What is more profitable: renting daily or monthly?

People have different songs, but mine is one for centuries... These words of the legend and cult singer of the last decades of the last century, Stas Namin, perfectly reflect a person’s commitment to entrepreneurial activity. Everything here is extremely simple. If someone feels an irresistible urge to “work for themselves,” then they will find a way to self-realize. And you don't have to look for a new or unique idea to become an entrepreneur.

You can “make” money from the most basic needs of a person, including the need for housing. No, we are not talking about the construction industry, interior design or renovation services. There is a specialized type of activity where you can get by with minimal investments - both financial and organizational. This is a short-term rental business.

Vitality and competitiveness: theoretical background

Before starting any type of business, it is worth carefully analyzing it from the point of view of its potential and prospects. Actually, you need to get an answer to the question of how profitable it will be, what is its demand and whether it has opportunities for expansion and development.

Renting out housing for a short period of time as an entrepreneurial project has a number of advantages:

• constant consumer demand for the service;
• simplicity of organization (conditional);
• relatively high income.

If we analyze each of the points in detail, we get the following picture.

1) Demand is guaranteed by a number of factors:

• Daily rentals are of interest to clients with different budgets focused on this service, ranging from minimal to large sums. One category wants to save money, the other is looking for maximum comfort.
• The insufficiency of offers in the hotel industry makes it possible to attract attention to the daily rental of apartments from those who come on a business trip, and those who are looking for home comfort, and those who find themselves during the “peak” and cannot rent a room due to... that everything is busy.
• Anonymity and absence of “prying eyes”. It is clear that often this format of housing is of interest to people who want to hide the very fact of renting it. No one will force a client who rents an apartment for a day or a few hours for an intimate meeting or other purposes that he wants to keep secret to register. The safety of property can be ensured not only by taking a copy of the passport and attaching it to the contract, but also in other ways. In addition, the lessor can guarantee complete confidentiality of information.
• Possibility of "autonomy". When comparing staying in a hotel and staying in an apartment, the latter option has a number of advantages. A kitchen, washing machine, and iron provide a complete set for self-service. Anyone who rents an apartment can easily provide themselves with the comfort of home and save money on services imposed by the hotel format. In addition, he can eat “at home”, rather than in cafes and restaurants, and cook his own lunch or dinner, which will cost several times less.
• Mode. The apartment and the keys to it in your pocket provide freedom of coming and going. No restrictions on night time or visits. Here lies a very effective mechanism for attracting a certain category of clientele. You can rent out housing by the hour, which is convenient for many people.

2) In this type of activity there is only one difficult point - the availability of real estate at the disposal of the entrepreneur. Although its solution can be approached in different ways. All other organizational aspects are subject to the control of a person who does not have specific knowledge and skills. They also do not require major capital investments. What's important here is:

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• Establish communication with potential clients. This can be a variety of advertising, ranging from placing advertisements on poles to promoting a project on the Internet.
• Organize the process of acceptance and transfer of the apartment. It is clear that not every tenant is guaranteed to be neat, crystal honest and not damage property, even by accident. Therefore, it is necessary to document the rental, for example, concluding a rental agreement for an apartment with furniture, so that later there will be someone to make claims against.
• Debug the household side of short-term rentals. Not only the initial stage, interior design, furnishing, equipment with household appliances, utensils and the like are important here. Equally important are regular cleaning jobs, changing linen, preventative care and routine repairs of utilities and household appliances.

Advice : to use word of mouth to advertise your services, you need to pay attention to the little things that make life more comfortable. High quality bed linen, several towels in the bathroom, salt and spices in the kitchen, cable TV and Internet access - all these nuances can greatly increase the attractiveness of a particular home. This is exactly what your former clients will tell their acquaintances and friends about, respond positively on social networks and give you free and very effective advertising.

