What is the fixed portion of the rent? Renting residential and non-residential premises: controversial tax issues. Trust or independence
The monthly rent for the use of the Premises and adjacent Areas and Parking Spaces (hereinafter referred to as the “Rent”) consists of:
Constant or fixed part of the rent
- The fixed part of the rent is the sum of money charged for renting the Premises and including VAT 18%. The Fixed portion of the rent is calculated at the following rates per square meter of rented Premises:
- ___.00 rubles per month per square meter of rented area of Warehouse Premises, including VAT;___.00 rubles per month per square meter of rented area of Office and Amenity Premises, including VAT;
- ___.00 rubles per month per square meter of rented area Office premises, including VAT. The cost of the Fixed part of the rent includes the Services specified in the List of Services (Appendix No. 5). The cost of the Fixed part of the rent includes the use of the Property by the Tenant.
Variable part of the rent
The variable part of the rent includes (consumption limits are set in Appendix No. 6 - the amount of expenses for consumed electricity, calculated at the tariffs established by the organizations providing the relevant services in accordance with meter readings (the amount of electricity provided, kW); - the amount of expenses for water consumption and sewerage, the calculation of which is carried out according to tariffs established by the organizations supplying the relevant services in accordance with the readings of metering devices or in accordance with the calculation of consumption rates agreed upon by the parties. - the amount of expenses for telephony and Internet traffic, the calculation of which is made on the basis of tariffs, established in Appendix No. 6. Fees for the use of Parking Spaces. Payments are calculated at the following rates: 7500.0 rubles per month (not subject to VAT), for one Parking Space for trucks; 1500.0 rubles per month (not subject to VAT). VAT) for one Parking Space for passenger vehicles.
Changing the rent in the lease agreement
The Lessor reserves the right to change the cost per square meter of the rented Premises on its own initiative, but not more than 1 (One) time per year from the Start Date of the lease and no more than 5% of the previous cost per square meter of the rented Premises, with prior notice to the Tenant in less than 1 (one) month. In this case, the parties sign an additional agreement to this agreement. The lessor has the right to unilaterally increase the rate of the variable part of the rent depending on changes in the tariffs of organizations providing the relevant services. In this case, the Lessor attaches to the written notice of changes in the cost of utilities and operating services sent to the Tenant the relevant documents confirming the fact of changes in tariffs or cost of services.
We accept lease agreements for expert evaluation. We are engaged in drafting complex contracts.
The less prestigious the area, the more profitable it is to rent housing in it, Cian analysts found out. Apartments in New Moscow, Kapotnya, Lyublino and Kuzminki pay for themselves the fastest, but they are also more difficult to sell than housing in prestigious areas
Attractive Kapotnya
The average yield from long-term rental of an apartment in Moscow in the first half of 2016 was 5.5%, according to a study prepared by specialists from the Cian company. In other words, you can pay for an apartment in the capital by renting it out in just over 18 years. However, the period differs significantly for different regions.
As it turns out, the owners of the most expensive real estate in the city center find it most difficult to recoup the funds spent on their purchase. The leaders of the anti-rating included the Arbat, Khamovniki and Gagarinsky districts. Here, the capitalization rate (the relationship between the price of an asset and the amount of annual income received from renting it out) fluctuates in the range of 4-4.5%, Cyan points out. Thus, having bought an apartment in these areas, you will have to wait 22-25 years for a return on investment.
Buying an apartment in the least prestigious areas, on the contrary, is the most promising investment decision, according to the research data. The maximum profit for investors will come from renting out apartments in the settlements of Pervomaiskoye and Marushkinskoye in New Moscow, as well as in the Kapotnya district in the South-Eastern Administrative District. Capitalization rates here range from 6.4 to 6.7%. That is, the rentier will be able to recoup their investments in 15-15.6 years. The leaders in terms of profitability (6.7%) are three-room apartments near the Moscow Oil Refinery in Kapotnya.
