Rental business: pros, cons and features. Ready rental business

Nowadays, there are innumerable options for opening a commercial enterprise. One of the easiest is to rent a business. The positive and negative aspects of such activities will be discussed in more detail below.

Why is the business arena profitable?

Opening a profitable business is usually accompanied by large financial costs for its owner. Let's take a look at some of the main reasons why many aspiring entrepreneurs do not have the actual opportunity to start and grow their business.

Lack of funds

Opening his own business from scratch, unlike renting, a businessman is faced with the problem of finding funds for:

  • Building or renting premises;
  • State registration and obtaining the necessary documents;
  • Utility payments, taxes and additional expenses
  • Advertising and marketing;
  • Procurement of raw materials and related equipment;
  • Hiring and remuneration of employees of the enterprise;
  • Other expenses.

Lack of experience

Certainly experienced businessmen have an idea of ​​how to open a business. They have sufficient knowledge in managing the company, maintaining its functioning and bringing the enterprise to full payback in the shortest possible time.

A person who intends to start his own economic activity from scratch runs the risk of wasting time and money, as he does not have sufficient experience in conducting commercial activities. Renting a business provides an opportunity to avoid all this by getting a ready-made production model with proven ways to solve such problems.

Competition

The presence of serious competitors is often the reason why new firms lose income - and as a result, go bankrupt. The rental business does not have this problem, as it often has an established clientele with a stable income, already occupying a certain niche in the market.

Leasing a business is divided into two types:

  • Partial lease - only the fixed assets of the enterprise;
  • Full lease - includes all the property of the owner.

Legal nuances of the conclusion of the contract:

  1. The property is transferred from the lessor to the lessee in the amount, in the manner and under the conditions specified in the contract;
  2. The contract is drawn up in writing with the signatures of both parties to the transaction;
  3. The document is subject to mandatory state registration. It enters into force only from the moment of such registration;
  4. Failure to comply with the form of the contract entails its invalidity;
  5. The responsibility of the parties for violation of the terms of the contract is determined by the document itself and the current legislation;
  6. It is not recommended to compile this rather complicated document on your own. It is better to contact a qualified specialist.

Leasing a ready-made business for rent: the pros and cons

This procedure is often confused with. Franchising is a more legal form of doing business and involves the transfer of rights to use a licensed product, brand or business on behalf of the owner. Ready-made business for rent, it is more correct to call everything only temporary use.

Renting a ready-made business is much easier and less expensive. The tenant receives a ready-made enterprise with premises, employees and all the necessary equipment. It remains only to properly organize the leadership.

Like any type of activity, business rent has its advantages and disadvantages. Before you get down to business, it is important to determine all the pros and cons:

Let's start with the pros:

  • The most important point that makes you think about making such a decision is the absence of the need to attract significant investments. It takes much less money to run a ready-made business than to open one from scratch. In turn, the landlord, deciding to lease the business, receives profit from the activities of the tenant.
  • With an undesirable outcome, it is possible to end the activity. In this case, the tenant will lose only the funds that go to pay the rent, in contrast to investing in an independent project;
  • The tenant gains indispensable experience in managing a commercial enterprise. It can be applied in the future to create your own business. Reduces the risk of burnout, losing all finances.
  • The owner himself deals with inspection bodies, as he is the owner of the company, which simplifies the work of the tenant;
  • A businessman who decides to take up management receives not only a business without renting a room, but also equipment, a formed staff and a client base with a firm reputation.

Now let's weigh the cons when renting a ready-made business for rent:

  • Business will always remain a stranger, no matter how successful it may be. If the tenant achieves good profitability, there may be a risk that the owner chooses not to renew the contract. The lessor can start independently, without intermediaries, to manage the enterprise, receiving more income;
  • There is a high risk of becoming a victim of scammers. When concluding a deal, you need to pay attention not only to the inscription: “I will rent a business”. It is important to verify the authenticity of the documents confirming the ownership of the company;
  • Compensation for damage. A situation may arise in which the tenant will have to reimburse the cost of restoring the property. In order to avoid such a problem, it is necessary to take into account the technical condition of the premises with equipment and indicate this in the contract;
  • It is not always possible to make changes to the work plan of the enterprise, establish new partnerships, carry out construction or repairs on the territory of the company to improve its work. The owner has the right to simply refuse the tenant.
  • Not all specialists received may meet the requirements. Some employees will have to be replaced as soon as the business is leased.


  • Before concluding a transaction, it is desirable to analyze the enterprise, property and offered services (goods). A good solution would be to draw up a business plan based on the available information;
  • It is important to consult experienced lawyers in this matter;
  • When choosing a company for rent, it is better to build on your own knowledge in its field of activity;
  • Assess the demand for the selected business;
  • Consider current and potential profits with the possibility of attracting new investments;
  • Foresee possible risks and degree of control over this business.

