Artyom Lobachenkov - how to rent or rent a counter for a day, a store for a week or a loft for a month
Many entrepreneurs are periodically interested in short-term lease of small areas. For example, a farmer needs to sell a seasonal product, a hand-made master needs to hold a sale, and an online startup needs to organize a bright PR campaign offline. In this case, a short-term rental property service can be useful, which connects the owners of the premises with the tenants and helps them negotiate. With its help, you can rent or rent any space - from shopping pavilions to an "island" in a shopping center or a sofa in the lobby for a period of one day to several months.
31 years old, entrepreneur from Moscow, co-founder of the service short term rental commercial real estate. Graduated from the Faculty of Economics of Nikolaev state university majoring in business management. More than 10 years of experience in the development of Internet projects. Company Founder Pixel Set(development of integrated Internet solutions). The Spaceinspace project develops in partnership with Evgeny Yakushev and Tatyana Soboleva.
If there is an inconvenience, then there is a field for business
The idea of a service for short-term rental of commercial real estate came from the co-founders of the project Evgeny Yakushev and Tatiana Soboleva in 2015. Tatyana was working in retail real estate at that time and quite often faced requests for short-term lease of retail premises. Similar services at that time began to gain popularity in Britain and the United States.
Tatyana and Evgeny, as well as Artyom Lobachenkov, who joined the project a little later, analyzed their work and tried to imagine whether such an idea would work in Russia. The founders of the project saw that there is a need for such a service, but there is practically nowhere to turn for it. Platforms specialized specifically in short-term rentals retail space, was not yet.
The process of renting these premises is quite complicated. To conclude an agreement, the entrepreneur must collect documents and approvals, pass the necessary checks. It takes a lot of time and effort.
“Renting a retail space is a confusing and incomprehensible process for most people. It's not optimized at all. And where there is "non-optimization" - there is a field and an opportunity for growth. Spaceinspace can regulate, digitize and make this area convenient thanks to IT. When everything is clear, understandable and presented on one platform, it simplifies life for both the tenant and the landlord,” says Artyom Lobachenkov.
The main problem on initial stage the creation of the Spaceinspace platform was the lack of a legal framework. At that time, Artyom's colleagues and partners did not understand in principle whether the service for short-term rental of retail premises could function in Russia in accordance with the law. Therefore, it was necessary to find a legally correct format of the agency agreement, which is concluded with the landlord.
Work on the contract took about four months and cost about 500-600 thousand rubles. The founders of the service were advised by several lawyers.
“We have defined ourselves as a service that controls the lease transaction at all its stages: from the formation of a lease application by the tenant to his departure from the premises. All transactions go through us, and if there are difficulties, including bureaucratic ones, our service solves them,” says Artyom Lobachenkov.
The roles of the founders in the project were distributed as follows: Artyom Lobachenkov is responsible for the IT platform and communication with the main lessors (shopping center owners and brokers), Tatiana Soboleva is in charge of marketing and attracting customers and partners, Evgeny Yakushev is responsible for form style, branding and project strategy.
There are 18 people in the Spaceinspace team in total. These are programmers, marketers who work to attract landlords, as well as two managers of rental relations.
Platform launch
The next step after the development of documents was the creation of a website and a base for the IT platform. This was done by the specialists of the company for the development of Internet projects PixelSet, owned by Artyom.
The first version of the site was prepared in just a month. As a model, the premises of famous shopping centers were placed on it. The founders of the project demonstrated this site during meetings with potential landlords - they entered into the system data on real retail outlets of a particular landlord, showing the possibilities of the system using their example.
At the same time, there was a search for landlords through friends Evgeny Yakushev and Tatyana Soboleva. We also used contextual advertising and promotion in social networks. Until the end of 2016, the first ten landlords were found in this way - mainly shops and small shopping centers.
According to Artyom, it was not easy at first to explain to the owners of commercial premises the meaning of the service and its benefits. I had to argue for a long time and in detail the advantages of the Spaceinspace platform.
“At first I saw that the landlord had a misunderstanding about who we are in principle and how to work with us. It was about a completely new format for many - short-term lease. A lot of people didn't take it seriously at the time. Not everyone understood why it was necessary to rent out premises for a short period of time, ”explains Artyom Lobachenkov.
The site launched in November 2016. It is an online platform where profiles of premises that are rented are posted. The room card contains detailed information: photo, description, location, rental conditions. When a tenant submits an application to rent a space, it goes to the landlord, who decides whether to accept it or reject it.
Betting on big companies
After a few months of work, the founders of the service decided to shift the focus in favor of larger landlords. According to Artyom, large and small landlords require approximately the same effort at the stage of concluding a deal. The process of signing the contract lasts about one and a half months and does not depend much on the size of the partner company's areas, and the "exhaust" from cooperation with a major player is higher.
