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

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

Anna Forostekspert rents apartments by the day. She runs her blog on Instagram @apartblog

How to start renting 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 in sublease and end up in debt. Surprisingly, it was a chance and layoff that helped: when I was fired, I went to Ukraine to my grandmother and for the first time decided to rent an apartment by the day.

At the same time, war started in 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 the sofa: there was no space.

So we started taking people in: we had two free apartments. We rented bunk beds for just a few rubles, just 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.

Is it hard to rent by the day?

Very easy! If you don't have your own property, rent an apartment in sublease. The main thing is to inform the owner that the apartment will be rented out. And convince him that it's safe and legal.

You can take his apartment under management. That way, he gets more than from a long-term lease. In the first few months, you'll only cover rent — because guests will not come immediately.

I was lucky: I was given six studios in nearby houses. At that time, I realized I would never return to office routine work again.

Do you need to hire a designer?

The first renovation I did 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, after five years, the renovation of this same apartment is done by workers. I divide it into two studios for daily rentals. By the way, the floor will remain the same.

That's the advantage of an apartment over a hotel: there's always detergent in the washing machine, dishes and cleaning supplies on the kitchen. People want to come back: I have a constant stream of guests about 25%.

Will the budget for outfitting the apartment pay off?

There's a minimum that must be in any apartment for rent. Furniture-wise — all the essentials like a bed and dining table. But the fill should be as full as possible.

When the house is completed, I'll recover the apartment's cost of 1.3 million rubles in a couple of years.

Almost all the decor items I bought in IKEA. It's convenient if you don't have time to go shopping and choose. As an alternative, you can post an ad for renting an apartment and buy everything needed in one day.

Kitchen: 3,884 rubles

• Dinner utensils MOPSING (16 items) — 399 rubles
• Wine glasses FORCINGTING (6 pcs.) — 199 rubles
• Transparent cups BETITAD (4 pcs.) — 116 rubles
• White plates OFSTAST (4 pcs.) — 236 rubles
• White bowls OFSTAST (4 pcs.) — 196 rubles
• Transparent salad bowl KEMISK — 59 rubles
• Broom FULLANDAD — 69 rubles
• Spork FULLANDAD — 59 rubles

• Spade FULLANDAD — 59 rubles
• Corkscrew IDEALISK — 149 rubles
• Grater IDEALISK — 119 rubles
• Chopping knives FORDOUBBELA (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
• Dustbin 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 fabric mats in the bathroom.

• Hand towels LEYAREN (10 pcs.) — 190 rubles
• Bath towels GEREN (10 pcs.) — 2,990 rubles

• Soap dispenser TAKKAN — 49 rubles
• Toilet brush TAKKAN — 29 rubles (fill with 'Domestos', or better yet, change periodically).

Bedroom: 14,085 rubles

• Waterproof mattress protector GOKERT — 1,499 rubles
• Quilt and two pillowcases KUNGSBLOMMA (4 pcs.) — 5,196 rubles
• Bed sheets 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 that's only if the apartment belongs to you. If you buy an apartment just for renting it out, it's better to divide 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 building is completed, I'll recover it in a couple of years. Some owners give me apartments bought specifically for rent in mortgage. Even after paying off the loan, they still have a good sum left.

You can feel safe with mortgages if they work for you.

Which service should you use to rent?

I use Booking and Airbnb. The first service brings many guests, but I like Airbnb better:

• guests rarely leave inadmissible reviews, knowing that you also rate them;
• payment is sent immediately after guest check-in;
• guests undergo verification (selfie, passport);
• commission is lower than with Booking;
• they compensate owners for damage;
• they give good bonuses: I invited my friend and received 7,727 rubles.
  

List your ad on all services and social media. Use the location of your apartment to attract more customers.

There's the main office of Tinkoff near my property. I talked to the HR manager, and now they send business travelers to me with pleasure.

What's nearby? A clinic, an airport, a tax office? Anything works!

Arrange mutual PR with neighboring cafes, hookah bars, beauty salons (via leaflets or business cards). It's great if you know taxi drivers — 'moving' advertising, only on wheels.

You can ask for help from a more experienced neighbor who is an apartment owner with many guests: he might share customers with you.

How to deal with fears and competition?

There was no fear, I was ready to bear small losses, but it didn't happen: when renting an apartment by the day, guests come just to stay overnight.

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

Why fight competition? Let them be. Read their reviews and 'file away' the drawbacks.

Useful tip at the end

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

If renting for a period, remove all personal items to places where they can't be found. For example, store them in a wardrobe on the balcony or take them to friends. And trust guests you're confident about.

Cleanliness, guest comfort, and friendliness are the main criteria of our work. It's not worth entering this business just for profit. After all, it's called hospitality for a reason.