3) High level of profitability. There is a simple algorithm involved here:

• A long-term lease will provide less benefit in terms of cash flow from customers over a given period. If, when renting for a year, you receive 100 units per month, then short-term rental will increase this figure by at least 30-50%. This is due to the fact that wholesale (long term) involves lower payment.
• It is worth noting that you will have to incur more expenses for short-term rentals, although they are fully covered by client payments.
• It must be taken into account that there is much more effort, as well as time spent, in the short-term option.

That is, short-term rental of apartments is a relatively highly profitable business, easy to organize and set up, and does not require major investments. The latter is very conditional; this point requires detailed consideration.

How to make money by renting out apartments for daily rent

Activity, activity and more activity! All thematic Internet resources, forums and message boards for real estate rentals must be mastered and the information on them must be updated regularly. Taking the time to write a good ad will pay off in spades.

An apartment is not only square meters on which you can live more or less comfortably, but also capital. That is, something that can be turned into money. And for this, it is not at all necessary to sell the apartment - short-term rental of apartments allows you to receive a stable, albeit not too large, income.

How to rent apartments daily - where to start?

You should start from the base, that is, from the living space that can become the basis of the business. If you are a happy owner of square meters, then you can easily turn them into a source of permanent income.

But if a novice entrepreneur does not have such an asset, then... On the Internet, on various business sites, you can find advice for those who want to engage in short-term rental housing on how to purchase it on credit. For example, if you have real estate, you can take out a mortgage secured by your existing housing at Sberbank. You continue to live in the old one, rent out the new one, pay off the loan, and with the remaining income you continue to support and develop the business. At first glance, everything is fine. However, here it is worth turning on the calculator and calculating all the costs. It is unlikely that this option will have serious profits. Most likely, this version is an opportunity to slightly ease the mortgage burden; daily rent in this situation may be of interest only as an additional source of loan repayment, nothing more.

On the other hand, with a developed network of apartments that are owned or at the disposal of the entrepreneur, this option is quite workable. And as a bonus - the purchased property remained in his full possession.

The other two formats of work involve only the organization of the process without reference to objects of personal property. What is meant:

• use of sublease;
• creation of an agent network.

To be honest, not every entrepreneur who sells refrigerators or washing machines is the owner of factories or even the first intermediary from the manufacturer. Why, then, not adopt their successful experience and offer the consumer a service that is far from first-hand? Moreover, home owners who want to rent it out are not always ready to search for clients and work with them every day. That is, the sublease format is completely justified in this business, when the property owner is offered cooperation with long-term rentals and short-term rentals. In essence, the entrepreneur acts as the same tenant, but only on terms that correspond to a long-term lease.

Advice : if you plan to relet an apartment, then transparency in relations with its owner will be far from superfluous. Doing everything “quietly” without warning the owner about it is not worth it; this can be fraught not only with everyday problems, but also with more serious ones, including scandals and calls to the police. If we agree, as they say, “on the shore,” then we can achieve mutual understanding and beneficial cooperation.

The scheme can be effective if the owner of the property, planning to rent it out for a long period, is offered:

• higher payment compared to the market average for a long-term contract;
• guarantees of complete safety of property;
• guaranteed absence of any conflicts with neighbors.

Advice : in various real estate transactions, not only when buying/selling, but also when hiring, fraudulent schemes are common. When drawing up a long-term lease agreement, check the legal side of the issue, that is, whether the person who enters into the agreement with you really has the right to do this by law. To do this, it would not be superfluous to study an extract from the Unified State Register of Property Rights to Real Estate, which indicates all the information about the object and its owners.

Creating an agent network involves building a scheme that involves a current base of housing ready for rent, advertising for the client and the owner. That is, the entrepreneur is looking for a suitable guest for specific housing conditions.

