising in Yandex and Google.
On some sites, in order to post rental ads on behalf of a legal entity, you will have to create a paid account
Work on offline ads. Print and post flyers, advertise in the city's most popular newspapers, find taxi friends and negotiate with them to offer your services to passengers. Order advertising on transport by choosing routes departing from the station. Develop a customer profile and include in the list the question of how he found out about you - this will help weed out ineffective promotion channels.
Staff recruitment
Alone, you will be able to cope with 2-3 apartments, while linen and towels will have to be taken to the laundry, and the cleaning will have to be entrusted to a cleaning company or you will have to do it yourself. To expand your business, you will need employees:
The number of employees depends on the number of apartments in the management. One administrator can serve 3–6 apartments at the same time, the cleaning lady can serve the same amount. The manager will cope with the load of 15-18 objects.
Calculation of expenses and planned income
The calculation is given for an individual entrepreneur on the simplified tax system, who wants to sublet two apartments in the city center - one-room and two-room. The target audience is business travelers, paying employees, who prefer to live in comfortable conditions, close to those of a hotel. There are no employees, but it is planned to conclude contracts with a cleaning company, laundry and dry cleaning.
Table: costs of starting a business
Table: monthly expenses
Calculation of the planned income and payback period
The price of accommodation should include: the cost of rent, laundry and cleaning services, advertising costs and the purchase of consumables.
The average rental price for a one-room apartment is 2050 rubles / day. The cost of renting a two-room apartment is 2850 rubles / day. Occupancy in the first month - 60%, that is, 18 days a month, from the second month - 70%, that is, 21 days.
Average income for the first month - 88,200 rubles. Tax deductions - 5292 rubles. Profit for the first month - 22,093.5 rubles. Average income for the second and subsequent months - 102,900 rubles. Tax deductions - 6174 rubles. Profit in the following months - 36793.5 rubles.
The payback period for a business is 5–7 months, with a low occupancy rate of apartments - 1–1.5 years.
The pitfalls of the apartment rental business
Renting an apartment for rent is a risky business. Starting a business, you risk from all sides:
The only way to minimize the risks is to formalize the business officially, work out contracts with a lawyer and register in them all possible circumstances, including force majeure.
When checking in, be sure to ask the guests for passports and make copies, let us sign the inventory of the property and the rules of residence. Warn your neighbors in advance and show permits for daily rent of an apartment from the owner. Avoid renting out premises for the holidays if you don't want neighbors to complain about the noise. Be prepared to adjust your work schedule to the time of arrival and departure of guests - often you have to get up at five in the morning and go to bed after one in the morning. Keep your phone with you - in case of any problem, clients will call you, and you are obliged to answer.
Related entries:
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The category of "business from scratch" can be safely attributed to the activity of renting apartments for rent. At the same time, you may not own apartments, but also earn on short-term rent. All that is needed for this is to find housing, the owners of which are ready 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, transferred.
A business like this might seem straightforward and easy to organize. But not everything is so smooth and calm. There are a lot of apartments for daily rent, but not all of them bring good money, and some do not justify the money invested in them at all.
It is good if the property already has a couple or three apartments. Even if 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 a long time and rent it out on a daily or hourly basis.
The whole difficulty in organizing a business comes down to finding suitable housing. Many owners, hearing the word "daily rent", immediately associate it with drunkenness, prostitution and other negative things. And no persuasion can change their opinion. Although, in fact, such apartments rarely need subsequent repairs, in contrast to apartments in long-term lease.
It is not profitable for subleasers to keep housing in poor condition, because they simply will not have clients. After each check-in, the apartment is carefully cleaned. What can not be said about long-term rent: tenants (and among them there are a lot of young people) in 90% of cases do not monitor the condition of the apartment. And they walk 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 firms for the settlement of people who come on a business trip. And in this case, tenants will change frequently. If you agree to these conditions, then I will pay you a little more for the rent. The homeowners are worried at first, but when they see that everything is in order with their apartment, they calm down. And the opinion of the neighbors and the chairmen of the HOA they are already indifferent, "says the user" Rasklad "on the forum nasutki.borda.ru.
