Business idea of renting an apartment by the day

 Today in the article we will talk about such business idea as short-term (daily or hourly) rental of apartments.

Building a business for renting an apartment

Free own residential property is a reliable source of income. Few will agree to lock an empty apartment without tenants for years. Naturally, the idea arises to rent out living space and earn money on it.

And in fact it is not such a complicated business. Short-term rent is more profitable than long-term, but also more troublesome. But to earn, you have to work hard.

The first stage: the analysis of the real estate market

You need to start any business with the analysis of the market. Therefore, before you look for customers, you should determine the price range. In other words, to determine how much it can cost to rent this apartment.

To make it elementary: the Internet, real estate agencies, competitors who already work in this area are the main sources of information.

The second stage: we increase the cost of renting

Here everything is simple. The better the apartment, the more expensive it is. It is logical to assume that the repair, good furniture, household appliances – this is a big plus.

But this all requires additional financial investments. But even if the apartment is simple and no frills – cleaning it is a must.

You have to leave after each resident. But this is the business.

Stage three: promotion of the business of renting an apartment

You need to promote your product on the market. It is not enough to rent an apartment. It is necessary that they would want to remove it. This will help even uncomplicated marketing moves:

• The correct advertising company (there is a good opportunity to negotiate with taxi drivers, for a fee they can distribute business cards with the offer of rent, accommodation in newspapers);

• dissemination of information on the possibility to rent accommodation among friends and acquaintances;

• contacting special agencies to help find customers and so on.

Stage four: registration of the business of renting an apartment

This is not a very pleasant stage, but it needs to be done. To study the tax legislation and formalize its activities. It is important to know that any income is taxed. Their non-payment is punishable by law.

Therefore, the treasury will have to pay:

• If the landlord is an individual – 13% until July 15. And once a year until April 30, the declaration of 3-NDLF;

• If the landlord is an individual entrepreneur, then 6% with a simplified tax system plus mandatory insurance premiums.

The concealment of income and non-payment of tax will entail the imposition of penalties.

Step five: letting the apartment to the client

If everything is done correctly, soon the result will appear, or rather, the client. All you need is to show him the apartment ready for living. To issue a lease. Get money.

Ethics of the rental business
Renting an apartment for rent, it is worth adhering to certain rules:

• housing must be clean and well maintained;

• to behave with clients need to be polite and on equal terms;

• respect confidentiality;

• not to visit the client without special need during his stay;

• provide the client with all the information necessary for comfortable use of the dwelling (such as the location of the nearest shops, transport, pharmacies, phones of delivery services, etc.).

Most likely, at first it will be difficult to fully integrate into the daily lease business scheme. Can customers seem unreliable, you can cheat with a price or accidentally find that the person who has moved down accidentally grabs your iron.

So you rent the apartment personally to the client and personally accept checking everything on the spot and nothing is broken.

If you need money for business, then take advantage of online loans: take out a loan online.
That’s all! Successful business!

22. May 2017 by Ekaterina
Categories: Business ideas | Leave a comment