home Ideas Business idea: how to open a business renting out an apartment. What business to open in a residential area

Business idea: how to open a business renting out an apartment. What business to open in a residential area

The business of buying and selling apartments is the most profitable in percentage terms after the real sector of the economy. Its main advantage is the passive nature of income. A significant disadvantage is high risks. However, if you correctly analyze the market and correctly assess the degree of reliability of the developer, the risk can be minimized.

The construction market in large Russian cities is developing with approximately the same intensity. The capital differs here due to the high entry threshold (the price of apartments is much higher). Cities such as Sochi deserve special attention, which in 2012-2014 experienced a real construction boom due to a huge infusion of investment.

The rest of Russia is moving slowly along the rails and the main economic forecasts are similar.

We took Samara for several reasons:

This is a region.
This is a million-plus city.
This is a city with a large annual volume of housing commissioning.
And the last important point is that the author lives here, which means he had the opportunity to explore this fertile topic with his own eyes and feet.

Just a few years ago, purchasing an object during the construction stage and reselling it after putting it into operation, on average a year later, made it possible to receive about 15%-20% of the cost of an apartment in the economy and mid-price segments. No other type of passive income could bring such profitability.

Today, those who want to make money on the difference in the cost of new buildings still add this 15-20% and often successfully sell their home. However, innovations in the Tax Code (to a lesser extent) and the increased volume of housing introduced on the market (to a greater extent) threaten to greatly reduce this type of income for resellers.

Since 2010, large-scale projects for developing territories with economy-class housing have been implemented in Samara, as well as in other large cities. Using Samara as an example, these are the Koshelev Project on the northern outskirts of the city and the Southern City on the southern outskirts. In addition to these large-scale projects, new houses are built annually in other areas of the city (Volgar, SOFZHI facilities (Samara Regional Housing and Mortgage Fund), multi-storey buildings on 5 and 6 clearings, Tashkentskaya street, etc.)

Mortgage loans make it possible to meet the housing needs of residents, due to which the housing affordability ratio among Russians has increased.

A typical example of earning money from the purchase and sale of new buildings

Sale from the developer December 2016. 2-room apartment in a 5-storey building, area 47 sq.m., price 1,620,000 rubles. Due date: June 1, 2017

In April 2017 (after 5 months), the reseller sells this apartment for 2,165,000 rubles with an auction of up to 50,000 - 60,000 rubles. His personal income for these six months from this transaction will be 485,000 rubles.

Choosing an investment object

Let's assume that we have 1.5 million rubles that we want to invest in a 1-bedroom apartment in a new building for the purpose of resale.

To do this, we must analyze the housing market in order to select an object that we can sell quickly and profitably.

Since one of the areas under development has up to 3 floors, and the second has 5-10 storey buildings. Then we will set restrictions on the number of floors.

Proposed investment object: 1-room apartment-new building up to 1.5 million rubles.

Based on this mini-research, we can conclude that in the first district there are much more offers in this price category. At the same time, apartments are mostly already going on sale from individuals. In the second district, the number of offers on the secondary and primary markets is not much different.

At the same time, as is known, people mainly purchase housing based on their personal preferences for living in a particular place. If he has lived all his life, say, in the Kirov region, he will look for an apartment there or in a similar direction. That is why builders place their advertising banners in areas where their target audience lives. At the same time, there are exceptions that only confirm the rule.

An example of estimated purchasing activity on a city map by district:

Map of purchasing activity by region.

The first point of the new development is marked with a red square, and the “habitat area” of potential buyers is marked with a red circle.

In the second case, accordingly, the point of new development is marked with a black square, and the place of residence of clients is marked with a black circle.

When choosing investment objects, it is advisable to consider the following points:

Developer reliability
Attractiveness of the property to potential buyers
Number of similar offers

Developer reliability

It’s not random people who come into the construction business. The implementation of large-scale projects is possible if there are large funds (own or borrowed), the developer has experience, and permitting documents.

As a rule, construction companies have already been operating on the market for several years and it is possible to find out what objects they built and with what success.

If the company is new, then you should find out who the founder of the company is and what projects the person participated in. If the name of the head of the company was mentioned in connection with scandalous unfinished objects, it would be reasonable to refuse the purchase, even if the price of the apartment is very attractive.