It is best to look for apartments closer to the city center. It is much easier to find clients here. And the advertising costs are much less. 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 business for daily rent of apartments is that it is difficult to control by the state. That is why a considerable part of businessmen work without registration of entrepreneurial activity and do not pay taxes. In some cases, this is justified, especially when it comes to 1 - 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 apartments, it is better to register an individual entrepreneur or LLC. With the registration of a business, it will be easier to find new apartments (homeowners trust organizations more than ordinary ones individuals). It will become calmer to work, since no one has canceled the fines for illegal entrepreneurial activity. There will always be envious people, including in the person of the chairmen of the HOA, who can report this to the police or the 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 enterprise. To register a business with the tax office, you need to present an application, a photocopy of your passport and TIN, a receipt for payment of the state duty. The registration application should indicate OKVED codes: 55.23.5 "Activities of other places for temporary residence" and 70.20.1 "Renting out own residential real estate" (you can specify several codes). Within 5 working days after the submission of documents, you can receive a certificate of registration of an individual entrepreneur. And you are the legal representative of the business.
Separately, it is worth mentioning the choice of the taxation system. All three well-known special regimes are suitable for such activities: patent (patent taxation system), UTII (imputation) and USN (simplified taxation). 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 accounting, etc. But the patent system is not adopted in all regions, which means that you will have to choose between UTII (you can use up to 500 sq. M.) Or STS. These special modes are also beneficial (although they are somewhat more expensive), but you will have to keep accounting and submit reports on schedule.
It should be borne in mind 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 homeowners at the stage of concluding a sublease agreement. These 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 work,” then the issue with employees should be resolved. If you have 2 - 3 apartments at your disposal, then somehow you can manage it alone. And if you work with 5 or more apartments, there is no way to manage it alone.
Imagine a picture: you have found a client, you are going to show him the 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, which already has another client, and you urgently need to put things in order in the apartment, etc., etc. And there can be a dozen or so small vain things like this 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 the apartments and a customer service manager. The cleaning lady can only be paid a percentage of the work done, without registering it with the state (so as not to pay insurance premiums). For a manager - 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 that can be spent on searching for new apartments, on solving accounting and legal issues, on advertising services, on monitoring the work of personnel. There will be time for personal life, and business will be enjoyable.
How to advertise a service
Finding customers is one of the first tasks to be addressed. There will be no clients - there will be no income, and the obligations to pay rent will not go anywhere. The following options will help in creating a client base:
- Placing advertisements in newspapers. An old and proven method, although with the advent of the Internet it becomes less and less relevant. But this does not mean that the media should be abandoned altogether. Many business travelers, upon arrival in an unfamiliar city, buy newspapers and find apartments there.
- Posting leaflets in places popular for tourists and visitors. These are exits from the metro, bus and tram stops, auto and railway stations, central streets of the city.
- Placing 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 photos.
- Try unique advertising techniques, such as writing ads on the pavement. All you need is a stencil and a can of paint.
- You can negotiate cooperation with local taxi drivers, as often visitors hire a taxi at the airport and ask the driver to suggest where you can rent inexpensive housing.
Pitfalls in the "daily" business
Finding an apartment, legalizing business and settling issues with tenants are far from 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% full. That is, out of 30 days - 21 days in rent.
Housing demand can be low not only because of high competition, but simply because of the seasonal downturn. In the summer in the central part of Russia, the demand for daily rental housing falls sharply. People are leaving on vacation, there are fewer business trips. For this reason, you should not open a business for the summer season. Some seasoned entrepreneurs in the off-season give up some of their rental housing in order to reduce fixed costs.
At the same time, for resort cities (Sochi, Gelendzhik, Anapa, etc.) summer is just the season. And in the fall and winter, such a business is idle.
We should also mention the mortgage and purchase of apartments on credit. On the forums, you can read ideas of the following content: “You can buy several apartments on a mortgage and rent them out for daily rent. It's better than paying the landlord. " The idea looks tempting, but not feasible for a number of reasons:
- To get a mortgage even for one apartment, the bank will have to like it a lot. He will demand 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. a month and the bank refuses you. If you want to arrange 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.
- From the point of view of investment, 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. for an apartment per month. Such apartments can be rented out for an average of 2 - 2.5 thousand rubles.
