How do they earn on apartments? The contract of apartment rent

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 the surrender of housing as an additional source of income. However, not all so simple.

Those who are interested in the question of how to earn on apartments, should understand that in this area of entrepreneurship there are their "pitfalls", so it is very important to get right to the matter! Otherwise, you can not only not receive profits, but also materially suffer.

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

Do you want to know how to earn in apartments with minimal risks? It is very important to follow certain rules here. Let us consider them in more detail.

Adequately evaluate the rental housing

Today, many landlords consider the norm when their apartments for several months are not customers. The reason for this lies in the fact that they do not want to yield to potential tenants a couple of thousand rubles. As a result, their mansions are empty, and they do not get money for them. It is very important to make a discount to customers, especially if the accommodation is not located in the city center and belongs to the old fund.

Investments in repair

If you are interested in how you earn on apartments, you should remember that you need to regularly repair the premises that you are going to rent.

Believe me, for the new wallpaper and laminate in the apartment, the tenant is ready to pay good money. At the same time for the mansions with cosmetic repairs, he will give 10 000 rubles, with the capital - 15 000 rubles, well, with the renovation - all 20 000 rubles. These figures are, of course, conditional. Again, the amount of rent is affected by the fact, to which category housing refers. For example, if you do a simple repair in Khrushchev, then it will increase its price by about 5%. In the situation, if it is a question of europlanning in business-class apartments, their owner can safely ask for the amount of rent that exceeds by 20% the market price. Well, if an object belongs to the category of elite housing, in which the owners recently made repairs on an exclusive design project, they are entitled to request twice the market value of the rent. However, in the latter case, the amount should not be overstated, since the demand for such apartments is limited.

Risks

Those who want to know how to make money on apartments, should remember that this business area entails certain risks. The first one involves harming your property.

That's why you need to check at least once a month what the state of your apartment is, otherwise six months later you will have to do repairs at your own expense, since tenants may, after feeling unwell, quickly retire and disappear in an unknown direction. Moreover, it is not uncommon for tenants to inflict losses on their neighbors by their actions, and in case of flooding or fire all material claims will be presented to you. Remember: even if the lease of the apartment will contain a condition that the harm caused must be compensated by tenants, it will be very difficult to achieve this from them. Unfortunately, in practice this is the case.

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

Naturally, all of the above risks must be envisaged on paper. Always conclude with tenants a contract for hiring a room, because 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, since they take a pledge amount equal to the monthly payment amount before signing the contract. Of course, a pledge is not a guarantee of your financial salvation, since often the damage is caused by 2 000 dollars, while you have secured yourself for only 25 000 rubles. Either way, renting an apartment for a long period should necessarily provide for this important security measure.

How can you reduce risks?

The owner of the apartment makes sense to think about insurance of the property, which acts as a rental object. In a number of cases, this allows to minimize the material risks that arise as a result of fire, explosion, flooding, caused by the fault of tenants. Often, insurance compensates for damage from theft and property damage. Also, the insurance company will bear the costs associated with repairing your neighbors apartment, if its tenants, for example, flooded.

Anyway, property insurance is also not a panacea for troubles, as often the damage caused is not legally correlated with any insurance event.

How to increase profits?

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

Of course, there is a competition in the daily lease business, but you still have time to occupy your niche in the market. However, handing over the premises for a day or two, be prepared for the fact that the requirements for the condition of the tenants' apartment will be the highest. You will need to ensure maximum cleanliness and comfort. Naturally, in connection with this you will incur additional costs. Plus, you should take care of finding clients in advance so that their influx is stable. This will help advertise 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 fiscal authorities to people living exclusively on passive income has recently been increasing. Please note that for a delay in the submission of a tax return, you face a fine, so it's better not to risk and be a law-abiding businessman.