Turning an apartment to rent? So whether it is profitable? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
Daily rent of apartments may bring the owner in...What good apartments for rentDaily rent of apartments may bring the owner two times more revenue compared to long-term lease.But risk is rife: entrepreneurs admit that after some of the tenants they have to glue a new Wallpaper, to restore broken relationships with neighbors, if not to do cosmetic repairs. Try to figure out today how much you can earn on daily rent in the Ukrainian capital and is it worth the risk.Hotel in miniatureIn most countries of the world apartments for sale for the purpose of leasing allows the investor to receive a guaranteed income higher than interest on Bank deposits. Pays such housing for 8-10 years. In our country situation is unique: the property prices in the capital are so high that when renting an average one-bedroom apartments, the investment will be repaid over 15-18 years. We are talking about apartment worth 130 thousand not in the most attractive district of the capital, which you can rent for $600 per month. At the same time the most enterprising investor has long mastered the best way to double your income. We are talking about the rent, which in the capital is extremely popular.Boris Yeghiazaryan, a member of the Association of real estate specialists of Ukraine, and a number of other experts attribute the popularity of this service with the lack of development of hotel business and high prices. And according to the company Horwath Consulting Ukraine only 3% of hotels in Kiev complies with international standards. In fact, mid-priced hotels in the capital are almost there, only luxury VIP apartments and hostels with questionable level of service and at least questionable tenants. Cozy apartments rented daily while playing the role of the Golden mean. To find such housing is very easy, just open the classifieds or visit any of the Metropolitan stations. The price is formed according to the standard scheme - depending on the distance of housing from the city center, number of rooms and quality of the apartment. "The most popular cheap one-bedroom apartments that can be rented for $40-60 a day" - says Sergey Kostenko, an independent real estate agent, But even, despite not being very good location, old furniture and cheap interior trim, for most clients this is a more preferable option than a bed in a Dorm. These apartments are located in Svyatoshinsky, Dnieper and Darnitskiy areas, as well as in Troyeshchina, where you can rent a house for less.The cost of the expensive apartment with quality repairs on Solomenka, Shevchenko and Pechersk district, as well as at the hem can reach $100-350 per day and above. These apartments, according to experts mainly wealthy people for business and personal meetings, or at least respectable guests from big cities, coming to the capital for a few days on business. Another advantage of renting is the ability to place in it a few people. If in many hotels there is a strict rule - in double room no more than two people, the Studio apartment is quite possible to settle for a few days and fives.Profit aboveAccording to expert estimates, the average profit of renting flats daily rental two times higher than for long-term rent. After all, if a Studio apartment on the Left Bank in not the most prestigious place in the long term you can rent out for $600 per month for daily delivery for $50 per day, the landlord will receive the same amount in just 12 days. Not surprisingly, the daily leasing has become a good business for entrepreneurs and real estate agencies. The most popular scheme - apartment for rent long term with a purpose to pass rent - a so-called sublease. The mediator, as a rule, rents several apartments. The optimal number for a private person - 6-8. Then these apartments retake day. Customers looking for ads, as well as at railway stations and the airport. While it is possible to show a potential renter several options.Do not disdain such occupation and agencies that provide Ukrainian rentier wide range of services. For example, if the owner does not wish to puzzle myself in search of tenants, he can rent the apartment to the Agency for a fixed amount (usually a bit less than the market). The Agency looks for and monitors tenants. Thus, if you specify that you don't mind that housing was rented by the day, the income will be higher."Not every owner agrees to rent the change - says Alexey Sagai, entrepreneur in the field of rent. Mostly agree owners of substandard housing, with old furniture and without appliances. In this case, the owner offered additional compensation for agreeing to daily surrender". At the same time the owners of elite housing if a tenant, we prefer to do it without intermediaries or through larger agencies. "If the apartment is recently made high-quality repairs, the owners usually do not want to hear that someone will retake their apartment," says Alex.PitfallsDespite the financial attractiveness, renting an apartment for daily rent is not without some serious risks. First, in a long-term lease, the apartment owner can count on a guaranteed income for a certain period of time. To provide a constant flow of tenants on a day very hard. Even if the apartment for 20 days in a month, this is considered a very good result. And it may be associated not only with customers, but also the preparation of housing "commodity" mean before the arrival of the next tenants. There are many cases when the apartment is left not only in disarray, but with a damaged furniture or broken utensils. Of course, to recover damages to the owner is necessary at own expense - because of the formal agreement for short-term rental are extremely rare.According to the landlord, the apartment is located in Solomenskiy district of Kiev, about a few times in six months, get clients, after which you have to change some pieces of furniture or Wallpaper glue. This entails not only financial costs, but also the downtime of the apartment at the time of such repairs. Especially landlords don't like customers who are renting to organize a noisy event like a birthday or party.To protect yourself from serious risks, experts advise owners to take only insured apartment. Moreover, to protect an insurance policy is not only the property of the apartment, but also their civil liability to third parties. After all, nobody knows what will get done in a day unscrupulous tenant. This may well be a fire associated with careless handling of electrical appliances or the flood because of unclosed tap in the bathroom. In the latter case will have to be repaired not only his apartment but also housing affected neighbours.Alternatively, the owner of an apartment who wants to get the maximum profit without too much hassle, can charge search and control tenants specialized real estate Agency. After inspection of the apartment, the Agency decides on a fixed amount that can obtain the landlord if he will agree to the fact that accommodations were rented by the day. The amount pledged and the profits of the Agency, so the rent will be less than could be the case independent search of tenants, but higher than for long-term rent. In addition, such an Agency can independently complete a rented apartment bedding, appliances and bathroom accessories, and at the same time and perform cleaning before the arrival of the next tenant.Is it worth to work legally?The sad statistics, but most Kiev apartments are rented without payment of taxes and contracts, that is actually illegal. By the way, many of the Treaty that concluded the landlord and the landlord often does not have legal force, as is incorrectly stated or certified by a notary. Because the notary who notarizes the contract, is obliged to provide information on the amount of payments to the tax office.
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