I decided to try renting out my one-bedroom apartment in central St. Petersburg through services. How much do I need to invest in repairs, and how realistic is the profit after taxes and service commissions?
Short-term rentals in central St. Petersburg are performing worse than a couple of years ago - there are fewer tourist flows, competition among landlords has increased, and platform commissions have stayed the same or gone up. Airbnb takes its percentage, you need to pay taxes (if you're on the standard system, that's roughly 13% of income plus insurance). After all that, your margin shrinks noticeably.
You need decent renovations - tourists are pickier than long-term tenants. At minimum, that's fresh cosmetic repairs, new furniture in the bedroom and kitchen, a nice bathroom, and cleanliness without compromise. You'll need to invest tens of thousands at the bare minimum, possibly more if the apartment is in bad shape. Plus ongoing expenses: cleaning after each guest, utilities, repair costs.
Your actual profit depends on the season and occupancy rate. During tourist season, a one-bedroom in the center can bring in decent income, but the other months are often unprofitable or barely cover expenses. You should honestly calculate: how many days per year will it be occupied in your area given current competition, how much it'll bring per night, and subtract commissions, taxes, and cleaning. If it comes out profitable even in an average month - then it's worth trying.
The main thing to pay attention to is that St. Petersburg has very pronounced seasonality. Summer months can bring decent income, but in winter your apartment will sit empty for weeks. If you're calculating profit, don't average it across the year - honestly look at the calendar: how many nights will actually be booked in December or February. This seriously affects the payback period on renovation investments.
As for expenses - it depends on your apartment's current condition. If we're talking cosmetic updates, 50-100 thousand will be enough to make it look cozy and well-maintained. But there are hidden costs people forget to account for: you need thorough cleaning between guests (either a service or your time), property insurance, and over time you'll have to replace linens and furniture, warranty replacements. All of this eats into your profit.
On taxes - if you earn above a certain amount, that's a tax deduction, and it's not a small one. Plus the platform takes a commission, and in the end you pocket two or three times less than the calculator shows. Before you invest money, run a listing for a week or two in test mode - see how the calendar actually fills up in your specific neighborhood and what price people are looking for.
Log into answer.