The low price of the apartment and the quick delivery time should alert you.

In turn, the participation of the developer in programs financed from the federal budget (housing for military personnel, for young families, etc.), a sufficient number of completed objects, banks participating in lending to new buildings can serve as a good sign.

Before purchasing, be sure to read the permitting documentation: land certificate, building permit, project declaration.

An example that may be alarming:

The apartment is sold significantly lower than similar offers on the market.
The building permit was received back in 2010 and has been extended since then.
Construction on the site either has not started or is being carried out with huge delays.
The founder's name was mentioned in connection with unfinished objects.

An example of an object with a high probability of unfinished construction or delayed commissioning.

Attractiveness of the property to potential buyers

The facility can be built by a reliable developer (including government or semi-government structures, mortgage operators), have a low cost and be built with government or regional funds, for example, to resettle people from dilapidated housing. However, in the end, they have very low attractiveness for buyers: do not have social infrastructure, are built from poor cheap materials, and are located in very remote areas.

The Ozerny microdistrict became such an example in relation to Samara. It was built simultaneously with the Koshelev-project, consisted of similar 3-story buildings and, compared to Koshelev, was located much closer, in the Kuibyshevsky district.

However, after the construction of the facility, it became clear that there would be no infrastructure here, there were few residents, and the houses were very quickly losing their original appearance. As a result, apartments here are sold after 7 years cheaper than the initial price and for a long time.

An example of a low-market apartment on the Samara market.

Number of similar offers on the market

Massive development may lead to an oversupply of similar proposals. As a result, in order to sell an object, you need to reduce its value, which means you won’t be able to make money on resale.

An ideal option would be to buy an apartment at a low price in a building with several sections in the central areas of the city from a reliable developer. It is not surprising that such apartments are quickly snapped up by resellers.

Selling an apartment: stages of sale, risks and taxes

Do not use the services of realtors when selling an apartment. Their task is to persuade you to reduce the price for its quick sale and receive a reward for the fact of sale (realtors often include the cost of their services in the price of the property). The truth is that if the price is low, then the apartment will sell in a short time.

Transaction support services for a seller who has at least once read the relevant laws and represents the stages of buying and selling real estate are of no value.

In addition to your apartment, realtors are looking for 5-10 more apartments in the same area, and you shouldn’t hope that realtors will try to sell your property with particular zeal. They often reschedule showings to customers at a time more convenient for them, forget to update the ad on message boards (we're all human!), etc.

So, the buyer liked your apartment and is ready to buy it. What steps should you go through together so that he becomes the owner of the apartment, and you receive the long-awaited profit?

Signing a pledge agreement (receipt) and receiving a deposit for the sale of an apartment. By these actions, the parties demonstrate the seriousness of their intentions to complete the transaction. The buyer, as a rule, asks to show him documents or copies of a passport, a certificate of ownership, a cadastral plan, certificates of absence of debts on utility bills, a passport of metering devices (if installed), a DDU agreement, an act of acceptance and transfer of the object.
Concluding a transaction, drawing up and signing a purchase and sale agreement. By the time the contract is concluded, the seller provides an extract from the Unified State Register and a power of attorney for the right to sell from the spouse if the apartment was purchased during marriage.
Money transfer.
Registration of the agreement at the MFC.
Obtaining a certificate of ownership (extracts from the Unified State Register).

Stages of completing a purchase and sale transaction using mortgage funds.

The buyer transfers the collateral based on the signed collateral agreement and makes an appraisal of the property.
You give him copies of the cadastral passport, your passport, certificate of ownership, contract for.
Within 5 days, the bank evaluates the property and invites the buyer to sign a loan agreement.
On the same day, when the buyer signs the loan agreement, you come to the bank, receive the down payment and write a receipt.
After this, the bank issues the loan money in cash and you and the buyer deposit it in a safe deposit box.
Go to register the purchase and sale agreement either through the Bank or through the MFC.
After receiving a package of registered documents from the MFC, the seller brings them to the Bank and takes the money from the safe deposit box.

Understatement of the cost of the apartment in the contract

Tax evasion is practiced by 99% of owners who purchased real estate during the construction stage with the aim of its further resale. Otherwise, the whole point of resale will be lost.

