How to rent an apartment daily without problems with the law, short-term rental business

Short-term, or daily, rental of an apartment is a popular format among business travelers, tourists and holidaymakers, which can bring home owners good income. Such apartments successfully compete in price with hotel rooms.

A business renting out an apartment for a day can generate income up to 5 times higher than renting out an apartment for a year or more. We will analyze in detail how it is more profitable to rent out an apartment by the day, where to look for tenants and whether it is so profitable.

Which rental is more profitable - short-term or long-term?

Empty real estate does not bring profit. But this state of affairs can be easily corrected by renting out housing for a long or short term.

With long-term leasing, everything is clear: you need to find clients, conclude contractual obligations, and receive the amount specified in the contract every month. You can check your housing once a month to make sure that everything is in order, or you can trust the residents, especially if they are friends.

Renting an apartment by the day means searching for new tenants almost every day. As a rule, housing rental sites are used for this.

However, this has 2 undeniable advantages:

1. daily inspection of housing condition;
2. high income, which is up to 5 times higher than from long-term rent.

For example, renting out a one-room apartment in Moscow for a long term costs 40 thousand rubles per month. Renting it per day on average is equivalent to 3.5 thousand rubles, that is, if you rent it out for only 20 days a month, the income will be higher. Therefore, you can earn much more on short-term rentals.

Profit from renting out real estate for a long time is considered passive. And when renting out housing in an apartment building for a day, you have to interact with different tenants every day, which takes up quite a lot of time and involves a full-time working day.

Therefore, some people organize a business by renting several premises and are called hosts. The name comes from the English-language booking and airbnb and is actively used by people who are engaged in booking and short-term rental of premises.

Average short-term housing rental rate in the Russian Federation:

How to rent out someone else's apartment daily

To organize a daily rental business, you need to purchase several residential premises and rent them out. However, this requires investing a significant amount of money, and not everyone can do this.

Registration of sublease

There is an easier and simpler way - to take a long-term lease of real estate, with the inclusion of a sub-clause of the right of sublease in the contractual obligations.

Subletting an apartment as a business makes it possible to rent out a rented apartment to a subtenant. The difference in cost between renting for a day and a long period, minus additional expenses (advertising, cleaning), is collected by the host - the one who deals with the entire subletting process.

Over time, you can use the money you earn to sublet the next living space, expanding and gradually developing the hotel business.

Finding a landlord willing to sublease his home with the condition of reletting to third parties is not easy or quick. The main thing is patience and provision of favorable offers in the contract for the owner himself.

Example of a sublease agreement:

Registration of trust management

Another way to make money by renting someone else’s apartment is to draw up an apartment trust management agreement, where all the conditions must be specified, including a percentage of the profit for each party (the manager gets from 5 to 20%).

The owner of the property is practically not involved in the rental process, and the host is responsible for fulfilling all obligations: he places advertisements, monitors the order and equipment of the housing, and meets tenants.

This type of cooperation has mutual benefits. This does not bring a fixed income to the property owner, as with a long-term lease, but a percentage of the profit, and this amount is usually slightly higher.

The host has more opportunities, since the owner wants to receive maximum income from renting out housing and gives complete freedom of action to the host, for example, minor repairs, updating the interior, equipment.

How to choose an apartment for short-term rental

Not all properties are suitable for daily rental. For example, three- to four-room apartments or housing without renovation are not in great demand. Renting out such apartments is quite difficult.

If the premises do not have furniture, appliances, dishes or shower accessories, then short-term rental is not possible.

However, this nuance can be easily corrected, unlike the location of the property. To know for sure whether the property is suitable for renting for a day, you need to introduce the future tenant, for example:

• For foreign tourists, an apartment in the city center, which is within walking distance from cultural sites, is better suited.
• For business travelers, the best option would be housing that is located near the place of work (office, business center).
• For visitors for treatment, budget apartment options that are located near medical institutions are in high demand.

Not everyone can bear the high rental price due to the significant costs of treatment. But residential areas will not compete, especially if the housing is located far from the metro or bus stop.

Is your own apartment suitable for daily rent?

If the premises are their own, then before renting it out, it is advisable for the owner to evaluate each of the characteristics described above and choose the most optimal type of lease.

Starting a business by renting out one apartment and your own on a daily basis is much easier than starting with several apartments from others. In the future, having gained experience, you can start subleasing.

