Today, for many people, renting an apartment is a profitable business that is able to provide a relatively comfortable existence. More and more Russians are considering renting out housing as an additional source of income. However, not all so simple.
Those who are interested in the question of how to earn money in apartments should understand that in this sphere of entrepreneurship there are “pitfalls”, so it is very important to competently approach the matter! Otherwise, you can not only not get the profits, but also financially suffer.
Experts recommend that those who own two or more residential real estate properties engage in rental business.
Want to know how to make money on apartments with minimal risk? It is very important to adhere to certain rules. Let's consider them in more detail.
Adequately evaluate rental housing
Today, many landlords consider it normal when there are no clients on their apartments for several months. The reason for this lies in the fact that they do not want to concede to potential tenants a couple of thousand rubles. As a result, their mansions are empty, and they do not receive money for them. It is very important to give discounts to customers, especially if the housing is not located in the city center and belongs to the old fund.
Repair Investments
If you are interested in how to make money on apartments, you should remember that you need to regularly repair the rooms that you are going to rent out.
Believe me, a tenant is ready to pay good money for new wallpaper and laminate in apartments. At the same time, he will give 10,000 rubles for mansions with redecoration, with a capital - 15,000 rubles, but with a European-style repair - all 20,000 rubles. These figures are, of course, conditional. Again, the size of the rent is affected by the fact in which category the housing belongs. For example, if you make a simple repair in Khrushchev, it will cost it about 5%. In a situation when it comes to European planning in business-class apartments, their owner can safely ask for an amount of rent that exceeds 20% of the market. Well, if the object belongs to the category of elite housing, in which the owners recently made repairs under an exclusive design project, then they have the right to request twice the market value of the rent. However, in the latter case, the amount should not be overestimated, since the demand for such apartments is limited.
The risks
Those who want to know how to make money on apartments should remember that this area of business is fraught with certain risks. The first of these involves harming your property.
That is why you need to check at least once a month what condition your apartment is in, otherwise after six months you will have to make repairs, and at your own expense, as tenants can, having sensed something was wrong, quickly retreat and disappear in an unknown direction. Moreover, it is not uncommon for tenants to cause damage to neighbors by their actions, and in the event of flooding or fire, all material claims will be presented to you. Remember: even if the rental agreement contains a condition that the tenants are obliged to compensate for the damage, it will be very difficult to achieve this from them. Unfortunately, in practice it happens that way.
When renting an apartment, also mentally prepare for the fact that tenants do not always pay rent on time. In addition, there are often cases when the apartment is not used for living, but for engaging in illegal activities, which also does not inspire optimism to landlords.
Naturally, all of the above risks should be provided on paper. Always conclude a tenancy agreement with the tenants, since renting apartments as a business is a rather troublesome business.
A significant part of the landlords are not concerned about the loss of property due to the tenant's fault, because before they conclude the contract they take from them the amount of the deposit equal to the amount of payment per month. Of course, a pledge is not a guarantee of your financial salvation, since often the damage is caused by $ 2,000, while you have protected yourself by only 25,000 rubles. One way or another, long-term rental apartments must necessarily include this important interim measure.
How can risks be reduced?
It makes sense for the landlord to think about property insurance, which acts as an object of rental. In some cases, this minimizes the material risks that arise as a result of a fire, explosion, flooding, which are caused by the fault of tenants. Often, insurance compensates for damage from theft and damage to property. Also, the insurance company will cover the costs associated with the repair of the apartment of your neighbors, if tenants flood it, for example.
One way or another, property insurance is also not a panacea for troubles, since often the damage caused does not legally correlate with any insured event.
How to increase profits?
Many people ask: "How to make the most of real estate?" Of course, renting apartments for the long term is a fixed and stable profit. But! This business can bring even more money. Everything is very simple. You can rent housing or transfer it to the category of commercial real estate.
Of course, there is competition in the daily rental business, but you can still have time to occupy your niche in the market. However, renting the premises for a day or two, be prepared for the fact that the tenants will have the highest requirements for the condition of the apartment. You will need to ensure maximum cleanliness and comfort. Naturally, in this regard, you will incur additional costs. Plus, you should take care of finding customers in advance so that their influx is stable. This will help advertising your services.
Taxes
When organizing a rental business, do not forget that you will have to give part of your profits to the state. At the same time, the attention of fiscal authorities to people living solely on passive incomes has recently been increasing. Please note that for late payment of the tax return you face a fine, so it’s better not to risk it and be a law-abiding businessman.