Roughly the picture in the season should look like this:
Profit from the delivery of six apartments will be about 120,000 rubles. per month.
To determine the return on investment, the initial investment in the business should be considered. Each apartment will need to be brought to the required comfort - to make repairs, purchase furniture and appliances. At least 100,000 rubles should be allocated for each apartment. Therefore, six apartments will require an investment of 600,000 rubles.
Hence, the payback of investments according to the calculations given above will be from 6 months. But it is necessary to take into account the fact that there will be few clients in the first months. It will take more than one month to work before a permanent client base is developed and word of mouth begins to work. Therefore, the payback period can be safely multiplied by two.
Some time ago, landlords with keys stood at train stations and invited guests. Now this procedure is taking place on the Internet. Therefore, it is difficult to determine the demand for a particular offer. However, as the statistics of Wordstat show (the number of queries in the Yandex search engine) - the daily rent of apartments is one of.
Several factors influence the relevance of a business model:
- high demand
- small investment to start a business
- quick payback
- low cost
All of these factors are present in this sector.
In addition, the demand for daily rent of apartments is provided due to the fact that:
- more than 1 billion people travel every year (and they need an overnight stay)
- this figure increases annually by 5.5%
- in 10 years the number of travelers will double
- all more people prefer to travel blindly (without travel agencies and excursions)
- holdings and large corporations are increasingly renting housing for their seconded workers in the private sector
Which apartments are more in demand?
The income and the amount of money in business depends directly on the area where the apartments are located. It is possible to make large profits from almost all categories of housing, except for old and dilapidated ones.
Owners receive the maximum income:
- comfortable housing located near the center
- business class apartments
- economy accommodation, the prices of which are much lower local hotels, but the level of housing is not much inferior to 4 * hotels
In some districts of the city, there is no downtime in daily rentals. Almost always this is either the city center or areas with the largest number 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. 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 it. Therefore, they do not know where, what is. Therefore, the question of how to get to the apartment should not cause any difficulties.
When forming an offer, it should be borne in mind that most apartments are rented out at almost the same cost. There are a dozen of the same prices for one-room housing in any city. How, then, do you stand out from your competitors?
When the area and price of an apartment is the same as other advertisements on the market, the type and condition of the house or the developed infrastructure offered nearby will become a competitive advantage.
If there is a cinema, a park, fitness centers and a large supermarket nearby, 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 leave fond memories. Satisfied clients will almost always return to the same place, and will recommend to friends, acquaintances and will certainly leave good review in the Internet.
The greatest demand (over 60%) falls on studios and one-room apartments, which have been renovated, all the necessary equipment is present, and there are 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 there are apartments in the property, spending cannot be avoided. A good marketing company and elaboration of all the nuances will determine how long it will take for an entrepreneur to receive the first money. Consider the items of compulsory expenses.
Payment for utilities. The counters 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 on your own, 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 an advertisement for daily rent of an apartment. Through them, information is conveyed to potential customers. But any shark of this business will say that this is not enough. You will have to go for small tricks, such as agreements with taxi drivers or attracting promoters to distribute leaflets in passable places. So:
- Flyers, for example, work well during the holidays, when a large number of visiting citizens leave the train stations and get their hands on a great offer for renting an apartment with attractive pictures.
- With private taxis, a similar pattern is obtained. A man comes out, catches a taxi (there are almost always a dozen of them near the train station) and the driver casually mentions one wonderful offer of an overnight stay at a good price. An unobtrusive third-party recommendation works very well. Of course, the driver will have to financially reward, but the apartment in this case will not be empty.
- When posting on the Internet, it is recommended to pay for message boards so that a particular apartment is always on top of the search, stands out and attracts customers with beautiful photographs.
Any means of communicating 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 displayed photos do not convey the advantages of the apartment, 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 emergence of cockroaches, etc. Prospective entrepreneurs always have a deferred amount of money for such cases in order to eliminate everything as soon as possible and continue the business.
Repair. As stated above, there is a great demand for small housing with European-quality repair. Accordingly, to make it, investments are needed.
Other expenses. Payments for sublease may fall into a mandatory expense item, provided that the apartment is rented from a built person.
