https://www.site/2018-02-05/kak_sekonomit_i_zarabotat_desyatki_tysyach_sdavaya_i_berya_v_arendu_chto_ugodno

“You don’t need a thing, but only its function”

How to Save Money and Earn Tens of Thousands by Renting and Renting Anything

The world is engulfed in consumerism. However, more and more people are coming to the realization that it is not things that are important, but only their functions. Pete Maclaine/ZUMAPRESS.com/Global Look Press

The sharing economy, built on the principles of sharing things, is spreading faster and faster. People began to share apartments (Airbnb), cars (Uber), and now you can rent anything on the Internet. On the one hand, it helps to save money, because why buy expensive things if you can take them for just a few hours or days? On the other hand, this is a new opportunity to earn money: if you have any useful item, you can turn it into an asset by renting it to other people and getting a benefit. In this material, prepared with the support of the OneTwoRent portal, we tell you how the rental service for everything in the world works. To do this, we will answer a few key questions.

Why rent a thing when you can buy it?

Alexey Nikonov, one of the founders of the international rental website OneTwoRent, explains that often people do not need the thing itself, but the function that the thing performs. “We need not a drill, but a hole in the wall, not a car, but the ability to get to a certain place at a certain time. You can get a function by renting a thing, rather than buying it, ”Nikonov says.

According to the businessman, it makes no sense to spend your whole life on endless work in order to constantly buy things, because you can give up unreasonable purchases and use the saved money to fly on a trip and get the most important thing - knowledge and impressions.

Today, the idea of ​​sharing is very popular in the world, which is based on environmental friendliness, economy and ergonomics. People try to make the consumption of things conscious, so they begin to use some things in common.

What can be rented?

Everything! On the OneTwoRent website, you can rent a car (and even a motorhome), construction tools, a game console, a camera, a printer, clothes, textbooks, a parking space, a bicycle and a catamaran.

Screenshot of otr24.com website

There are things on OneTwoRent that you would hardly think about renting. For example, if you wish, you can rent a paddle for 50 rubles a day, a cow for 2,000 rubles an hour, and for 100 rubles a day you can put a figurine of a happy Chukchi in your office. In the description of the product, its owner writes: “A Chukchi with a happy karma. Suddenly someone needs a little fortune? I'm more comfortable with him. How it will be for you, I don’t know ... "

How to rent the item you like?

In the catalog of goods presented on the site otr24.com, choose the one that you like. It is better if you find several similar products at once so that you can choose. There are two ways to contact the landlords: call the phone number indicated in the ad or start chatting on the site.

When you discuss all the details with the owner of the thing, you only need to conclude an agreement where all the details will be written, and pick up the goods for yourself.

Can you make money by renting out your stuff?

Businessman Alexei Nikonov is sure that every year you can earn an average of 45 thousand rubles by renting out your expensive things. And if at the same time you do not buy things yourself, but also rent them, then you can save another 30 thousand a year.

Earnings may be higher. For example, if you have a game console and a lot of video games, then you can rent them for 10 thousand rubles a month. But you can also rent joysticks, virtual reality glasses and other attributes, which will increase your income.

Screenshot of otr24.com website

It is very profitable to rent sports equipment: bicycles, snowboards, skis, skates, as well as camping equipment: inflatable boats, catamarans, tents. For renting out such things, you can get from 200 thousand to 5000 thousand rubles a day.

Surely in your pantry is a dusty suitcase with tools. Rent them out! Jigsaws, drills, punchers, screwdrivers, wire cutters can bring you up to 500 rubles a day.

How is the OneTwoRent portal different from other rental sites?

