Revenue houses were very popular in Kyiv at the turn of the 20th century. Precursor to modern apartment buildings, entrepreneurs invested in the construction of homes and apartment buildings mainly with the intention of renting them out. Around 850 of these revenue houses were built in Kyiv at the end of the 19th century and at the beginning of the 20th century.
At that time, revenue houses belonged to both individuals and various organizations looking for a stable source of income. The owners of these properties were educational institutions, orphanages, monasteries, and both commercial and charitable organizations. Wealthy architects also built homes for themselves.
During the Soviet Union, the practice of building revenue houses disappeared, as private property and entrepreneurship were not part of the centralized economy.
Since Ukraine gained independence in 1991, revenue houses have made a comeback in Kyiv. This has been facilitated by the rapid development of business activity, especially in Kyiv’s real estate market.
According 100Realty’s data, for the period 2015-2019, the number of primary residences in Kyiv doubled – from 130 in 2015 to 220 in 2019. Even taking into account the 2020 pandemic, 2021 has almost reached the pre-quarantine level (210).
source: 100realty.ua
Taking into account the development of business in general, the constant growth of the population in Kyiv and the demand for real estate, Standard One decided to bring back the tradition of revenue style apartment buildings.
The first successful project
The “Standard One VDNG” is a modern example of a revenue house in Kyiv. The complex has already been commissioned and investors can already see how the project works.
At the “Standard One VDNG” you get a ready to rent apartment with a ready-made interior, furniture, kitchen and appliances. The Standard One VDNG provides a high level of security for all residents. The complex has its own fenced area, security service, and is equipped with key card access and 24-hour video surveillance. All apartments in the complex were purchased before the end of construction.
The management company of the complex deals with everything related to the work with tenants and property maintenance that investors may not want to busy themselves with. The “Standard One VDNG” provides a high level of service, just like in hotels.
The concept and design of the “Standard One VDNG” pursues a single goal – to provide investors with profit. Apartments are constantly bringing money to the owners. A unique service from Standard One: rent out your apartment without your own time or effort. The Standard One VDNG is built to generate passive rental income to the apartment owners.
Another advantage of “Standard One VDNG” – is its proximity to the metro . It’s one of the basic components of the Standard One company strategy – all projects are always next to a metro station. This provides quick access to any destination in the city and a way to avoid traffic jams in the city.
One more promising project for investment
Following the success of the «VDNG» project, Standard One started implementing its next project – “Standard One Terminal”, a business-class aparthotel, also located in Kyiv, next to the Central Railway Station.
The “Standard One Terminal” is the perfect place for business-travelers. Kyiv Central Railway Station is the main transport hub in Ukraine. There is an express train to Kyiv Boryspil International Airport (KPB) and you can get to the Kyiv International Airport (IEV) in 15 minutes. International and intercity trains are a minute on foot, as well as metro station and all types of municipal transport. The historical city center is a ten-minute walk away.
As at the “S1 VDNG”, all “S1 Terminal” apartments are ready for arrival: designed in contemporary style, equipped with a kitchen, stocked with all essentials and all home appliances. All hotel services for residents will be provided. The complex has its own restaurant, a 25th floor lounge with a great view, conference hall and gym and a co-working area.
S1 Terminal apartments can be rented not only at a daily rate or for longer periods of time. Thanks to such an approach, residents will get more than they would get in a hotel of the same class. At the same time, such an approach provides a higher occupancy rate of the apart-hotel, meaning more profit to its investors.
Apartments in “Standard One Terminal” are operated by an international hotel operator, which deals with everything related to the property maintenance and work with tenants. 24/7 security and video surveillance guarantees the full safety for tenants and investors.
Additional benefit offered to investors is a yearly, free, three-week stay at the “Standard One Terminal.” When investors come to Kyiv on business, they have a place to stay and can take advantage of the aforementioned benefits from their rental business.
And moreover, every apartment has a hidden locked storage room, which an investor can use and store important items. Only an investor has access to the storage room.
All the maintenance costs of the apartment are included in the commission for hotel management, subject to agreement with the management company.
There are two models of investment in “Standard One Terminal”:
- Transfer the real estate to the S1 Hospitality management company that guarantees an income of 5.5 % per annum in USD that is fixed in the appropriate contract and is paid, no matter what the circumstances.
- Transfer the real estate to the international hotel operator, forecasted rates of profitability will be up to 15% per annum in USD. The income is shared among all investors proportionally and does not depend on a particular number occupancy. Therefore, all investors will receive income, the amount of which will depend on the total “Standard One Terminal” occupancy.
All “Standard One Terminal” investors will receive regular finance reports from the reputable external auditor.
As we can see, a forgotten type of promising real estate returns to Kyiv, giving investors new possibilities. Everyone can become an apartment owner of a modern investment property and gain a stable passive income. And without additional financial costs or time.