Any trouble is cheaper and easier to solve before it occurs than after it happens.
For example: neighbors from above flooded the apartment due to poor plumbing fixtures. It is necessary to force them to pay for damages through the court, and thus make it clear that this should not be repeated!
Opening an individual entrepreneur (IE)
As described above, daily renting of apartments is a business, and it is also quite profitable. Consequently, it must be formalized in accordance with the current legislation of Russia.
Citizens who rent out rented or their own housing have the right not to open an individual entrepreneur. However, in the presence of 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 in the presence of contracts, through the court.
- To prove damage from the rented property, you will need to present it.
According to experts, only 40% of small entrepreneurs engaged in daily rent have legalized their activities. Most of is 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 into the tax office, the owner of the apartment may be brought to administrative responsibility in court. In the best case, you only need to pay fines and fines. At worst: a citizen will be prosecuted under Article 198 of the Criminal Code of the Russian Federation, which means 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:
- Completed application for registration of individual entrepreneurs.
- A copy of the identity document.
- Receipt for payment of the state fee.
You need to open an IP at the place of registration. When opening, the type of activity is indicated. Further, 6% of income is regularly paid in the form of taxes.
Before going to market
When the choice of apartments for delivery has been made and the individual entrepreneur is open, it is necessary to prepare the housing for the arrival of the tenant. In daily rentals, the requirement for comfort is several times higher compared to long-term rentals. Before finding and settling clients, you will need to spend time preparing housing.
You must 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.
Learn more about marketing
We have already mentioned three effective advertising methods above. 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 already ready for delivery. Now the entrepreneur's goal is not only to find several tenants, but to ensure the greatest workload.
Savings on marketing translate into less revenue for the business. However, a large advertising budget is not always guaranteed to lead to a result. What's the matter? The fact that there are correct and effective channels where you should spend money on advertising and failures. For example, it is worth focusing on the number of advertisements only when placed on free boards.
Let's first point out two incorrect advertising methods:
- Writing your contacts on the pavement. Vandalism Doesn't Increase Sales! No one in their right mind in the age of the Internet will call and book apartments by a number on the asphalt.
- Posting your proposal at bus stops and other public places. Again, disfiguring your city with unnecessary posters will not lead to sales. At best, police officers will call the number and ask what the announcement is doing at the local stop.
If such a 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 desirable to place on them in a paid way. A small investment will multiply the 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 on Yandex and Google. Continuous traffic of potential customers will fill all the premises for months ahead
Underwater rocks
Daily renting of apartments as a business has its advantages and disadvantages. Before deciding to enter this industry, it is necessary to assess all the risks of emerging competitors and other features.
Renting out a home per day increases the risk of theft or damage to property. Few of the owners will call the police, start a criminal case and spend their time on it. Some citizens can take advantage of this. The best way to avoid such losses - to insure your property and even your apartment. These are steady losses that may never pay off. Therefore, very few people insure their homes. But in vain.
All people settling 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 conclude an agreement where all the client's data is entered.
Often neighbors have an unfavorable attitude to the daily rent of housing next to them. Sometimes this is justified, since the rent is not always quiet and quiet. It is advisable to develop 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 housing for celebrations and possibly even lose some of the income. Otherwise, they may call the police, and you will have to go and settle the conflict. Residents can leave bad reviews after this and ruin their reputation.
Entrepreneurs who are interested in daily rent of apartments will find the following tips useful:
Daily rent of apartments is a profitable and uncomplicated business. With an initial investment (for sublease or purchase), anyone can enter the business and start earning.
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Three entrepreneurs from the outskirts of Moscow earn about 400 thousand rubles. per month on the fact that stylish apartments are rented for twice the price of one-room apartments
Mama Ro founders Anton Kozlov, Volodya Nizovtsev and Anatoly Smirnov (Photo: Oleg Yakovlev / RBC)
The founders of Mama Ro Anton Kozlov, Volodya Nizovtsev and Anatoly Smirnov have always dreamed of living in the center of Moscow. “I wanted to soak up the spirit of Moscow night adventures on Kitai-Gorod,” Smirnov says in an interview with RBK. “Besides, we didn't want to waste an hour and a half of our lives every day, getting to the center from the dull sleeping outskirts of the capital.” Kozlov was the first to risk moving to the center and in 2010 rented 18 sq. m in the basement in Maly Ivanovsky Lane. He made repairs on his own, and it turned out to be a "spiritual place" into which friends quickly began to gather. From this small success, the guys came up with a business idea - to create budget housing in the center of the capital for people like them. “So that one night is comparable to the cost of a taxi trip,” says Anton. According to the guys, the potential size of the market for such commuting migrants was about 700 thousand people every day, which means that the product must be in demand.