Firstly, already now on OneTwoRent you can rent and rent things in 44 cities of Russia. The creators of the project have ambitious plans and say that in the near future OneTwoRent will become the only international service in the world that people from all over the world can use. There are similar services in Europe, the USA and Australia, but they are local (so far, in addition to Russia, Kazakhstan is represented on the site). In addition, OneTwoRent brings together a variety of things on one site, from real estate to services, clothing and even construction equipment. Thirdly, OneTwoRent is a turnkey service that provides for the possibility of promoting your product on the portal, legal advice and a system for checking counterparties, PR and advertising for the brand of the rental company, and much more, said Alexey Nikonov.

Buying real estate is not only a way to save your own savings, but also an opportunity to earn on it by reselling or renting it out. This is one of the liquid and unique assets. There are two main aspects that guide businessmen who invest in real estate: the desire to save their money in the face of inflation and the desire to increase their income by reselling real estate or renting it out.

Pros and cons of renting an apartment

Acquisition of housing for the purpose of further renting out is the most common investment transaction. It will not be possible to make money on such an operation quickly, the average income from renting out is 3.5-5% per annum of the cost of an apartment. But this is a promising and long-term investment, over time, adult children can be relocated here or sold in order to build a country house. Of course, renting an apartment requires certain troubles: you need to constantly look for tenants, maintain the apartment, and make cosmetic repairs.

Before the crisis of 2008-2010. the number of "investment" transactions, subsequently associated with earning income, accounted for about a third of all transactions in the Russian market. Gradually, their share decreased to 20%, and currently stands at 15%. At the same time, the number of long-term investors who buy real estate for the future has increased.

Investing money in the purchase of real estate is a long-term project, but more reliable than a bank deposit. A bank deposit can be placed at 10-12% per annum in rubles, but possible risks must also be taken into account: recently there have been many bankrupt banks. Banks with a solid reputation give low interest rates.

How much can you earn by renting out an apartment?

Let's take a look at a table that clearly demonstrates rental income:

Apartment Options	Apartment price	Rental income per month, in rubles	Rental income per year, in rubles
Room	800 000	7 000	84 000
1 room apartment	1 900 000	14 000	168 000
2-room apartment	2 700 000	18 000	216 000
3-room apartment	3 500 000	22 000	264 000

But in addition to income, there are also fixed costs - these are: apartment renovation, rent and utility bills (if this is not included in the rent), insurance and income tax.

Apartment Options	Rent and utility payments per year, in rubles	Tax (13% of rent)	Redecorating	Insurance	Total expenses per year
Room	24 000	10 920	6 000	3 200	44 120
1 room apartment	30 000	21 840	12 000	7 600	71 440
2-room apartment	42 000	28 080	24 000	10 800	104 800
3-room apartment	60 000	34 320	36 000	14 000	144 320

The profitability and payback period are affected by the size of the initial investment in real estate, repairs, as well as the distance from transport hubs. The payback period for apartments purchased with their own money is more than 10 years, and those taken on a mortgage are even longer. From a one-room apartment, you can receive up to 96 thousand rubles a month.

Apartment Options	The cost of the apartment, in rubles	Net income, in rubles	Income in %
Room	800 000	39 880	4,98%
1 room apartment	1 900 000	96 560	5,08%
2-room apartment	2 700 000	111 120	3,88%
3-room apartment	3 500 000	119 680	3,42%

Location matters

Tenants, and especially foreigners, are not interested in the historical location of the apartment, but in good transport interchange and the availability of the necessary services. If there are no funds to buy an apartment in Moscow, then you can start buying an apartment in the Moscow region. The income from renting such an apartment will be 10-15% lower than in the capital, but the funds for the purchase of an apartment will be spent 50% less.

Dramatically increase in the price of an apartment and, accordingly, the cost of rent, for housing located near metro stations and railway stations. It is worth following the construction of new metro lines and buying apartments for rent there. In Moscow, apartments in areas outside the Moscow Ring Road, to which the metro comes, rise sharply in price. For example, in Mytishchi, the cost of buying and renting housing has increased by 30%.

Without losing, there will also be an option to purchase housing in areas close to airports. At not so high costs, such apartments bring a stable income.

New building or "secondary" - what to choose?

