The rental market in the residential segment is a promising area for obtaining passive income, which is compared with bank deposits in terms of profitability. Each month in the Northern capital about 5 thousand apartments are rented.
The most profitable for renting is recognized as the property of the Central District of St. Petersburg. In it, annual profit reaches 9%, and investment apartments pay off in a period of up to 11.5 years. When purchasing an apartment for rental purposes, it should be selected taking into account those characteristics that will positively affect the liquidity of the property in the future. You can double and even triple the return on investment by renting a house for rent. The greatest demand in the market of daily rental housing is in the comfort and business class.
It is advisable to rent an apartment for the purpose of reimbursing expenses for its purchase only in a location with outstanding advantages – in historical areas or in the center of the Northern capital. In an ordinary sleeping area, the annual profit from seasonal guests (tourists and business travelers) due to low occupancy will either be much lower, or at best about the same as with long-term transactions – there are no guarantees. When choosing housing for rent, give preference not to cheapness, but to liquidity. Assess its attractiveness not only for tenants, but also for potential buyers – this will save you from problems and losses if you decide on a resale in the future.
Choosing an investment object is not an easy task. Demand for premium apartments is small but stable. It does not exceed 5-7% of the total number of transactions in the real estate market of St. Petersburg. Most buyers regard the purchase of housing in the historic center or specific apartments on the embankments as a long-term investment, without the goal of reselling the property in the near future. Daily rent provides a service for residents. They need bedding, dishes, cleaning during the stay of guests and before checking in new ones. The cost of this reduces the level of income, but it is still higher than from a long rental apartment.
The amount of earnings and income in the business on a daily rental depends on the location of the apartment. There are locations where there will never be downtime. This is the center of the city, around large exhibition, office, business centers.
If you have an idea to purchase an apartment in the center of St. Petersburg and then rent it out daily and you need the help of professionals, we will be happy to answer all your questions.
And if you want to bring your idea to life – we will select interesting and, of course, profitable options for apartments, help to conduct a deal, arrange repairs and take your property in trust. We will introduce you to the already existing network of our apartments in the center of the Northern capital and you can chat with investors who are already our partners.