How to rent out housing on Booking: registering an apartment, receiving guests and paying taxes in 2022

When going on a trip or business trip, or organizing a business or romantic meeting, people prefer to rent a cozy apartment for daily rent instead of staying in a hotel. At your disposal is not a hotel room, but an entire apartment with homely furnishings and complete privacy for the same price.

However, those who want to temporarily live in cozy apartments should be careful when searching and renting. Here, inexperienced tenants face pitfalls and the risk of being deceived.

Advantages of renting housing on Booking

Booking is one of the most popular booking systems in the world. It is used by citizens of different countries, not only Russia, and when planning a trip, prices are usually compared on this site. The main advantage of Booking.com is the popularity and wide accessibility of this site to potential clients. More than half of potential clients look for information on Booking.com.

The system will be an ideal solution for apartment owners located in major tourist or economic centers. On Booking you can rent out housing for a day, several days or a long period.

Here are some obvious advantages of renting out an apartment through Booking:

• The rules of residence and prices are set by the apartment owner himself. They can be anything. The rules of residence become legally binding for guests - violation can result in a fine.
• You can set criteria for selecting clients, mandatory prepayment by card and deduction of an insurance deposit from a credit card - all this is available in the Booking functionality.
• The Booking team provides 24/7 support to users through written and telephone consultations. Each country has its own department of specialists who speak the required language. Russian-language support is also available.
• The service offers convenient management of bookings and correspondence with guests. The interface is intuitive and entirely in Russian.
• Each reservation undergoes a security check - fraudsters and lawbreakers are detected automatically by the system. Problems with the guest can be resolved using Booking - for example, prohibiting him from booking in the future.
• You can track booking statistics, analyze sales and rent out an apartment more profitably.

Renting an apartment through Booking is much more convenient than organizing the work manually. Changes can be made online and they will appear on the property page instantly.

What to consider when promoting your ads

1. Do not mention hotels and hotels (and derivative words) in the names of your properties. Choose types of accommodation not related to hotels: apartments, rooms, apartments, studios.

2. Indicate that you are renting out housing for short-term rental. This is a legally correct term.

3. If possible, follow the reviews: there your property should not be called a hotel either. It is better to tell the guest in advance to write the review in the “correct” words.

4. Check that there is no information left on any resource that could classify your business as a hotel business. Go to those services that you have stopped using and delete unnecessary information. The prosecutor's office can go to any website, take a screenshot and have it notarized. This can be used as evidence in court.

Prices and commission

Booking commission is 15% of the accommodation price. For example:

• the apartment is rented at a price of 3,000 rubles per night;
• the guest pays 3,000 rubles;
• Booking commission is 450 rubles;
• the owner of the apartment earns 2,550 rubles per night;
• in a month you can potentially earn 45,900 rubles.

Attention! Taxes must be calculated additionally depending on the tax regime. The Booking commission has nothing to do with tax contributions.

Who will monitor the implementation of the Khovanskaya law

1. Prosecutor's office. In most cases, she is the one who deals with such matters.

2. Police. According to the law, she has the right, but in practice she is only interested in temporary registration of foreign citizens (migration registration).

3. Housing inspection. Initiates many checks during illegal redevelopment. If hotel services are discovered during the inspection, they may file a lawsuit.

4. Your neighbors. It is better to maintain good relations with them.

Step-by-step instructions for registration

To rent out an apartment through Booking, you need to register in the system. This process is simple and takes minimal time. It is better to prepare photographs and descriptions of housing in advance.

Step 1. Prepare the apartment

Before renting out an apartment through Booking, you need to check the availability of everything necessary for guests. In large tourist centers, it is likely that the first clients will appear on the very first day after the advertisement is published, so the apartment should be ready for occupancy.

Apartment inspection checklist:

• all household appliances are in good condition;
• Internet and TV work, ideally there is WiFi;
• there are towels and hygiene items (soap, toothpaste, toilet paper);
• there is fresh and replaceable bed linen;
• sockets, lights, plumbing and gas are in working order;
• There are dishes in the kitchen.

Attention! Housing equipment must be selected based on the needs of clients. If the apartment is rented for a long time, towels are not needed. Bottled water is useful for business travelers and tourists.

Step 2. Take a photo and think over a description

Booking does not require you to post professional photos - an image taken on a smartphone will do. It is recommended to take bright, good quality photographs that show:

• the building in which the apartment is located, from the outside;
• bathroom and toilet;
• kitchen;
• bedroom and living rooms;
• view from the windows or balcony, especially if it is one of the advantages.

To attract guests, you need to take enough photographs to assess the condition of the property. The more truthful the photos turn out to be, the higher the rating will be in the system. Minimum photo resolution: 840 x 460 pixels.

At this stage, think about what the pros and cons of your home are. For example:

• accommodation in the city center or within walking distance to main attractions, large supermarkets, parks;
• transport accessibility, close location to the metro;
• good view from the window;
• free WiFi;
• equipped with household appliances: stove, microwave, washing machine;
• spacious apartment, newly renovated or modern furniture;
• the presence of a boiler for the period when hot water is turned off.

Important! The disadvantages need to be either eliminated or smoothed out - but you shouldn’t deliberately hide them from the guest.

