Everything about how to rent out an apartment by the day: where to start, how to find tenants and conclude a model agreement?

In this article you will learn: how and to whom you should rent an apartment by the day, what you need to do for this, how to protect yourself and whether you need to pay taxes on the income received. Frequently changing tenants, repair costs, and unforeseen situations can bring a lot of inconvenience. Therefore, it is better to be patient and approach the issue fully armed.

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.

general information

Requirements for living space

The rental real estate market is vast, so your apartment must meet certain requirements for your business to be successful. Of course, you can rent out living space without renovations and household appliances - for some, a bed, shower and toilet are enough. But there must be a small refrigerator. Still, most people, when choosing an apartment, expect service. What do you need to have in an apartment when renting it out daily?

• Fresh, inexpensive renovation. The main thing is not the price of wallpaper or floor material, but the general appearance of the room and cleanliness. Priority is given to apartments with modern renovation. It can be neutral-colored paper wallpaper and simple linoleum, in harmony with each other, and in general the room will look stylish.
• Serviceable, clean plumbing. It is a good idea to provide hygiene products: toilet paper, liquid soap, shower gel, shampoo and clean towels.
• Necessary furniture. A sleeping place (usually a sofa or bed), a table, chairs, a kitchen set (can be simple) and clothes hangers. All other components are optional. Simple new furniture is cheaper than expensive, old furniture.
• Fridge. It may be small and simple, but in working order. Of course, it must be clean.
• Electric kettle. The client will definitely drink tea or coffee in the morning.
• Plate. Some people prefer to cook themselves. Especially if the apartment was rented not for a day, but for a week.
• Microwave. If you don't have a stove, a microwave is enough. Even in the most primitive model you can cook basic meals or reheat ordered food.
• Minimum set of dishes: a couple of pots, a frying pan, a set of plates, cups and cutlery. The motto is “simple and tasteful.”
• Washing machine. There is little chance that people who rented housing for a day will use it. But those who rented an apartment for a longer period will definitely appreciate it. Even if it is not needed, it can act as a bonus when choosing housing.
• Wifi. An apartment with free internet access is always preferable. Some may need it for work, others to find the necessary information, and others just to watch movies.
• TV. Availability is not necessary if the apartment has Internet.
• Air conditioner. An important factor. Now this is a priority option when choosing housing, especially in the summer. And in winter, the device can be turned on for heating if it’s cold.
• A hairdryer, iron and ironing board must be available.

And the main thing is cleanliness. Perhaps for some it will play a decisive role in choosing your apartment.

Taxation

When renting out an apartment as an individual, you must pay tax on the profit received. Every year, before April 30 (or before the evening of the first working day, if April 30 falls on a day off), the owner must submit a personal income tax declaration in Form 3 and pay 13% of the income received to the budget (30% if the period of permanent stay in Russia is less than 180 days ). If the owner is registered as an individual entrepreneur, the rate will be different.

An individual entrepreneur can choose the following taxation options:

• General taxation system. Unlike an individual, an individual entrepreneur makes advance payments throughout the year (upon request) and can reduce his basic income by professional deductions.
• Simplified taxation system. The chosen rate is 6% “income” or 15% “income minus expenses”. Moreover, an individual entrepreneur can reduce his income by the amount of insurance premiums paid for himself in 100% of the amount and 50% of the amount of insurance premiums paid for an employee.
• IP on a “patent”. In this case, the individual entrepreneur pays 6% of the estimated income established by law for this type of activity.

If an individual entrepreneur has already been opened or there is such an opportunity, you can pre-calculate and select the most profitable option for paying taxes to the state.

Features of the contract for daily rental

Such an agreement is not much different from an agreement for an apartment that is rented for a long term. You can download the standard form on the Internet, changing it if you wish: someone removes points that they think are unnecessary, someone adds. But there are basic data that should be in it:

• Subject of the agreement.
• Full name and passport details of the parties.
• Rent price.
• Rental period (with specification of check-in and check-out times).
• Responsibility of the parties.