Now Spaceinspace is trying to attract large retail chains or organizations that manage several objects at once. The consequence of this approach is the emergence of larger landlords on the platform. Now the founders of the service communicate with several trading networks. Negotiations with some of them are nearing the final stage. Sometimes it takes longer than the “set” one and a half months, but the results of such work pay off all the efforts.
At the same time, small landlords have already begun to come themselves - on the basis of advertising and recommendations. For their convenience, the site has forms with which you can quickly add and set up a new room available to tenants.
“The more we communicate with large landlords, the more often we see that their eyes light up, and they understand what the essence of the Spaceinspace platform is. This is due to the fact that we have learned to better position ourselves and articulate our benefits. We have learned to communicate in the same language with landlords, and we better understand their business processes. Companies see in us the potential and benefit for themselves from cooperation with us,” Artyom Lobachenkov is convinced.
About 90% of rental applications come from entrepreneurs and small and medium-sized businesses - with a turnover of up to 10 million rubles per month and up to 30 employees in the state
Sometimes the area is "taken" just for a day or for several days. These tenants can be online entrepreneurs running a sale or publicity stunt, or popular bloggers with their own fan base. For them, a short-term lease is an opportunity to see their subscribers “live”. And shopping centers get a large mass of loyal visitors, attracting only one interesting tenant.
Most of those who rent a room for a month or several months are popular online stores that have several hundred orders per month. As a rule, they want to open a showroom or a pick-up point in a shopping center or other commercial premises. Their main goal is to “go offline” as quickly as possible and at no extra cost. Also, with the help of a short-term lease, entrepreneurs can arrange an event, hold a sale, test the popularity of their products and the relevance of a particular outlet. If successful, many of the "temporary tenants" are considering longer leases for their space.
“Internet entrepreneurs do not understand why they need to rent a room for a year or several years. The market changes dynamically, trends come and go. They often want to rent for a month or two, "and then we'll see." For them, it's a springboard. Then, with a high degree of probability, they can become “anchor long-term workers”, which is also beneficial for the landlord,” says Artyom.
For landlords, short-term rentals open up several new opportunities at once. First of all, this approach allows you to benefit from areas that were not previously planned for rent. These include walkways, hallways, stairways, and other "non-commercial" locations. During negotiations with representatives of Spaceinspace, potential tenants often say that they have not even thought about renting out such space.
Sometimes a short-term lease for the owner of the premises is the only way to make money on them. For example, one of the potential partners of the service has planned for the beginning of 2018 the reconstruction of its premises. These spaces for the remaining few months can be rented out as a "temporary store", or provided for some events (presentations, shows, etc.).
The price of a "square" per day for a short-term lease is 20-30% higher than for a long-term
Another plus for the landlord is the rotation of tenants. According to Artyom Lobachenkov, the appearance of new stores and projects in the shopping center increases the loyalty of visitors to this facility as a whole. "Short-term tenants" often arrange sales, hold shows, open pop-up-shops (temporary stores). Such high-profile events also keep the public interested in the mall.
“In one mall, a girl rented a table in the hallway with our help. There she did face painting for children. In November-December, she repeatedly rented such spaces through us. Everyone benefits from this. For the girl, an important plus was the low cost of rent, and for the mall - the popularization of the place and the entertainment of the public, ”Artyom gives an example.
In addition, the Spaceinspace IT platform helps save time for rental department employees. Optimization and digitization of the application process allows you to receive and process the flow of applications, significantly speeding up the selection of the best options.
First results
The Spaceinspace service offers rooms of various sizes and formats for rent. This can be a small counter in a store with an area of 1-2 "squares" or larger spaces measuring 100-500 square meters. Rental terms - from days to several months, depending on the wishes of the tenant and the landlord.
On site in this moment About 100 landlords are registered. Among them are both large shopping centers and small shops, shops, cafes. In total, they offer about 200-300 sites for rent. In the next one or two months, about 40 more outlets in shopping centers and street retail. This is the format most often requested by tenant clients. Despite the lack of advertising aimed at attracting them, the service receives about ten requests for rental every day.
At the moment, about 20 successful transactions have been completed with the help of Spaceinspace total cost about a million rubles. Their main number is the lease of space in shopping centers. Shop-in-shop premises are also in demand: for example, a counter for selling honey was rented in a cheese shop.
Income and expenses
At the conclusion of the contract, the tenant pays the service a commission in the amount of 3 to 30% of the transaction value. The service takes care of the full support of the lease agreement: from negotiations and paperwork to the tenant's departure from the premises. For landlords, all services are free of charge.
“As a rule, the tenant could not rent most of the premises we offer without our help, because the landlord simply did not plan to rent them out,” says Artyom.