This is done by understating the cost in the apartment purchase and sale agreement.

Tax evasion is practiced by 99% of owners who purchased real estate during the construction stage with the aim of its further resale. Otherwise, the whole point of resale will be lost.

Example: an apartment is sold at a price of 1,600,000 rubles. The contract specifies the amount of 1,300,000 rubles - the price for which the apartments were purchased from the developer. According to the documents, the owner is selling the apartment at the same price as he bought it, which means he does not have to pay 13% of 300,000 rubles to the tax office.

The buyer suffers from this scheme if he sells the property earlier than after 5 years. If this happens, then he must either pay tax on the difference in price, or, like the previous seller, indicate a lower amount in the sales contract.

Banks provide a mortgage loan to the buyer according to a scheme that reduces the cost of the apartment in the following way:

The main purchase and sale agreement specifies the cost of the apartment, for example, 1,000,000 rubles, the amount of the down payment is 100,000 rubles, and the loan amount is 900,000 rubles. 900,000 is calculated from the estimated value, which must be at least 1,300,000 rubles - the real price of the apartment on the market.
At the same time, the preliminary purchase and sale agreement states that the cost of the apartment is actually 1,300,000 rubles, the down payment is 400,000, and the loan amount is 900,000 rubles.
The agreement below contains a clause that, by agreement of the parties, the cost of the apartment in the main purchase and sale agreement will be 1,000,000 rubles.

However, there are risks for the seller. If the buyer submits to the tax authorities a preliminary agreement for the purchase and sale of an apartment with the specified real value in order to receive a deduction, the seller will have to pay a 13% tax on the funds received when selling the property.

How to make money by reselling an apartment if you don't have enough money

Previously, only those who had about 1.5 -2 million rubles in cash or in a bank account could earn money from buying and selling. Today, thanks to such an instrument as a mortgage, the opportunity for additional passive income has appeared for almost everyone who has an official form of income and some free amount in the amount of 200,000 - 500,000 rubles.

The availability of mortgages has allowed another category of resellers to appear on the market: seller-borrowers.

The scheme of their work:

An apartment is purchased with a mortgage on the primary market with a down payment with the goal of selling it a year later at an inflated price. Over the course of a year, the amount is either repaid for a long time (if there is such a possibility) or sold, being pledged. Banks carry out this procedure without any problems, especially if the down payment of the future buyer completely covers the remaining debt to the first bank.

They pay interest for the year, but the total amount of income may cover these expenses.

Example . The price of an apartment from a reliable developer is 1,000,000 rubles with rough finishing. The initial payment is 200,000 rubles. Loan for 20 years with an interest rate of 10.9. The amount of monthly payments will be 8,200 rubles. The amount paid for the year will be 98,400 rubles. The repayment amount for the principal debt is 12,000 rubles, the balance of the debt to the bank is 998,000 rubles. After putting the house into operation, the apartment is sold at a price of 1,300,000 rubles. We calculate the profitability: 1,300,000 – 998,000 – 98,400 = 203,600 rubles. This is the income you can get. In terms of a month, this is not so much: about 17,000 rubles. However, this is an absolutely passive form of income with minimal risks.

If you want to sell the property at a higher price, you can carry out minor repairs - plastering the walls, electrical wiring. In this case, the costs will be about 20,000 rubles (plaster) + 10,000 rubles (electrical wiring). This is not such a big expense, but such an apartment is more likely to attract buyers and its price can be from 1,350,000 rubles to 1,400,000 rubles.

The rental business has been and remains popular for many years, since many people do not have the opportunity to purchase housing, and companies seek to reduce the level of one-time investments in development activities. The range of objects that can be provided for rent is constantly growing: at the moment you can even rent out such things as roller skates, skis, etc. - everything that is not in constant demand, but is an object of seasonal use.

However, the most common option is still renting a property. In order to receive a certain income from the provision of a particular premises for rent, it is necessary to take into account a number of nuances that will be discussed in this article.

It is necessary to understand that real estate is usually classified into 3 groups – land, housing and non-residential premises. The most common types of services in this market are the provision of rental housing and non-residential premises.

Among non-residential properties, commercial real estate is usually rented. At the same time, all reputable analytical agencies identify the following types of it:

office rooms;
trading;
warehouse;
industrial.

