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Russia - Where it's easier to make money on renting out housing to tourists

Russia (bbabo.net), - The closed borders due to the pandemic provoked the interest of Russians in traveling within the country. About half of travelers do not stay in hotels, but in the private sector. Artem Kromochkin, head of short-term rental at Avito Real Estate, told how to make money by renting out housing to tourists.

Real estate in locations popular with tourists can bring the owner much more profit when renting it for a short period (10-15% per annum) than when renting it for a long term (5-6%). The entry threshold for this market is relatively low, and most homeowners find tenants through Internet platforms.

At the same time, tourist rentals, unlike long-term rentals, cannot be called "passive" income, Kromochkin notes. Guests stay for several days, and the owner needs to constantly monitor the process of check-in and check-out, take care of the condition of the apartment. “However, this is not as difficult as it seems. Short-term rental housing “wears out” much less, since tourists spend most of their time on excursions or walks, and return home only to relax and spend the night,” the expert says.

What to do in the off-season

There is seasonality in the tourism business. The peak of travel traditionally falls on the summer, the increased demand is on the May and New Year holidays. During these periods, you can increase earnings: by the New Year holidays, accommodation, as a rule, rises in price by 20-30% or more. In the off-season, you can offer customers discounts or rent housing for medium-term rent - for 1-3 months.

In some cities, there is practically no concept of "off-season", Kromochkin adds. In Moscow, St. Petersburg, Kazan, Kaliningrad, the tourist season can be called year-round.

What tourists expect

Travelers are primarily interested in the city center and places close to sights and cultural sites. Travelers, for comparison, usually choose housing near business and economic centers, offices of large companies.

Renting an apartment is often chosen by companies of several people or families - most hotel rooms are designed for double occupancy only. Often a company of two or three tourists rents one studio for everyone, so even in a small apartment it is worth providing several beds - a folding sofa, an armchair bed, etc. In general, compared to hotels and inns, daily apartment rentals are more attractive to tourists in terms of price and quality ratio. Among its main advantages - the ability to move in with a company, the presence of its own kitchen and washing machine.

Preparation for check-in

An important point in the daily business is the check-in procedure. The best option, which saves both the tourist and the landlord from unnecessary trouble, is to install an electronic lock or a small safe (safebox) in which you can leave the keys. This minimizes the need to personally meet tenants, which is one of the main time costs for short-term rentals.

“But even in the case of contactless check-in, the apartment owner needs to be as proactive and communicative as possible,” says Kromochkin. to tenants when booking. Be friendly but not intrusive, offer guests personal recommendations - what to see nearby, how to get to the store, where to go out for dinner."

In the interior of the apartment, it is best to adhere to minimalism. However, an interesting and not overloaded themed decor can be a "highlight" that attracts guests. In any case, small details like a shelf with books or board games will make an apartment or house much more comfortable. The necessary minimum of things for a comfortable stay (bed linen, towels, a set of dishes for serving and cooking) can be supplemented with touches that cost almost nothing for the owner, but increase comfort for guests. For example, in the kitchen you can leave tea and coffee, basic ingredients and seasonings like vegetable oil, salt and pepper, in the bathroom - soap, shampoo and washing powder. Arriving for just a few days, tourists are unlikely to want to waste time on an extra trip to the store, and the possibility of fast delivery of ready-made food, groceries or other goods is not available in every region.

Promising cities

In 2021, the highest demand for tourist rental apartments, according to Avito Real Estate, was in St. Petersburg, Moscow, Kazan, Sochi and Krasnodar. Yalta, Sochi, Moscow, Sevastopol and St. Petersburg became leaders in terms of average rental rates.

However, the tourism market is also actively developing in the Altai Territory and the regions of the North Caucasus Federal District (Stavropol Territory, Kabardino-Balkaria, Karachay-Cherkessia, Dagestan).

Russia - Where it's easier to make money on renting out housing to tourists