The biggest expense item of the project is the development of the IT platform. About 400,000 rubles are spent on it every month
According to Artyom Lobachenkov, the tasks being solved now to develop the platform should bring the relationship between the landlord and the tenant to a new level.
Promotion costs are approximately 100,000 rubles per month. These include contextual advertising and advertising in social networks, as well as participation in retail forums and conferences. On them, the founders of the project talk about the short-term lease format, its advantages and practical application.
“We regularly write articles on business resources, deliver reports and lectures. This causes more confidence in us and an understanding of how you can work with us,” says Artyom.
Plans and prospects
Further business prospects depend primarily on the number of landlords and the space they offer. For their convenience, the Spaceinspace team is constantly updating the service with new features and capabilities. Among the already implemented functions is the selection of tenants. The program sorts and classifies all applications of potential tenants according to specified criteria. As a result, the owner of the area receives the sample he needs.
“We send the landlord not raw, useless applications for him, but only those that meet his current requirements and tasks. We know a lot about our tenants: what kind of business they have, what turnover, what they are interested in. This data allows us to segment the database in many ways,” says Artyom.
The technical capabilities of the service, which are planned to be developed in the first place, are data collection and analytics. For example, landlords will receive statistics on the success of rental transactions. This data can be used to regulate business processes and improve the efficiency of the shopping center. The entire volume of data and analytics is provided to landlords free of charge.
“The more rooms appear on the site, the more useful this system can be for the landlord. We rely on the collection of big data and are ready to share this data with landlords so that they can earn more money", - explains Artyom Lobachenkov.
By the end of 2017, the founders of the service expect to increase the number of outlets offered for delivery to a thousand units.
To do this, it is necessary that at least 200-300 landlords cooperate with the project. In the future, access to regional shopping centers and networks is being considered.
“Now we are focused primarily on landlords and are actively attracting them. We understand that we cannot satisfy the entire volume of rental applications without having a strong base of landlords,” says Artyom.
The founders of the project develop it at their own expense. Since the start of sales, they have repeatedly received offers from potential investors. But attracting financial investments is not a priority for co-owners. “We are primarily interested not in finance, but in “expertise investment”. For example, a person who owns a large number of retail outlets or who has knowledge of the market comes to our team. This would speed up the process with the advent of new interesting premises and expertise in this matter.”
We talked in one of the "working" apartments. They thought that at least in this way it would be possible to talk calmly, in detail, but where there, mobile phone businesswoman called incessantly. Clients, clients, clients...
I still manage without a third-party work force I don't hire assistants. Unless mom helps a little. But it's already getting hard, troublesome, - complains Yulia, director of the Posutochno.com company. - But the business is going on, developing, generating income, and this is the most important thing!
Why do you work without assistants then?
Yes, you know, at the very beginning, quite decent money was invested, and now they need to be returned somehow!
Where does business start?
Naturally, I am interested in how it all started, how the idea of organization appeared own business on a short term lease. It turns out that - quite by accident.
It started with the fact that I bought an apartment on credit. I paid 30% of the first installment, and the remaining amount was to be paid monthly. But I wanted to somehow minimize costs, compensate for part of the losses, especially since I had another apartment where I could live, - Yulia says somewhat excitedly. - It was quite difficult to “recapture” the money spent by renting it out for a long time, and it took a long time. That's when I decided to rent.
First of all, the girl entered into an agreement with one of the real estate agencies, which supplied her with clients for a certain commission. Then I realized that one apartment is negligible. It was decided to live with a friend, and also rent out a second home.
Two apartments are better than one. But after a couple of months it became clear that even that was not enough. And there was a way out. Julia began to rent apartments on a long-term lease for their re-letting - a lease agreement was concluded with the owners for 11 months with a subsequent prolongation and a property trust agreement. That is, the owners were not used "in the dark", they knew what it was for.
It must have been difficult to find such apartments? After all, not everyone will agree to let completely strangers in for a day!
First, I tried to take inexpensive, unfurnished apartments. And secondly, she paid landlords a little more than ordinary tenants. And in most cases, people agreed. Naturally, the owners of expensive apartments, as a rule, do not want their area to be rented out by the day. However, there is a demand for both cheap and expensive ones, so you have to spin.
Today, Yulia has only one apartment with a European-style renovation and other frills in her arsenal, all the rest are simpler, but these are the ones that are most in demand: “People often call me and ask me to provide an apartment that would cost as cheap as possible, without luxury items - if only spend the night somewhere. Although sometimes the opposite is true, clients demand that they have heated floors, and a jacuzzi with hydromassage, and give them the latest technology ... "
Bifurcation
From the inside, the short-term apartment rental business is divided into two segments. There are "private traders", such as Yulia, who work with inexpensive apartments and do not provide clients with any additional services, and - large real estate agencies serving multi-room elite service apartments.