When buying a home to rent it out, you need to consider two things: how long it will take to pay off the investment, and how much the home will cost in the future. If you put the issue of payback in the foreground, then you need to buy an old building.

Most of the offers on the market of apartments are apartments of old construction. And the demand for them is quite high, renting an apartment at a lower price is more profitable than paying for renting an apartment. Although there is also a demand for them, some want to live in new buildings and apartments filled with modern furniture and appliances.

Apartments in a new building are more expensive, respectively, and their payback will be longer. But at the same time, rent in a new building will cost more. If an apartment is purchased on the primary market, then it is recommended to buy it from a large developer who has experience in commercial development, as well as joint mortgage lending programs with state banks. The developer sells apartments in accordance with federal law FZ-214.

So, the apartment is purchased, and you decide to make repairs in it. One of the main mistakes landlords make is to renovate a business class apartment in an economy class apartment. Believe me, tenants will not appreciate it, and you will spend quite a lot of money. Business-class apartments are another matter, they should be equipped with expensive furniture and design repairs should be carried out here.

Rent apartments

Another type of income is renting apartments by the day. Such services are used by business travelers and tourists who do not want to overpay for hotels. The most demanded apartments are of the middle class, the cost per day is from 1.5-3.5 thousand rubles. The rental of this property is on average 50%% of the total rental. The next in demand are luxury apartments, the cost of renting which is 3.5-6.3 thousand rubles per month.

Of course, this business, like any other, has its negative points, the apartment can stand idle for some time. But during the autumn-spring period, and especially during the holidays, middle-class real estate is 100% occupied, and the cost of rent these days increases by 2 times.

What documents are needed to rent an apartment?

After purchasing a home and carrying out repairs, the apartment must be insured. We draw up a full insurance contract: we insure walls, interior decoration, property located in the apartment, and, of course, civil liability (arson and fires due to the fault of residents). For apartments that are rented out, an increased coefficient of 50% is applied. For example, for an apartment on the outskirts of the capital, estimated at 7.5 million rubles, the insurance payment will be 15 thousand rubles.

If you yourself will rent an apartment for rent, then you must:

1. From all its owners and registered persons, obtain consent to rent an apartment.
2. Post an ad and start looking for a tenant.
3. The contract is concluded for a period of 11 months, in which it is necessary to indicate:

• all persons who will live in the apartment (make copies of all passports);
• how the rent will be paid monthly or quarterly;
• who will pay utility bills (electricity, water, etc.);
• rules for the use of electrical appliances;
• when the landlord can visit the apartment, etc.

Time connoisseurs can apply to a law firm to draw up a lease agreement, this service will cost you 2 thousand rubles.

1. Draw up an act of transfer of the apartment, in which to indicate all the faults at the time of the conclusion of the contract.
2. Write receipts in which the landlord indicates that he received the money, and the tenant that he received the keys.

If your housing is municipal, then the Moscow government requires you to register it with the State Unitary Enterprise. To do this, you need to contact the Moscow City Center for Rental Housing, here you need to bring: an application, the consent of all owners to rent an apartment, an extract from a personal account or house book, a social contract. The cost of the service of the center staff will cost you 1,600 rubles. After registration, the contract will be registered with the State Unitary Enterprise.

So, in this article, we tried to highlight all the pros and cons of renting an apartment, which apartments are better to buy for rent, in which areas, we also indicated that this business is a long-term project and its payback comes in a few years, but the project reliable and liquid, because whatever the rent and demand for rent, you still have a liquid asset that you can use for your own purposes, or sell it.

One of the most popular topics on business forums is the daily rent of apartments. This may be an empty grandmother's apartment, a housing taken on a mortgage, or simply a desire to rent cheaper and sublease at a higher price. Interested in this topic, as a rule, young people who do not have serious funds to start in another business. Indeed, large investments are not needed here. But is it so easy to build your own hotel business? IQR studied the issue.

