Your own house for rent. How to rent out a country house correctly. How to rent out a private house, cottage, dacha
The most enterprising residents of big cities and resort areas, small villages and suburban communities make money by renting out their houses. Many of us think that this type of business cannot be profitable. But are we right? This is a good way to earn money in a very short time and without financial expenses. But it is also important to remember that here, as in any other type of business, there are risks and pitfalls. Let's figure it out.
We are looking for a tenant
You can go one of two ways - use the help of an agency or search on your own.
Option one . Should I contact the agency or not? Is it profitable? These are common questions to which it is difficult to find definite answers in the Yes/No format. Yes, the agency will quickly begin searching for clients and will also help you conclude a hiring agreement. But you shouldn’t trust the first company you come across. Try to choose a reputable organization with impressive work experience and a well-deserved reputation. Advice from friends and acquaintances and reviews on the Internet will help you in your search.
You will need to pay for the agency’s services, and the amount will be considerable. Be sure to read all the possible expenses specified in the contract with the agency, and only then sign.
The benefit of such cooperation lies in the rapid search for several candidates at once. A possible disadvantage is the need for high fees for such services.
Option two . You can search for tenants yourself. The ad can be submitted to newspapers and television, posted on the Internet or on billboards. As a rule, one of these options is ineffective, so it is better to resort to several at once. As a result, you will end up with the same amount that the agency may request. There will be 10 times more worries.
There is no need to indicate the address of the house in advertisements. It is provided directly to those clients who are interested in the offer and want to inspect the property. It's better to limit yourself to a phone number.
Legal side
Whether you rent out a private house yourself or hire specialists, in any case you will need to conclude an agreement. If this is not a seasonal building, sign up for a one-year agreement. Be sure to describe all items in the premises, their appearance and cost. You can even take a photo of the interior and attach the photo to the contract.
Distribute payments. It is important to sort out the obligations of each party. For example, you can agree on who will do the following:
- Transfer of funds to the board (quarterly village contributions);
- payment of bills for gas, electricity, Internet;
- garbage removal;
- mowing the lawn;
- snow removal.
Agree on the amount that will go towards the security deposit. This refers to the amount that the landlord will receive if the tenant decides to leave the house before the date specified in the contract. The deposit is not refundable if the furniture is damaged, broken or smashed. This is a kind of insurance against escaping from the crime scene.
The tenant, for his part, has every right to receive all documents (or copies thereof) indicating that the landlord is the owner of the building or has the right to dispose of it.
There are several unwritten rules that will help you deliver the building as profitably as possible, while saving your time. Check prices in your area. To do this, just look at websites, advertisements in the newspaper or on television. Set an amount for yourself in advance, as well as a threshold to which you can afford to lower it.
When setting your price, consider the following factors:
- Distance from the city;
- location area;
- new building/old construction
- road condition;
- potential neighbors;
- presence/absence of security;
- infrastructure of the place (school, kindergarten, shops, sports grounds, pharmacies);
- availability of furniture and household appliances;
- high-quality repairs, cosmetic or completely absent;
- sewerage, hot water;
- garden or vegetable garden on the site.
If you are renting out not a small house, but a luxury cottage, work only through an agency. The rental amount will reach several thousand dollars, so it is much more profitable to work with specialists rather than looking for clients on your own. Often such cases end in theft and deception.
Warn new residents that you will be visiting from time to time. This is necessary to make sure that everything is in order with your home and property. By the way, you have every right to do this. Decide on deadlines. This can be a short period (from a month to six months), a long period (for a year with the possibility of continuing the agreement), for several days (holidays).
Always draw up an agreement, even if the new tenants seem nice and conscientious to you. It will protect you from fraud. The document itself contains all information about the employers (registration, passport details, telephone numbers). For yourself, you can additionally ask about the place of work in order to double-check this information later.
Clean your home before showing it to ensure it makes a good impression on future residents. Show that this is a clean and safe place for families with children.
Always turn off your landline if you have one. In most cases, tenants leave unpaid bills for long-distance calls. Explain this by saying that you don’t live here permanently and don’t use a landline phone because you prefer a mobile phone.
