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 her to share her experience. The post even includes a shopping list with IKEA items — scroll to the end.

Anna Forostekspert rents apartments daily. She runs her 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 layoff 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 room.

So we started taking people in: we had two free apartments. We rented bunk beds 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 love what I do.

One of Anna's properties

Is it hard to rent daily?

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

You can manage their apartment for them. That way, they get more than from long-term rent. In the first few months, you will only cover rent — because the flow of guests won't come immediately.

I was lucky: I was given six studios in nearby houses right away. Then 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 wasn't enough money even for builders, let alone a designer. But now I know how to level a floor with a rule!

Now, five years later, the renovation in this same apartment is done by workers. I divide it into two studios for daily rent. By the way, the floor will stay the same.

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

Will the budget for apartment setup pay off?

There's a minimum that any apartment for rent should have. In terms of furniture, everything necessary like a bed and dining table. But the filling should be maximum.

When the house is completed, I will pay off the apartment worth 1.3 million rubles in a couple of years.

One of Anna's properties

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

Kitchen: 3,884 rubles

• Tableware MOPSIK (16 pieces) — 399 rubles
• Wine glasses FORSINKTING (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
• Broom FULLANDAD — 69 rubles
• Spork FULLANDAD — 59 rubles

• Spade FULLANDAD — 59 rubles
• Corkscrew IDEALISK — 149 rubles
• Grater IDEALISK — 119 rubles
• Sharpener FORDOBELA (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

One of Anna's properties

Bathroom: 3,258 rubles

There are no foot towels at IKEA yet, so I had to look for 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 change periodically).

Bedroom: 14,085 rubles

• Waterproof mattress protector GOKERT — 1,499 rubles
• Quilt and two pillowcases KUNGSBLAD (4 pcs.) — 5,196 rubles
• Sheet FERGMO (4 pcs.) — 1,596 rubles

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

One of Anna's properties

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 in 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 completed, I'll pay it off in a couple of years. Some owners give me apartments bought specifically for rent under mortgage. Even after paying off the loan, they still have a good amount left.

You can safely take on mortgage if it works for you.

Which service to use to rent?

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

• Guests rarely leave inadmissible 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;
• Compensate owners for damage;
• Give good bonuses: I invited a friend and got 7,727 rubles.
  

One of Anna's properties

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

There's a main Tinkoff office near my property. I talked to the HR manager and now they send their business travelers to me willingly.

What's nearby? A clinic, airport, tax office? Everything works!

Arrange mutual promotion with neighboring cafes, hookah lounges, beauty salons (via flyers or business cards). It's great if you know taxi drivers — "mobile" advertising, just on wheels.

You can ask for help from a more experienced neighbor-landlord with a bigger flow of guests: maybe they’ll share clients with you.

How to Deal with Fears and Competitors?

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

By the way, many aggregator sites fully cover losses with their 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 'brush it off' the drawbacks.

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 of time, hide all personal items in places where they won’t be found. For example, close them in a closet on the balcony or take them to friends. And trust people who will receive guests.

Cleanliness, guest comfort, and friendliness — the main criteria of our work. Don’t enter this business just for profit. After all, it’s called hospitality for a reason.

One of Anna's properties