If your own home is not located in a suitable location for visitors, tourists or business travelers, then it is worth considering the option of daily rentals for romantic meetings for couples. The interior for this option is desirable - romantic.

Buying a property

If real estate is purchased for the purpose of renting out an apartment as a hotel business, then the required square footage, suitable location, and housing are purchased according to the requirements.

Many people purchase apartments without renovation in order to subsequently update the interior and give them the proper appearance.

The host, who is engaged in subletting or managing residential premises, is looking for an apartment with identical requirements. And the investor, as a rule, does not search for real estate, but hires a manager who will independently select housing and rent it out.

Which area is better - large or small?

A business in the daily rental of real estate can bring losses. The main reason leading to this is “downtime” (from the word “idle”, i.e. the apartment was “empty”), which is inevitable. However, with the right pricing policy and favorable location, demand is guaranteed.

According to statistical data, one-room apartments are considered the most popular in this market segment, while three- and four-room apartments are the least in demand.

The best property for renting out for a day is a one-room apartment or a studio. For example, in Moscow, 57% of tenants rent one-room apartments, 34.6% rent two-room apartments, and 1.23% rent multi-room apartments.

Providing the client with comfortable living conditions is of great importance. Tenants prefer renovated housing, which contains all the necessary household appliances.

According to the experience of hosts, they go on business trips alone, and on trips in pairs. But they all spend a significant amount of time outside the home, therefore, it makes no sense for them to pay for huge apartments.

However, it is necessary to conduct a detailed analysis of the supply and demand market in the area. It may be that somewhere there are not enough rubles for large families.

Ideal if you have a large apartment and a one-room apartment for rent. But you need to be prepared for the fact that the more tenants, the more hassle.

If we compare the dependence of demand and price, then:

• 8% of people rent apartments up to 1,500 rubles per day;
• Economy class housing costing from 1500 to 3000 is in demand among 50%;
• business class apartments priced from 3.5 to 6.3 thousand rubles are rented at 25%;
• Luxury accommodation is of interest to about 17% of tenants.

It is also worth considering that most clients do not intend to overpay for renting a new building, the rental price of which is slightly higher than that of secondary housing.

Apartment location

To make money on daily apartment rentals, you need to adhere to the “three L rule”: location, location and location. The most popular apartments for daily rent are those located close to attractions, business centers, stadiums and medical institutions.

Apartments located near bus stops and metro stations, from where you can easily get to the center, are considered popular. The optimal distance to the stop from the apartment is 10 minutes on foot.

The cost of renting housing in an area remote from the center is somewhat lower, however, many visitors are willing to spend 10-15 minutes of personal time to get to the stop and at the same time save on renting an apartment. But in any case, real estate in the center is in maximum demand.

What should be the repair?

When renting out an apartment by the day, 2 main aspects come to the fore - the appearance of the property and high-quality repairs. Of course, you won’t be able to find tenants for a day for “grandmother’s” renovations.

Having come to see the city or on business, a person wants to spend time in his usual comfortable environment or with even greater comfort. And in the capital, homeowners often rely on foreign guests, for whom a carpet on the wall or a Soviet-era wall in the living room will not suit them at all.

A person makes a decision to rent a particular apartment in a matter of seconds while looking through photographs of the property. He can make his choice in favor of a comfortable environment or put up with certain inconveniences, but for the sake of low rental costs.

Before renting out an apartment for a day, it is better to put it in proper condition.

Furnishings and equipment

When renting an apartment for a year or more, an unfurnished option is allowed, since many tenants have their own household appliances and furniture. For an apartment rented for the day, you will have to deal with furniture.

The minimum kit for equipping the interior of a home must include:

• double bed;
• sofa;
• wardrobe;
• TV;
• kitchen set;
• fridge;
• hob or stove;
• washing machine;
• household kitchen appliances;
• in addition - iron, hair dryer, and other household items.

To rent out an apartment by the day, the owner will have to equip it with household appliances and consumables and regularly update them, since guests have identical requirements for it as for a hotel room.

Therefore, the property owner needs to stock up on:

• sets of bed linen;
• pillows and blankets;
• towels (bath and hand);
• utensils for cooking and serving the table;
• toilet paper, soap and other consumables.