Both options are in demand from consumers, but the first one is much easier to start your own business, since it requires less investment and hassle. True, at high risk.
For individuals, this type of business (work in the segment of expensive "service apartments" - ed.) is not very interesting, it requires significant resources and investments, and most importantly, it does not immediately begin to bring good income. As a rule, this is the lot of large agencies, for which this is, first of all, part of the image, because they provide a full range of services, including short-term rental, - says Marina Markarova, Managing Director consulting company Blackwood.
But starting a business in the segment of inexpensive apartments, as it turned out, is quite simple from a legal point of view. Even if you follow all the formalities. At the very least, Julia assures that she works completely officially: “I didn’t dare to start without registering all official documents. It is simply impossible to live every day in fear.”
What documents did you have to complete?
Immediately registered as PBOYuL. In the column "direction of work" she indicated - "real estate transactions". I reported my data to the tax and police. Now I pay tax - 13%. That, in fact, is all.
Were there any problems with the precinct and other authorities?
No, they know what I'm doing. For them, the main thing is that there are no violations of public order.
Investments in this market segment, at least in Moscow, pay off rather quickly. In three months, Yulia manages to return all the money spent on renting and furnishing each apartment. And then the profit begins, which goes to business development, improving conditions in other apartments. And yes, it remains for life. But among the reasons why representatives of real estate agencies do not recommend “private owners” to engage in short-term rentals, it was precisely the impossibility of quickly making a profit and providing services that they considered in demand stood out.
There are a number of very small companies on the market that offer only 4-8 apartments. But they cannot provide the full range of services available to large agencies. They cannot provide the same level of service, - explains the head of the service apartments department British company Intermark Denis Shmaryov. - After all, it is not enough to find a client for a short period of time, you also need to provide him with a certain range of services, which, if you have one or two or three apartments, is not of financial interest to the investor. Maintaining the infrastructure of the service, paying for advertising, daily operational management will certainly absorb all or a significant part of the profits.
So it is. But only when it comes to expensive apartments. And for our heroine, advertising and operational management eat up only a small part of the costs.
I invest very little in advertising. I have a contract with several real estate agencies that periodically supply me with clients, charging a commission. On my own advertising - this is a website and placing ads on the Internet - I could "raise" a maximum of two apartments. And it is not yet possible to invest in a more massive promotion. And I don’t see a special need, ”says Yulia.
Let there be demand!
Who is shaping the demand for short-term rentals? The question does not have an unequivocal answer - it all depends on the level of the apartments offered, the service provided and other factors. It can be tourists or businessmen who have come to visit. Or those working in the city on a short-term contract, transiting through the city (sometimes renting an apartment for half a day if you just need to wait for an evening flight), and local residents who need to spend their leisure time or an important business meeting on neutral territory. A quiet apartment without frills is requested by both applicants and correspondence students who came to take exams. Well, then the demand is segmented depending on the type of customers, the number of visitors, their financial position, requirements.
Today, large three-four-room apartments for several days are popular, which are booked by tourists coming to St. Petersburg big company or the whole family, - says the director of the St. Petersburg company Hotel Expert Valentin Miklyaev. “Many foreigners want to rent an apartment during their stay in Moscow, so that it is located in the center, with a good repair, but at the same time at a price cheaper than a hotel,” adds Marina Markarova.
And Julia has different clients. By the way, some real estate companies deliberately avoid working in the short-term rental sector, considering that the offer of an apartment for an hour or a night is exclusively part of the intimate services business, with which they do not want to be associated in any way, stating that they only work with “ decent people." In this case, private traders do not care how the client will spend time in a rented apartment. “For people like me, all tenants are just customers who pay us. And we are not interested in what they will do there. The main thing is that everything is in order, ”says Yulia.
Law is law
To conclude or not to conclude a short-term lease agreement with a client - this issue is resolved in each case individually. Valentin Miklyaev (Hotel Expert) is sure that this is necessary. “For such a business to be successful, it is necessary to offer customers the opportunity to draw up a commission agreement. This increases the level of trust of guests and provides financial statements those who come on a business trip. In addition, you should be able to register guests at the Passport and Visa Office, which can be especially important for foreigners.”
Clients of apartments of a lower price segment are much less demanding in this sense. Sometimes tenants ask to conclude an agreement with them (if they are on a business trip), but more often they themselves refuse it. This is indeed very troublesome, and it does not make sense if the client rents an apartment for a day or two.
Hotel or apartment?
