Want to earn extra money without having to invest much?
Just organize a daily rental service. It may seem that apartment rental is a profitable business only in the capital or large cities. But even in the smallest cities, there is a demand for short-term rentals.
Properly organized rentals can become a business with a stable income. Be ready for any other unexpected financial emergencies with Payday Depot.
Why Daily Rental
Renting an apartment or room by the day is a profitable business if you are a real estate owner. Renting residential property, even cheaply, for a short period can generate several times more income than renting it for the long term. Tourists and business people who are unwilling to pay a lot of money for a hotel room of dubious quality make up the majority of short-term renters.
Daily rentals are most in demand by single tourists and by groups of people like friends or family members. Hotels charge according to the number of people staying. In the case of short-term rentals, the owner specifies the maximum number of occupants and a fixed price.
Location is another important factor for tenants. Hotels and hostels are usually located in historical centers or near major entertainment venues. If you are traveling for work, you may need to stay in a residential area near the metro. Moreover, apartments for rent offer a completely different level of comfort, since in such housing, you can always feel at home, relax, and enjoy the absence of others.
How To Start A Daily Rental Business
The main question when starting a short-term rental business is where to find an available apartment. There are three main ways to purchase an apartment for short-term rentals profitably, and you will need to consider your available start-up capital when deciding on this issue:
- Obtain a mortgage or an apartment on credit.
- Renting out your own home on a short-term basis (this is relevant if you want to rent an apartment or a room near the city center or a metro station). During this time, you can live in a cheaper rented apartment on the outskirts of the city.
- Renting an apartment on a long-term lease and then subletting it on a daily basis.
The second business option of daily renting is considered acceptable and less risky since, even if things do not work out and the income is not enough to cover the expenses, you do not lose anything and can always return to the property you own. There are many subtenants among those who rent out properties on a daily basis. The key is to make sure that the long-term lease allows you to act as a broker and re-rent the apartment and that the short-term rental income covers the monthly rental costs.
Implementing A Daily Rental Business Idea
To start a short-term rental business, you don’t have to raise a large amount of start-up capital or obtain special education, knowledge, or skills. All you need to do is decide to take the first step and start earning money from your business idea:
- Choose a property that will be rented by the day.
- Assess property condition and make repairs.
- Purchase basic furniture and household appliances.
- Buy several sets of linens, bath accessories, and blankets.
- Identify potential tenants.
- Take pictures of the property and write an advertisement.
- Prepare several contract templates.
- Advertise online, through social media and newspapers.
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