This effect is due to the fact that as you move away from the city center, rental rates do not decrease as much as the cost per square meter, explains Cian.
The study is based on an analysis of over 1 million advertisements for the sale and rental of housing in Moscow, posted on the cian.ru portal in 2012-2016. At the same time, rental rates and housing costs were discounted taking into account the dynamics of prices and rental rates.
The Miel-Arenda company provides approximately the same figures as Cian, although without division by region: the capitalization rate for economy-class apartments in the capital ranges from 4 to 7% per annum.
One-room apartments are more popular
Renting studio apartments has grown in popularity over the past year. “Their share in the demand structure increased by 3 percentage points over the year. and amounted to 58%, notes General Director of the Domofond.ru portal Eric Segerborg. — At the same time, the number of contact requests for advertisements about offers for rent of two-room and three-room apartments, on the contrary, became lower by 1 percentage point. - 34% and 7% respectively.” The average rental rate also decreased over the past year in all housing segments by 3%. Take off one-room apartment in Moscow you can rent for an average of 30.8 thousand rubles, a two-room apartment for 43.3 thousand rubles.
Rentier rule
Cian’s data confirms the so-called golden rule of the rentier, says Sergei Shloma, director of the secondary market department at Inkom-Real Estate: “The smaller the living space, the cheaper it is, the more income it brings. From this point of view, purchasing luxury real estate for rent is a kind of pleasure: the profitability of elite real estate is minimal compared to standard housing.”
The yield from leasing luxury real estate varies between 1-4% of the initial investment amount, depending on the cost per square meter, decoration, equipment and furniture, estimates Yulia Kovaleva, director of the urban real estate rental department of Kalinka Group. Distance from the center also often benefits rentiers. “In our database there is an apartment in Butikovsky, 5, in the Ostozhenka area, which is rented for $10 thousand per month,” Kovaleva gives an example. “At the same time, the owner recently rented out a relatively cheap apartment on Taras Shevchenko embankment, 1/2, for $15 thousand.”
More democratic options are not only more profitable, but also faster. For example, economy-class apartments are now sold out within a few days on average, but last year a few hours were enough, estimates Oksana Polyakova, deputy director of the apartment rental department at Inkom-Real Estate. “Today people choose comfort and business class apartments in about two weeks from seven to ten options,” she continues. “Last year we looked at three or four apartments for no more than four days.” Elite apartments can be on display for as long as desired until the owner decides to adequately reduce the rental rate.
If we take the statistics on average for the region, then Cian’s conclusions are logical - cheaper areas bring higher profitability, agrees Anna Moiseeva, general director of the Home Staging real estate agency. On the other hand, profitability always depends not only on the area, but also on the specific apartment. There are several signs of a liquid object, the expert lists: small footage, low price, proximity to the metro and the center. “It is important to always remember that at some point the apartment that is currently being rented will still have to be sold,” Moiseeva notes. “And then factors that are beneficial to the rentier will make it less liquid for the seller.”
Buy closer to the center
“The duration of exposure of apartments for sale, of course, depends on the quality of the apartment itself: the adequacy of its price, house and floor,” notes Anna Moiseeva, general director of the Home Staging real estate agency. “But in general, an apartment in a more prestigious area can be on display for about two to three months, versus six months or more for less marketable apartments in remote areas.”
The fact that real estate located closer to the center sells better is evidenced by Rosreestr data. For example, in the first half of 2016, almost 15% fewer transactions involving the transfer of rights to residential premises were registered in the Moscow region than during the same period in 2015: 294.7 thousand and 345.4 thousand transactions, respectively. These statistics mainly describe transactions in the secondary housing market.
Demand for new buildings is also decreasing. From January to June 2016, the number of agreements for participation in shared housing construction (DDU) in the Moscow region decreased by 4%, to 41.3 thousand.
In Moscow, on the contrary, transactions with both new and secondary real estate began to be concluded more often. The total volume of transactions with the transfer of ownership of housing increased by 10.8%, to 62.7 thousand.
