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Business idea: how to open a business on renting an apartment

Before we get started
Explore hotel deals. Take an interest in the quality of service and the cost of living. This service is not new, the situation with competition from entrepreneurs who offer to rent apartments, hostels and pensions should also be known. If your competitors are not fully loaded, this is not a reason to abandon a business idea. Normal consider the average load of 50-65%.

Based on these data, you can calculate the average indicator of the demand for the service, profitability. When developing a business plan, develop more attractive offers than competitors with similar conditions. Think about how you can improve the level of service.

Main risks
This service is in demand in large cities, which are characterized by a significant number of tourists and people arriving for business purposes. The course of affairs is not affected by weather factors, seasonal features and other possible risks. In this case, it all depends on your efforts and marketing policy. If you have all the documents in order, and the business is conducted legally and at the proper level, everything should be fine.

The only potential danger is unscrupulous customers. There is a risk of non-payment for accommodation, theft and damage to things in the apartment. You can play it safe. Develop a standard contract, which indicates the responsibility of the parties in case of possible difficulties. By signing it, the client indicates his passport data. This is a common practice.

If you live in a small town, the feasibility of organizing this business should be considered very seriously. Perhaps you are more profitable to rent an apartment for a long time.

Location
If you plan to rent your own apartment, the search question is removed. But it should be borne in mind that for potential customers the most attractive are the central areas, streets near train and bus stations with convenient transportation. If your apartment is located on the outskirts, there are problems with transport, or it will be difficult for a newcomer to find the right address, it makes sense to think about exchanging for a better location.

You can purchase a room. If there is no sufficient amount, there is a mortgage option. The only drawback is that all profits will go to repay the debt. But as a result, you will have your own apartment in a good area.

Another possibility is to sublease. You rent a house for a long time, for example, for a year. It is important to formalize the transaction with a notary, indicating the true purpose of the lease.

Equipment
You must create the most comfortable conditions for your customers. The essence of this service is not only the ability to rent housing cheaper than a hotel room and not depend on the need to have noisy neighbors. The main advantage of the apartment is homeliness.

It is very likely that you will have to make major repairs, change plumbing, and equip a bathroom. Potential customers pay close attention to it.

Minimum set of furniture:

a bed in each room, a sofa;
writing desk and kitchen table;
chairs and soft chairs;
capacious wardrobe.
The kitchen should be fully equipped – fridge, stove, microwave, cabinets. A minimum set of utensils and utensils for cooking is required. The apartment should have bedding and a full set of home textiles. Also, household expenses should be included.

For many customers it is important to have a TV and the ability to connect to free internet.

Do not get super-modern and new things. For your customers cleanliness and working condition are important. You can save by equipping the apartment with used furniture and appliances.

Frames
At the start, when a businessman rents 1-2 apartments for rent, employees are not needed. All cares include cleaning and replacing bedding after guests have checked out. New customers need to be met and escorted to the apartment, to draw up an agreement and give keys.

If you will develop your business and work with several apartments, you should think about hiring employees. The number of staff depends on the number of apartments. The most stringent requirements are placed on cleaning and cleanliness of bed linen, it must be packed in plastic bags, like in a train.

Make sure that there are no overlays with the settlement and eviction of guests. If guests have to wait for your employee, they will not wish to rent your apartment again. Keep in mind that about 40% of profits come from regular customers.

If your business consists of 10 or more apartments, you need to hire an administrator. His responsibilities include communication with customers and placing orders, coordinating the work of other employees and keeping records of the workload of each object.

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