In addition, some organizations rent a separate type of premises - the category “for special purposes”. Here buildings are allocated for kindergartens, schools, hospitals, churches, etc.

In addition to real estate, you can rent out land, gazebos, equipment, cars, special equipment, inventory and much more. However, this is a rarer and more complex form of business.

What's the best deal?

If we talk about residential real estate, the average cost of a one-room apartment 10-15 minutes from the metro in a residential area in Moscow will cost 5-6.5 million rubles. At the same time, the average rental rate for such rooms is about 25-30 thousand rubles. As a result, when calculating, it can be obtained that the minimum payback period for a one-room apartment will be about 15 years.

Accordingly, this option cannot be called very profitable from an investment point of view: the only case in which this can really pay off is when the housing is inherited.

If we talk about office premises, they are somewhat more expensive than residential ones, since their location should be in more accessible places, and their area is larger. In Moscow, a small office space will cost 6.5-7.5 million rubles, provided that the area is about 60-70 square meters. In this case, the rental rate will be calculated per 1 square meter.

According to the Knight Frank agency, at the end of 2015 the rental rate for class A offices was about 25 thousand rubles, and for class B office premises - about 15 thousand rubles per year. Accordingly, the maximum payback period will be about 8 years.

Retail premises are even more profitable to rent out than office premises - their payback period is 5-6 years. But there is an important limitation: for such real estate, location is one of the key factors. The premises should be located in a central area, in an area with high traffic levels. Finally, it must be well executed.

In general, commercial real estate is inferior to residential real estate in only one parameter: the level of risk, since it depends on the economic situation in the country and a particular city.

To learn where to start and how to develop such activities, watch the following video:

How to organize such a business from scratch?

First of all, you need to find a suitable premises for rent. In the case of inheriting living space, the procedure will begin with the preparation of documents confirming that the entrepreneur is the owner of the property.
In a situation of searching for a ready-made premises, it is best to turn to the services of professional agencies who will help assess the real cost of housing or commercial real estate: an inexperienced businessman can easily miscalculate.
Next, you need to complete the necessary documentation for the property. If this is commercial real estate and you plan to rent it out to special organizations (for example, those working in the catering industry), you must take care of obtaining additional permits and conclusions from certain services.
After completing the initial documentation, it is necessary to carry out redevelopment and repairs: in the case of residential real estate, it is important to purchase a certain set of furniture and household appliances, since apartments in which you can live immediately after moving in can be offered at a higher cost. In the case of commercial real estate, it is important to focus on increasing the free space and the possibility of subsequent redevelopment to suit the client’s needs.

In Russian practice, many people rent out residential real estate without concluding a contract - this allows them to get rid of the personal income tax of 13% and reduce the payback period. However, this is associated with certain risks - in particular, those associated with the unreliability of clients. Therefore, both in the case of non-residential and residential real estate, it is necessary to formalize the relationship with the tenant.

Where to look for clients?

Finding clients through standard advertising options (placing ads in public places or print media) is not effective within the rental business. Advertising can be carried out through social networks (this is especially true for the situation of renting out residential real estate) - here the “word of mouth” effect will work.

In addition, posting on thematic sites and forums is suitable. For retail premises, especially those located in shopping centers, it is possible to post a “for rent” sign with the owner’s phone number. This will expand the circle of potential customers to all visitors to the shopping center.

Finally, there are 2 more fairly effective ways to find clients - maintaining a thematic website or blog with unobtrusive advertising of services as a landlord, as well as distributing brochures and business cards.

Necessary costs

If an entrepreneur is going to engage in such a business, he must understand that among the main cost items it is necessary to include redevelopment costs: in this case, clients are ready to enter into rental agreements at much higher rates (the difference can be up to one and a half times). This happens because after redevelopment, the percentage of usable area most often increases, in addition, the room can be changed to suit your own needs.

Among the costs it is also necessary to highlight:

Expenses for construction or acquisition of premises.
The cost of services of a specialist who can estimate the market price of real estate.
Expenses for maintenance and security of the premises.
Costs for electricity, water supply, etc.

Underwater rocks

One of the pitfalls is determining the optimal investment of money. Often, inexperienced entrepreneurs incorrectly assess the value of a particular premises, thereby investing in illiquid objects, losing a large amount of money.