The popularity of Moscow was influenced by the fact that over the past year and a half, Moscow developers have brought to the market a record volume of new projects that can compete in price with the Moscow region, explains Tatyana Kalyuzhnova, head of IRN-Consulting. Discounts also played a role. “In about 30% of projects, with 100% payment, you can get a 5-10% discount,” notes Kalyuzhnova.
Average price of 1 sq. m in new buildings in Moscow (in the area from the Third Transport Ring to the Moscow Ring Road), according to IRN, today amounts to 172.3 thousand rubles. In the Moscow region at the end of June it amounted to 85.4 thousand rubles. for 1 sq. m, according to a study by the Miel-Novostroiki company. But when looking at specific offers, the benefits of buying an apartment in Moscow become more clear. For example, in mid-June the Zheldoripoteka company brought to the market a new residential complex "Atmosphere" in the Lyublino South-Eastern area administrative district. At the stage of preparing the site for construction work, the cost of one- and three-room apartments with an area of 34.9-76.9 square meters. m is 4.1-11.1 million rubles, or 115-145 thousand rubles. for 1 sq. m.
For one “square” in the Opalikha O3 residential complex, located in the Moscow region, 13 km from the Moscow Ring Road, you will have to pay an average of 124 thousand rubles, and the price of apartments, according to the developer’s website, is estimated from 2.4 million to 6.86 million rub. (for a one- and three-room apartment, respectively).
Even the most profitable investments in the long-term rental market are significantly inferior in profitability to traditional bank deposits. According to the Central Bank, the basic level of yield on ruble deposits with a maturity of more than one year in July was 10.7% per annum.
Low and constant rental rates, the possibility of purchasing real estate, preferential programs - these are just the key advantages of Moscow. The number of tenants in the city is growing every year: for example, compared to 2016, in 2017, 10% more entrepreneurs were able to obtain real estate on favorable terms. In total, almost 6,000 property and land auctions were held last year. In 2018, all programs will continue to operate for tenants that allow them to significantly save on rent and achieve the purchase of city real estate. Don't miss the chance to get a room with a rental rate significantly lower than the market rate! Our article with a step-by-step analysis of the rental process and expert comments will help you understand the peculiarities of bidding.
Step one: choosing a property
Objects that are available for rent from DGI can be viewed on the website: https://investmoscow.ru/tenders or https://www.mos.ru/tender/function/zem-imush-torg/edinyy_spisok_torgov/. There are convenient filters here to find non-residential premises in the desired area, the required area, with a specific purpose.
Important: Evaluate not only the premises, but also the conditions of the auction: what are the deadlines for accepting applications for participation, what is the size of the deposit. Download lot documentation and read the lease agreement. Note such important factors as the possibility of subletting real estate, assigning claims, early termination of the contract, etc.
Some entrepreneurs think that they are buying a “pig in a poke” by signing an agreement with DGI. As a lawyer who has worked in the real estate market for many years, I hasten to destroy this stereotype. On the contrary, all documentation on the object is presented in the public domain, starting from an extract from the Unified State Register of Real Estate and ending with a technical passport from the BTI. Objects are exhibited with a large number photographs. Moreover: auction participants can agree on a personal inspection of the premises: for this you need to submit an application on the website no less than two days before the start of the auction https://investmoscow.ru/tenders.
Step two: register on the bidding site and submit an application
Entrepreneurs who participate in bidding for the first time must go through the registration procedure on the site. To do this, you will need to undergo accreditation, install certificates and a cryptographic information protection system on your PC. Entrepreneurs will need an electronic signature. We recommend starting the registration procedure at least a week before the deadline for accepting applications for the auction you are interested in.
If the legal entity is already registered, then you only need to submit an application to participate in the auction. Moreover, you will additionally need:
- Provide documents - an extract from the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs, copies of constituent documents and an extract from the authorized body that it approves the transaction. Documents confirming the authority of the person taking part in the auction are also required.
