Everything you wanted to know about earning money by renting out apartments in Russia: strategy, numbers, and legal aspects

Earning money by renting out apartments in Russia remains a stable tool for creating a steady cash flow. In conditions of inflation and instability in the stock markets, rental of residential real estate continues to attract investors seeking regular income without active asset management. The rental market is developing, rates are being updated, regions are competing, and the demand for housing remains consistently high — especially in large cities and tourist areas.

How to choose real estate for rent: decision-making factors

The choice of property determines the future profitability of renting housing and the payback period. Priority is always given to apartments in areas with developed infrastructure, good transport accessibility, and high population density. New buildings within walking distance of the metro usually find tenants faster and require less investment in repairs. The condition of the building, the management company, as well as the layout of the apartment and the availability of furniture become important criteria.

Properties on the secondary market are cheaper, but often require additional expenses for repairs. Apartments and townhouses are also rented out, but depending on the region, demand may be limited. Against the backdrop of rising housing prices in Moscow, interest in renting is shifting more towards the Moscow region and major regional centers.

Key advantages and risks of renting out housing

Investors choosing to earn money by renting out apartments in Russia focus on the reliability, predictability, and real material value of the property. Renting out residential property provides passive income from real estate without the need for deep involvement in business processes. However, there are nuances that need to be taken into account in advance. Before investing in an apartment for rent, it is worth analyzing the following factors:

• level and stability of rental rates in a specific region;
• likelihood of vacancies between tenant changes;
• need for periodic repairs and maintenance;
• legal risks associated with tenants;
• structure and amount of taxation.

A thorough analysis allows predicting potential problems in advance and minimizing the risks of long-term losses.

How to rent out an apartment: step-by-step algorithm

Before starting rental activities, it is important to properly prepare the property: from the condition of the repairs to equipping it with household appliances. The appearance and functionality determine the attractiveness of the apartment in the market and affect demand. This approach becomes the basis for a successful start, especially if the goal is to ensure a stable income from renting out apartments in Russia with minimal vacancies and high occupancy. To simplify the start, the following algorithm should be used:

• bring the apartment to a proper condition;
• perform cosmetic or major repairs;
• equip the property with necessary appliances and furniture;
• analyze the market and determine an adequate rental rate;
• create an attractive listing with photos and detailed description;
• conduct tenant screening and sign a contract.

Step-by-step actions contribute to quick rentals, reduce the likelihood of conflicts, and increase the duration of rentals. It is important to strike a balance between investments in rental property and expected profits.

Profitability and payback period in Russia: earning money by renting out apartments

The payback of a rented apartment depends on the region, the cost of the property, and the average rental rate. In Moscow and St. Petersburg, the payback period can reach 17–20 years, while in cities like Tyumen, Ufa, or Krasnodar, it often does not exceed 10–12 years.

In practice, the rental yield of housing in Moscow rarely exceeds 8% per annum. All costs are taken into account: repairs, taxes, vacancies, maintenance expenses. High rates for short-term rentals may seem attractive, but they require active management and are associated with risks of property damage.

Regular income can be ensured with consistently occupied premises, reliable tenants, and a well-structured financial model. With a smart approach, earning money by renting out apartments in Russia can indeed become a source of predictable profit.

Regional differences: where is it more profitable to rent out?

The rental market in different parts of the country is characterized by heterogeneous dynamics. In large metropolises, apartments near the metro or close to business centers enjoy stable demand. In tourist regions, short-term rentals are popular, especially in the summer period.

On the periphery, on the contrary, housing often remains vacant, especially if the area is not conveniently located. Examples of profitable directions include Moscow and the Moscow region, Kazan, St. Petersburg, Sochi, Kaliningrad, Anapa, Yekaterinburg, Novosibirsk, and Krasnodar.

In all cases, factors such as purchase cost, infrastructure, job availability, student activity, attractiveness of residential complexes, and development format are taken into account when choosing a property. These factors directly affect the ability to earn money by renting out housing, as they determine the level of demand, occupancy speed, and potential profitability.

Types of rentals and who they are suitable for

Renting can be short-term, long-term, and daily. Long-term rentals are characterized by stability and minimal risks. Daily rentals require active management but offer higher margins. Seasonality also plays a role: demand decreases in winter and increases in summer, especially in southern regions. This approach is directly related to how earning money by renting out apartments in Russia is structured, where the choice of strategy depends on location, property type, and owner’s goals.

The choice depends on the investor’s goals: some aim for maximum capital turnover, while others seek calm passive income from real estate.

How to formalize rental officially: legal aspects

Officially renting out housing implies signing a contract and paying taxes. The property owner has the right to choose the tax regime: the standard rate of 13% or a patent for individual entrepreneurs. With regular rental of several properties, it is more advantageous to register as an individual entrepreneur and use a simplified tax system.

The tax base is formed from the sum of rental income, not the market value. With proper filing of tax returns and tax accounting, the tax burden does not become critical. It is also important to follow the rules for registering a lease agreement for terms exceeding 12 months.

Conclusion

Earning money by renting out apartments in Russia builds a solid financial foundation provided careful preparation, analysis, and compliance with legal norms. Choosing a property, calculating payback, screening tenants, and maintaining tax records are key elements that determine the effectiveness of investments. By following all stages, the owner not only receives monthly income but also gains confidence in the preservation of capital for years to come.