The algorithm is extremely simple, business is an intermediary between the consumer of the service and those who directly provide it with their property. But this is only easy at first glance. In fact, such mediation requires a tremendous investment of time and effort. Almost every minute monitoring of calls, mail, SMS, call backs, clarifications, preparation of apartments for receiving residents, negotiations, meetings and settlements, acceptance of housing at the end of the lease. And a million more issues that need to be resolved, and this needs to be done as quickly as possible so as not to lose a client due to any delay. Actually, this business is like a squirrel running in a wheel. True, with one difference - she does it for free or “for food”. Daily rental is still much more profitable.

To create an effective project using the agent network algorithm, you will need to create a housing information base, as well as clarity in all communication aspects. One of the factors on which the success of each transaction and the profitability of the project depends is a timely and adequate response to any request of a potential client, his check-in and acceptance of the apartment upon eviction. In addition, here it is necessary to clearly “close” all household problems, avoiding idle space due to the inability to show the client to the apartment if it is not too easy to find, or because they did not have time to bring fresh towels there in a timely manner .

The apparent simplicity of the scheme, which consists in using someone else’s real estate, that is, without investing money in its acquisition or the cost of long-term rent, is often offset by a lot of hassle. The entrepreneur has to act as a link between home owners and tenant clients, while he takes responsibility for the quality of services for the latter and for the absence of problems for the former.

Daily rent of apartments

Usually, novice entrepreneurs start by 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. An 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.

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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 public transport stations. You need a stencil and a can of spray paint.

How to rent out an apartment daily?

Naturally, each type of activity has its own rules and features. Short-term rental housing in this regard is no different from other entrepreneurial projects. For the successful development of a business in renting apartments by the day, it is necessary to comply with certain conditions that relate to the real estate properties themselves, conduct promotional events and organize the entire process. The last moment is the most difficult.

Apartment and its preparation

Regardless of whether it is your own living space, rented for a long term, or transferred by the owner to an entrepreneur in trust, the apartment must meet certain requirements:

• Location. Housing should be located as close as possible to major transport interchanges. It should be convenient for people to get to it. Proximity to metro stations and combined public transport stops is a prerequisite. If the apartment is located in the depths of the microdistrict, it is difficult to find it for a person unfamiliar with the area, you need to think about who will meet clients and accompany them for the first time.
• Repair. There are several “subtle” points in this issue. On the one hand, faded wallpaper and worn linoleum for many clients will be a factor that will reduce the attractiveness of the home. On the other hand, there are no guarantees that temporary residents will take good care of the expensive designer interior. When making renovations in an apartment that is planned for short-term rental, you need to choose materials in the middle price category. And also those that are easy to wash and clean.
• Furniture. Whether you want to open a private kindergarten in an apartment or rent it out daily, furnishings are important. In the case of renting, it is necessary to think about not only comfortable sleeping places, but also a comfortable place to relax. Large armchairs, a coffee table, a TV - all these things are a must have. Particular attention should be paid to the bathroom. Plumbing should not only be in good working order, but also easy to use.

Advice : if you install a shower stall with many functions, where there are a “bunch” of buttons and levers, it is not clear what they turn on, then get ready for the fact that you will very soon have to call a specialist to repair it. Please note that using technology is a familiar process for many, but not all of your clients will have specific skills in operating items that are not yet widely used. And it is useless to attach instructions to every piece of equipment. Not everyone is used to reading them.

• Kitchen. The “stuffing” of this part of the apartment needs to be made as comfortable and suitable for visitors as possible. Here it is advisable to install not only those household appliances that are familiar in everyday life, but also those that allow you to prepare food quickly and without lengthy preliminary operations. That is, a microwave oven, coffee maker, and toaster will increase the level of comfort of your home.
• Household little things. Remote controls for TV and air conditioning, salt and spices, tea and sugar (albeit in small quantities), packaged soap, towels, high-quality bed linen, Internet access, preferably double, wired and a Wi-Fi point... Actually, the apartment should be like to a hotel room. And not third-rate, but one that can qualify for four “stars.” Sometimes she can even surpass him in household amenities. Having an iron and washing machine expands the possibilities of self-service and also saves money, which in a hotel format would have to be given to staff or third-party service providers.