DIY luck
We sat down to draw up a business plan and realized: to create a "hostel for hipsters" on 600 sq. m, you need at least 10 million rubles. investment. “We didn't have that kind of money,” says Nizovtsev. “I was a freelance videographer, Anton was a hotel receptionist, and Tolya organized TV broadcasts.” As a result, the founders of Mama Ro decided to try a less capital project, and in May 2012 they were lucky. “One morning I went to www.cian.ru and saw that a room for rent in the basement on Spiridonovka: 80 sq. m for only 67 thousand rubles. a month, - says Smirnov. “This was the most important moment of the whole project: we realized that if we want to do something, we need to start right now.” The guys scraped together 30 thousand rubles. for a deposit and started the renovation.
At first, they wanted to divide the entire space into several rooms of 12-15 sq. m. “But then we realized that we would not be any different from typical hotel rooms,” explains Kozlov. - We realized that we ourselves would not want to live in such cages. So we came up with the idea to create not just an interior for temporary accommodation, but full-fledged studios, apartments, space for living. " For 2.5 months and 800 thousand rubles. the guys made repairs. “At first we smeared the plaster with our hands, but then we learned with a spatula,” says Smirnov. - Money was collected from friends: some 50 thousand rubles. some gave 100 thousand, and 350 thousand were borrowed from a friend of the capitalist at interest. " In mid-July, two studios on Spiridonovka were ready to receive their first guests. An announcement was posted on the same CIAN, and on July 19 the first client arrived. “A couple rented an apartment for two days for 8 thousand rubles,” Nizovtsev says with a smile. “It seemed to us that exactly what we feared had happened: our clients will be those who usually rent apartments for daily rent.” But the aspiring entrepreneurs were wrong: the first, like all subsequent clients, turned out to be from a different audience - they were ordinary or business tourists who wanted to find themselves in a foreign city in a comfortable environment, different from small and identical hotel rooms.
NumbersMama Ro
14 apartments available from Mama Ro
7 thousand rubles — average price apartment rent per day
18.8 million rubles- total investment
20 thousand apartments for rent in Moscow for daily rent
3.5 thousand rubles- the average price of an apartment with a good repair per day
Source: Mama Ro, "Miel", project "Daily"
After a relatively "rotten" August (75% load), since September we have had reservations every day. “From September 2012 to February 2014, we did not have a single downtime at Spiridonovka,” the entrepreneurs are proud. For the first five months of work, they returned all debts (about 800 thousand rubles). At this time, as during the repairs, they went to Metro and bought shampoos and towels themselves, repaired the breakdowns. “Once every three days, each of us had a duty of cleaning and washing toilets,” says Smirnov. “We realized that the principle is simple: either you drown - and this is only your business, or you fight and win.”
After the business started, the guys thought about expanding. They began to intensively monitor the ads on CIAN, but at first they were unlucky. “Either the grandma gets caught with a three-room apartment, or the owner, who permanently lives in the Emirates and offers to sign a contract via Skype,” Kozlov recalls. And by chance, through acquaintances, they went to the representative of the person who bought the whole house on Clean ponds, in Gusyatnikov lane. In early 2013, the founders of Mama Ro rented 300 sq. m on the third floor and started looking for money for repairs. In total, they collected 1.5 million rubles. and another 2.5 million rubles. took a loan at 20% per annum from one of the Moscow banks. And in January 2013 we went to the construction site. “Each of us had our own vision of how the studios should look. I adore Suprematism, so I made a Suprematist studio, Anton dries on Byzantine mosaics, - says Nizovtsev. "Each of us started from our own dream." They now rent two of the three floors in the house. The founders of Mama Ro invested a total of 18 million rubles in the launch of 12 apartments in Gusyatnikov Lane. They had to actually make a major overhaul of the building, changing pipes and electrical wiring, reinforcing floors, replacing walls and ceilings.