To be honest, for any client, renting an apartment is much more profitable than booking a hotel room, all participants in the short-term rental market who shared their comments with Business Journal are sure of this. Firstly, this is savings, which can reach 40-50% in the case of expensive apartments, and much more - with cheap ones. In addition, the increased demand for such services in Moscow is caused by a lack of rooms in three-star, and sometimes four-, and five-star hotels, recalls Denis Shmaryov. Another important factor is the familiar home comfort, which cannot be obtained in a hotel. Yes, and guests can be called easily, not like in the room.
There are, however, some downsides. “In the hotel, you can order food at any time of the day or night, demand, for example, an iron and ironing board,” says Marina Usenko, Senior Vice President of Jones Lang LaSalle Hotels Moscow. - In addition, you can be sure of the constant quality of services, while the apartment is different. Unless, of course, they are all professionally managed by one operator and finished within common standard(Which, however, is practically non-existent in Moscow).
But, according to Yulia, everyone who managed to use the services of short-term apartment rental, as a rule, tends to this option, preferring it to hotel service: “At least I work in good faith and try very hard to make all my clients satisfied. That's why people come back to me the next time they come to Moscow - there are already quite a few permanent ones.
Who doesn't risk...
Of course, anyone who decides to try their hand at the short-term rental market should be aware of the many risks.
Those who intend to develop this business need to understand how risky it is. When I first started, it was very scary - all the time on the nerves, - Yulia complains. - I was afraid that they would steal or break something, rob. Basically, I'm still scared. But I'm already used to it, and so far God has mercy. From experience I can say that there are much more decent people than bad ones!
And yet, among the main risks are major and minor breakdowns of equipment or furniture by the tenant, theft using duplicate keys, flood, fire and dissatisfaction with neighbors. All of these issues are up to the landlord. But even landlords, especially experienced ones, have their own response tricks, ways of protection.
For example, I have combination locks on the doors of all apartments, and I constantly change the code, so the previous tenant will not be able to get into the apartment even if he has a duplicate key, - says Yulia. - And with the "recidivists" who trade in robberies of rented apartments, we are fighting all together. If a person has stolen something at least once, his name is blacklisted and distributed among market players - the same as me, "private traders" and real estate agencies. Moreover, everyone shares information willingly, they understand that it is in their interests. Sometimes even the police call and warn that such and such a person has already robbed an apartment and may turn up again.
In the same way, Denis Shmaryov (Intermark) admits that his company works exclusively with trusted corporate clients who will not allow themselves to steal or break something, and in case of major damage to equipment or furniture they will be able to compensate for losses. For minor damages (broken dishes, etc.), as a rule, compensation is not required from customers.
And it is more difficult for Yulia: “You can count on a refund only if the client is a decent person and will reimburse everything himself. "Knock out" doesn't work. And if trouble occurs, then you have to compensate at your own expense. And yet, the entrepreneur tries to insure against such risks by conducting a kind of screening of clients:
Many people get rejected. I have already learned to feel by the voice what kind of person is calling. If I have any suspicions, I meet with the client on a neutral territory near the metro. If suddenly the suspicion is strengthened, I refuse him. Yes, there are many dissatisfied. But I don't want to risk it either. In addition, I do not sit very young. Fundamentally. First, they are the noisiest. And secondly, they will also steal some trifle that is useless for them, but important for me (for example, a TV remote control), break something stupidly. And I am also suspicious of those who call and immediately start asking about equipment, things, and not about the apartment itself. There are bad suspicions...
Did you have conflicts with your neighbors? Do they not call the police if the tenant is buzzing?
Once clients staged a flood. I had to settle. In general, I try to get along with my neighbors. a good relationship. They have all my contacts, and I ask that in case of anything they call not the police, but me.
In general, the problems with the organization of this business, if you look, are not so complicated. Yes, there are costs. And yet this line of services is quite promising for start-up companies. So Julia dreams of expanding her business. And dream big:
In the future, I want to buy the whole house and make something like a hotel in it, where instead of rooms there will be apartments. Plant guards, equip to your liking, make apartments of different levels so that clients go, - Yulia enthusiastically paints her future brainchild. - Now I am already negotiating with investors, looking for a house that can be redeemed. We considered that the invested money would have to be “repaid” for several years. But then the business will make a profit, and, I hope, a lot. Still, the more apartments and the better the organization of the business, the better!
- purchase of commercial real estate;
- participation in the construction of premises;
- acquisition of a ready-made rental business.
The rental business is one of the most profitable investments, because it is passive and does not require active participation from the owner. Already at the time of purchase, it pays for itself, generating income. In addition to profitability, it is reliable. The success of the rental business depends on the property itself, and this issue must be approached as responsibly as possible. You should not start a business alone, you need to calculate all the risks and find worthy reliable partners. Our experts will help you correctly calculate the profitability and profitability so that you can profitably buy a ready-made rental business from the owner.