It is necessary to make an inventory of the situation so that there is no dispute in the event of property damage (with daily rentals, the risk increases). The agreement must be signed by both parties and drawn up in two copies. If you rent out housing through an agency, the employees will take on these chores.

Cleaning the premises

When renting out an apartment for any period of time, it should be thoroughly cleaned before each new guest. If you rent out housing daily, you will have to do this often. If there is a long period of time between residents, then wet cleaning is necessary before moving in new guests.

During the season, if the apartment is located in a place that is interesting from a tourist point of view, the tenants may change frequently. In this case, it is important to think about the time of eviction of some tenants and check-in of others, so that there is a gap of a couple of hours for cleaning. It is a good idea to stipulate in the contract that tenants must leave behind a clean apartment. There is no need to force them to vacuum the floor, but it won’t hurt to wash the dishes.

Advantages of daily rent

• Potentially greater profits compared to long-term rentals. Especially if the apartment is located in a tourist-attractive part of the city.
• If you unexpectedly need housing (relatives have come to stay), you can move them into an apartment without intentionally evicting anyone.
• If you decide to sell your apartment, permanent residents are unlikely to agree to regular visits from a realtor with potential buyers. In the case of daily rentals, finding time to show the living space is much more realistic.

Cons and possible risks

• The risk of falling for scammers, the likelihood of property damage. And the neighbors will be worried about the changing tenants.
• When renting daily, you will have to spend a lot of time cleaning the premises and monitoring its condition.
• If the city is unattractive for tourists and the location of the apartment is inconvenient, you can hardly count on a stable flow of clients.

Search for tenants

The process of finding tenants is advertising. You can place advertisements in newspapers, post them around the city, etc. However, the Internet has long surpassed everyone in this matter. There are a lot of ad sites on the global network. There are such platforms as Avito.ru, Irr.ru, by submitting advertisements on which you can receive the first calls from potential residents within 1 - 2 days. These sites are best for those who rent out 1 or 2 apartments.

If you have 3 or more rental apartments, then it is better to expand the range of advertising activities. You can use the services of specialized Internet portals where, in addition to displaying advertisements, you can also book accommodation. An ideal option would be the website kvartirka.com. To attract a wider audience, you can post ads on booking.com or airbnb.ru.

However, there is another factor that influences the constant availability of guests. This is the location of the housing. If you are renting an apartment somewhere in a tourist area, a resort town, or at an accessible distance from vacation spots, then it is better to focus on seasonal occupancy.

How to make money on short-term rentals

To make money on daily rent, you need to decide how exactly you want to rent out the apartment: yourself or through a realtor. If you decide to use the services of an agency, all the hassle of finding clients, showing housing, monitoring check-in and check-out, drawing up an agreement, and collecting payment will fall entirely on the realtor. At the same time, he needs to give part of the income for work. If you don’t want to share, you’ll have to do all this yourself. Where to start?

Sample business plan for daily rentals

1. First of all, decide on your target audience. These can be city guests and local residents. The first ones are preferable, they are more reliable, but, as a rule, they choose housing in the center or just in a good area, and their requirements are much higher. Citizens rent apartments for vacation. Technical equipment is not so important, but there may be problems with neighbors.
2. The housing should be brought into proper condition. As already mentioned, people will prefer a clean apartment, with modern renovations and household appliances. Therefore, if the premises are empty, you need to take care of purchasing the necessary things. And the more benefits of civilization, the better for you - many are willing to overpay some amount for air conditioning and TV. At this stage, financial investments are required, but in the future, with a regular flow of residents, these expenses will pay off.
3. So, the apartment is furnished. Now what? It would be nice to make the business official. Registration of an individual entrepreneur is better suited for this. In addition to being clear before the law, this is a real chance to reduce taxes and expand your customer base: many business travelers need to report to their superiors about the amount spent in order to be reimbursed, and the individual entrepreneur can write a check.
4. After registering a business, you need to decide on the price. To do this, study advertisements of other apartments in the same area with similar conditions. There is no need to list real estate cheaper in the hope of attracting more tenants, but you shouldn’t inflate the price either. It would be good if you come up with a discount system. For example, the rental price per day is 1,500 rubles. When renting for a week, the last day is free.
5. Now you can move on to advertising. It is not profitable to simply advertise in a newspaper - everyone is looking for housing rental options via the Internet. Avito, Yula, From hand to hand, local forums, tourist publics, groups on social networks, our website (contact us through contacts) - here you can give both free and paid advertising. The latter option will increase the number of ad views. The proposal should be non-trivial, describing all the advantages. By the way, there will be high-quality (professional) photographs. If you have the opportunity and desire, an excellent option would be to place banner advertising on Internet resources.