By creating a comfortable environment in the apartment and providing it with everything necessary, you can count on a certain category of clients who have the opportunity to pay for housing of a certain level, but do not want to rent a hotel room. Or because the hotel is inconvenient for them for some reason. In addition, a huge layer of consumers will look for those who provide daily rental services out of a desire to save money. But not on quality, but on cost, because it is known that a hotel room will still cost much more than an apartment. And the possibilities of this format (equipped kitchen, washing machine and iron, Internet access) allow you to save quite a lot.

Safety when renting out housing on a daily basis

This point requires special attention, and the topic requires serious study. Here it is necessary to take into account the interests of both parties to the process (both the property owner and the clients) who receive the service. Naturally, the homeowner wants nothing bad to happen to his property. The tenant wants the same thing. Although in the vast majority of cases, apartment owners still suffer from various negative factors. This can be unintentional, accidental damage to property, such as broken dishes, or targeted fraudulent actions. There are thefts of expensive items, careless operation of household appliances, vandalism, and housing re-letting scams. There are cases where a person who rented an apartment for three days managed to change the locks and rent it out to someone else for three months, posing as the owner.

Unfortunately, there is no way to completely protect yourself and your property from damage and fraudulent activities. But with some effort, the negative consequences can be minimized.

What's important here is:

• Conclude an agreement. Without burdening himself with additional papers and treating them as something unnecessary and optional, an entrepreneur who rents out apartments on a daily basis risks waking up one day with his pockets thoroughly cleaned. The document for renting housing must include the client’s details, and they must be checked against the passport details. If a person categorically does not want to advertise information about himself, you can settle on a large cash deposit, which will be returned upon eviction. Please note that it is prohibited to take a passport as collateral.
• Insure property. Preferably from everything that is provided in the range of services of the specialized company. Fire or arson, flooding, vandalism, mechanical damage, even explosion - all these insured events must be provided for in the contract. Today, many companies work in this field, and they have services of this nature. And even though the fee for this will be an additional expense, it will help to significantly reduce risks and possible losses.
• Choose your clientele carefully. It is clear that not everyone has it “written on their face” that they will bring some kind of trouble. And sometimes apartments are rented by tourists or business travelers who have absolutely no plans to damage the property. However, alcohol, which can become a “companion” for such people, often provokes various troubles, including for the property in a rented apartment. Therefore, this recommendation will help to cut off only the too clearly visible “unreliable” element, those people to whom it is definitely not worth renting out housing. In addition, you should be careful in choosing clients who clearly want to have an intimate meeting in your living space. No, no one denies that this is normal for a modern person; lovers are sometimes forced to meet in rented apartments. But it’s absolutely not worth turning your home into a place where “venal love” flourishes.
• Choose the right locks. A reliable fact - the vast majority of keys are so simple that for 300 rubles and 15 minutes anyone who turns to a master locksmith can get a duplicate. Therefore, it is better for attackers to complicate the task and install locks for which keys are difficult and expensive to produce. If someone who plans to “remove” property worth 5-10 thousand rubles from an apartment needs 2-3 thousand and a couple of days to get a duplicate, then he will understand that this is impractical and can switch to some other object.

Tip: install 2 or even 3 locks. Use one for everyone, that is, give the key to it to clients. When the property is idle, lock it with others, the keys to which you keep only for yourself. This, of course, will not save you from an experienced burglar, but it will clearly stop those former unscrupulous clients who suddenly want to return with a duplicate and take their expensive TV with them.

In addition, you can use tricks. Periodically change a lock intended for “general” use. You don't have to buy new ones all the time. You can stock up on two or three copies and change them after a certain period (month, week). This will also make it difficult for unauthorized persons to enter the apartment with duplicates.