Buying a rental business is not legally different from an acquisition ready business. When choosing a property for rent, pay attention to its potential price and the optimal combination of the value of the object, which depends on the type of tenant. You need to choose those objects that are in real demand. The ideal option is to buy a rental property in a public place, in a residential building and a separate entrance on the ground floor. The object is transferred to a non-residential fund, converted and rented out for beauty salons or shops.
The room should be located to the right of the main traffic and face a busy street. Rental premises should have a convenient transport interchange and location, high attendance, and there should not be empty objects of competitors nearby.
Benefits of a ready-made rental business
- Conclusion of long-term contracts. If tenants enter into a contract for several years, then you will avoid downtime and will receive a stable income.
- No big start-up capital required. Even if you have invested in repairs, these costs will pay off with a long-term rental.
- Utilities and repair costs for the maintenance of the object are shifted to the tenant.
- Minimal risks and labor costs.
- Constant demand for rental property.
- High income. You can divide the premises into several parts so that it is rented out to different tenants.
We will help you in buying and selling a rental business with a payback of 5 years. You do not have to take risks or worry about a bad deal. Our company will help you find the perfect option for doing business!
Buying real estate is not only a way to save your own savings, but also an opportunity to earn on it by reselling or renting it out. This is one of the liquid and unique assets. There are two main aspects that guide businessmen who invest in real estate: the desire to save their money in the face of inflation and the desire to increase their income by reselling real estate or renting it out.
- Pros and cons of renting an apartment
- How much can you earn by renting out an apartment?
- Location matters
- New building or "secondary" - what to choose?
- Rent apartments
- What documents are needed to rent an apartment?
Pros and cons of renting an apartment
Acquisition of housing for the purpose of further renting out is the most common investment transaction. It will not be possible to make money on such an operation quickly, the average income from renting out is 3.5-5% per annum of the cost of an apartment. But this is a promising and long-term investment, over time, adult children can be resettled here or sold for the purpose of construction country house. Of course, renting an apartment requires certain troubles: you need to constantly look for tenants, maintain the apartment, and make cosmetic repairs.
Before the crisis of 2008-2010. the number of "investment" transactions, subsequently associated with earning income, amounted to about a third of all transactions on Russian market. Gradually, their share decreased to 20%, and currently stands at 15%. At the same time, the number of long-term investors who buy real estate for the future has increased.
Investing money in the purchase of real estate is a long-term project, but more reliable than a bank deposit. A bank deposit can be placed at 10-12% per annum in rubles, but you need to take into account possible risks: recently there are many bankrupt banks. Banks with a solid reputation give low interest rates.
How much can you earn by renting out an apartment?
Let's take a look at a table that clearly demonstrates rental income:
| Apartment options | Apartment price | Rental income per month, in rubles | Rental income per year, in rubles |
| Room | 800 000 | 7 000 | 84 000 |
| 1 room apartment | 1 900 000 | 14 000 | 168 000 |
| 2-room apartment | 2 700 000 | 18 000 | 216 000 |
| 3-room apartment | 3 500 000 | 22 000 | 264 000 |
But in addition to income, there are also fixed expenses - these are: apartment renovation, rent and communal payments(if it is not included in the rent), insurance and income tax.
| Apartment options | Rent and utility payments per year, in rubles | Tax (13% of rent) | Redecorating | Insurance | Total expenses per year |
| Room | 24 000 | 10 920 | 6 000 | 3 200 | 44 120 |
| 1 room apartment | 30 000 | 21 840 | 12 000 | 7 600 | 71 440 |
| 2-room apartment | 42 000 | 28 080 | 24 000 | 10 800 | 104 800 |
| 3-room apartment | 60 000 | 34 320 | 36 000 | 14 000 | 144 320 |
The profitability and payback period are affected by the size of the initial investment in real estate, repairs, as well as the distance from transport hubs. The payback period for apartments purchased with their own money is more than 10 years, and those taken on a mortgage are even longer. From a one-room apartment, you can receive up to 96 thousand rubles a month.
| Apartment options | The cost of the apartment, in rubles | Net income, in rubles | Income in % |
| Room | 800 000 | 39 880 | 4,98% |
| 1 room apartment | 1 900 000 | 96 560 | 5,08% |
| 2-room apartment | 2 700 000 | 111 120 | 3,88% |
| 3-room apartment | 3 500 000 | 119 680 | 3,42% |
Location matters
Tenants, and especially foreigners, are not interested in the historical location of the apartment, but in good transport interchange and the availability of the necessary services. If there are no funds to buy an apartment in Moscow, then you can start buying an apartment in the Moscow region. The income from renting such an apartment will be 10-15% lower than in the capital, but the funds for the purchase of an apartment will be spent 50% less.