It is worth taking care of the pleasant little things that the guest does not need to spend money on: napkins, sugar, salt, coffee, tea, vegetable oil. Of course, this will not increase the rental price and this moment will not become key when choosing an apartment, but such small nuances will affect a larger number of reviews about the apartment and its owner, which will attract a larger flow of tenants in the future.

Examples of furnishings for economy class apartments:

Examples of furnishings for business class apartments:

Examples of luxury apartment furnishings:

Examples of interiors for romantic meetings:

When equipping a property, it is worth considering that people who come to relax for a couple of days will not treat the furnishings and objects with trepidation. Therefore, furnish your apartment in such a way that you won’t regret a broken cup or a damaged sheet.

Preparing the apartment

To start renting out housing on a daily basis and make good money on rent, you should take care of the comfort of your guests in advance. To do this, you must adhere to 5 main points:

1. Repair. The apartment needs major or cosmetic repairs, it all depends on the initial condition of the living space. To do this, you need to re-glue or glue torn wallpaper, repair taps and sockets, screw in all the lamps, and so on.
2. Space. When putting the apartment in order, you need to remember that guests do not need extra chairs, armchairs, or tables. Therefore, everything that clutters the space needs to be removed and focus on minimalism. In addition, you need to free up space from your own things by putting them in a separate room.
3. Order. Before you start searching for clients, you need to put things in perfect order. It is necessary not only to wash the floors and windows, but also to wash the curtains, wipe the chandeliers and furniture from dust. This must be done, since tidy housing will attract more tenants and will become a strong argument in favor of the decision to rent this particular room. In addition, a clean apartment is a guarantee of positive reviews. After all, reviews play an important role when choosing a room to rent.
4. Situation. Even if the daily rental of an apartment is in economy class, guests need to be offered comfortable and comfortable accommodation.
5. Internet. Today, the Internet is a necessary need that is not expensive or difficult to satisfy.

A comfortable environment will ensure that satisfied guests will tell their friends and share their impressions on social networks, and this will attract additional clientele and a possible return visit from the tenants.

Remember that the better and more fully equipped the housing, the more you can earn from renting apartments.

Who to settle

There is a certain contingent of people who regularly require short-term temporary housing. Mainly:

• applicants,
• business trips,
• people who came to work, etc.

Of course, these are not the best candidates, however, before you start renting out housing for daily rent, you need to decide on the category of tenants acceptable to you.

Each category of potential clients has its own possible inconveniences. If you decide to move in applicants, then be prepared to shell out for possible minor repairs to the apartment. After all, the majority of applicants are young and inexperienced guys and girls who are unlikely to be able to ensure the safety of repairs and interior elements at the proper level.

It is best to discuss such points upon check-in. In each individual case, the choice is yours, but if the tenants cause a lot of trouble, then it is better to refuse them. It is also better to discuss the conditions for possible eviction in advance. And most importantly, you need to keep records of income and expenses with each individual tenant. As a result, you will be able to determine the contingent of residents with which you will receive maximum profit.

Where to look for clients

Daily rental of apartments involves a daily search for tenants, in contrast to long-term rentals, where tenants need to be looked for 1-2 times a year. This point is very important, as it helps to avoid downtime. Therefore, they resort to several methods of searching for tenants:

1. Searching for clients through an agency. Real estate agencies have their own extensive client base. However, it must be taken into account that all agents work only for a fee.
2. It is also possible to rent out an apartment via the Internet. Today there are many websites on the Internet where people look for short-term rentals. For example, posting an ad on Avito is easy and effective.
3. Television advertising or billboard advertising. This is the most serious way to find tenants, but requires considerable financial investment. You should spend no more than 25% of your monthly income on this type of advertising.
4. Word of mouth. You should not neglect such advertising, especially if you have a lot of friends, acquaintances, and relatives who can talk about renting an apartment daily in exchange for a reward.

Services for posting advertisements where apartments and houses for daily rent are booked:

• Airbnb;
• Booking;
• Daily;
• Twill;
• Island;
• Avito;
• Agoda.

In many cities of Russia, the Avito Internet service is in great demand among private owners and subtenants for posting advertisements for renting out their apartment for one or several days.