Vladimir Nizovtsev: “The lease agreement for premises on Spiridonovka, of course, we had a relative (sublease from the city), and, in fact, we could be asked at any time, that is, take away the business. Here, what is important to understand, any business is made of a doer. Business is useless without a doer. And, thank God, our business environment is beginning to understand that without guys who are ready with their own hands, excuse me, to wash the toilet, there won't be this load, there won't be these people who come here, everything will fail, nothing will work at all " ...
Anatoly Smirnov: “The Jazz studio has all my psychological traits. For example, since childhood, I did not have my own workplace, I lived with my parents in the living room. Therefore, in the studio, I made a gorgeous workplace with a view from the window. I want a feeling of psychological security, so I make the floor from solid ash. As an actor by profession, I replace ordinary light with theatrical spotlights, impregnating the air with the feeling of theater. And so in every studio. This is probably what attracts customers to Mama Ro: all the interiors are very personal. "
Anton Kozlov: “Russia is a difficult country for doing business, but it is just as promising as it is difficult that, in principle, you can choose any business and do it really well, conscientiously. This will be a guaranteed success, because the market, especially services, is very unfinished, underestimated, underfunded. Everything is done over the knee for the sake of quick profit and escape abroad. We have no desire to leave, we understand that we are connected with the country and want to develop it. This honesty is one of the ingredients of the present case. "
Economy apartments
The standard Mama Ro apartment can accommodate four guests. Most of them are implemented on two levels: below is a living room with a cinema and a stereo system, a bar counter and a bathroom, and above is a bedroom. Each studio has its own unique interior design project. For example, the Bauhaus was made in a laconic German design of the early 20th century, with designer furniture made of Far Eastern ash. Apartments "Jazz" refer to the American clubs and theater of the 30s with exposed brickwork, "Pine" with pine trees installed in the interior - to the childhood dream of a tree house.
For the individual design of each room, handmade furniture and equipment from Apple, you will have to pay from 6.5 to 8.5 thousand per day. The cost is determined by the area and popularity of the apartment. Entrepreneurs claim to have worked at 97.2% utilization in 2015. “There are foreign clients who move from hotels and stay with us for a month,” says Vladimir Nizovtsev. According to entrepreneurs, about 60% of clients are foreigners, but with the crisis the share of tourists from the regions of the Russian Federation and from China began to grow. According to them, there are those who live in apartments alone (about 20%) for several weeks or as a couple (also about 20%). Families and groups of friends account for about 30% of clients. Most of the customers come through booking systems (booking.com, airbnb.com, etc.). Apartments are often rented for a party or shooting, in which case they are rented out according to a separate price list based on the event. On average, Mama Ro earns about 2.8 million rubles. per month.
Mama Ro's main expenses are rent(674 thousand rubles per month) and payments on loans and debts (interest and repayment - 747 thousand rubles per month) to banks and individuals. Personnel costs are about 420 thousand rubles. Entrepreneurs pay salaries to themselves and two assistants. Utility bills, cleaning (outsourced), advertising and commissions of booking systems take another 400 thousand rubles. In general, over a month, expenses run up by 2.2 million rubles. Mama Ro's activities are carried out through the individual entrepreneur Anton Kozlov (STS, 6% of income).
Another market
Yuri Kuznetsov, owner of the Internet project "Daily", estimates the capital market for short-term rent of apartments and apartments in 20 thousand rooms, most of them are standard one-room apartments. The site "Sutochno" now has about 3.5 thousand offers in the price range of 2-5 thousand rubles. per day.
Yulia Tselyakovskaya, Development Director of LikeHome Apartaments, which manages 76 apartments in Moscow, believes that different categories of clients are in demand for apartments and apartments. “Almost all of our objects are within the Garden Ring and are aimed at wealthy citizens, who often rent them for several weeks and want to live“ like at home, ”she told RBC. - People more often want not to save so much on hotel room how much to have those conveniences that hotels usually cannot provide. " According to her, this is especially true for trips of families with children, when renting an apartment is becoming more economically viable than booking several rooms in a hotel. She estimates the market for similar accommodation in the capital at just a few hundred properties.
