Personal Experience: How to Rent Out an Apartment and Make Money for a New Life

It seems like renting out an apartment is complicated and risky, so few people dare to start their business. However, Anna didn't hesitate and opened the business of her life. We found out where she started and asked her to share her experience. The post even includes a budget with IKEA products — scroll to the end.

Anna Forostekspert Rents Apartments Daily. Runs her own blog on Instagram @apartblog

How to Start Renting Out an Apartment?

This idea came to me a long time ago: I wanted to spend more time with my child and less in the office. It was scary to take an apartment on sublease and go into debt. Surprisingly, it was a chance and downsizing that helped: when I got fired, I went to Ukraine to my grandmother and for the first time decided to rent out an apartment daily.

At the same time, war started in the Donetsk region, and refugees came to the city. My mom works as an administrator in a hotel and saw how people agreed to sleep right in the lobby on a sofa: there was no space.

So we started taking people in: we had two free apartments. We rented out dormitory spaces for just a few rubles, only to help people. We also did the laundry, ironed, and cleaned ourselves.

Now I don't regret my choice at all: I like what I do.One of Anna's Objects

Is it hard to rent out daily?

Very simple! If you don't have your own property, rent an apartment on sublease. The key is to inform the owner that the apartment will be rented out. And convince them that it's safe and legal.

You can take their apartments under management. This way, they will get more than from long-term rent. In the first few months, you'll only cover the rent — because the guest flow won't come immediately.

I was lucky: I was given six studios in nearby houses. That's when I realized I would never return to office routine work again.

Do you need to hire a designer?

I did the first renovation with my family: there was no money even for builders, let alone a designer. But now I know how to level the floor with a rule!

Now, five years later, workers are doing the renovation in the same apartment. I split it into two studios for daily rent. By the way, the floor will remain the same.

This is the advantage of an apartment over a hotel: there's always a washing machine with detergent, dishes and cleaning products on the kitchen. People want to come back: I have a steady flow of guests about 25%.

Will the budget for outfitting the apartment pay off?

There is a minimum that must be in any apartment for rent. From furniture — everything necessary, like a bed and dining table. But the filling should be maximum.

When the house is built, I will recoup the apartment worth 1.3 million rubles in a couple of years.One of Anna's Objects

Almost all decorative items I bought at IKEA. It's convenient if you don't have time to go to stores and choose. As an option, you can post an ad about renting out the apartment and buy everything needed in one day.

Kitchen: 3,884 rubles

• Tableware set MOPSIK (16 items) — 399 rubles
• Glasses for wine FORSING (6 pcs.) — 199 rubles
• Transparent cups BETITAD (4 pcs.) — 116 rubles
• White plates OFTAST (4 pcs.) — 236 rubles
• White bowls OFTAST (4 pcs.) — 196 rubles
• Transparent salad bowl KEMISK — 59 rubles
• Shower head FULLANDAD — 69 rubles
• Spork FULLANDAD — 59 rubles

• Spade FULLANDAD — 59 rubles
• Corkscrew IDEALISK — 149 rubles
• Grater IDEALISK — 119 rubles
• Chopping knives FORDOUBLLE (2 pcs.) — 279 rubles
• Wooden cutting board MAGAZIN (2 pcs.) — 399 rubles
• Frying pan STEKA — 139 rubles
• Pot SHENKA — 1,199 rubles
• Spice jars RYTAN (4 pcs.) — 119 rubles
• Trash bin FNIS — 89 rubles

Bathroom: 3,258 rubles

There are no foot towels in IKEA yet, so I had to find them elsewhere. But it's better not to use textile mats in the bathroom.

• Hand towel LEYAREN (10 pcs.) — 190 rubles
• Bath towel GAREN (10 pcs.) — 2,990 rubles

• Soap dispenser TAKKAN — 49 rubles
• Toilet brush TAKKAN — 29 rubles (fill with "Domestos" or change periodically).

Bedroom: 14,085 rubles

• Waterproof mattress protector GOKERT — 1,499 rubles
• Quilt and two pillowcases KUNGSBLOMMA (4 pcs.) — 5,196 rubles
• Bed sheet FERGOMORA (4 pcs.) — 1,596 rubles

• Blanket GRUSBLAD (2 pcs. — 1 spare) — 2,598 rubles
• Pillow ROZENSTERN (4 pcs.) — 3,196 rubles

Total: 22,000 rubles

Investments are minimal, but only if the apartment belongs to you. If you buy an apartment only for rent, it's better to split it into studios. For example, I have an apartment under management that was bought for 6 million rubles. In a year it brings in 1.4 million rubles — and that's profitable.

Recently I bought another studio for 1.3 million rubles. When the house is built, I'll recoup it in a couple of years. Some owners give me apartments bought specifically for rent under mortgage. Even after paying the loan, they still have a decent sum.

You can safely take out a mortgage if it works in your favor.

Which service to use for renting?

I use Booking and Airbnb. The first service brings in many guests, but I prefer the second one:

• Guests rarely leave inappropriate reviews, knowing that you rate them too;
• Payments are sent immediately after guest check-in;
• Guests go through verification (selfie, passport);
• Commission is lower than with Booking;
• They compensate owners for damages;
• They give good bonuses: I invited my friend and received 7,727 rubles.
  

List your ad on all services and in social media. And use the apartment's location to attract more customers.

There is a main Tinkoff office near my object. I talked to the HR manager and now they send business travelers to me willingly.

What is nearby? A clinic, an airport, a tax office? Everything works!

Negotiate mutual PR with neighboring cafes, hookah bars, beauty salons (via leaflets or business cards). It's great if you have taxi drivers as friends — "mobile" advertising, only on wheels.

You can ask for help from a more experienced neighbor-landlord with a large guest flow: he might share his clients with you.

There was no fear, I was ready to accept small losses, but it didn't happen: when renting an apartment daily, guests come only for a night.

By the way, many aggregator websites fully cover losses with insurance. Once my chair leg broke and Airbnb covered it all. But if you work with Cian or Avito — take a deposit.

Why fight competitors? Let them be. Read their reviews and just ignore the shortcomings.

Useful Tip at the End

Try to automate everything. Don't wait for guests who check in at night: come up with remote access to the apartment (electronic locks where you can open the door via a phone app).

If you rent an apartment for a period, hide all personal items in places where guests won't find them. For example, close them in a wardrobe on the balcony or take them to friends. And trust guests you're confident in.

Cleanliness, guest comfort, and friendliness are the main criteria of our work. You shouldn't enter this business only for profit. After all, it's called hospitality for a reason.