In addition, it is important to pay attention to the legality of the business, changes in legislation and the process of paperwork (primarily this applies to commercial real estate).

Please note that tax legislation in the rental business is constantly changing.

When calculating costs and the level of payback, it is necessary to determine several development options - optimistic, most realistic and pessimistic in order to determine the approximate payback period of the object, as well as the fact of how to diversify risks. It is imperative to have other sources of income in order to insure yourself against a situation of lack of money.

Pros and cons of this area

This type of business, like others, has a number of advantages and disadvantages that arise from its characteristics. Among the disadvantages, the main one can be highlighted - the search for a tenant can take many months (primarily this applies to industrial facilities and retail real estate in impassable places). As a result, even a high rental price will not be able to compensate for the financial costs that the lessor will have to bear during the entire period of downtime.

Also among the disadvantages are:

a fairly long payback period;
not very high level of profitability;
high level of initial costs.

In this situation, the only rational option is to purchase liquid property (one for which there is always a certain level of demand). To do this, it is important to have a good understanding of this area or seek the services of a specialist.

Among the advantages of business are:

long-term contracts for a period of one year or more;
stable level of profit;
the income will be received by the lessor constantly;
passive nature of making a profit (the landlord does not need to expend any effort after signing an agreement with the tenant);
the possibility of organizing a business without registering as a legal entity.

Thus, the rental business is quite an attractive area for earning money. However, it is best to combine it with other sources of income in order to insure yourself against possible risks.

So. You are the happy owner of an apartment on the first floor. If you do not plan to live in this apartment, then you can start making money from it. The simplest thing is to just rent it out. But we suggest considering other options and using this apartment for business. This will require some investments - but the level of income is much higher. To do this, you will have to transfer the apartment from residential to non-residential. After the apartment is decorated, you can begin renovations. The very first thing you will need to do is a separate entrance. It is very good if some of the windows and the balcony face the opposite side from the main entrance - this will simplify the renovation process and will not disturb other residents. And don’t even think about saving money on a separate entrance - no matter what type of business you choose, it is unacceptable for clients to enter through the common front entrance. Interior renovations can be postponed until you determine what type of business you will use your apartment for.

We have collected information for you and offer the most common areas of business for which apartments on the ground floor are used.

The most common destination is the hairdresser. Even a one-room apartment is suitable for this, if the room is large enough to accommodate several craftsmen. You can use all the rooms and even the balcony if you insulate it and equip it.

The second no less common destination is the grocery store. But there are several nuances here. Firstly, a store needs at least a three-room apartment to provide a normal range of goods. Also, if there are many shops in the area or there is a large supermarket, the revenue may not be as large as you plan. If you just want to open a store on the ground floor and are looking for an apartment for this purpose, choose areas where there are few grocery stores for a large number of residential buildings. Then your store will be in great demand and will bring good profits.
Alternatively, you can open a store of any type: household chemicals, stationery, flower shop, etc. The choice is yours. If you have already been selling goods in any area and you have established connections with suppliers, it would be logical to open a store with a product that is familiar to you.

The third most popular business area that can be set up on the ground floor is a pharmacy. One-room apartment is also suitable here. After all, a pharmacy does not require many rooms, since the goods do not take up much space.

Another option for business direction is a bank branch. This option has its own nuances. The place should be fairly crowded and visible from afar, since there is no point in opening a bank branch in a dark nook. And although these indicators are important for the first three areas of business, if people come to any corner of the store when they need groceries and it is located near their home, then the bank branch should be visible. One more point - for a bank branch you will also need a three-room apartment, at a minimum. And if in the first three options you can be the owner of a business. then in the case of a bank - only the lessor. There is less profit - but there are also less headaches.
The renovated apartment can also be rented out as an office. An option for earning money is also renting, but renting non-residential premises is much larger than residential premises and, accordingly, your profit will be greater.

One of the profitable options is to open a cafe. This option will bring good profits if you organize everything correctly. However, you may have problems with the neighboring residents of the house and with the approval of this line of business in the relevant authorities. Therefore, make your cafe as calm as possible in terms of atmosphere, for example a coffee shop or mini pizzeria. In any case, it is not recommended to sell alcohol in such a place, much less turn the cafe into a beer brewery.