- Make a deposit - its amount is indicated in the bidding documentation. A payment document with a note from the bank regarding payment is attached to the application. The receipt must include the lot number, auction date, address and total area premises, deposit size.
Important: why can an application to participate in a tender be rejected?
There are very few reasons why entrepreneurs are not allowed to auction: failure to pay a deposit, an incomplete set of documents, or violation of the requirements for drawing up auction documentation. Companies that are at the stage of bankruptcy or liquidation will also be excluded from participating in the auction.
Step three: participation in the auction
At the appointed time, you must take part in the auction on the site’s website. The minimum price is the one indicated in the documentation for the lot. The auction step is also specified in the documents - as a rule, it is 0.2% of the lot amount. If there is no bid within an hour, then the winner of the auction is the participant who offered the last amount. Once the tender protocols are posted on the website, they are recognized as valid.
Important: What if you are the only bidder in the auction?
In this case, bidding simply does not take place: the city will offer to conclude a direct lease agreement on the terms published in the lot documentation.
Yakushev Anton, lawyer at RFI consult
Before participating in an auction, it is necessary to assess the risks. Thus, the deposit amount is not returned to the entrepreneur if he was the only participant admitted to the auction or made the maximum bid, but refused to sign the protocol or lease agreement.
Step four: conclusion of the contract
Between 10 and 20 days after the end of the auction, the entrepreneur must arrive at the Moscow City Property Department to sign a lease agreement for non-residential premises. At the same time, he must comply with all documentation and deposit requirements. The agreement cannot be changed unilaterally by either party. If the participant who takes first place avoids signing the contract, then instead of him DGI can offer rent to entrepreneurs who offered the second and third from the end amount.
Yakushev Anton, lawyer at RFI consult
Despite the simplicity of the rental procedure non-residential premises The Moscow Property Department has quite a lot of pitfalls that entrepreneurs are not aware of. For example, it is difficult to objectively assess the value of premises for a business and understand to what extent it makes sense to raise rates. Problems may arise when collecting documents, registering on the auction site, or participating in auctions. Finally, it is very important to have an attorney review the lease agreement and highlight all the pros and cons of the proposal.
Our clients are always satisfied with cooperation with RFI consult, since we provide turnkey services - from selecting premises according to the customer’s parameters and collecting documents for participation in preferential programs of the State Property Inspectorate, to signing an agreement with the Moscow Property Department. Customers receive real estate on a long-term lease basis at the best rate.
Under the Civil Code of the Russian Federation, parties to a lease agreement may provide for both a fixed amount of rent and the procedure for its calculation. Consequently, the rent can be set in the form of a main (fixed) part and a variable part, determined by calculation. The permanent part is fixed and includes a fee for using the premises itself. The variable portion of the rent is equivalent to (or calculated from) the cost of utilities consumed by the tenant over a specified period. Thus, the entire amount of the rent (both fixed and variable parts) is payment for the lessor’s services in providing the property for rent.
The fixed part of the rent is usually determined by multiplying the rental rate under the contract by the rented area in square meters. Therefore, the rental agreement often indicates the rental rate per 1 square meter per month.
Example
You can specify a formula for calculating the constant part of the rent, for example, like this:
"The fixed part of the rent is determined by the formula:
TV x/y = A * S,
where TV x/y is the fixed part of the rent payable for month x, year y;
A - rental rate under the contract;
S - rentable area, in square meters."
It can also be envisaged that permanent part the rent is multiplied by the consumer price index, a coefficient that takes into account the conditions of use of the property by the tenant; for the correction factor, etc.
The lease agreement may indicate that the variable portion of the rent covers the landlord's actual expenses for utility bills, namely:
Electrical energy;
Water supply;
Thermal energy;
Removal of household waste (you can provide the entire list of necessary services), etc.
Example
You can specify a formula for calculating the variable part of the rent, for example, like this:
"The variable part of the rent is determined by the formula:
P x/y = E + Vo + T + M, where
P x/y - variable part of the rent payable for month x, year y;
E - expenses for electrical energy for month x, year y;
Vo - water supply costs for month x, year y;
T - expenses for thermal energy for month x, year y;
M - expenses for removal of household waste for month x, year y."