Dramatically increase in the price of an apartment and, accordingly, the cost of rent, for housing located near metro stations and railway stations. It is worth following the construction of new metro lines and buying apartments for rent there. In Moscow, apartments in areas outside the Moscow Ring Road, to which the metro comes, rise sharply in price. For example, in Mytishchi, the cost of buying and renting housing has increased by 30%.
Without losing, there will also be an option to purchase housing in areas close to airports. At not so high costs, such apartments bring a stable income.
New building or "secondary" - what to choose?
When buying a home to rent it out, you need to consider two things: how long it will take to pay off the investment, and how much the home will cost in the future. If you put the issue of payback in the foreground, then you need to buy an old building.
Most of the offers on the market of apartments are apartments of old construction. And the demand for them is quite high, renting an apartment at a lower price is more profitable than paying for renting an apartment. Although there is also a demand for them, some want to live in new buildings and apartments filled with modern furniture and appliances.
Apartments in a new building are more expensive, respectively, and their payback will be longer. But at the same time, rent in a new building will cost more. If an apartment is purchased on the primary market, then it is recommended to buy it from a large developer who has experience in commercial development, as well as joint mortgage lending programs with state banks. The developer sells apartments in accordance with federal law FZ-214.
So, the apartment is purchased, and you decide to make repairs in it. One of the main mistakes landlords make is to renovate a business class apartment in an economy class apartment. Believe me, tenants will not appreciate it, and you will spend quite a lot of money. Business-class apartments are another matter, they should be equipped with expensive furniture and design repairs should be carried out here.
Rent apartments
Another type of income is renting apartments by the day. Such services are used by business travelers and tourists who do not want to overpay for hotels. The most demanded apartments are of the middle class, the cost per day is from 1.5-3.5 thousand rubles. The rental of this property is on average 50%% of the total rental. The next in demand are luxury apartments, the cost of renting which is 3.5-6.3 thousand rubles per month.
Of course, this business, like any other, has its negative points, the apartment can stand idle for some time. But during the autumn-spring period, and especially in holidays, middle-class real estate is 100% occupied, and the cost of rent these days increases by 2 times.
What documents are needed to rent an apartment?
After purchasing a home and holding repair work, the apartment must be insured. We draw up a full insurance contract: we insure walls, interior decoration, property located in the apartment, and, of course, civil liability (arson and fires due to the fault of residents). For apartments that are rented out, an increased coefficient of 50% is applied. For example, for an apartment on the outskirts of the capital, estimated at 7.5 million rubles, the insurance payment will be 15 thousand rubles.
If you yourself will rent an apartment for rent, then you must:
- From all its owners and registered persons, obtain consent to rent an apartment.
- Post an ad and start looking for a tenant.
- The contract is concluded for a period of 11 months, in which it is necessary to indicate:
- all persons who will live in the apartment (make copies of all passports);
- how the rent will be paid monthly or quarterly;
- who will pay utility bills (electricity, water, etc.);
- rules for the use of electrical appliances;
- when the landlord can visit the apartment, etc.
Time connoisseurs can, in order to draw up a lease agreement, contact law firm, this service will cost you 2 thousand rubles.
- Draw up an act of transfer of the apartment, in which to indicate all the faults at the time of the conclusion of the contract.
- Write receipts in which the landlord indicates that he received the money, and the tenant that he received the keys.
If your housing is municipal, then the Moscow government requires you to register it with the State Unitary Enterprise. To do this, you need to contact the Moscow City Center for Rental Housing, here you need to bring: an application, the consent of all owners to rent an apartment, an extract from a personal account or house book, a social contract. The cost of the service of the center staff will cost you 1,600 rubles. After registration, the contract will be registered with the State Unitary Enterprise.
So, in this article, we tried to highlight all the pros and cons of renting an apartment, which apartments are better to buy for rent, in which areas, we also indicated that this business- this is a long-term project and its payback comes in a few years, but the project is reliable and liquid, because no matter what the rent and demand for rent, you still have a liquid asset that you can use for your own purposes, or sell it.
If you have a living space, and it is simply idle, you should think about the business of renting apartments. Choose the type of renting an apartment and earn!
♦ Capital investment: from 20,000 rubles. (if you have an apartment).
♦ Payback: 8-12% yield per year (generally - from 10 years).
If you have your own living space or are considering buying with a mortgage, you should consider apartment rental business.
This will allow you to recoup the costs of the purchase, as well as earn "from above".
There are two options for rent - short-term (daily) and long-term.
Each of them has its own advantages and pitfalls.
It is impossible to say unequivocally which option is preferable.
You will have to make the choice yourself, evaluating all the arguments.