It is usually cheaper for a family or a group of four in Moscow to stay in an apartment than in a hotel. According to booking.com, four nights from January 30 to February 3 at Mama Ro will cost 29.2 thousand rubles, at LikeHome - 24 thousand rubles. A quadruple room in the Aeropolis hotel - 28.5 thousand, in the Adagio apart-hotel - already 42 thousand, in Novotel (two standard double rooms) - 51 thousand, and a deluxe suite with a kingsize bed in Four Season - and at all in 493 thousand rubles.
Before the crisis LikeHome Apartaments managed one hundred apartments (all the objects are privately owned, the company takes them under management), 60% of clients were foreigners, and the average occupancy for the year was about 80%. “Now the situation has changed: more than 60% of customers are Russians, the load has also dropped,” admits Tselyakovskaya. Mama Ro says that the crisis has not affected their business - the occupancy rate of apartments in 2015 was 97.2%. The founders of Mama Ro plan to take over the management of an entire mansion in the center of Moscow in order to create a real apart-hotel in it, but so far they have not found a suitable property and investor for this project.
Interior and furniture for sale
The popularity of Mama Ro apartments is largely due to their unique interiors, which the founders invented and made themselves. Nizovtsev says that some of the guests even began to apply with requests to prepare similar design projects for their apartments. “Every fifth person comes in and says:“ How great! I want it the same way, ”he says. The team has already completed four interior projects and is currently working on design projects for three hotels in Europe - the Czech Republic, Latvia and Estonia. The furniture, which the guys made according to their projects in the studios "Bauhaus" and "Sosnovaya", is of similar interest. “We were offered to make a whole collection and put it up for sale in the Tsvetnoy department store,” Nizovtsev says. At the moment, Mama Ro is working on two furniture orders.
Daily renting of apartments as a business is a good additional income, but at the same time it has its pitfalls. To save not only yours cash, but also the property being leased, it is necessary to clearly understand where to start a business, what risks may exist, for which contingent these services are suitable.
Where to start a business
Before you start building an apartment rental business, you need to find out the following points:
- Is there a living space available that can be rented out? If the apartment is owned, then you need to be prepared for the fact that strangers will live in it, who can harm the property.
- You can rent an apartment and rent it out to other people. Such a business will be considered a sublease of apartments. In this option, there are no additional risks and costs, at first you can immediately find out whether it will be possible to build a business or not.
To start developing a daily apartment rental business, 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 out - your own or rented.
- Redecorate if necessary.
- Furnish the living area with furniture.
- Stock up on sets of removable bed linen, towels.
- Decide which category of citizens the premises will be leased to (for example, only married couples or citizens on a business trip).
- To submit an advertisement for renting an apartment, you need to take good photos and write a description of the living space.
- The finished ad should be submitted to newspapers, the Internet, you can create your own website or page in social networks.
Features and possible problems
Having decided to build a business for renting apartments for rent, you should understand that certain risks may arise.
In practice, there has not yet been a judicial review of cases where a person who organized a business for renting apartments and did not register as an individual entrepreneur would be involved as a defendant.
What are the advantages of registering a business through an individual entrepreneur:
- In the event of conflict situations, it can be proved that all actions were carried out in a legal manner.
- Registration as an individual entrepreneur disciplines the maintenance of documentary reporting, which means that all papers, from contracts to checks, will be drawn up properly.
It follows from this that any claims against the guests will be documented. This will give a definite plus in court if the conflict comes to court consideration.
What is the profit
Based on costs, you should focus on approximate cost lease. It is necessary to take into account that it should cover the costs and leave something to the organizer of the business for life.
The average rental price 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 is worth immediately calculating how many people must rent an apartment per month in order to get a decent income. It is good if the apartment is located in big city, which is in demand among business travelers - then there is a possibility of making good money. More profit will be brought by renting out residential premises of several apartments at once. Then, on average, you can earn from 50 to 70 thousand rubles a month.
Do not forget that the competitors in this business are hotels and hostels that offer their services at affordable prices.
Daily rent of apartments: Video