If payment for utilities is carried out in accordance with meter readings, you can indicate in the agreement that the variable part of the rent is subject to determination in accordance with meter readings. It can be prescribed that readings from utility metering devices are recorded in the presence of authorized representatives of the landlord and tenant.
Attention
In paragraph 12 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated January 11, 2002 N 66, it is noted that charging the tenant only with the costs of paying for utilities cannot be considered as a form of rent. Since the lessor does not actually receive consideration for the property leased, payment by the tenant only for utilities does not mean consideration of the agreement.
Shortage and high cost of hotels in the capital and others major cities We have made daily rentals one of the most convenient options for temporary accommodation for visitors. It’s a paradox, but renting a separate apartment with a kitchen and everything you need for life costs less than a decent hotel room. Demand, naturally, spurs supply. Therefore, is it any wonder that more and more private investors are engaged in short-term rental of apartments, having in their arsenal a single “one-room apartment”, and also specialized companies offering clients in addition to a dozen or more apartments additional service, there is plenty in the capital. The times when the only realtors renting out an “apartment for the night” were grandmothers at the station are gone.
Renting without a future
“In terms of price, the cost of daily rented apartments is similar or cheaper than a hotel room of the corresponding level. The difference can reach 20–30%, says Dmitry Taganov, head of the analytical center of the Inkom-Real Estate company. - In addition, a tourist or business traveler who comes to the capital for several days has at his disposal a fully equipped kitchen where he can prepare lunch or dinner himself. And when staying in a hotel, you will either have to leave a lot of money in the restaurant each time, or look for a decent cafe or restaurant nearby. And it’s not a fact that a decent establishment will be two steps away.” The hotel will have to pay for each additional service- washing and ironing of shirts, shoe care, etc. In an apartment rented by the day, no one will present an additional bill for the fact that the tenant used an iron, washing machine or shoe brush.
As for the landlord, for him the main advantage of a short-term business is the ability to “exit the project” at any time without damage. For example, if the apartment is needed for personal needs - the residence of the owner, his children or parents, the landlord does not need to wait several months before the contract with the tenant ends, as is often the case with long-term rentals. Moreover, the lease agreement for long term often provides for the payment of a penalty to tenants in the event that it is broken due to the fault of the apartment owner. Tenants of daily apartments rarely stay for longer than ten days.
Daily rent makes sense if you are planning to sell your apartment. The time for exhibiting apartments may take several months, especially now, when the demand even for liquid housing is at an extremely low level, but do not miss the opportunity to make money on an apartment that is idle waiting for a buyer. Daily rentals will make it possible to organize showings of the property at almost any time, but with long-term rentals you will have to coordinate the time of visits with the residents. Also, “business for a day” is justified as a diversification option. If you own two or more apartments, then it is advisable to rent out one of them for a long term, and the other for daily rent. Moreover, in Moscow the seasonality of tourism is less pronounced, and the flow of visitors is stable all year round.
At first glance, daily rentals look even more profitable than long-term rentals. “The cost of a small two-room economy class apartment with good cosmetic repairs, necessary household appliances and furniture will be about 3-4 thousand rubles. per day. It turns out that if you rent out such an apartment for 20 days a month, you can count on an income of 60–80 thousand rubles. While for a long-term lease its cost will be around 35–45 thousand rubles. per month,” Dmitry Taganov gives an example. At the same time, recently rates on the long-term rental market have been steadily declining, and the yield from it today does not exceed 4–5%.
No guarantees, no insurance
But to say that the business from rental housing is short term simple, you can't. There are much more difficulties associated with it than it seems at first glance. The main problem of a daily renter is the lack of guaranteed income. With a long-term lease, it is enough to find a client once, sign a contract - and you can live in peace for a year, receiving a stable monthly income. And in the case of short-term accommodation, the search for new guests is ongoing.