Whatever business option you choose, don’t be afraid to start. You already have real estate and you can make money with it. And if none of the proposed options appeal to you, visit our website in the section where young businessmen post theirs, and perhaps this is where you will find your ideal business.

Buying real estate is not only a way to save your own savings, but also an opportunity to make money 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?
Place matters
New building or secondary construction - what to choose?
Apartments for daily rent
What documents are needed to rent out an apartment?

Pros and cons of renting an apartment

Purchasing housing for the purpose of further renting it out is the most common investment transaction. You won’t be able to make money quickly from such an operation; the average rental income is 3.5-5% per annum of the cost of the apartment. But this is a promising and long-term investment; over time, you can move adult children here or sell it for the purpose of building a country house. Of course, renting out an apartment requires some hassle: 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 approximately a third of all transactions on the Russian market. Gradually their share decreased to 20%, and currently stands at 15%. At the same time, the number of long-term investors who purchase 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 possible risks must also be taken into account: recently there have been many bankrupt banks. Banks with a solid reputation offer low interest rates.

How much can you earn by renting out an apartment?

Let's take a look at the table, which clearly demonstrates rental income:

Apartment options	Apartment cost	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 repairs, rent and utility bills (if this is not included in the rent), insurance and income tax.

Apartment options	Rent and utility bills 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 distance from transport hubs. The payback period for apartments purchased with your 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 per month.

Apartment options	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%

Place matters

Tenants, and especially foreigners, are not interested in the historical location of the apartment, but in good transport links and the availability of the necessary services. If you don’t have the funds to buy an apartment in Moscow, then you can start buying an apartment in the Moscow region. The rental income from such an apartment will be 10-15% lower than in the capital, but 50% less money will be spent on purchasing the apartment.

The price of apartments and, accordingly, the cost of rent for housing located near metro stations and railway stations increase sharply. It is worth monitoring the construction of new metro lines and purchasing apartments there for rent. In Moscow, apartments in areas outside the Moscow Ring Road, where the metro arrives, are rising sharply in price. For example, in Mytishchi, the cost of purchasing and renting housing has increased by 30%.

Without losing, there will also be the option of purchasing housing in areas close to airports. At not so high costs, such apartments bring a stable income.

New building or secondary construction - what to choose?

When purchasing housing for subsequent rental, you need to consider two things: how long it will take to pay back the investment, and how much the housing will cost in the future. If you put the issue of return on funds to the fore, then you need to buy housing that is old.

Most of the offers on the apartment market 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 newly built houses and apartments filled with modern furniture and appliances.

Apartments in a new building are more expensive, so their payback period 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, 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, you have purchased an apartment and you have decided to renovate it. One of the main mistakes landlords make is to renovate an economy-class apartment with a business-class renovation. Believe me, tenants will not appreciate this, and you will spend quite a lot of money. Business class apartments are another matter; they must be equipped with expensive furniture and designer renovations must be carried out here.

Apartments for daily rent

Another type of income is renting out apartments on a daily basis. Such services are used by business travelers and tourists who do not want to overpay for hotels. The most in demand are middle class apartments, the cost per day ranges from 1.5-3.5 thousand rubles. The rental of this housing accounts for an average of 50%% of the total rental volume. The next most popular apartments are luxury apartments, the rental cost of which is 3.5-6.3 thousand rubles per month.

Of course, this business, like any other, has its negative aspects; the apartment may remain idle for some time. But during the autumn-spring period, and especially on holidays, middle-class real estate is 100% occupied, and the rental price on these days doubles.

What documents are needed to rent out an apartment?

After purchasing a home and carrying out renovation work, the apartment must be insured. We draw up a full insurance contract: we insure the walls, interior decoration, property located in the apartment, and, of course, civil liability (arson and fires due to the fault of the 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, valued at 7.5 million rubles, the insurance payment will be 15 thousand rubles.

If you rent out an apartment yourself, you must:

Obtain consent from all its owners and registered persons to rent out the apartment.
Place an ad and start looking for a tenant.
The agreement must be 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 rent will be paid monthly or quarterly;
who will pay utility bills (electricity, water, etc.);
rules for using electrical appliances;
when the landlord can visit the apartment, etc.