Read more: How to effectively place ads on Avito

Seasonality

The seasonality of the daily rental business directly depends on the category of tenants to whom the offer is targeted. Different types of tenants and their occupancy goals affect the rise and fall, as well as the price of rent:

• Increased activity is associated with holidays, for example, New Year.
• High demand is generated by vacationers during the summer season, long weekends or school holidays.
• Renting housing for a day during the summer holidays is also in good demand.
• If the apartment is aimed at students, then in the summer the demand will increase due to part-time students and applicants.
• The surge in high demand is also associated with the location of the city where the property is located. For example, white nights in St. Petersburg.

If your goal is to get the maximum possible income from rental property, then it is worth considering several more factors.

Rating and reviews

The most popular services for finding apartments in another city for short-term rental are Booking and Airbnb. This is where hosts and homeowners place their ads most often.

There are other options, for example, on the Daily Rent website, Yandex.Real Estate, and it is advisable to advertise apartments with designer renovations on Instagram.

The undisputed leader among all platforms is Airbnb, which contains a huge number of reviews from guests and landlords.

The more positive reviews are left on the site, the less time the apartment will be empty. Consequently, the rating of housing and the demand for it increases.

Therefore, the higher the rating and the more reviews, the more profitable it is to rent out an apartment daily.

What are the dangers of illegal housing rental?

Is it legal to rent out apartments on a daily basis? Yes, because it is private property. But taking a fee for this and evading taxes is illegal. The majority (60%) hide the source of passive income, and the tax authorities do their job of identifying shadow businesses, for which they receive wages.

Important! If the fact of tax evasion is established and proven, the owner will be held administratively liable and pay the principal amount of the debt, fines and penalties. Repeated violation is fraught with criminal prosecution, a criminal record and a fine of up to 300 thousand rubles. or imprisonment for up to a year.

Guests service

When renting housing on a daily basis, a significant amount of time is devoted to meeting clients. They need to be met, given the keys, shown the accommodation, perhaps told about nearby parks and cultural centers.

But the most important thing is to sign a short-term lease agreement. Then, when leaving, you need to check if everything is in order, pick up the keys, clean the room and replace consumables.

Short-term rental agreement

It does not matter whether the apartment is rented daily or for a year - the rental agreement is mandatory. It can be compiled in writing, since it does not need to be registered with the Registration Chamber.

A short-term lease agreement is practically no different from a long-term lease agreement, but has some nuances. For example, it states:

1. The premises are rented on a daily basis and the exact number of days of stay is indicated.
2. It is also important to write down the departure time and write in a separate column that departure earlier or later than the specified time must be agreed upon.
3. A mandatory clause of the contract is the condition of payment for rental housing. Subtenants and private owners take 100% prepayment. In rare cases, half is paid upon entry and the rest upon departure.
4. Some property owners include a security deposit clause; its amount is also included in the contract.

The agreement itself is written in 2 copies - one for each of the parties.

A daily rental agreement must contain the following clauses:

• passport details of both parties;
• characteristics of the premises;
• time of arrival and departure, that is, the duration of the contract;
• payment amount;
• rights and obligations of the parties;
• penalties;
• signatures of the landlord and the tenant.

Remember that you need to draw up the contract correctly, this way you can protect yourself from fraudulent activities.

Therefore, all of the above points must be included in the daily rental agreement. Of course, other points can be added to it, which will be agreed upon between the parties, but not contrary to current legislation.

An example of an agreement for renting an apartment daily:

Document requirements

How to compose it correctly? As already stated, there is no specific form. A properly drafted agreement contains the details of the tenant (s).

These are passport data, full name, all data on the terms of the rental housing, namely the full amount, when it is paid, how to pay it, under what conditions the agreement can be terminated unilaterally. In addition, you can make an inventory of the property.

What should you consider when making a conclusion?

The Civil Code (Article 671) provides the only condition for this type of agreement - a clear definition of its subject.

The object is the apartment itself. It has a number of characteristics, such as address, area, number of rooms.

This description must be taken very seriously . After all, if the description is not drawn up correctly, this may lead to the document being considered invalid. And this will deprive his parties of the right to claim the benefits due.

A special feature is the landlord’s obligation to clean his own apartment , which he rents out.

Typically, cleaning in rental apartments is the responsibility of the landlord.

But this is not always spelled out.

If housing is rented out for a very short period of time , for example, for a day or a few hours, then there are no problems.