Rent daily or long-term: what to choose?
The idea of a long-term rental business is as old as the world.
In addition, square meters can be rented not only for living, but also for offices.
Renting for a short time is also only gaining momentum. First of all, because of the high prices in hotels.
In some situations, living in seemingly cheap hostels still costs more than a rented apartment.
But at the same time, a person gets the opportunity to independently manage the space, his schedule, cook his usual food in the kitchen. And, in general, you can feel at home.
Positive aspects of business
Negative aspects of business
How to start an apartment rental business?
If you have analyzed all the arguments and decided that long-term or daily renting apartments is your business option, you should check the housing for compliance with the requirements.
- The cost of the apartment is affected, first of all, by its location.
The closer to metro stations, the center, the main transport hubs, the more you can ask for it. - The location on the ground floor is considered a disadvantage when renting meters for living.
But for offices, this is the main advantage. - The set with which you need to equip an apartment for rent is extensive.
This includes towels, an elementary set of dishes, a hair dryer, a microwave, an iron, a washing machine are welcome from the equipment.
If people settle for a long time, it is assumed that they will arrange comfort for themselves. - An apartment for short-term rental should be under your control at all times.
You are obliged to keep clean, clean up before each race, wash textiles regularly, replenish supplies of consumables (tea bags, sugar, garbage bags, toilet paper). - Renting for offices often assumes that you need the absolute minimum - walls, windows, a door, and installed plumbing and sewerage.
Potential customer analysis
Interesting fact:
Music lessons for more than two hours a day are unacceptable in relation to neighboring tenants and are equated with noise - such are the laws governing rental housing in Germany.
For long term lease potential clients business is quite broad. AT in general terms it can be imagined as solvent people 18-30 years old.
As for renting square meters for offices, the demographics here are also extensive.
Actually, the gender and age of the tenants in this case will not matter much. The main thing is the type of their occupation - entrepreneurial activity.
But as for the daily rental business, four main categories can be distinguished:
What are the pitfalls of business apartments for rent?
- As a rule, when signing a lease agreement, they take passport data from tenants - they ask them to make a photocopy or simply photograph the pages (for short-term rentals).
But the law says that it is forbidden to do so.
And if you take another, less important document, the risk of being deceived or with damaged property increases even more. - To earn a good reputation and have a regular flow of customers, you need to constantly invest.
In cleaning, washing, improving living conditions and solving various problems.
This must be taken into account even when deciding on the delivery of square meters. - It is difficult to control how decently the tenants will behave.
A noisy "party" can result in problems with neighbors and additional costs for cleaning and even repairs.
In general, residents of old houses are usually quite critical of apartments in which new people constantly appear.
This is especially dangerous if you're renting out your property under less-than-legal circumstances. - If you decide not to use the services of an intermediary agency, the likelihood of apartment downtime increases.
But even a realtor, to whom you will pay an average of 20% commission, is not a guarantee of a regular influx of tenants.
Additionally, you will have to advertise, and this is another expense item. - The biggest pitfall is the risk of fraud.
Of course, it exists in any field.
But when renting out housing, it is especially high.
However, you should not focus on the worst situations.
It is enough to remain vigilant and careful.
If you are only going to buy an apartment in order to rent it out and earn money on it,
for a successful and profitable purchase:
- Business needs to be known from the inside.
If you have never rented an apartment, it will be difficult to understand how to efficiently rent yours.
You can rent a house for a day or two in your own city and play the role of a “mystery shopper”.
Evaluate what prices are average and how landlords behave. - If you are planning to take an apartment on a mortgage specifically to rent out to tenants, it is better to abandon this thought now. The current conditions of economic instability can play a cruel joke on you.
In addition, the overpayment is too large. - Without apartment insurance, you should not start any business.
This is especially true for short-term leases of space. - If the loading of the apartment has become regular, it makes sense to delegate washing to the laundry or.
It's an extra expense, but a big time saver. - Feel free to ask potential tenants questions, talk to them, take a closer look.
From several conversations it is difficult to understand what kind of person is in front of you.
But often it turns out to weed out the most suspicious and inadequate. - Set yourself on the fact that calls at "indecent" times will become the norm for you.
And there is a chance that you will have to call tenants more than once to solve some problem.
If you are not ready for this, put the responsibility "on the shoulders" of the agency.
From the foregoing, it can be concluded that the specific business apartment rental This is not a golden ticket.
In any case, you will have to invest your efforts in its development constantly. Then the earnings will be more or less solid.
Or delegate all issues to a real estate agency.
In this case, you will have to forget about high earnings, because you will have to pay a rather big commission.
But if there are square meters and you don’t need them for some reason, it’s much more reasonable to rent them out for a settlement or offices, and not just leave them idle.
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