How do they earn from apartments? Apartment lease agreement

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, for many people, renting an apartment is a profitable business that is able to provide a relatively comfortable existence. More and more Russians are considering renting out housing as an additional source of income. However, not everything is so simple.

Those who are interested in the question of how they make money on apartments should understand that this area of business has its own "pitfalls", so it is very important to approach the matter competently! Otherwise, you can not only not get profits, but also suffer financially.

Experts recommend engaging in rental business for those who own two or more residential properties.

Do you want to know how to make money on apartments with minimal risk? It is very important to adhere to certain rules here. Let's consider them in more detail.

Adequately value rental housing

Today, many landlords consider it normal for their apartments to have no clients for several months. The reason for this lies in the fact that they do not want to give in to potenti altenants a couple of thousand rubles. As a result, their mansions are empty, and they do not receive money for them. It is very important to give discounts to customers, especially if the housing is not located in the city center and belongs to the old fund.

Renovation investment

If you are interested in how they make money from apartments, you should remember that you need to regularly repair the premises that you are going to rent.

Believe me, the tenant is ready to pay good money for new wallpaper and laminate in the apartment. At the same time, he will give 10,000 rubles for a mansion with cosmetic repairs, 15,000 rubles for a capital repair, and 20,000 rubles for a European-style renovation. These figures are, of course, conditional. Again, the amount of rent is affected by the fact in which category the housing belongs. For example, if you make a simple repair in Khrushchev, it will increase its cost by about 5%. In a situation where we are talking about European planning in business class apartments, their owner can safely ask for a rent that exceeds the market price by 20%. Well, if the object belongs to the category of luxury housing, in which the owners have recently made repairs according to an exclusive design project, then they have the right to request twice the market value of the rent. However, in the latter case, one should not overestimate the amount, since the demand for such apartments is limited.

Risks

Those who want to know how they make money in apartments should remember that this business area is associated with certain risks. The first one impliescausing damage to your property.

That is why you need to check at least once a month what condition your apartment is in, otherwise in six months you will have to make repairs, and at your own expense, since tenants can, sensing something was wrong, quickly retreat and disappear into unknown direction. Moreover, it is not uncommon for tenants to cause damage to their neighbors by their actions, and in the event of a flood or fire, all material claims will be made against you. Remember: even if the apartment lease agreement contains a condition that the tenants are obliged to compensate for the damage caused, it will be very difficult to achieve this from them. Unfortunately, this is exactly what happens in practice.

When renting an apartment, also mentally prepare for the fact that tenants do not always pay rent on time. In addition, there are often cases when the apartment is used not for living, but for illegal activities, which also does not inspire optimism for landlords.

Naturally, all of the above risks must be foreseen on paper. Always sign a rental agreement with tenants, as renting apartments as a business is quite a troublesome business.

A significant part of landlords is not worried about the loss of property due to the fault of the tenant, because before signing the contract they take from them a deposit equal to the amount of payment per month. Of course, a deposit is not a guarantee.your financial salvation, since often the damage is caused by 2,000 dollars, while you secured yourself by only 25,000 rubles. One way or another, long-term rental apartments must necessarily provide for this important interim measure.

How can risks be reduced?

It makes sense for the owner of the apartment to think about insuring the property that acts as a rental object. In some cases, this allows you to minimize the material risks that arise as a result of a fire, explosion, flooding, occurring through the fault of the tenants. Often, insurance compensates for damage from theft and damage to property. Also, the insurance company will cover the costs associated with repairing your neighbors' apartment if the tenants, for example, flooded it.

One way or another, property insurance is also not a panacea, since often the damage caused is not legally correlated with any insured event.

How to increase profits?

Many people ask the question: "How to make the most of real estate"? Of course, renting apartments for a long time is a fixed and stable income. But! This business can bring even more money. Everything is very simple. You can rent out housing for a day or convert it to the category of commercial real estate.

Of course, there is competition in the daily rental business, but you can still find your niche in the market. However, when renting a room for a day or two, be prepared for the fact that the requirements for the condition of the apartmenttenants will be the highest. You will need to ensure maximum cleanliness and comfort. Naturally, in this regard, you will incur additional costs. Plus, you must take care of finding customers in advance so that their influx is stable. This will help advertising your services.

Taxes

When organizing a rental business, do not forget that you will have to give part of your profits to the state. At the same time, the attention of the fiscal authorities to persons living exclusively on passive income has recently increased. Please note that late submission of a tax return will result in a fine, so it is better not to take risks and be a law-abiding businessman.