How to make money on the rent of rent

The vast majority of offerings on the market rent of apartments in old houses. And the demand is mainly focused on them to rent the apartment, usually cheaper than a spacious apartment in the recently built building. But tastes and needs of different people, and enough people willing to pay a premium for the opportunity to live in a modern apartment. As, however, and those who are trying to build your small or not very business to lease it a new home.


Now a new building put into operation half-empty. It seems to be the logic of iron, built a house, can’t sell it in all the apartments — take them out! It’s a no, but the income stream, not too much in the difficult economic situation in which our developers. But such practices do not call common. It and is clear: to build houses is one business and lease is different. Here we need to staff other people with other knowledge and skills. But, nevertheless, positive examples already. For example, in the village, joined the Metropolitan District, now rented building on the four entrances. In the first put almost all of the apartments, it actively went the second. Told the Manager Eugene, who is engaged in the delivery of these apartments, this is the fourth house built for rent, with whom he is dealing. The first was a smaller one, two and three entrances, and all went very well. “Now this example in Sofiivska borshchagivka followed for many,” says Eugene.

Those who are familiar, what is a typical Ukrainian housing “from the developer” with bare walls and cement floors will be pleasantly surprised at what kind of are offered these apartments. Not only that, with a complete renovation (tile and laminate), and a washing machine, fridge, double bed, kitchen furniture. Near the house infrastructure: children’s playgrounds, Parking with video surveillance. To the ring road — 1 km, metro — 10-15 minutes by bus. And for a one-bedroom apartment with an area of 37.8 sq m asking 6500 UAH per month plus a “communal” — which, incidentally, may be less than usual due to the Autonomous heating and water heating.

IN CONTROL. “Our developer has been practicing the principle of “tenement houses”. That is, people who bought an apartment in our complex, can put her in control of our management company, — says the Director of the Agency “Euromania” Yana Marchenko. Management company is looking for tenants and service apartments. In this case the owner receives a guaranteed income from the lease. Net annual income after payment of maintenance costs and taxes is of the order of 5-8% per annum of the value of these apartments. The interest rate fixed in the contract, which is valid for a year.” In this scheme there is one caveat: we are not talking about the Ukrainian developer. A “tenement apartment” you can buy, in this case, in Bulgaria. But in General this practice is widespread throughout the world. “Profitable home — business, very popular in Europe. For example, in France, rental housing is 40% of the total housing stock in the U.S. — 45%. In Ukraine, unfortunately, to date, no such offers,” she says Marchenko. If to be absolutely exact, a pair of these bold developers in Kiev, found: proper houses were to be built last year, but the construction was delayed.

The private TRADERS. So the most common way of extracting “rent” money from buildings — this is when a person buys an apartment long-term, by investing free money, and submits it to the guests themselves. “Today, in our complex about 15% of customers purchase apartments for their further lease because the complex is located in the center of the scientific life of Kiev, close to major universities of the capital, KPI, knew, NAU, — says the head of marketing Urban Development Group Anna Kotkovets. — For the most part it is a small apartment square footage, the customer can be repaired.” Says Deputy commercial Director of the company “Intergal-Bud” Anna Laevskaya: “renovated Apartments are in high demand, especially those who buy them for lease”.

Many people buy apartments in new houses to rent them out


When you buy an apartment for renting, it is important to pay attention to two things: the time during which you will be able to recoup the costs, and the cost of housing in the future. “If you set the task to recoup investments as quickly as possible — it is better to buy an old dormitory minimum space, says the Director of realty company “Golden gate” Alex Holmetsky. For apartments the price of rent, of course, more. But she is more expensive — due to the larger space and the cost of finishing. So it will be longer to pay off. On the other hand, the old house has fallen into disrepair, and the price of the dormitory over time will fall. What is not true about the apartment in a new building.”

In addition, more expensive apartment and rent is not easy. When not too rich, the tenant chooses between the “ones” onaround the city for 5,5—6 thousand UAH in the old house and 7.5—10 thousand UAH in the building, the wallet is likely to shouting the desire for comfort. Closer to the centre the prices of apartments in new buildings become even more fun when the same “unity” and offer 20 to 25 thousand UAH, and even more.

“To deliver long-term lease at that price, it would be advantageous, more difficult. Profitable business is usually built into the rent, — says Alexei Holmetsky. — Purchase of apartments in the center, where the rent is not a problem.”

On the other hand, is increasingly common practice, when the owners of newly acquired apartments for rent their “free” — for what the tenant will do the repair (plus utilities). “For the owner of the apartment is such a decision really wonder if the plan was to rent an apartment for long term rent, — says marketing analyst of group of companies “Foundation” Yevgeny Smirnov. — The investor gets rid of the hassle of repairs and not involve the repair of your funds. In the middle price segment, this scheme is gaining momentum.”

“For free”. The apartments are beyond repair and the “communal”