After the introduction of sanctions against the Russian Federation, Russians refocused on holidays inside the country. This trend opens up additional prospects for the development of hosting services…
How to build a profitable business on daily rent of apartments
The business of renting apartments and houses to tourists is relevant for those who have free housing. It can be rented on a long-term basis or daily. With the second option, rental income is two or even three times higher. Perseverance and a share of luck often lead to the development of part-time work into a full-fledged business.Having earned money, many landlords take out loans to buy additional apartments, knowing that the income will allow them to pay off. Of course, you should take this step with caution, carefully calculate the mortgage and estimate future earnings prospects.
How to start a daily rental business, how to prepare housing for rent and attract customers? We will talk about this and other aspects of a promising business further.
Income calculation
First of all, you need to answer the question – is it worth starting a career as a landlord at all? The answer largely depends on the location of an empty apartment or house. If the accommodation is located in the capital, megalopolis or on the coast of the warm sea, almost any location is suitable. In provincial towns, it is desirable that the accommodation facility be located near a train station, a market, or just in the central part. These territories are points of attraction for tourists. Analyzing the prices of competitors renting out housing in the area where your apartment is located allows you to predict future incomes and conclude about the relevance of the business.
Preparation of housing for rent
Even if the prospective tenants will be budget tourists, the apartment should be put in full order. This is especially true for the bathroom – it must be sterile and at least cosmetically updated. The bathroom is equipped with gels and shampoos, by the way, you should prefer liquid soap to lump soap. Its use is more hygienic and economical. Special attention is also paid to the bedroom. It is advisable to update the mattresses on the beds, and ideally, to purchase new folding sofas. As practice shows, tourists are particularly demanding of places to sleep.
Presentable photos of housing
The first thing a potential customer looks at in a rental ad is an image of an apartment. That’s why the photos of the apartment should approach the ideal ones. There should be no hint of disorder in the pictures, but cute little things are welcome, such as flowers or a teapot on the table. Such details create an atmosphere of harmony and motivate the tourist to choose a “cozy” option, all other things being equal. Photos of the view from the window perform a similar task. If he is really attractive, it would not hurt to add a couple of such pictures to the ad.
The correct ad text
The key rule of real estate advertising is that its main advantage is included in the first sentence. For an apartment located in the heart of the city, it may sound like a “one-bedroom apartment in a tourist center”, and if the bathroom is equipped with the latest technology, a possible way to start: “a cozy apartment with a Jacuzzi”. Then the advantages of real estate are listed in detail, you need to start with unique moments, moving on to mundane but important details. For ease of perception, it is better to arrange a set of positive properties in a list. Since we are talking about an offer to tourists, at the end of the text it is worth mentioning the proximity of train stations, markets, banks or at least inexpensive, but good cafes.
Taxes and legal features of renting housing
In order to legally engage in renting, it is not necessary to register a company or sole proprietor. It is enough to apply for the status of self-employed. Today, this is done without visiting the authorities, through the mobile application “My Tax”. The self-employed landlord does not face unpleasant questions from the inspection authorities. In return, you need to pay 4% of the profit when working with individuals or 6% if the tenant is a legal entity. What kind of income was received in a month or a year is determined by the self–employed. In this regard, it may be tempting to radically underestimate income, but it is better not to do this.