Taxes
After completing and signing the agreement, contact the tax authorities in your area. You must submit a copy of the agreement. You will be charged income tax of 13% of the amount.
Today, many people do not notify the tax office that they are engaged in such a small business. If this becomes known, the landlord is subject to a large fine, after which he is forced to pay the tax.
Associated risks
The biggest risk is damage to the rental home. This happens after weddings, birthdays, corporate parties and other various celebrations. In addition, damage can be caused by a family living with small children, especially if the furnishings in the building are expensive (TVs, aquariums, swimming pools, etc.)
To avoid troubles, draw up an act of acceptance and transfer of the building and all property in it. You can prescribe all penalties in advance, providing residents with a price list for even the smallest shortcomings.
Please note that quite often such a business brings not only profit, but also hassle. You just need to adhere to certain rules and instructions that will help prevent risks and troubles from occurring. That's when the business will become successful.
Renting houses as a business is a long-tested option for earning income for residents of areas where only renting residential or commercial real estate can bring profit. Many doubt that this type can actively generate real income, but in fact everything is more than possible. This is a great way to earn quite a large sum in a short time. But, of course, there are some pitfalls.
- Step-by-step plan for renting out a house
- Search for a tenant
- How much can you earn
- How much money do you need to start a business?
- What equipment to choose to equip your home
- What is the OKVED code for a rental housing business?
- What documents are needed to open a business?
- Which tax system to choose
- Do I need permission to open?
- Rental sales technology
- Registration of a lease agreement
Step-by-step plan for renting out a house
Search for a tenant
First, you need to find a tenant. A specialized agency can help with this, but you may have to search for a tenant yourself. Most people who have been working in the real estate market for a long time prefer to cooperate with agencies. You need to choose an organization with a good reputation and positive reviews; you should not trust the first company you come across from the yellow pages. The only disadvantage of working with an agency is the need to pay for the services provided to find a tenant.
In cases where we are talking about cooperation with well-known and large agencies, the cost of their services increases in proportion to their fame. Therefore, it will be beneficial for landlords to use such services only if they simultaneously search for several tenants for different properties.
Independent search for tenants is limited to the dissemination of information about the property in various sources: on television, in the press, on the Internet and even on billboards. Selecting and using only one source is ineffective, so you should find the ideal combination of information sources that can attract the maximum number of interested people. It should be taken into account that the costs of implementing an independent search for tenants, although often less than when collaborating with an agency, will be many times more troublesome.
How much can you earn
Daily rental of housing usually brings great benefits. Because the house is rented by a company for a day or two in order to celebrate this or that event. And they are willing to pay higher rents than long-term tenants. But renting for long periods allows you to minimize time costs and effort, guarantee a stable income, subject to the integrity of clients.
For example, from an elite class cottage with an area of 100 square meters, you can receive from 65 to 80 thousand per month. It all depends on the equipment, renovation, area and location of the house. If the house undergoes cosmetic renovations, the rental price will be up to 50 thousand per month.
How much money do you need to start a business?
If you have your own home, you will need money for repairs and equipment. The amount will depend on the condition of the housing, the level of construction work and the equipment with household appliances and furniture. Investments in repairs can range from 30-60 thousand, up to one million rubles and more.
What equipment to choose to equip your home
Don't skimp on household appliances. It must be certified, reliable and wear-resistant.
What is the OKVED code for a rental housing business?
Basic OKVED code 70.20 - Renting your own real estate. Namely, a clause such as 70.20.1 − Renting out your own residential real estate, which will include the rental of apartment buildings and other residential buildings, apartments, etc. Please note that these codes do not apply to the hotel industry.
What documents are needed to open a business?
It depends on how you set up your business. If, as an individual entrepreneur, then the standard set: passport, application for state registration, receipt for payment of state duty, copy of the TIN certificate. But there is no mandatory registration required to rent out housing.
Which tax system to choose
If you are just for physical. person (resident), the tax rate for renting out an apartment is 13% of income. For an individual entrepreneur, the tax on renting out an apartment is 6%. If you are an individual entrepreneur, keep in mind that you will still have to pay for certain insurances.
Do I need permission to open?
You do not need any permits or licenses to rent out your own living space.