How to make money on short-term rent?

Where can I find an apartment to rent out?

So, initially there is no free apartment. Where can I get it? You have few options:

• rent someone's apartment by the month and sublease it by the day;
• take out a mortgage
• make an object out of your apartment by renting a cheaper one on the outskirts.

This is exactly what Dmitry Filimonov does, who built a business in this area from scratch. He is still far from thirty. Dmitry came to Yekaterinburg several years ago, got a job from scratch and gained experience for a year. Then he took the first apartment on a mortgage, already knowing that he would rent it out by the day, and he continued to live on a rented one. Today he has 3 apartments in a mortgage, from which he made a mini-hotel chain. The income is from 180 to 400 thousand rubles a month, which allows him to freely pay the mortgage, and in a few years he will have a lot of real estate in his property without encumbrance of collateral.

How to start your rental business?

First you need to thoroughly know the rental market of the selected area. You need to ring the ads, walk around the apartments, write out the prices and understand what they offer. It is better to tell the landlord openly that you are looking for an apartment to sublet in order to avoid problems in the future. Not everyone will agree, but many will be interested in this, provided that you offer a little higher than the market price.

Which apartment is suitable for daily rent?

The main thing is the location, it should be convenient, close to the metro, railway station and infrastructure. Often clients leave the train station or airport tired, few people want to stomp on foot.

The apartment itself should be modern and pleasant to look at. That is, either you take an initially good apartment, or you make repairs in a “killed” one. “So-so apartment” is the worst option. At the same time, you should not be afraid of "Khrushchev", they can make a pretty decent repair.

Naturally, not the first floor - no one will like this. The view from the window is not important, but it is better not to the trash. The most important element is the absence of a musty and senile smell in the apartment - no one will remove this.

By area, small kopeck pieces are preferred (it is necessary to break the walls) or large odnushki. This is due to the type of clientele.

Short-term rental client - who is he?

Most of the clients are:

• young couples;
• seconded employees and businessmen who happened to be passing through the city;
• quarreling spouses;
• tourists.

They can rent an apartment both for a few hours to spend the night, and for a couple of weeks. Lots of regular customers. If your apartment is good in terms of price and quality, people will remember the convenient option and come back or recommend it to their friends. Therefore, it is important to unwind, then it will be easier.

How much money do you need to start this business?

Option 1

Usually aspiring entrepreneurs start with rent someone else's apartment. This is at least a deposit, a month of payment in advance, there may be another 50 to 100% agency if you do not find a suitable apartment from the owner. As a rule, no one will allow you to make various changes in the apartment (repair, change of furniture) if you are renting. An exception is to agree with the owner of the “killed” apartment for partial repairs as payment. In this case, it is necessary to prescribe this moment in detail in the contract so as not to lose the investment. At first, 5 thousand rubles are enough for advertising. In general, you can start with investments up to 100 thousand rubles.

Option 2

You have more money and determination, you take out a mortgage. As a rule, this is a contribution of 30%. Monthly payments may vary, see mortgage calculators. Usually this is one and a half rental prices of a similar apartment, which means that the income should be higher! Therefore, in this option, you need to have another source of permanent income, you should not recommend it to beginners, you can lose money. On the other hand, you get expensive real estate property in a few years, having already “beaten off” the costs!

In this case, it is best to take a “killed” apartment, perhaps “from under” alcoholics or a grandmother. Such an apartment will be cheaper than the market, and with the right approach, you can make a good repair. Repair costs may vary. In general terms, this is:

• the cost of dismantling old furniture, plumbing, floors and other things, plus garbage disposal;
• payment for work;
• purchase of materials, plumbing and decor elements;
• furniture replacement.

Dmitry manages to sell old furniture on Avito and buy some decent used furniture there for a penny. It takes a lot of time - you need to carefully study the ads, ring them up, go to see them live, but it saves a lot of money. Sometimes there are scratches and chips, in which case it makes sense to contact the restorer and buy covers. However, in IKEA you can buy beautiful furniture inexpensively.

