Interview with the head of the Association of Renters in Ukraine - Mironov Sergey

Yesterday we had a guest, an entrepreneur with a decade of experience, a well-known business consultant, PR manager, and marketer in one person - Sergey Mikhailovich Mironov. However, we invited him to the studio as the head of the Association of Renters in Ukraine. The purpose of our discussion was the following: Features and prospects of business development in short-term apartment rentals in Ukraine. Below we present to you the interview!

1) Sergey, the first question: how long have you been in this business and how did you start?

Thank you for the question. You know, I have been in business for almost 10 years. However, as I have several directions, I have been engaged in the short-term rental business since 2008. How did I come to this? - Once, a large international exhibition was planned in the city. The guests were to number over 1000 people. As I was one of the organizers, I oversaw the accommodation of the guests.

At that time, I encountered a big problem. It was quite challenging to accommodate all the guests at the same time while taking their wishes into account. In the end, we occupied all the available hotel rooms in the city and all the rented apartments. At that time, there were only 4 in the city. That was when I decided to monitor this direction - I placed several ads in newspapers and realized that I could not miss this opportunity.

2) Is it possible to start this business without experience, personal property to rent, and with limited finances?

Allow me to ask you a counter question - do you know many businesses that started with unlimited budgets and opportunities? Any business is, in any case, a risk. And the short-term rental business is no exception. Fortunately, the investment needed to start is minimal, and the risks are not that high. But you will not earn huge profits here. Returning to your question, I can say: of course, it is possible. And I am a bright example of that.

However, I can unequivocally say that if I had someone to consult with back then and learn all the pitfalls, I would have turned to them. In the end, I had to try everything on myself, spending thousands of dollars and a lot of time. But now I know all the nuances and features of this type of business and recall all the funny incidents with a smile. Regarding the apartment - 80% of renters engage in sub-leasing. They take an apartment long-term and rent it out short-term. There are some difficulties in finding an apartment and negotiating with the owner - but everything can be accomplished if you desire it. Regarding finances - a key feature of this business is that more than 60% of clients are regular, usually business travelers. Therefore, to start, you will need enough funds to cover the rent for the apartment for 3 months and for launching a small advertising campaign. After that, everything will go smoothly.

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3) What would you advise newcomers who are thinking about or just deciding to start this business?

As they say: If you’re afraid of wolves, don’t go into the woods. But, I can say for sure - the short-term rental business will always work. The need for temporary accommodation will always be relevant, regardless of the times, weather, or situation in the country. The main thing here is to start, build a regular client base, and scale the business as the load increases. I have gone from two apartments to 28. The main advantage here is that the risks are not high compared to other business directions. Furthermore, you don't need to 'step on rakes' - you can read and familiarize yourself with all the key features and nuances on my website: biznesposutochno.in.ua, or just contact me directly. I am always open to discussions and ready to consider any forms of mutually beneficial cooperation, feel free to add me as a friend on Facebook. Additionally, I am currently preparing a unique format of cooperation and looking for 2 reliable partners in each city of Ukraine. Send an application through the website if you are interested.

4) Sergey Mikhailovich, how has the overall situation in the country affected your business? Did it have any impact?

You should tell me which business was not affected? Probably the recent events have influenced not just business, but every citizen to some extent, in one way or another. I will tell you this - there was a period of stagnation. But now the dynamics are stabilizing overall. There is even a noticeable growth. Undoubtedly, I do not take into account the regions where active actions are taking place - there probably isn’t time for that now. Summarizing this question - There is still room for growth for this business - it just needs to be structured, put in order, and service standards set. This is what I am currently working on.

5) In continuation of your answer, I have a question - how did you become the head of the Association of Renters in Ukraine? How did you come to this?

As I mentioned earlier, I have been in this business since 2008. During this time we grew from two to 28 apartments, and in fact, we accommodated 50 or more guests because there were instances when there was nowhere to place regular clients. And you can't refuse them - we placed them with competitors by agreement. After this, due to my relocation to the capital and entering new business directions - I changed the model of work. I began simply redirecting my clients to partners. And this model proved to be effective. Moreover, I began to expand the network and entered other cities, including: Vinnytsia, Odesa, Kremenchuk, Odesa, Donetsk, Chernihiv, Kirovohrad, and others. I even tried this model in Moscow. It is functional everywhere. So, one day we gathered with partners in Kyiv and decided to create an organization that would regulate this business. As a result, I was nominated for the position of head of the Association of Renters in Ukraine. Right now I am working on the development of the organization, alongside other activities.

6) What are the goals and objectives of the Association of Renters in Ukraine AspoUkraine?

The main necessity for creating this organization stems from the fact that the field of short-term apartment rentals is developing quite chaotically. There are no common rules, standards, or guarantees for clients. The thing is that now when booking an apartment in advance - even paying a deposit does not guarantee anything. Because a short-term rental entrepreneur might relocate you or refuse to accommodate you if a more advantageous client appears by that time. They might present arguments like: plumbing failure, lack of water or electricity. The deposit will certainly be returned, but the negative impression will remain. After all, it's no surprise that negative reviews about certain entrepreneurs can currently be read. In short, customer service in this business is currently done on the principles of the landlords' integrity. This is precisely why many potential clients choose other options, even agreeing to prices that are significantly higher. Therefore, the key goals and tasks are to establish order, develop common rules, and create service standards for clients. Perhaps to serve as a guarantor between clients and short-term rental entrepreneurs. As I currently collaborate with a number of Ukraine's largest companies, I have access to a vast flow of clients who regularly travel on business. Currently, that is more than 2000 people. However, companies are only willing to collaborate with us on a permanent basis under transparent conditions. They need to be assured that their employees will receive the level of service that was previously promised. Right now, I am simultaneously searching for partners to launch a company, in which everyone would benefit. Check the details at: biznesposutochno.in.ua

7) How can one become a member of AspoUkraine?

It doesn't matter if you are a novice entrepreneur or an existing short-term rental operator - feel free to submit an application to participate, and we will discuss all the details of our effective cooperation. In short, we are open to everyone!

Sergey, thank you for your detailed answers! And we remind you that our guest was: the head of the Association of Renters in Ukraine - Mironov Sergey Mikhailovich. After talking with him in the studio - we can certainly say: if you plan to start a business in short-term apartment rentals - reach out to him! Wishing you success!

Author: Radomir Domanski