Rental sales technology
Place rental advertisements both online and in print media. The living space must be presentable, taking into account the wishes of potential clients. Equipped houses with decent repairs are more expensive. Calculate rental cost. That is, divide the price of living space by one hundred. Moreover, taking into account that the price of housing is affected by location, area, availability of infrastructure, distance from the center, etc.
Registration of a lease agreement
As soon as a tenant is found on your own or with the help of an agency, you will definitely need to conclude an agreement with him. When we are talking not about seasonal construction, but about a permanent house, the agreement is concluded for a period of one year. It is important to make a list of all items and features of the interior, describe the appearance and cost of each item. It would be a good idea to take photos and attach them as an attachment to the contract. The document should also allocate the responsibilities of both parties: the landlord and the tenant. First of all, you need to take care of the distribution of responsibilities in matters of paying utility bills, transferring funds to the board, garbage removal and snow removal. At the same stage, the amount of the security deposit is discussed. The security deposit should be understood as the amount that the landlord receives if the tenant decides to terminate the contract before the due date. Also, the deposit is not refundable in cases where, after leaving, the tenant left behind broken and damaged furniture or unpaid bills. The deposit is a kind of insurance for the landlord against an unscrupulous tenant.
The contract should also indicate the frequency of visits to the property by the owner. This could be one day to hand over a month's rent or more frequent visits to check the order and integrity of the property.
During the execution of the contract, you should obtain all information about the tenants: passport and contact information. You can clarify details about their place of work in an informal conversation, then double-check the information received and protect yourself from scammers.
After signing the agreement, you should contact the regional tax office, provide a copy of the document drawn up and receive an income tax charge in the amount of 13% of the rent amount.
- What is an apartment building?
- Example of a real investor
Recently, the method of making money by investing in an apartment building has become more and more popular. However, most strategies require significant start-up capital to implement the project. Businessman and business coach Andrei Merkulov, as part of the training, offers a completely different scheme, which, according to the specialist, allows you to quickly organize an apartment building and earn money for your own apartment in just two months. Such ideas seem crazy, but let's still figure out how it works.
What is an apartment building?
One of the most difficult questions today for almost everyone is, and most are ready to say with confidence that it will take more than one year to earn the corresponding amount. What is the essence of the idea of an apartment building and how to earn money for an apartment using a strategy in just 2 months?
An apartment building is an apartment building created by an investor that generates passive income. All that is required to create an apartment building is to build or buy a house, cut it into apartments and earn income by renting out apartments.
According to the idea of an apartment house, the investor receives a profit without running an active business - the house, as it were, brings in money on its own, but the difficulty of organizing an apartment house is that you will probably need more than one year to earn money to implement such a project.
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How to purchase an apartment building with bank money and receive a stable cash flow from it
Creation of an apartment building according to a simplified scheme
According to Andrey Merkulov, using Robert Kiyosaki’s strategy of “cutting up” a house into apartments and wisely using mortgage opportunities, or attracting investors to the project, can make it possible to implement an apartment building project without any investment or down payment at all.
The scheme works simply:
- You take a large house, which is either purchased on credit, or through co-investment, or in any other way without attracting your own funds
- The large house is divided into several apartments. For example, a building with an area of 150 sq. meters turn into an apartment building with 5 apartments
- Apartments in the created apartment building are rented out and generate income that covers the housing loan. Profit allows you to achieve significant cash flow, which turns into passive income.
If the scheme is implemented correctly, then instead of working for more than one year for your own apartment, you will create many apartments at once at the expense of investors, one of which, thanks to a well-thought-out scheme, is fully paid for by the tenants of other apartments.
An example of a real earnings scheme
Instead of working for your apartment for a single year, you use the funds raised to purchase a house with an area of 150 square meters. meters within a radius of 20 km from Moscow - real estate will cost you approximately 5 million rubles. The loan payment in this case will be 60,000 rubles per month, but the house should be divided into separate studio apartments. It is studio apartments that bring the greatest profit under this scheme, since they can have an area of only 15-18 square meters. meters and at the same time remain very attractive to tenants. Thus, in a large house you will create 8 separate apartments, each of which can bring 18 thousand rubles per month from rent. However, you rent out 7 apartments, and you can just keep one for yourself. Thus, in less than a year, you earn money for your own home. As for the 7 apartments in the house, they bring in 126 thousand rubles per month through rental. As you can see, this is quite enough to cover the loan and additional income in the amount of 45 thousand rubles.
