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 own business. However, Anna didn't hesitate and opened a business that became her life's passion. 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. 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 a flat for subletting and go into debt. Ironically, fate and downsizing helped: when I was fired, I went to Ukraine to live with my grandmother and for the first time decided to rent an apartment daily.

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

So we started taking people in: we had two free apartments. We rented beds for just a few rubles, only to help people. We also did laundry, ironing and cleaning ourselves.

Now I don't regret my choice at all: I like what I do.

One of Anna's properties

Is it hard to rent daily?

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

You can manage their apartment for them. This way, they get more than from long-term renting. In the first few months, you will only cover rent — because guest traffic 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.

Do you need to hire a designer?

I did the first renovation with my family: I didn’t even have money for builders, let alone a designer. But now I know how to level the floor with a rule!

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

This is an advantage of renting an apartment over a hotel: there’s always laundry detergent, dishes and cleaning supplies on the kitchen. People want to come back here: I have a constant flow of guests at about 25%.

Will the budget for apartment setup pay off?

There is a minimum that every apartment for rent must have. For furniture — all the essentials like a bed and dining table. But the decoration should be as full as possible.

When the building is finished, I’ll 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 choose. As an alternative, you can post an ad for renting the apartment and buy everything in one day.

Kitchen: 3,884 rubles

• Tableware MOPSING (16 items) — 399 rubles
• Glasses for wine FORCINGTING (6 pcs.) — 199 rubles
• Transparent cups BETITAD (4 pcs.) — 116 rubles
• White plates OUTFAST (4 pcs.) — 236 rubles
• White bowls OUTFAST (4 pcs.) — 196 rubles
• Transparent salad bowl KEMISK — 59 rubles
• Broom FULLANDAD — 69 rubles
• Fork 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 SHOP (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 in IKEA, so I had to look elsewhere. But it’s better not to use fabric mats in the bathroom.

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

• Soap dispenser TAKKAN — 49 rubles
• Toilet brush TAKKAN — 29 rubles (fill with 'Domestos', or better yet, replace 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 backup) — 2,598 rubles
• Pillow ROZENSTERN (4 pcs.) — 3,196 rubles

One of Anna's properties

TOTAL: 22,000 rubles

Investments are minimal, but only if the apartment belongs to you. If you buy an apartment just for renting it out, it’s better to split it into studios. For example, I have a flat 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 building is finished, I’ll pay it off in a couple of years. Some owners give me apartments bought specifically for rental under mortgage. Even after paying the loan, they still have a decent sum left.

You don’t need to fear mortgage if it works in your favor.

Which service to use for renting?

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

• Guests rarely leave inappropriate reviews, knowing that you rate them too;
• Payment is sent immediately after guest check-in;
• Guests go through verification (selfie, passport);
• Commission is lower than with Booking;
• Covers damages to property owners;
• Give good bonuses: I invited my friend and got 7,727 rubles.
  

One of Anna's properties

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

There is the main Tinkoff office near my property. I talked to HR management and now they send business travelers here with pleasure.

What’s nearby? A clinic, airport, tax office? Anything will work!

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

You can ask for help from more experienced neighbors who rent apartments with a high guest flow: maybe they’ll share customers with you.

How to deal with fears and competitors?

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

By the way, many aggregator sites fully cover losses with insurance. Once my chair’s base 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.

Final useful tip

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, close them in a wardrobe on the balcony or take to friends. And trust guests you're sure about.

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

One of Anna's properties