Next, you will have communication with potential clients: correspondence, calls, answers to questions, meeting and showing the apartment.

What should be in an apartment for daily rent

The price at which you can rent it out and the regularity of tenants will depend on how well your apartment is equipped. There are a certain minimum of amenities that should be in any apartment for daily rent.

These include:

• Fridge;
• Plate;
• Dishes;
• Washing machine;
• Table and chairs;
• Ironing board and iron;
• Kettle;
• Microwave;
• Bed or sofa;
• Bed dress;
• Hygiene products;
• TV

It would also be useful to provide residents with cable TV, install Wi-Fi, an audio system and other additional amenities. The main thing to remember is that the quality of daily housing is measured not only by beautiful renovations, but also by interior elements. And the better the quality, the more guests are willing to pay.

Little things like an electric kettle or ironing board may be more necessary than a TV or refrigerator. Therefore, it is better that the apartment has everything you might need. Most of this is inexpensive. It is not necessary to furnish the apartment with everything new. You can buy used. goods. The main thing is that everything works.

Where to begin?

Repair

The complexity of repair work directly depends on the general condition of the apartment. If it has been actively used before, then, most likely, you will have to work on the plumbing, electricity, external properties of the object, and also, possibly, heating.

And only after bringing the living space into proper condition, you can proceed to the next stage - purchasing things for the tenants to live comfortably.

How to equip housing?

When furnishing an apartment, you need to take into account the standard needs of a person . Most technical equipment in good condition can be easily found on bulletin boards or from friends.

Minimum Required:

• burner;
• kettle;
• fridge;
• dishes;
• kitchen furniture;
• microwave;
• items to maintain order;
• washing machine;
• sleeping area and sleeping accessories;
• iron and ironing surface;
• hygiene products;
• portable lighting.

Additional comfort attributes:

• books;
• stable unlimited internet;
• TV with cable or satellite TV;
• air conditioner;
• audio equipment;
• Dishwasher.

Determining the rental price

The market determines the price. Before deciding what price to rent an apartment for daily, it is worth studying the existing market. Your potential competitors have already done everything for you. It will be necessary to rely on their average market indicators. In this case, you need to take into account only those competitors who rent apartments by the day, the main parameters of which are similar to the parameters of your apartment.

So, the factors influencing the rental price are:

• quality and cost of apartment renovation;
• degree of furnishings and appliances;
• number of rooms and beds;
• dimensions of the premises in the apartment;
• distance from transport, etc.

In addition, when demand is high, the price can be raised, and vice versa. Demand may be determined depending on the season if housing is rented at a resort. In cities like Moscow, demand is constant throughout the year, but it can grow due to the onset of holidays or in connection with an event of national or international significance.

Safety

Renting out housing on a daily basis has its own risks:

Some guests may copy the keys and return to your apartment to steal valuable items. To protect yourself from this, you can change the locks from time to time, but this is quite expensive. Therefore, the best option would be to install an electronic lock with a replaceable code. After the departure of each guest, it will be enough to simply change the code and there will be no longer any risk of theft.