Renting and reletting apartments on a daily basis is difficult, but profitable

1. Sleeps 2–4 – double bed or sofa and a pair of folding chairs.
2. Wi-Fi internet access.
3. TV.
4. Shower cubicle, hairdryer.
5. Automatic washing machine, electric iron.
6. Minimum set of kitchen utensils - electric kettle, microwave, dishes.
7. Bed linen and towels.

Profit will depend entirely on the occupancy of the apartment. At 100% workload, the income will be 30,000-36,000 rubles. per month But this is a theory. In practice, the optimal occupancy rate is 50-65%, i.e. the housing is occupied for 15-20 days a month. In this case, you should expect an income of 15,000-24,000 rubles. per month

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Organization of a daily housing rental business

A huge advantage of this type of activity is that it does not require specific skills, knowledge and abilities. Essentially, this is an entrepreneurial project accessible to a housewife. Let this statement not be taken as offensive. Housekeeping is a huge and hard job.

What is needed in the business of renting out apartments for daily rent:

• Maintain housing in a condition ready to receive guests. That is, cleaning the premises after clients move out, changing linen, towels, and washing dishes. You can do this yourself. Minimum money, but a lot of effort and time. Therefore, the cost in this option is high; it is better to spend your resources (effort and time) on things that are more useful for business. You can use the services of a cleaning company or hire a neighbor aunt who will perform such functions. Here you can also add the purchase of products (salt, sugar, tea), the stocks of which need to be regularly replenished.
• Taking care of the proper condition of housing. Here we need preventative care for household appliances, plumbing fixtures, and appliances. In addition, it is necessary to carry out ongoing minor repairs. Here it is better to have an agreement with several specialists who, upon request, will come to the address and carry out the necessary work.
• Working with clients. It is advisable for an entrepreneur to take on this part, especially at the initial stage of business development. Meetings, agreements, signing documents, accepting payment for services are the moments when the highest responsibility arises. As for the agreement, its template, like many others, for example, an additional agreement to a lease agreement for non-residential premises, can be found on the Internet in the public domain. The only thing is that you need to carefully study the document proposed for signing, check it, and add the necessary points that reflect the specific situation.
• Search for clients and advertising. Naturally, those who want to rent an apartment for daily rent look for it in different ways, so all of them must be covered by an entrepreneur engaged in this type of activity. The Internet is a great opportunity to deliver information about your services to all those who use this type of search. A business card website, its promotion, contextual advertising - all this has a reason. However, many people who come to your locality and want to rent an apartment for a day or several do not have access to the Internet. Assume that they did not stock up on the necessary contacts in advance. What will they do? That's right, they will buy a newspaper with advertisements at the nearest kiosk or study special boards installed near train stations. Therefore, under no circumstances should these communication channels be ignored. In addition, you can take advantage of the excellent in terms of efficiency way of disseminating information - word of mouth.

Advice : to fully use this method of advertising, simplify the algorithm for obtaining information about you and your services. To do this, just put a few business cards with contact information in the apartment that is for rent, in a visible place. A client who likes your home and is completely satisfied with the conditions will definitely take a couple of cards with him to later distribute to friends and acquaintances or use them for repeat business. Printing a thousand business cards is not that expensive, and the return on them can be very effective.

How to make money on daily apartment rentals

Dmitry managed to sell old furniture on Avito and buy slightly used furniture there at an equally low cost. Of course, this takes a lot of time: you need to study advertisements, call them, visit buyers and sellers. But material savings are obvious. If there are chips and scratches, then it makes sense to go to a restorer and buy covers. In principle, it is possible to buy good furniture for little money at IKEA.

First of all, pay attention to the location: it should be convenient, close to the metro or Russian Railways station and important city infrastructure. Often clients leave the airport or train station exhausted, and hardly anyone wants to walk a couple of kilometers.

What kind of apartment do you need?

Grandmother left excellent housing in the city center for the lucky ones; the rest will have to look for owners willing to rent out the property.