You can find more details on resolving issues related to repairs on his blog.

How to furnish an apartment for a client?

Apartment for daily rent

To get started, study a large array of photographs of beautiful apartments and note for yourself their common features. Typically, this will include the following items:

• spacious living area - there is no extra furniture and rubbish, customers love studio-type apartments;
• the apartment is furnished in a modern style;
• the design is made in bright colors (in no case do not “pull out your eyes”, choose colors harmoniously);
• sterile cleanliness, always clean windows;
• the absence of yellowed elements of plumbing, window frames, window sills, etc.;
• no leaks.

What Dmitry does to make the apartment look “cool” and please the client:

• selects a beautiful design;
• puts large double beds everywhere;
• pays great attention to detail;
• be sure to put a new kitchen with full equipment.

The most important thing is where to get clients?

In the Internet

To get started, make a business card website. This is a simple site consisting of 1-5 pages. You can google the manuals and do it yourself (up to 1000 rubles), you can order (3-5 thousand) or in a web studio (from 5 thousand). Your phone number and photos of apartments must be visible on the site. Photos must be of good quality, beautiful, taken with the right lighting. Hire an amateur photographer or consult for free on the photographers forum.

The site can be promoted, but it is not very effective if there are already competitors in your city. Therefore, start with contextual advertising. The largest networks are Direct and Adwords from Yandex and Google, respectively. Select all relevant keywords and drive ad traffic to your website. As a rule, Direct is more efficient, but more advertising means more customers. If you have only one apartment and it was rented for a week, advertising can be paused.

Add your apartment to bulletin boards. The largest free one is Avito, but do not be lazy to post on smaller boards - “From hand to hand”, city forums and other sites. The largest paid board is Cyan, don't forget it. The more sources, the more customers.

Airbnb's international portal will help you attract foreign customers who pay in dollars and euros. The main thing is that the apartment is close to the city center, looks beautiful in the photo and is cheaper than local hotels.

Locally:

Daily rent announcement

• advertise in local newspapers;
• print flyers and stick them everywhere;
• can be placed on commercial bulletin boards at the entrances. This is paid, but your ads will be throughout the area or even the city;
• try advertising on asphalt in crowded places, preferably near public transport stations. You need a stencil and a can of paint.

Business plan for daily rent

Apartment house

Sublease

Here everything is considered on the fingers and a business plan is not required. It is clear that there is no extra money, we consider everything to a minimum. Take the price of a good studio apartment in your city. You will give it back for the first month, the same amount for the deposit. Realtors are bypassed. For the second month, money must be kept in reserve. Total - 3 prices. Let's say for 25 thousand per month the price of rent is 75 thousand.

We make the site “on the knee” for free. We buy decor elements, clean sheets, towels, dishes and other small things for 5 thousand rubles.

Let's say the price is 2 thousand rubles per day, the occupancy rate in the first month is 40%. Revenue - 24 thousand. We pay monthly bills. If we collect 40%, we will almost not “burn out”. Another minus 2 thousand. By the second month, you can get a plus, having studied all the nuances and problems from your own experience. After a couple of months, the costs pay off (plus the deposit will be returned to you anyway, if you don’t spoil anything). Dmitry talks about a stable occupancy of about 70-80%.

Mortgage

Let's take Moscow as an example. A well-located, but "killed" one-room apartment can be taken from 5 million.

You will spend at least 200 thousand rubles on repairs. A realtor is optional, but it is better to contact to support the transaction - from 30 thousand rubles. Given this amount and the cost of advertising, you need to consider the mortgage.

Advice: in 2015, mortgage rates rose by several percent, and now is not the best time to deal with mortgages - the final overpayment is huge compared to last year if your income is in rubles. It is better to start with a sublease or buy an apartment for cash if possible.

