How to make money by renting an apartment: all the ways

Renting apartments is a great way to make money. It is a stable source of income for those who own one or more apartments. Renting apartments per day can be a lucrative business.

A rental apartment can be rented for daily or long-term. Each option has its advantages and disadvantages. Tenants are always changing when they pay a daily rental. Tenants who rent an apartment for a long period of time live in the same way.

Daily rental of accommodation

The area of the accommodation is a key factor in rental income. You can charge more for larger areas. For a one-room apartment, the cost is 150 dollars per day and for a four-room apartment, it’s 2,000 dollars. It all depends on where you live.

The daily rental of the housing stock will see a mix of tourists, business travelers, part-time students, tourists, and local guests. Sometimes, the apartment is rented for a party or vacation. The landlord can decide whether to permit these tenants to enter or not.

It is important to remember that parties and holidays shouldn’t interfere with neighbors if the housing is in an apartment building.

You can rent a little more while on vacation.

Tips for generating extra income from renting an apartment during the day

  1. Tenant tolerance (properly executed documents will ensure landlord safety)
  2. Second-hand furniture can be purchased for your apartment (on Ikea bulletin boards).
  3. The best way to equip your living space with all the household appliances you need is to do so in a well-equipped manner.
  4. Please indicate in the delivery notice the dimensions of your living space, whether you have appliances, furniture, and the height (floor) of the location. Also, let us know the distance to public transport stops.
  5. You should place the ad on several sites, including websites, bulletin boards, and wall-and-post ads.
  6. Compare your ads to those of competitors and see the differences in how they are structured.
  7. The price rise will also be affected by large-scale events held in the city.
Renting out living space daily is a very profitable business. This type of business brings in the highest profits. As with any business, there are difficulties. The number of customers fluctuates according to the season.

A house rented for a day is not considered passive income. Owners must work hard: advertise their business, call cleaning services, monitor the condition of the house, and keep it clean.

In order to start receiving daily rent, you should register an IP (sole proprietorship) to pay taxes. You do not have to certify a rental agreement if you rent an apartment per day. All you need is to sign it.

If you are a registered individual entrepreneur, you pay a fixed tax once per month. All income goes to the owner.

A monthly rental is more affordable than renting an apartment daily. This is because the apartment wears out much faster than a monthly rental. You will need to make cosmetic repairs at least once per year.

After calculating all costs, a daily rental unit can bring in around eight to ten percent of your monthly income. This is a decent amount. If the owner owns multiple apartments, the income will increase accordingly.

earn money by renting apartments

Earn money by renting out your property monthly

Rental income is calculated monthly according to the formula: the monthly rental price is multiplied by twelve, fewer taxes. Of course, it also takes into account the cost of living space at the time of purchase and additional investments.

It is more profitable to buy two one-room apartments or two two-room apartments in popular places or where there are few offers for rent. The fastest pays off.

For example, if the cost of an apartment in Moscow is 50 thousand dollars, then renting it will pay off in about 6 years with a rent of at least 1,500 dollars. The income in this case will be about ten percent.

Important factors that affect the cost of rent

  • is there a metro or other means of transport nearby
  • what is the condition of the apartment (new, renovated)
  • how many beds
  • what kind of furniture
  • the size of the pieces.

Beginning of the rental of the house

The vast majority of rental housing offers concern small T1 or T2. Before renting housing, you need to make it look decent, but everything that should be in a modern apartment.

This refers to the presence of the necessary equipment, utensils, furniture, television and other conveniences. The more services the owner offers, the higher the rental price can be.

Search for tenants

If you do not want to pay real estate agencies, you can place an advertisement for renting an apartment on the sites concerned. It’s Avito, Irr, Domofond and others like that. You just have to go on the Internet, in the search bar to mark: housing rental ads. The results won’t keep you waiting. It is also important to write an ad correctly, indicating all the advantages of your offer.

Administrative formalities and payment of taxes

In order to protect themselves, the owner is obliged to pay attention to the correct drafting of the rental contract, indicating all the important points: the price, the duration of the rental of the apartment, the personal details of the parties, and their obligations and rights.

The contract should also include information about when the landlord may visit the accommodation, how the contract can be ended, and the amount of any fines if the landlord causes damage to their property.

The property is described in the appendix. A lawyer can help you draft a document to ensure that you are aware of all the details.

It is crucial to arrange the payment of taxes immediately. Hidden income can result in a heavy penalty and a fine.

The apartment owner decides whether to pay a daily rent or provide housing for a longer period. This is a lucrative business that comes with its own risks.

You can ask us in the comments if you have questions about renting apartments. We’ll be happy to answer your questions.