Renters can anticipate both short-term and ongoing financial returns when they opt to rent out their properties.
Short-term apartment rentals prove more lucrative than long-term leases in several major Russian cities, according to recent data. Inillionaire cities like Saint Petersburg and Moscow, daily short-term rentals bring in 2.6 and 2.2 times more income than long-term rentals, respectively. Kaliningrad and Kazan follow closely, with daily rentals yielding almost double the income compared to long-term.
Moscow emerges as the city where short-term rentals hold the greatest advantage in terms of income. Daily short-term rent in the city generates approximately 1.3 million rubles, compared to 595,6 thousand rubles for long-term rentals. St. Petersburg also ranks among cities with a significant advantage for short-term rentals, although specific profitability comparisons are not provided for this city.
Resort and tourist destinations, such as Sochi and Sergiev Posad, traditionally attract more tourists and business travelers, potentially benefiting from increased demand for short-term rentals. In some cities, such as Gelendzhik, short-term rentals lead but with a smaller margin—only 17%—when compared to long-term rentals.
Location and the condition of the apartment play a crucial role in short-term rentals. High-demand potential and income are associated with apartments with recent renovations situated in central and tourist (historic) districts of the city. In contrast, apartments in the same residential areas of Moscow and St. Petersburg are more frequently rented long-term.
Long-term rentals remain a stable source of income in industrial hubs and cities with low or highly unstable tourist demand. In Magadan, the leader in the ranking, annual income from long-term rentals exceeds that from short-term rentals by 2.3 times, or 132%. Cities like Khanty-Mansiysk, Lipetsk, Abakan, Orel, Ulan-Ude, Kurgan, Chelyabinsk, Penza, Volzhsky, Tambov, Tomsk, Kirov, Tver, Perm, and Ulyanovsk show higher yields for long-term rentals compared to short-term rentals.
In conclusion, while Moscow and St. Petersburg are explicitly noted for their profitable short-term rentals, cities like tourist destinations may also benefit from strong demand for short-term rentals, although specific profitability data is not available for these locations. Long-term leases remain a stable income source in cities with low or unpredictable tourist demand.
In Moscow, short-term rentals generate approximately 1.3 million rubles, significantly higher than the 595,6 thousand rubles from long-term rentals, indicating a prominent advantage for short-term real-estate investments in the city's housing market. Meanwhile, resort and tourist destinations such as Sochi and Sergiev Posad, traditionally attracting more tourists and business travelers, may potentially benefit from increased demand for short-term housing investments, although specific profitability comparisons are not provided for these locations.