You should have 1575 thousand rubles for the entry fee. The amount not less than the payment for six months in advance, be sure to set aside! This is about 400 thousand.

The income calculation is the same. The risks here are higher, let's take a pessimistic forecast: you will not be able to raise the occupancy rate above 60%. This is 35-50 thousand revenue per month (at a price of 2-3 thousand rubles per day), depending on the price. With current rates, you will not cover the mortgage - the monthly payment with a communal apartment will probably exceed 60 thousand, but this is higher than rental prices (about 28-32 thousand are now taken for such apartments). The question is that investing 2 million, you want more!

If the apartment is bought for its own, 12% per annum with a pessimistic forecast - this is not bad at all! If we keep the occupancy at 80%, which is 24 days a month, for example, 3 thousand per day, we get almost 65 thousand after deducting expenses. Not every job in Moscow pays that much. You can use this money to rent similar housing nearby and have a difference of 35 thousand.

However, this is a pessimistic option. Alexander Zhinkin from Krasnodar, another practicing entrepreneur in this area, laid out a much more promising table of actual income and expenses for his facilities in his seminars:

Apartment sublease business

Probably, the reason is lower competition in the regions and the ability to set higher prices for a day at low prices for monthly rent and mortgages. You can watch the full seminar (it's quite long).

The rental business has been and remains popular for many years, as many people are unable to purchase a home, and companies seek to reduce the level of one-time investment in development activities. The range of objects that can be rented out is constantly growing: at the moment, you can even rent out things such as roller skates, skis, etc. - everything that is not in constant demand, but is an object of seasonal use.

However, the most common option is still to rent a property. In order to receive a certain income from the provision of a particular room for rent, it is necessary to take into account a number of nuances that will be discussed in this article.

It must be understood that real estate is usually classified into 3 groups − land, housing and non-residential premises. The most common types of services in this market are the provision of rental housing and non-residential premises.

Among the non-residential, commercial real estate is usually rented. At the same time, all authoritative analytical agencies distinguish the following varieties of it:

• office rooms;
• trading;
• warehouse;
• industrial.

In addition, some organizations rent a separate type of premises - the category "for special purposes". Buildings are allocated here for kindergartens, schools, hospitals, churches, etc.

In addition to real estate, you can rent out land, gazebos, equipment, cars, special equipment, inventory and much more. However, this is a rarer and more complex form of business.

What is the most beneficial?

If we talk about residential real estate, the average cost of a one-room apartment 10-15 minutes from the metro in a residential area in Moscow will cost 5-6.5 million rubles. At the same time, the average rental rate for such rooms is about 25-30 thousand rubles. As a result, when calculating, it can be obtained that the minimum payback period for a one-room apartment will be about 15 years.

Accordingly, this option cannot be called very profitable in terms of investment: the only case in which it can really pay off is when housing is inherited.

If we talk about office premises, they are somewhat more expensive than residential ones, since their location should be in more passable places, and their area is higher. In Moscow, a small office space will cost 6.5-7.5 million rubles, provided that the area is about 60-70 square meters. In this case, the rental rate in this case will be considered for 1 square meter.

According to the Knight Frank agency, at the end of 2015, the rental rate for class A offices was about 25 thousand rubles, and for class B office space - about 15 thousand rubles a year. Accordingly, the maximum payback period will be about 8 years old.

It is even more profitable to rent retail premises than office premises - their payback period is 5-6 years. But there is an important limitation here: for such real estate, one of the key factors is the location. The premises should be located in the central area, in a place with a high level of traffic. Finally, it must be of high quality.

In general, commercial real estate loses to residential in only one parameter: the level of risk, since it is dependent on the economic situation in the country and in a particular city.

For information on where to start and how to develop such an activity, see the following video:

How to organize such a business from scratch?