Popular rental business ideas

The most popular ideas for organizing this kind of activity are small and medium-sized enterprises. Renting a ready-made business, which is in the greatest demand, mainly refers to the field of real estate, the provision of services or catering establishments. Among them, the most common are:

  • Beauty salons, massage complexes, hairdressing salons;
  • Companies selling pharmaceuticals and medical services (pharmacies, private dental clinics, research and analysis laboratories);
  • Auto repair shops;
  • Restaurants, cafes and eateries;
  • Real estate rental business: office space, sports facilities, residential areas and industrial buildings.

Summing up

Starting your own commercial activity is a long and complicated process, which does not always lead to a mandatory profit. There are many specific risk factors that a businessman faces when starting a business from scratch.

To avoid unnecessary financial costs, it is better to draw up a lease agreement for an enterprise. This will allow you to take the first steps in realizing your claims for income, gain vast experience in managing a company and occupy a certain niche in the market.

Real estate allows you to make good money, because many businessmen are engaged in the rental business, renting out both apartments and houses, as well as premises and buildings for the placement of shops, warehouses and other commercial facilities. Vehicles and equipment are also in demand for rent, most often enterprises are customers, which promises high business profitability.

However, before deciding whether to engage in this type of entrepreneurial activity, you should weigh the pros and cons, since this type of business has its drawbacks and advantages.

Advantages of the rental business

Renting out housing and commercial real estate is very profitable, since not every entrepreneur has the financial ability to immediately buy a building for an office, so he has to rent it. Real estate for business placement is of interest not only to small entrepreneurs, but also to representatives of the middle sector, who simply have no need and it is commercially unprofitable to buy a large amount of real estate and it is easier to rent it. The closer to the center the property is located, the higher the rent will be.

Rented housing is very popular among visitors and business travelers, and the need to rent an apartment often arises among young families. The cost of rent depends on the size of the apartment, its location, number of floors and social infrastructure. The payback of a business is usually achieved in seven years, because even if an entrepreneur bought a property with a mortgage, after seven years he will be able to fully repay the debt to the bank and continue to work only for himself.

The advantage of the rental business is also the fact that you can rent a large number of different objects. You can rent not only residential premises, but vehicles, machinery, equipment and other objects. The main thing is to take your place in the rental services market and then the profit will not keep you waiting.

The advantages of the rental business are that it very reliable and stable, since real estate will always be in price and there will always be people who will be ready to rent apartments and premises. The same goes for car and equipment rentals.

This type of business has high liquidity indicators, that is, in any case, it will always be possible to sell property and return all the funds spent.

The rental business is passive types of income, that is, the landlord essentially does not need to do anything after the contract is signed, the property passes to the tenant and under the contract he is responsible for its safety, besides, he can be obliged to insure the object.

Minuses

It is possible to earn big money on commercial and residential real estate only in large cities, where shops and warehouses open daily, students, tourists and business travelers arrive in the city. So, if you want to open a rental agency for rental apartments, you should immediately assess the profitability of the business, that is, whether rental housing in the city will be in demand. If it is a large or resort city, then of course it makes sense to participate in this market segment, but if it is a provincial city, then you can only do commercial real estate, and then, provided that entrepreneurial activity is actively developing in the city and buildings for offices and shops are needed.

In smaller towns, there is a risk that business is simply will be unprofitable and will not pay off. There is high competition in the real estate rental market, therefore, when starting this business, you should be prepared for the fact that you will have to fight for customers, coming up with new ways to promote the service to the market. So you can use advertising, all kinds of promotions and discounts, also, when it comes to renting real estate, you can use the services of a real estate agency, whose employees will take over the search for clients. However, again, such cooperation will cost the entrepreneur very dearly, since realtors require payment for their services from 30% of the rent.

Vehicle and equipment rental should only be dealt with in cities with transport and construction companies. The downside of the rental business is also that the real estate market very high level of fraud. Therefore, it is necessary to open a business only with trusted partners, and to carry out relations with tenants only on the basis of an agreement. There must be a lawyer in the state who can check the documentation.

To start a rental business, need big investments, that is, it will not work to open such a business from scratch. First you need to allocate funds for the purchase or construction of real estate, the purchase of equipment or vehicles. However, before that, you need to allocate money for the consultation of experienced realtors who can advise in which area of ​​the city real estate is in demand the most, so as not to remain bankrupt after.

A particularly large amount of money is spent on residential real estate, because no one will rent an apartment with bare walls. It is necessary to carry out cosmetic repairs, buy a minimum of some furniture and appliances. It is especially expensive to rent apartments by the day, since housing must be ready for a comfortable stay, it must have the necessary furniture and appliances, and you will also need to hire a housekeeper who will clean the apartment, change linen and keep it clean.

