More recently, the business of short-term accommodation of tenants was considered almost the most profitable in the real estate market, occupying a quite tangible niche. Now, due to a sharp drop in the flow of tourists, this market is practically experiencing clinical death. At the moment, the demand for daily apartments has fallen by 45% compared to last year, said the head of the short-term rental department of Avito Real Estate, Artem Kromochkin.
In order to somehow survive, landlords are switching to a long-term format. Long-term leases allow owners to stay afloat, cover sublease and earn some money.
- The demand for daily rent of apartments fell to zero, despite a significant decrease in the rental rate from 2.8 thousand. up to 1.5 thous. rub. per day. As a result, I converted daily apartments into a long-term lease format. Recently I started growing cucumbers. We rented a 650 sq. m, brought land there and grow vegetables - says one of the capital's landlords.
At the same time, the extended self-isolation regime does not yet allow a return to the previous level of demand. As long as the access control is in place in Moscow, restaurants, museums, parks are closed, one should not expect an increase in domestic tourism and an increase in demand for short-term rent, he added.
The fall in demand for daily rent of apartments forced their owners to reduce prices. According to CIAN estimates, on average, rental rates have decreased by 10%. If before quarantine the rental rate was at the level of 3.1 thousand. rub. per day, but now this figure has dropped to 2.8 thousand. rub. Alina Starostina, before the quarantine was engaged in the organization of corporate events, now rents out two country houses in the Moscow region:
- Paradoxically, short-term rent is now one of the existing incomes for us. Our main business is organizing events because of the quarantine on the foot. And now many people want to isolate themselves 15 minutes from the city in a closed area in a house next to the forest. Due to high demand, the cost of daily rent increased by 40%, while the occupancy rate of both houses remained high.
As for security measures, we made an interval of one day between guests' arrivals in order to disinfect everything. During the quarantine period, income has approximately doubled. This is in the region of 220 thousand. rub. from every house. Now both houses are rented here for at least a month. But even such excellent figures still cannot be compared with our incomes "in peacetime" from events. "
Source: RBC Real Estate