In the fall, Dmitry K. decided to rent out his apartment in the center of St. Petersburg by the day. And from my own experience I was convinced that this business in practice is not as profitable as it seems in theory. “When I rented it out under a long-term contract, I always had a guaranteed 30 thousand rubles. per month. Now there’s more hassle and less payoff,” he says. There is no month to month. Once Dmitry was very lucky: the apartment was rented for 20 days by a family who were doing renovations in their own home, and since it took so long, they had to extend the lease for another period. But this was the only case. The rest of the time the apartment is occupied on average ten days a month. “However, there are quite objective reasons. First of all, it's not winter tourist season for St. Petersburg. Secondly, the crisis. The main contingent of clients are tourists and business travelers, and the number of both has decreased significantly in recent months,” says Dmitry.
Rental Manager housing stock St. Petersburg Real Estate company Svetlana Aleksashina notes that the demand for daily housing is uneven and indeed largely depends on the season: “Before the New Year, there were a sufficient number of people wanting to rent an apartment for a few days: many out-of-towners came to visit their friends and relatives to spend time here holidays. Now there is a lull in the daily rental market, but it is traditional for this time of year. Revival, as always, will come in May-June: the season of white nights annually attracts tourists to the city on the Neva.” True, recently competition in the daily rental market has become even tougher: numerous mini-hotels have appeared, and many visitors have preferred this segment to apartments.
There are, of course, alternative ways to ensure a more stable flow of residents. But these are already options for everyone. You can, for example, rent out an apartment for events and parties - for such purposes, real estate in convenient areas is always in demand. But here you need to be aware of what the consequences may be for the condition of the apartment. No one, having paid money, will treat the property of the owners with care. Another option is to rent out apartments for employees in the leisure sector. This also guarantees stable profits. “But such apartments quickly fall into disrepair,” notes one of the landlords. “Besides, when the apartment is located in a decent building, you don’t want to spoil relations with your neighbors.”
The constant search for clients is by no means the only problem that awaits the landlord. An apartment rented daily requires much more attention. After each client, the owners need to put the home in complete order, clean it, provide fresh bed linen, etc. At the same time, such objects lose their appearance much faster. “The guests are constantly changing, and it is not at all a fact that they will all be extremely sensitive to the new furniture and household appliances. Therefore the owner daily apartment you will have to do cosmetic repairs much more often than in an apartment rented for a long time. And also pay for insurance against the risk of damage,” says Dmitry Taganov. True, as St. Petersburg landlord Dmitry K. notes, buying insurance is too much of a luxury: insurance companies either refuse to insure such apartments at all, or charge too high rates.
With short-term rentals, there is a much higher risk of encountering fraud or crime. Dmitry K. Pod already had such an experience New Year he came to check out the apartment, which was empty at that time, but found that he could not get inside: for some unknown reason, the key did not fit the lock. Taking a closer look at the door, Dmitry discovered that the lock had simply been replaced. I had to call an employee of the Ministry of Emergency Situations, who opened the door and let in the rightful owner. Once in the apartment, Dmitry discovered a lot of other people's things, a decorated Christmas tree, bottles of alcohol - in a word, clear signs that the apartment was inhabited. After some time, a new “tenant” appeared, who greeted the real owner of the apartment with indignant questions about the reasons for the latter’s stay on the territory of someone else’s apartment. It turned out that he rented an apartment through a real estate agency and paid three months in advance. Gradually, the details of the fraud became clear: shortly before the New Year, a woman who, according to her, arrived from Sochi, rented an apartment for a couple of days. In such a short period of time, she managed to make duplicate keys, and after her official “departure” she returned, changed the lock and under the guise of a realtor, she agreed to rent out an apartment to another person. She took an advance payment from him and disappeared in an unknown direction.
Dmitry was lucky: the illegal tenant vacated the apartment without any complaints, and, apart from time and nerves, the owner did not suffer any losses. But in a different scenario, the fraudster might not have bothered with the retake, but simply take all valuable property and equipment out of the house. To minimize risks, you should at least make a copy of the client’s passport, but this will not insure you 100% from fraudsters.