Step 3. Registration in the system

Registration on Booking allows you to gain access to the reservation system and rent out an apartment immediately after checking the information by a moderator. Registration itself is free, commission begins to be charged only after the apartment is rented out.

For this:

• On the official website, click “Register your property.”

• Enter your first name, last name and email address. The address must be indicated from which the apartment will then be managed.

• Create a password and indicate your real phone number.

• In the next menu you need to select the type of housing. To rent out an apartment, you can select “One apartment”.

• Next, you need to register the property, including specifying the address and other information about the apartment.

• Some points will relate to the functionality of the apartment. You need to give truthful information.

• When registering, you must upload at least one photo. The gallery can be supplemented later if necessary.
• You will definitely need payment details for mutual settlements with Booking. You can get them from your bank.
• At the end of registration, a partnership agreement with the system is filled out.
• After registration, the information will be sent for verification by a moderator. If there is enough information about the property, Booking will send an email with access to the Extranet.

The extranet is a control panel for apartment bookings in Booking.com. The system shows which dates the accommodation is available for and which dates there are already reservations. Here you can manage prices and other important parameters for renting out an apartment. Once you've logged into the Extranet, you can open bookings.

What are the expenses of such a business?

The cost for daily rent of an apartment should be based on the following costs:

• Taxes. Daily rentals are considered private enterprise, and you have to pay taxes for this.
• Cleaning costs. Household chemicals and cleaning supplies.
• Costs for cosmetic repairs. An apartment can be rented daily for various purposes, and celebrations are no exception. After "entertainment" events, cleaning is not enough. Cosmetic repairs will be required (wallpapering, furniture dry cleaning, etc.). This entails costs for materials and labor.
• Cleaning costs (if hiring a cleaner). If you want to save money, it is better to do the cleaning yourself, if time allows.
• Payment for services. Utility bills, telephone and Internet, cable TV, etc.
• Advertising. To find clients, you will need to place an ad on paid advertising platforms.
• Meeting with guests. Most renters are not local, so they don't know the city. The owner needs to organize a transfer, meet guests from the airport, train station or bus stop, this will require finances and personal time.

Taking into account all the costs when renting out an apartment on a daily basis will help determine the optimal cost, which will allow you to receive a good income.

Reception of guests and payment

After registration, renting out your home through Booking will take place in several stages:

1. The guest finds a suitable apartment and books it online if the required date is available.
2. Booking confirmation occurs instantly, without the participation of the owner. From this moment on, the guest can no longer be refused accommodation. Therefore, you need to be careful and close busy dates to avoid overbooking situations.
3. A man moves into an apartment. Depending on the conditions, payment can be made both before check-in and after. It is safer to take payment upon check-in.
4. After check-out, booking information is added to the Booking report automatically. If the departure took place earlier or later, changes must be made within 24 hours, otherwise the report will be generated incorrectly and an extra commission will be charged.
5. At the end of the month, Booking will send an invoice for payment of the commission for the month. You will need to transfer money to the details specified in the invoice.

Attention! You can set up payment online through Booking services, but this is not always beneficial for the apartment owner, since the money is not transferred immediately, but on the 15th of the month following the month of departure. On the other hand, it is more convenient for those who “sit” on the simplified 6% rate to receive money minus the commission.

Rating in the system

The rating on Booking depends on the mood of real people, and not on the number of bookings or the price per night. Each resident gives a rating from 0 to 10, and then the system calculates the average rating. It is easier to rent out an apartment with a high rating - Booking users trust such apartments more readily.

You can raise your rating and rent out your property more profitably with the help of promotions and special offers, as well as by fulfilling the wishes of your guests. Every tenant likes the apartment to be clean, all appliances to work, hot water to be available, and their expectations to generally coincide with reality.

What are the owners risking?

You should not leave any valuables in an apartment intended for short-term rental. Even if they are hidden in a distant closet. People are curious, and when they find a valuable thing, they may not resist the temptation.

To protect yourself from scammers, it is better to be friends with your neighbors. This helps in case of suspicious visits (for example, viewings by “buyers” or those who have been offered a long-term lease). Vigilant neighbors will definitely signal.

Residents often overindulge in alcoholic beverages. Then the risk of fire or flood increases. Experts recommend insuring your property against all potential risks. You should also choose an insurance company carefully and read the contract carefully.

Payment of taxes

From income received from renting out real estate through Booking, you need to pay taxes to the budget. The procedure for their declaration and payment depends on the taxation regime.

For example:

• A citizen of the Russian Federation without the status of an individual entrepreneur or the formation of a legal entity pays personal income tax of 13% on his income based on the results of the tax year. The 3-NDFL declaration is submitted by April 30 of the following year, and the tax is paid by July 15.
• Individual entrepreneurs, LLCs, JSCs pay taxes depending on the chosen regime. One of the most common regimes in this case is the simplified tax system “Income” at a rate of 6%. It does not require payment of 18% VAT, requires minimal reporting and is easy to calculate. Under this system, the taxpayer pays three advance payments at the end of each quarter and a final payment at the end of the year. The total amount is more profitable than 13% personal income tax without registering as an individual entrepreneur.

Attention! The Booking commission does not include tax. This system is not a tax agent and does not withhold any budget payments during cooperation with partners.