Also, do not miss the need for repairs in the leased premises and apartments, these costs are borne by the landlord, although cosmetic repairs can also be assigned to the tenant. This also applies to equipment and transport, since they also tend to break down and their repair will also cost a lot of money.

Ready rental business from D5invest. How it works?

When I made my first store purchase deal in 2005, it was scary. First of all, for the fact that I, an experienced residential real estate agent, did not have a clear idea how to sell or buy a ready-made rental business. Since then, more than 12 years have passed and we have helped to buy or sell the store more than 90 times. Today it is obvious to us that the market for the sale of a ready-made business is the same understandable market as all real estate niches. Dozens of non-residential premises with tenants are bought and sold in Russia every day. We know how to provide this process with maximum reliability, transparency, get decent conditions and neutralize all the risks of losing capital.

Basically, the service for buying a ready-made business for our client works like this:

  1. the client acquires non-residential premises (square meters) in the ownership in his name or in his company
  2. the client concludes a long-term lease agreement with a grocery store tenant from the TOP-10 tenants in Russia
  3. receives a constantly increasing rent once a month for 10 years.

This is a simple and understandable scheme that has been working in Russia and around the world since time immemorial. Do you have a room where a business wants to operate. This business is willing to pay you rent for using your facility. Your task is to get the most favorable ratio of funds invested in the purchase and the amount of rent that you receive monthly. Experts of the Russian real estate market believe that the optimal ratio is about 1 to 100. That is, every month the landlord receives at least 1% of the money that he invested in the purchase of premises. In 8.5 years (100 months) you fully return your investment, while the object remains your property.

From this moment, important nuances begin:

a) what room to buy?

b) which tenant to choose?

c) how not to suffer from "pitfalls" in the lease agreement?

d) how to pay taxes and how much?

d) How do you reschedule?

e) what package of documents will I need?

g) What is my risk protection?

Why do we choose DIXY, Magnit, Pyaterochka companies for rental business?

We have witnessed two systemic crises in Russia. We have seen how people easily refuse restaurants, expensive shopping, entertainment. In 2008, it became obvious to us that only three areas would work stably in Russia, which we conditionally call: “eat”, “treat”, “die”. People will always be treated in the hospital, they will always buy bread and milk from the convenience store, they will always be ready to pay for the funeral. This means that such tenants will always earn.

I witnessed how the owners of premises in "passing places" 2-3 times a year easily and quickly (according to them) re-lease their object to a new tenant, because the old one went bankrupt. And these “passing places” have become an uninteresting topic for me. The owners of premises in the "passing places" are sure that they have found the best solution possible. It sounds like this: “I have liquid premises in a passing place, if this tenant moves out, I will find a replacement in a week.”

Indeed, at first glance, it is easier to find a tenant on Vladimirsky Prospekt in St. Petersburg than on Murinskaya Road, but this is conditional and here's why:

The price of a square meter in the "passing place" of St. Petersburg is 250 000-500 000 rub. behind 1 square meter. Business that can pay 2500-5000 there are almost no rubles per square meter per month, such tenants can be counted on the fingers. That is, your chances of getting the ratio 1 to 100 decrease sharply. Add here 1-3 months of rent that you lose on a new tenant (each new business will ask for benefits for repairs, buildup, etc.). Let's add here your participation in shows, negotiations, discussions, races and congresses. As a result, the profitability of your rental business drops sharply, the time of your participation increases.

Premises in "passing places" offer a real yield of 5-7% per annum. Beautiful, liquid, the historical center of the city, quickly rented out ... But you didn’t decide to buy a rental business for the sake of these values, did you? You wanted a yield of 11% per annum, not to participate in the processes in any way, to have stable payments? If your thoughts are about a stable income, reliability and freedom, then the ideal answer for you will be a ready-made rental business with a grocery store, and not a room in a “passing place”.

What are the benefits of grocery chains?

Our tenants are key grocery stores in Russia. Dixy, Pyaterochka, Magnit - Public companies, their shares are traded on stock exchanges, the companies are transparent, reporting is open, all payments are "white", the business processes of these companies have been worked out more than 10 thousand times. They independently and at their own expense make repairs in your premises, investing from 8 million rubles, resolve all maintenance issues, pay for all utilities on their own, and resolve emergency issues related to accidents or leaks. They bear full financial responsibility for your premises. Your task is very simple - once a month to issue an invoice to receive a non-cash payment and once a quarter to carry out a reconciliation act. To do this, you do not even have to live in Russia. The rest of the time you only need to receive money.