At the same time, it must meet the requirements:

1. Long lease term, minimum 1 year.
2. Location. There are few people willing to travel to the outskirts of the city, so you need to find an apartment in the city center.
3. Good renovation. In order not to spend money on bringing the room into divine form, you need to take care of its appearance in advance.
4. The owner's willingness to enter into a formal contract and pay taxes. This will lead to an increase in prices by 10-15%, but there is no point in playing dangerous games with the state; they fall under the Criminal Code.

When answering the question: how to organize a business renting out an apartment by the day, where to start, you should consider the issue of furniture. The monthly price difference will be about 5,000 if you rent a house with furniture.

Otherwise you will have to buy:

• sofa;
• bed;
• kitchen furniture;
• fridge;
• microwave oven.

This is the necessary minimum that can attract tenants; its purchase will cost approximately 70,000. This amount will pay off in 14 months, and it is easier to rent a room without furniture.

Minimum investment to earn money from rent

It is difficult to give any specific figures, because the price of housing depends on the region and the state of the market as a whole. In 2020, there was a collapse in real estate prices, and apartments could be bought 15 - 20% cheaper than now. At the same time, the cost of housing in the regions was 1 - 2 million rubles, and in Moscow - from 5 and above.

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

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

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

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

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

Business plan

Given a brief business plan for carrying out daily rental activities, it is worth noting the following steps for a novice businessman:

1. Start-up capital. This must include not only the fact of having an apartment, but also the liquidity of its daily rental. Consider short-term rental of this particular apartment from the point of view of a potential client.
2. Expenses. The main expense item consists of expenses for decorating and furnishing the apartment. So, to register an individual entrepreneur, about 25 thousand rubles are spent. The costs of furnishing an apartment depend on its condition.
3. Profit calculation. When renting out housing with a daily payment, it is very difficult to calculate the potential profit, since the flow of clients is too inconsistent. Usually, when calculating future profits in this business, it is assumed that the apartment will be empty for more than half the month.

If you have a competent business plan, you can apply for support from government funds. As a rule, they allocate about 60 thousand rubles to each for the development of small businesses. So you can get good start-up capital and reduce your own risks to nothing.

Legalization

Legal support, of course, will not be superfluous, but the services of a lawyer are not cheap, and with an inconsistent flow of clients, especially at the start, such expenses are completely unnecessary.

Getting used to conducting official activities is quite simple. Filling out receipts and bank orders will take no more than a few minutes. The most important thing is to do it on time and not delay reporting.

If necessary, you can consult with tax agents or directly with tax officials. But in any case, you should not start a business in the shadows, since it will be much more difficult to legalize later than to start official activities.

The fact is that a person gets used to the current level of profit and state of affairs. Thus, people quite often stop thinking about expanding their own business, as a result of which their business declines over time.

Official activity allows you to receive borrowed funds from government trust funds and from banks to expand your business and generate greater profits.

How to make money by renting out apartments daily

Naturally, all this will require investment, but the pricing policy of such a business speaks for itself. You lose absolutely nothing in the future, the property is always yours and you can sell it at any time, and the proceeds will only be a plus.

The essence of business is as old as the world. An owner who has a vacant home and wants to rent it out is promoting his offer. You can search for clients either independently or by entrusting this work to professional real estate agents. The latter option is somewhat more expensive, but more effective.

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How to make money renting out an apartment for daily or long-term rent

The positive side of daily rental is the opportunity to earn more. For example, you rent an apartment for a day for $50, and it is quite possible to receive an income equal to $1,500 in a month. But that's just how it seems. In fact, entrepreneurs involved in daily rental housing call a workload of 25 days a great success.

Also, when renting out an apartment on a daily basis, the owner will need to maintain the cleanliness of the premises independently or by attracting third-party resources after each check-in, because everyone wants to live clean for their own money. With this type of activity, you need to take into account a lot of expense items that will only pay off when the business is fully loaded, which, unfortunately, rarely happens.