In addition to the human factor, there are others:

For example, there may be a fire or your apartment may be flooded by your upstairs neighbors. There is also a risk of your tenants flooding the neighbors below. It is better to insure yourself against such unforeseen situations. Housing can be insured by any insurance company. However, most insurers inflate the coefficients for daily rental housing. This, of course, is an additional expense, but it will protect you from even bigger problems in case of the unexpected.

How to rent an apartment daily through an agency

Currently, agencies specialized in renting daily housing operate in almost all cities. They make up the database of rental housing and are actively searching for tenants. Since running an independent business can be quite troublesome, many owners rent out their apartments through agencies.

When renting out housing on a daily basis through an agency, the agency itself deals with advertising, housing maintenance and ensuring the safety of property. However, the income of the owners decreases by 1.5 - 2 times.
All the same, unlike long-term rental, this type of rental is considered 20-30% more profitable.

Which option is still preferable?

The main difference between an agency agreement and a trust management agreement is that the first option implies an intermediary scheme of work, and the second is classified as a service agreement.

When choosing a scheme for working with property, you must, first of all, start from your own desires and means . If the owner of an apartment wants to have a stable passive income and the opportunity not to be tied to a specific place, while investing minimal time, then working through an agency will be a justified decision.

But if there is enough time and knowledge, and besides, there is no need to move from one location to another, then independent activity will bring good results.

How the agency works

• The owner of the apartment enters into an agreement with the agency, which negotiates all the conditions for the delivery and maintenance of housing. Thus, the owner receives a certain percentage of the housing rental monthly or at another period established in the contract.
• You can also agree with an agency about mediation. With such cooperation, the agency is engaged in searching for tenants and preparing documents, and all other chores remain with the owner. Accordingly, the agency receives a percentage of the profit depending on the terms of the contract.

Cooperation with agencies is convenient for those landlords who are just starting to rent out housing on a daily basis.

The most cost-effective forms of daily rental

There are several options for renting housing:

1. Own apartment (inherited, bought for cash, donated, etc.).
2. An apartment taken on a mortgage.
3. An apartment that you have the right to rent out under a sublease agreement.

The most profitable option for a landlord is to own their own home. True, renting out an apartment under a sublease agreement may turn out to be more profitable at first. This happens if your own living space requires major repairs. However, subsequently, your own apartment will begin to generate profit, which you will not have to share with anyone.

If you plan to take out a mortgage on an apartment and repay it using the profits earned from renting it out, it is better to choose a long-term lease. By renting daily, you can get a big profit, but in the case of renting for a long period, the income will be stable.

If you choose the sublease option, inform the owner about your plans. At first glance, it may seem that few apartment owners will agree to such conditions. But if you draw up the contract correctly, there will be no difficulties in searching.

Advantages and disadvantages of daily rental

Daily rental of an apartment is considered beneficial for both the landlord and the tenants. On the one hand, the landlord, on average, receives more profit than from long-term rent, on the other hand, the tenant saves on expensive hotels.

By taking advantage of all the achievements of modern advertising, you can get maximum profit from renting out housing on a daily basis. And if you own several apartments that are ready to rent out on a daily basis, you can provide considerable competition to the hotel business.

The only downside, perhaps, is the inconstancy of profits. For example, if you rent out an apartment in an area where demand depends on the season, then outside the season you will have to be content with a small profit. However, it will be possible to make up for the lack of profit during the season at least twice as much.

Is it profitable in the main cities of Russia?

It cannot be said that there is stability in the daily rental market. The landlord must be aware of all possible risks : despite the fact that during holidays and summer there is active demand for the service, in winter there is a high-quality outflow of clients. Renting an apartment through an agency will help reduce these types of risks.

Therefore, it is impossible to guarantee consistency. However, if the apartment “works” for at least half a month, then the income from daily rental will cover the income from monthly rental.

How much money can you get in a year?