Real estate objects for a grocery store are large premises with an area of ​​​​350 square meters. As a rule, the purchase price per square meter of such premises is no more than 180,000 rubles, and the probability of receiving a rent of 1,800 rubles per month for such a square meter is much higher. As a rule, all the properties we offer are BETTER, investing in them will give you a full return on your funds in less than 7 years.

Dixy, Magnit and Pyaterochka chains are very careful in choosing premises. The percentage of chain store closures is less than 0.1% (1 out of 1,000 stores) . That is, they almost never close. Each object is subjected to a thorough check and evaluation. More than 20 specialists of the distribution network check everything - from documents and technical condition to forecasts for the economic model. The trading network will not invest 8 million rubles in opening a new store if it does not get confidence at every stage: the store will work stably and will earn money, customers really need the store in this location, the premises are in order, there are no problems. When buying a ready-made rental business with a Pyaterochka tenant, you can be sure that if Pyaterochka has signed a long-term lease agreement, the premises are absolutely clean both legally and technically. The network lease agreement provides for all situations. Working conditions are clear from the very beginning and you will never receive any unexpected news. In each standard and non-standard situation, it is clear who is responsible for what and who should do what. From fire to flooding neighbors.

Economics of a ready-made rental business from D5INVEST:

This way of investing your capital is always better ANYONE bank deposit (both in terms of profitability and reliability. For example, your property will never be licensed, like a bank). You get a decent rent under a 10-year contract, there is a planned increase in the rental rate for each year. You have official payments with the lowest tax - 6% . This is much more profitable than renting out apartments, more profitable and more reliable than investing in construction under the DDU. Remember that the stores of the three largest grocery chains in the Russian Federation are interchangeable (they have similar formats, areas, product matrix, business processes). And if the DIXY network ever ceases to exist, then Magnit and Pyaterochka will first of all want to open in established places.

The market for the sale of a ready-made rental business does not differ from the secondary real estate market. Buyers, sellers, tenants, agents. But the success of each event depends on the sum of these terms. Every month we sell a ready-made rental business in different cities of Russia, perhaps this week, in your city. Call us for a free expert consultation.

Sincerely, Andrey Semko, General Director of LLC " D5invest»

18.07.2018

Passive income is what any sane person strives for today. Both large entrepreneurs, and office workers, and freelancers are constantly looking for new options for financial investments and calculate the most profitable ones.

In the current economic conditions, many investors are attracted to real estate, and many market analysts note that the rental business is currently promising the most stable and profitable business. Commercial objects are rented quite willingly, the share of tenants is also steadily growing, while the number of one-time purchase and sale transactions stands still. We offer you to find out what the rental business is, understand its features and advantages, consider the principles of taxation and talk about the expected profitability.

Definition of rental business

The rental business is a type of activity associated with the transfer of rent of real estate owned by the investor, and the receipt of the corresponding payment from contractors. It is rather difficult to classify it among the ones that pay off quickly and bring the greatest profit, but a limited number of pitfalls and a tangible stable profitability of the rental business, on average several percent higher than the profitability of bank deposits, allow it to gain popularity quite rapidly.

Leased property includes land, housing and commercial premises. Among the latter, offices, retail outlets, warehouses and production bases are separately distinguished. Someone lends technical equipment, cars, work equipment, etc. for temporary use, but such activities should be attributed to another area.

How to open a rental business: key nuances

Like any other type of business, rental involves not just a jump right off the bat, but lengthy and complex preparatory work. Careful calculation of risks, taking into account important factors, identifying requests from potential customers, analyzing the activities of competitors and a number of other specific points - this is a standard set of tasks for an owner or a person holding a leadership position in any enterprise. Before you start making money, you have to spend a lot, and this is an axiom that does not require confirmation. And if the impetus for opening a business was not an accident, but a desire for development, you will have to work hard. But let's move from the abstract to the specifics.

How to start a rental business

To rent a property, you must buy it. If we are talking about commercial premises, then their location is the most important factor that you should pay attention to, since the future profitability of the entire business is largely determined by it.

It can be very difficult for a novice businessman to determine how profitable a particular area is: ideally, you should contact a specialist for professional advice or choose an option from a ready-made catalog. Try our resource. A specialist can also help in the preparation of property documentation. There are cases when the transfer of real estate for rent is possible only with additional permits and conclusions of certain services. Competent support will significantly save time and effort in obtaining them.

Another important point that pops up when opening a rental business is the issue of taxation. According to the standard agreement, the landlord undertakes to provide the tenant with premises for a certain fee, and the periodic receipt of profit from the use of property on the basis of the current Russian legislation is an entrepreneurial activity. Rental income is legally taxed at the standard rate of 13%. Minimizing these payments is quite realistic if you know how to optimize taxes in the rental business.


Tax optimization