But if the premises are rented for a week or a month, then you should specify how such cleaning is carried out. One option is to carry out cleaning in the presence of the tenant .

Is registration required? Such registration is not necessary; if the agreement is drawn up correctly and contains data such as address, footage, number of rooms, then the agreement is considered concluded without registration .

Find out about the need to draw up a transfer and acceptance certificate and an inventory of the property of a residential premises on our website.

Ability to delegate

Delegation in short-term rentals can be considered in several options:

• The first includes the transfer of management from the owner to a professional manager.
• The second is when the host instructs its employees to deal with certain tasks.

In the business of subleasing apartments, when there are several objects, delegation is a necessity. Otherwise, the manager simply will not be able to independently manage all the objects and will soon lose interest in the work, just like the owner or private owner when renting out 3-4 apartments for daily rent.

The very concept of delegation implies the assignment of responsibilities, that is, some of the obligatory tasks can be delegated to an assistant.

What this might look like in a short-term rental - for example, cleaning the premises. In this case, it is necessary to find a responsible person who can carry out high-quality cleaning of apartments every day after guests leave.

Delegation is not a way to avoid responsibility and put everything on the shoulders of employees. This is a form of division of labor that helps improve the efficiency of apartment subletting as a business.

Delegation makes the manager's job a little easier, but does not relieve him of responsibility and the obligation to make the final decision.

How much can you earn

The main goal when renting out an apartment by the day is to maximize profit. If we take into account income minus all payments, including taxes from legal rentals, then short-term rentals benefit much more financially than long-term rentals.

Example: Revenue per day from a one-room apartment = 3000, without downtime per month = 25 days, after deducting all expenses from the table, net income = 35,000.

Ideally, if you rent out an apartment daily, without downtime, you can get 2-4 times higher income than if you rent for a long period. But net profit depends on many nuances:

1. location of housing;
2. number of rooms;
3. quality of repair;
4. furnishings.

Consumables also affect the final income:

• communal payments;
• payment for advertising;
• purchase of consumables.

But, as a rule, daily and hourly rentals can double or even triple the subtenant’s income.

Is it legal to rent out an apartment daily?

At the legislative level, you can legally rent out an apartment for any period of time, including one day. The main thing is to rent out a house, room or apartment in accordance with established laws:

• including payment of taxes;
• filling out reporting documents;
• a correctly drawn up contract;
• without violating the rights of neighbors.

The very fact of renting out an apartment for daily rent does not contradict the law. But, if you rent out housing for noisy parties, you may be fined by a court decision.

As for taxes, you can pay them in one of three ways:

• in the form of personal income tax – 13%;
• purchase of a patent – ​​6%;
• self-employment tax – 4%.

Legal daily and long-term rental of an apartment is subject to tax.

Is it possible to do without a contract?

Is it possible to rent short-term without signing papers? In this case, the lease will not be official. For the owner, the contract is, first of all, legal protection in case of unforeseen circumstances.

If you decide to rent without documents, and the tenants break something or steal something, then you will not be able to prove what happened unless you have a contract in hand. For this reason, the answer is obvious. It is extremely undesirable and illegal to rent out housing without a contract.

Of course, if you rent out an apartment in this way, no one will catch you as a particularly dangerous criminal, but it will also be impossible to obtain protection from the law if you do not have a rental agreement in hand.

Problems with neighbors

Correctly registering the rental of an apartment is only half the battle, because neighbors live nearby who are not always ready to see different people every day.

Problems with neighbors on the floor or house can only arise if tenants violate the rental rules. If this does not happen, then the neighbors’ dissatisfaction can only be expressed in the fact that they meet strangers at the entrance every day. And this in no way relates to responsibility and does not contradict the law.

Also, you should not expect a trick from your neighbors if the apartment is rented out legally, that is, the owner officially pays taxes.

The worst thing that can happen is calling the local police officer. In this case, a conversation with a representative of the law is inevitable, but, as a rule, it ends with a warning or, at most, a fine.

Risks of short-term rentals and how to minimize them

In the real estate market, it is generally accepted that short-term rentals are a profitable business. But there are some pitfalls here. The first are related to the safety of property:

• Damage to furniture and household appliances cannot be ruled out.
• In particularly problematic cases, the risk of damage to walls, ceilings, and floors cannot be ruled out.