Trust or independence?
If you want to rent out your apartment on a daily basis, you have two options: transfer the apartment into trust management to a real estate agency or rent it out yourself.
At trust management, on the one hand, the owner is spared all the hassle. On the other hand, there remains the risk of fraud on the part of realtors. Agents can simply deceive by underestimating the number of days during which the apartment was rented out, and keep part of the income for themselves. You won’t go to the apartment every day and check.
If you take matters into your own hands, you will have to use as many channels of information as possible to find clients. However, it's not too difficult. Just type the words “daily rental” in Yandex or another search engine - and immediately dozens of agency sites offering apartments for daily rent will open in front of you to choose from. Almost all of them cooperate with apartment owners. You will be required to make a standard description of the proposed housing, indicate all its main parameters and take several photographs (kitchen, bathroom and bedroom). Photos and descriptions are posted on the agency's website. The owner of the apartment indicates how much he would like to receive per day, and realtors add their markup on top of this figure. For example, if an apartment “from the owner” costs 2 thousand rubles, then the agency will list it for 2.5–3 thousand. in this case deception on the part of intermediaries is hardly possible, since the agency plays exclusively the role of a connecting link. It directs the client, and the owner of the property contacts him directly: it includes showing the apartment, changing linen, cleaning, and the most pleasant thing - receiving payment. Then he gives commissions to the agency.
If you have several apartments, daily rent turns into a full-fledged business, which requires not only initial investments, but also regular expenses. It will be necessary to either outsource cleaning services or create your own operating unit, which will take over cleaning of apartments, washing and changing bed linen, small renovation work etc. In addition to service personnel, an accountant is also needed. You will need to establish relationships with people who can resolve any conflict situation with residents. An important element of this business is the creation and promotion of an effective website on the Internet. “It looks very difficult, but in practice it can be the opposite. In the process of activity, business relationships are established with certain organizations, for example, with representative offices of Western companies, as a result of which the business becomes more stable and secure. Moreover, you can earn additional income by providing related services: transport, tourism, etc.,” says Evgeniy Skomorovsky, managing director of Century 21 West.
The key to success
Not every apartment will be rented equally successfully. There are a number of parameters on which its demand among potential tenants will depend. Firstly, the location of such housing is important. “For short-term rentals, small apartments in Central district Moscow, for example, in Stalinist houses. Also popular are areas with large exhibition centers“- says Vadim Lamin, head of the exclusive department of the luxury apartment rental department at Penny Lane Realty. At the same time, the “walking distance to the metro” parameter remains important - just like when buying or long-term renting.
If an apartment rented for a long term can be minimally furnished, then in the case of a short-term rental such a number will not work. Everything should be here to provide residents with a comfortable alternative hotel room. When a person arrives at a hotel, he does not care about taking soap, a towel, toothpaste, or linen with him. He receives all this on the spot. For daily rentals, the same must be ensured.
The room should have a comfortable wardrobe and sleeping place. The kitchen must be equipped with a refrigerator, kettle and microwave. The latter is a more mandatory element than the stove. “Few of those who come do serious cooking. They either eat in a cafe, or prefer to buy ready-made food and heat it up,” says realtor Sergei. The room must have a TV; a DVD player has also recently become in demand. Such little things often play an important role, especially since competition in the daily rental market is great, and there is practically no difference in prices.
Short term rental: PRO & CONTRA
1. Potentially higher income than with long-term rent.
2. The ability to exit the business at any time.
3. Free disposal of the apartment (you can sell it at any time, move in relatives, etc.).
1. Lack of guaranteed income.
2. The need to constantly search for new clients.
3. The apartment requires repairs more often and quickly loses its presentation.
4. A more labor-intensive business: the apartment must be put in order after each client, it is necessary to provide residents with a complete “hotel” set - linen, dishes, furniture and household appliances.