Make money work for you
Most earning schemes offer serious work, in which you must earn every penny on your own. With this strategy, you will earn at least a year on an apartment, even if you use the best real estate investment schemes.
In the proposed scheme, an apartment building is created in a matter of months, and begins to work for you in less than a year, instead of your independent hard work. The cash flow does not stop, and in 10-20 years, when the loan for the house is fully paid off, the profit from the apartment building will increase significantly. This will allow you to forget about such a concept as a pension in the traditional sense of the word.
How to achieve an income of over 300 thousand per month
Example of a real investor
Of course, the scheme of earning money from apartment buildings without attracting their own funds is already used by many young businessmen. Some of them actually work. For example, Karina Sokolova bought a one-room apartment on the secondary market in the Moscow region for 2.5 million rubles. At first, she rented out housing according to the standard scheme for 22 thousand rubles, which barely made it possible to cover mortgage payments - after cutting the housing into 2 studios, each individual apartment began to bring 17 thousand rubles. As a result, in addition to the mortgage payment, the businessman was able to organize passive income in the amount of 10 thousand rubles.
As you can see, the scheme for making money on apartment buildings is quite realistic and some successful businessmen are already receiving 100-300 thousand rubles a month thanks to a competent profitable scheme.
How to earn money for an apartment - take a large house, even without attracting your own funds, and divide it into several rental apartments in less than a year.
The scheme from Andrey Merkulov has its own characteristics and really allows money to work for you, and not vice versa, however, before you begin to implement it, it is important to familiarize yourself with the relevant literature or attend specialized trainings.
The real estate rental industry is developing by leaps and bounds in Russia. There are both large players and small private traders here. To be among the latter, it is enough to own a small house and the desire to work. After all, a personal cottage in the suburbs can always be turned into a profitable business. But first you need to calculate everything, otherwise it won’t take long to make losses.
Renting out houses – what is more profitable, daily or long-term?
From the point of view of receiving money from clients, a cottage for a day as a business significantly outperforms the option of renting out the same house for a long time. Daily rent allows you to get much more from such a property than with monthly transactions. But everything has pitfalls. By renting out a house for weekends or holidays, you can not only make good money, but also spend a lot of money.
There are many people who want to rent a cottage for a day or a couple of days. These include tourists who are not too fond of hotels, couples of lovers, and young people looking for a place to party. There are always many applicants for rented squares. However, if the first two categories of tenants are unlikely to create serious problems, then the situation with companies renting a house for a party is completely different.
Any party means noise and alcohol. On the one hand, you need to be prepared for claims from neighbors, and on the other, for the costs of restoring broken furniture and interior decoration. Often the rental of a cottage as a business is organized in such a way that the relationship between the client and the homeowner occurs without documentation. Everything is in words. As a result, the owner is often left with a bunch of problems and without compensation for damage.
How to organize a business for daily rental of a cottage?
At the initial stage, you need to be prepared to clean the house yourself, repair the plumbing and perform the functions of an administrator. At the same time, you still need to constantly look for clients who come/leave almost every day. Fortunately, there is a website that greatly simplifies the tedious search for constantly changing guests.
And we must clearly understand that daily cottage rental as a business is exhausting work and a lot of problems. However, with due diligence, it is also financial independence and an excellent way of self-realization. But you should be prepared to constantly communicate with strangers and various government agencies.
A house rented for a day should be spacious and comfortable. It is best to leave it as one large living room with a table for guests. It also wouldn’t hurt to set up a bathhouse or sauna inside, and a small swimming pool and barbecue area nearby outside.
A cottage for a day as a business should be designed from the very beginning for a short but comfortable stay. However, if you initially plan to focus only on tourists staying for several days at once, then you cannot do without bedrooms in the house. Several air mattresses to increase the number of sleeping places will not be a hindrance. Before starting this business, you need to think carefully about everything.