Renting out a flat by the night in Odesa can earn more than a long-term let, but only if the flat is in a popular location, well equipped, and someone handles bookings, cleaning and guests every day. Income depends heavily on the season and the security situation, and taxes and the tourist tax have to be built into the numbers from the start. There is no guaranteed return: model your own case on conservative assumptions.
Which flat to buy for short-term rental
Small flats work best for nightly rentals: studios and one-bedroom flats for 2-4 guests. They are easier to fill, cheaper to clean and simpler to furnish.
- Location: the city centre, the area around the main railway station, Arcadia and the Fontan coast. Seaside flats have a strong summer but demand drops noticeably in winter; the centre gives steadier demand through the year.
- Building: a lift above the third floor, a shelter nearby, ideally a generator in the building or room for your own backup power.
- Heating: individual heating gives you control over winter costs and comfort.
- Owners' association and neighbours: check whether house rules restrict short-term letting and how neighbours feel about a constant flow of guests.
- Resale or new build: an older flat in the centre is often cheaper per square metre, while a new build near the sea needs less renovation. According to FAKTOR's database on 30 September 2026, the median asking price on Odesa's resale market is $1,227 per m², up 11.6% over the year.
Costs to include in your numbers
A common beginner mistake is to count income from the nightly rate and forget about costs. Split them into start-up and running costs.
Start-up:
- renovation and small repairs;
- furniture, appliances, air conditioning, kitchenware;
- several sets of bed linen and towels for each bed;
- backup power: a power station, lighting, a router with a battery;
- professional photos for the listing.
Running:
- utilities and internet, which you pay whether or not there are guests;
- cleaning and laundry after every stay;
- consumables: toiletries, cleaning supplies, tea and coffee;
- booking platform fees and paid promotion;
- minor repairs and replacing broken items;
- taxes and a reserve for empty months.
Seasonality and occupancy
Odesa is still a seaside city, so demand peaks in summer and on long weekends. Off season, flats are rented by business travellers, people visiting on errands or to see family, and those who need a place while they look for a long-term rental. Under martial law demand also depends on the security situation, so last year's occupancy is no guarantee for this year.
- in winter, consider mid-term lets of a month or more: fewer check-ins, less cleaning and steadier income;
- keep pricing flexible: higher on weekends and holidays, lower on off-season weekdays;
- calculate payback on annual occupancy, not on summer occupancy.
Taxes: individual or sole trader in 2026
The Tax Code of Ukraine offers two main routes.
Individual without registration. Income from renting housing to other individuals is subject to 18% personal income tax and a 5% military levy, 23% in total. The landlord pays the tax quarterly within 40 days after the quarter ends and files an annual return (clause 170.1 of the Tax Code). If nightly letting becomes a regular activity, discuss registering as a sole trader (FOP) with an accountant.
Sole trader on the simplified tax system. Nightly accommodation uses activity code 55.20, longer lets use 68.20. Groups 1-3 cannot let residential property with a total area over 400 m² (clause 291.5.3).
- Group 2: a fixed monthly tax set by the city council, no more than 20% of the minimum wage, plus a military levy of 10% of the minimum wage, which is UAH 864.70 per month in 2026. Services may be provided only to individuals and other simplified-system taxpayers, so if money comes from companies or foreign platforms, check with an accountant whether this group fits.
- Group 3: 5% of income (without VAT) and a military levy of 1% of income.
- in both cases the sole trader also pays the unified social contribution for themselves.
The minimum wage on 1 January 2026 is UAH 8,647; fixed payments for sole traders are calculated from it.
Tourist tax. The guest pays it, and a sole trader providing accommodation can act as the tax agent if the city council decision provides for that. In Odesa, under decision No. 4314-VIII of 14 July 2026, the rate for Ukrainian citizens is 0.5% of the minimum wage per night (UAH 43.24) and 1% for foreigners. Check the Odesa City Council website for the collection procedure and the date the new rate applies from.
Example calculation with assumed numbers
This is not a forecast or market average, only an illustration of the method. Assume the flat is let at UAH 1,500 per night and averages 15 booked nights per month over the year.
- monthly income: 1,500 × 15 = UAH 22,500;
- assume platform fees, cleaning, laundry, consumables and utilities together take 35% of income: UAH 7,875;
- sole trader, group 3: 6% of income (5% tax plus 1% military levy) = UAH 1,350, plus the social contribution;
- individual without registration: 23% of income = UAH 5,175.
Plug in your own numbers: the real rate for your flat, honest off-season occupancy and actual costs. Compare the result with a long-term let of the same flat: it earns less but takes far less of your time.
Platforms and risks
Owners usually list on several platforms at once: Ukrainian classifieds sites with a daily rental section and international booking services. Each has its own fees and cancellation rules, so read the terms before you publish.
- guests who damage property or break house rules: take a deposit, photograph the flat's condition and sign a short agreement;
- complaints from neighbours and the owners' association about noise and constant turnover;
- scammers posing as guests who ask you to refund money they supposedly overpaid;
- power cuts, air raid alerts and lower demand after attacks;
- changes to tax rules and local decisions on the tourist tax.
How FAKTOR can help
FAKTOR helps you choose a flat in Odesa for renting out: we compare resale options and new builds at developer prices with no commission, and check the documents. Do the yield calculation yourself or with your accountant; we will provide the market data.
Related: investing in Odesa real estate, resort property in Odesa, Odesa property prices in September 2026.
Is nightly rental more profitable than a long-term let?
Potentially yes, but it takes daily work and higher costs, and income depends on the season and the security situation. Compare both options on your own numbers, not on examples from the internet.
Which sole trader group suits nightly rentals?
Most owners choose group 2 or 3 with activity code 55.20. Group 2 pays a fixed tax but may serve only individuals and simplified-system taxpayers. Group 3 pays 5% of income plus a 1% military levy.
Can I rent out a flat by the night without registering as a sole trader?
An individual can declare rental income and pay 18% income tax plus a 5% military levy. If letting is regular and looks like business activity, registering as a sole trader is the safer option.
Who pays the tourist tax?
The guest is the payer. A sole trader who provides accommodation can collect it as a tax agent under the city council's decision.
We will shortlist options for your budget and guide the deal from the first viewing to signing.