Those who appreciate time can contact a law firm to draw up a lease agreement; this service will cost you 2 thousand rubles.

Draw up an act of transferring the apartment, which indicates all the defects at the time of 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 out the apartment, an extract from the personal account or house register, a social tenancy agreement. The cost of the center staff service will cost you 1,600 rubles. After registration, the agreement will be registered with the State Unitary Enterprise.

So, in this article we tried to highlight all the pros and cons of renting out an apartment, which apartments are better to buy for rent, in which areas, we also indicated that this business is a long-term project and its payback occurs in a few years, but the project reliable and liquid, since no matter what the rent and rental demand are, you still have a liquid asset that you can use for your own purposes or sell it.

The work of an apartment rentier is perhaps the most profitable type of entrepreneurial activity. It consists of renting out housing, and if desired, the owner of the living space can do nothing at all and not invest any money in it. But the apartment rental business will still flourish!

How to become a successful rentier?

This type of activity is beneficial both for those who already have “extra” housing, which they can start renting out immediately, and for those who intend to buy it specifically. Investments are minimal - buying a home and renovating it pays off very quickly, and profits increase at a record pace.

All you need to obtain it is to officially register your business: renting out apartments requires mandatory payment of taxes (13% of rental income), and it is better to notify the tax authorities yourself than to pay fines later. In this case, you can either register as an individual entrepreneur (for example, if several apartments will be rented) or work as a private person, simply declaring income and paying tax on it.

The second step is to legally formalize the transaction itself with the client. Even if the landlord trusts him completely, the contract is binding and it is best to draw it up with a qualified lawyer. This will protect you from any fraud and avoid material and moral losses. As for clients, it is preferable to start a business by renting apartments, renting them out to married couples (preferably without children), business travelers and visitors from distant countries (especially if they came for a long time), and entrepreneurs who moved to the landlord’s city for work. All these categories usually treat other people's property with care and are willing to pay for its damage.

In addition, daily rent of apartments for parties, receiving business guests, and holding various events (many companies hold informal business negotiations in such apartments) will be very profitable. As for the terms and payment of rent, they are specified in the contract with the client, and the price is set based on the average figures for the selected locality. It is not advisable to overestimate it, unless the apartment has some unique features, which is extremely rare.

Apartment rental business: income and expenses

The most profitable option for an entrepreneur is to rent out an apartment that is already available (for example, housing inherited from relatives or vacated as a result of the departure of one of the family members). In this case, you will only need to invest in repairs, but this is not necessary.

In addition, you can purchase real estate specifically, and in this case, renting business class apartments is most profitable. They are in great demand, and by renting them out on a daily basis, you can have an excellent income. If you don’t have enough money for such housing, it is better to focus on ordinary “family” real estate in a residential area - it is also popular, as well as apartments located near key places in a given locality (historical attractions, business centers, entertainment centers). In any case, the entrepreneur will have to invest certain funds in his business:

from 2 million (for a one-room apartment) to 3-4 million rubles (for a three-room apartment)
from 20 thousand rubles for repairs (you don’t have to do it, inviting the client to invest in repairs themselves, subject to a reduced rent for a certain time)
3-5 thousand – for monthly utility bills
1.7-3.8 thousand rubles (on average) – to pay taxes
8-15 thousand rubles annually - for apartment insurance (necessary, because rented housing is exposed to many risks)

As for income, in general, this is a very profitable business: renting out apartments can bring in from 14-15 thousand rubles per month if a one-room apartment is rented, up to 25 thousand if the property is a three-room one. Per year, accordingly, you can earn from 170 to 270 thousand. And this is if minimum prices are set! As a rule, they grow over time as market conditions change quickly, so profits will increase without additional investment. If you choose to rent business-class apartments, your earnings will be much higher, because such real estate is more expensive and is most often rented out on a daily basis - income can be at least 3-5 thousand rubles per day, that is, 90-150 thousand per month.

Thus, the purchase of the most inexpensive one-room apartment can pay off in just 10 months of rent (business class housing often pays off faster), and the remaining costs in 5-6 months. Already 1.5-2 years after the start of work, the apartment rental business begins to generate net income, and if you meet clients halfway and improve their living conditions, profits will increase very quickly.