Therefore, you should not approach the issue of repairs scrupulously. You can buy inexpensive, but high-quality and beautiful wallpaper. The same applies to household appliances. This will help minimize risks.

You need to understand that in any business there are costs: damaged things pay off very well if the apartments are handed over correctly and with a minimum of downtime.

The second risk is associated with an adequate assessment of the daily rental price. After all, it all depends on:

1. location of living space;
2. quality of repair;
3. convenience of planning;
4. interior equipment;
5. level of competition.

To rent out housing at an adequate price, evaluate prices for daily rentals in the area.

To obtain a stable income, you need to be able to understand not only laws and taxes, but also people. In many cases, it is simpler and easier to draw up an apartment trust management agreement with a realtor, who will take care of all the hassle for a fee.

High consumer demand for short-term rental housing is due to the convenience of the service. For the subtenant, this results in high, stable income.

Advice for lawyers

Daily housing rental is a business activity associated with generating considerable profit. Therefore, corporate lawyers need to be extremely careful when advising apartment owners, drawing up lease agreements and ensuring compliance with legal requirements when carrying out such activities:

• It is necessary to monitor not only the timely payment of tax contributions, but also compliance with the quality standards of the housing provided. Civil and housing legislation in general is quite liberal, but it also contains imperative norms, the violation of which entails liability, including criminal liability.
• So, for example, if when renovating an apartment, materials containing harmful chemicals prohibited by building codes were used, then it is necessary to check with the owners about this and indicate the need to eliminate the problem.
• You also need to be prepared for lawsuits from both residents and neighbors. Not every neighbor will calmly look at the constantly changing residents behind the wall or above the ceiling. It is necessary to prepare for a competent response to such concerned neighbors.
• In rare cases, you may encounter litigation related to the payment of insurance premiums. After all, the occurrence of an insured event is always an alarming situation for the insurer. Any insurer will try to find ways not to pay out money. In order to avoid giving him reasons for this, it is necessary to explain to the lessors the procedure for behavior in the event of an insured event.

In general, you need to be ready to answer all besetting questions, both from government agencies and from private individuals.

Advantages and disadvantages

The demand for short-term rentals is constantly growing, but this is associated with its own specific risks for the owner. The main disadvantages include:

1. Risk of downtime. If you rent out a one-room apartment at least 20 days a month, the property owner will remain in the black. When renting out on a daily basis, there are no guarantees in terms of how many days the apartment will actually earn money.
2. Location of housing. Renting an apartment far from the center is not profitable for guests. Proximity to the metro and center is a key factor.
3. Clients. Short-term rentals have several types of consumers. It is advisable to decide which clients are worth working with: tourists, business travelers, for “romantic meetings”. For example, a private house is more suitable for special occasions and noisy holidays. But you can try to organize universal rental services suitable for all guests.
4. Attachment to place. Guests can check into the apartment at night, so the owner must be in the city constantly.
5. On holidays and weekends, the demand for daily rentals is high, and on weekdays, due to downtime, prices have to be dumped.

The main and significant advantage of renting out real estate on a daily basis is considered to be profit, but only if the business plan is properly organized. Knowing how to properly draw up a contract, find and select clients, you can earn a good income.

Short-term apartment rental is an excellent solution for living for a few days in another city. In addition, if housing is rented by a married couple with children, this is also a convenience when compared to a hotel. But a significant advantage for apartment owners is the real benefit. Therefore, knowing how to make money on rent, you can provide yourself with good earnings.

Inspiration story or crazy Airbnb idea

Unemployed Brian Chesky and his classmate in 2008 decided to earn a little money to pay the rent of rooms that friends rented in San Francisco. There was an exhibition in the city, the hotels were full, so a brilliant idea lay on the surface - three air mattresses in the living room and breakfast for $70/night or Airbedandbreakfast. It looked ridiculous and absurd, so there were no people willing to invest in the startup.

Today, the platform where international services are provided for homeowners and travelers is the most famous and global provider of short-term rental services. The head of the company, Brian Chesky, six years later became the youngest billionaire on the Forbes list. Airbnb's resource is estimated at $50 billion, while the Marriott hotel chain is worth $25 billion. Chesky's intentions are ambitious. He says that in the 20th century, the most recognizable brands were Coca-Cola and Apple, and in the 21st century it will be Airbnb.