1. First of all, you need to find a suitable place for renting. In the case of receiving living space as an inheritance, the procedure will begin with the execution of documents confirming that the entrepreneur is the owner of the housing.
2. When looking for a ready-made premises, it is best to turn to the services of professional agencies that will help you evaluate the real cost of housing or commercial real estate: an inexperienced businessman can easily miscalculate.
3. Next, you need to complete the necessary documentation for the property. If this is commercial real estate and it is planned to lease it to special organizations (for example, those working in the field of catering), you need to take care of obtaining additional permits and conclusions from some services.
4. After completing the initial documentation, it is necessary to carry out redevelopment and repair: in the case of residential real estate, it is important to purchase a certain set of furniture and household appliances, since apartments that can be lived in immediately after settlement can be offered at a higher cost. In the case of commercial real estate, it is important to focus on increasing free space and the possibility of subsequent redevelopment according to the needs of the client.

In Russian practice, many people rent out residential real estate without concluding an agreement - this allows you to get rid of the personal income tax in the amount of 13% and reduce the payback period. However, this comes with certain risks - in particular, those associated with the unreliability of customers. Therefore, both in the case of non-residential and in the case of residential real estate, it is necessary to formalize the relationship with the tenant.

Where to look for clients?

Finding customers through standard advertising options (posting ads in crowded places or print media) is not effective within the rental business. Advertising can be carried out through social networks (this is especially true for the situation of renting residential real estate) - here the “word of mouth” effect will work.

In addition, placement on thematic sites and forums is suitable. For commercial premises, especially those located in shopping centers, it is possible to put up a notice "for rent" with the phone number of the owner. This will expand the circle of potential customers to all visitors to the shopping center.

Finally, there are 2 more effective ways to find customers - maintaining a thematic site or blog with unobtrusive advertising of services as a landlord, as well as distributing brochures and business cards.

Necessary costs

If an entrepreneur is going to engage in such a business, he must understand that among the main cost items it is necessary to include remodeling costs: in this case, customers are ready to conclude lease agreements at much higher rates (the difference can be up to one and a half times). This is because after redevelopment, the percentage of usable area most often grows, in addition, the room can be changed to fit your own needs.

Among the costs, it is also necessary to highlight:

• The cost of building or acquiring premises.
• The cost of the services of a specialist who can assess the market price of real estate.
• Expenses for the maintenance and security of the premises.
• Costs for electricity, water supply, etc.

Underwater rocks

One of the pitfalls is to determine the optimal investment of money. Often, inexperienced entrepreneurs incorrectly assess the value of a particular premises, thereby investing in illiquid objects, losing a large amount of funds.

In addition, it is important to pay attention to the legality of the business, changes in legislation and the process of paperwork (primarily for commercial real estate).

Please note that the tax legislation in the field of rental business is constantly changing.

When calculating costs and the payback level, it is necessary to determine several development options - optimistic, most realistic and pessimistic in order to determine the approximate payback period of the object, as well as the fact how to diversify risks. It is imperative to have other sources of income in order to insure yourself against a situation of lack of money.

Pros and cons of this area

Such a business, like others, has a number of advantages and disadvantages that follow from its features. Among the minuses, one can single out the main one - the search for a tenant can take many months (this primarily concerns industrial facilities and commercial real estate in impassable places). As a result, even a high rental price will not be able to compensate for the financial costs that the lessor will have to bear during the entire period of downtime.

Also among the shortcomings should be highlighted:

• sufficiently long payback period;
• not very high level of profitability;
• high start-up costs.

In this situation, the only rational way out is the acquisition of liquid property (one for which there is always a certain level of demand). To do this, it is important to be well versed in this area or to contact the services of a specialist.

Business benefits include:

• long-term contracts for a period of one year or more;
• stable level of profit;
• income will be received by the landlord constantly;
• passive nature of making a profit (the landlord does not need to expend any effort after signing an agreement with the tenant);
• the possibility of organizing a business without registering as a legal entity.

Thus, the rental business is quite an attractive area for earning money. However, it is best to combine it with other sources of income in order to insure yourself against possible risks.