In a large developed city, such as Moscow or St. Petersburg, it is possible to earn about 3 thousand rubles per day by renting out an economy-class apartment with cosmetic renovations. If the apartment is used 15-20 days a month, then the annual profit will be approximately 540,000 - 720,000 rubles.

With a monthly rental, a slightly different amount will be earned : about 400,000 - 500,000 rubles, provided that the monthly income is 35,000 - 42,000 rubles.

Both options have a right to exist and with a high degree of probability will recoup the invested funds. You should concentrate on the first method if you have free time; if you still don’t have it, then preference can be given to the second option, which also provides the property owner with mobility.

Possible difficulties

The difficulty in renting housing daily is the need for constant attention. It is necessary to ensure cleanliness, operating equipment, and be prepared for new residents. In addition, constant calls, showings, and concluding contracts take a lot of time.

To alleviate difficulties, you can hire workers, enter into an agreement with an agency, etc. However, you need to keep in mind that the more amenities you create for yourself, the more associated costs you should expect.

Do I need to pay taxes?

Of course, as in any other business activity, when renting out housing on a daily basis, you need to pay tax on the profit received. Currently it is 13%. To do this, you need to conduct official activities, fill out and submit accounting documentation to the relevant authorities. However, this is not only an additional expense or reduction in profit, it is also an opportunity to receive benefits. So, when you officially register your activity, your work experience will be counted, pension savings will be deducted, etc.

In addition, official activity opens up more opportunities and also protects from unnecessary troubles, which we have already discussed.

However, most of the daily housing rental activity takes place in the shade. Most landlords, in order to avoid paying taxes, do not enter into an agreement and do not officially register as entrepreneurs. And the state cannot do anything about it.

Largely because the apartment is private property and it is simply impossible to check the fact of daily rental without a good reason. In exceptional cases of serious violations or complaints from neighbors, cases of unofficial rental activity are identified. This is also facilitated by residents who tell inspectors that this is their relatives’ apartment, that they live here for free, etc.

Nevertheless, landlords are gradually realizing all the advantages of official activities. In recent years, there has been a tendency for this sector of the economy to emerge from the shadows.

Short-term rental agreement and taxes

The provision of daily accommodation services for residents requires the conclusion of a rental agreement with each subsequent tenant. A simple written form is sufficient, without any additional identification or registration:

• passport details (landlord and tenant);
• description of the subject of the transaction (address of the apartment, its characteristics);
• content of the transaction (provision by the landlord of residential premises for the tenant for short-term use and residence);
• duration of rental (how many days), time of renting out housing;
• cost of short-term rental (daily);
• total cost of renting an apartment;
• the amount of the security deposit, the conditions for its retention by the landlord;
• the procedure for transferring the apartment to the tenant (the transfer is indicated by the transfer and acceptance certificate);
• a list of the owner's property in a daily rented apartment;
• rights of the parties, their obligations;
• liability of the parties if the contractual terms are violated;
• date of conclusion, signatures of the tenant and lessor.

You should prepare a sufficient number of paired rental agreement forms, entering information about the tenant’s side when the tenant is next placed. Please note that among the terms of a short-term rental agreement, it is important to indicate daily accommodation and specify the exact dates and hours of check-in and check-out of the tenant. It is required to indicate the expected time of departure and, in a separate sentence, note the need to coordinate early or late departure (the second is subject to additional payment).

Download
the Short-Term Residential Rental Agreement Template here.
The need to pay taxes arises for the apartment owner, regardless of whether he rents out the living space for a long or short period. The income rate depends on the status of the home owner (landlord) - an individual (personal income tax 13%), an individual entrepreneur (6% “simplified tax”) or self-employed (tax 4%). Please note that when entering into a rental agreement with a legal entity, a landlord with the status of “self-employed” must pay tax at a 6% rate (the official name is professional income tax).

Failure to pay tax is subject to a fine, i.e. in addition to paying the identified tax debt, the landlord-tenant will also pay a 20-40% fine of the debt amount (40% if intentional tax evasion is proven in court).

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.