Today we are publishing an interview with the owners of a car rental business in Montenegro — Anatoly and Irina. This family moved from Russia more than six months ago and opened their small business here. We tried to ask them in detail how it all happened, why they chose this path, and what for — because many potential immigrants often have lots of questions about this kind of business and life in Montenegro in general.
Starting a Rent-a-Car Business in Montenegro: An Immigrant’s Perspective
— Hi, guys! We’ve seen each other from time to time, so I’m not really up to date on how your life in Montenegro is going. Tell us briefly (or in detail — whatever you prefer) about your experience here. Have you gotten used to the country, the mentality, the people, and the lifestyle? Or maybe you’ve set your own pace, different from the local one? Overall, it would be interesting to hear your opinion. Laughing How is your relationship with the locals and the language? Have you made friends among Montenegrins, or do you mostly socialize with Russian immigrants?
— Good day! To put it briefly — everything is great. Laughing Overall, we can say that we’ve gotten used to the country. Before moving, we had already visited Montenegro on a trial trip and had a chance to get familiar with some aspects of the local mentality, which can be summed up in one word: “POLAKO.” So now, many work-related — and not only work-related — situations we approach with an understanding of the slow, measured pace of local life. As for socializing, we interact equally with both Russians and Montenegrins.
— And how do you spend your free time? Are there things to do “for the soul” here? Many people are curious about that, since cultural life is quite important for many Russians.
— For the soul, we do sports — not professionally, just for ourselves. We go running in the park, which is literally a couple of steps from our house. What we especially love is that we can run here all year round — only rain can stop us. In Siberia, we couldn’t afford such a luxury. Laughing We also read books, go for walks, and travel around the country. There are great opportunities for children’s cultural development here: ballet, drawing, tennis, language classes, and much more. We are very happy about that.
— As far as I remember, when you arrived, you had plans to open a tea and coffee shop. Why didn’t that idea work out? Or would it be more accurate to say — hasn’t worked out yet?
— Yes, originally we planned to open a tea and coffee store. While we were still in Russia, we worked out the concept in detail. But after arriving here, we realized that this type of business isn’t really in demand yet. The local population doesn’t have a strong need for high-quality, more expensive tea and coffee, and the number of Russian-speaking residents is relatively small. As for tourists, who come during the season, they mostly seem to prefer other kinds of drinks. But we’re not giving up on the idea — we’ve simply decided to postpone it and focus on a more predictable type of business for now — rent-a-car.
— As far as I remember, when you arrived, you had plans to open a tea and coffee shop. Why didn’t that idea work out? Or would it be more accurate to say — hasn’t worked out yet?
— Yes, initially we planned to open a tea and coffee shop. While still in Russia, we thoroughly worked on this concept. But after arriving here, we realized that this type of business isn’t really in demand at the moment. The local population doesn’t yet have a big need for high-quality, more expensive tea and coffee, and the Russian-speaking population is quite small overall. Tourists who come for the season mostly seem to prefer other drinks, at least in our opinion. But we’re not giving up on this idea — we’ve just decided to postpone it and focus on a more predictable type of business for now — rent-a-car.
— How satisfied are you with this business? What can you say about setting up this type of business? Was the beginning difficult? What challenges did you face? Where did you buy the cars for rental? What made you consider this idea, since rent-a-car is more expensive to start than a tea/coffee shop, isn’t it? Or maybe I’m wrong and the profit covers the vehicle maintenance costs? Please share all these details with us… Maybe something else will come to mind while you’re at it. 🙃
— The initial stage wasn’t easy, mainly due to the lack of detailed information and the language barrier. There were certain nuances with getting a license: to obtain it, you need to own at least 3 cars no older than 2009, all insured with both basic and full coverage. You also need to have contracts for office space and parking. Later, if the office or parking are no longer needed, you can cancel those contracts. We received great help from both locals and Russians who have been living here for a while.
As for the cars, there are specific challenges too: Montenegrins prefer manual transmissions, but automatics are more suitable for rentals. Automatics in good condition are rare here, so we had to search thoroughly. One car we brought from Germany, but it turned out to be unprofitable — prices in Germany are high due to many middlemen, and direct sellers usually adjust prices to the average market level. The selection isn’t great either; finding a good vehicle is not easy. Many cars come with robotic transmissions, but they are a constant headache in use and even more so in repair. We looked only for the good old automatics.
There can also be issues with local customs clearance. Sometimes a legal amendment is passed and a car that’s already been brought in can’t be cleared. That’s exactly what happened to us. Even professionals who specialize in importing cars from Europe can’t guarantee that customs will go smoothly.
Regarding profit and expenses — it all depends on the number of cars and their technical condition. In our opinion, to live comfortably and continue growing, you need at least 10 cars.
— And what about competition — is it high/low/non-existent? How do you assess other rental agencies? Would you say your agency is better, and if so, why? Maybe thanks to pricing, a flexible approach to clients (as it’s fashionable to say now), a slogan like “Fast. Reliable. Quality”?
— Competition in this sector is quite high. In our case, aside from local rent-a-car businesses, companies from neighboring countries are also very active in the market. As for evaluating other rental companies — everyone works differently. We are fairly new to this business, so it’s hard for us to assess others, and frankly, it’s a thankless task. 🙂
Speaking of our company, we make sure our fleet is always in good technical condition — we believe it’s crucial both for our clients and for ourselves. We also offer child seats, GPS devices, and international insurance for travel outside Montenegro free of charge. We provide discounts for returning clients as well.
— Well done! Where do you service your fleet? Are there any issues with this in Herceg Novi?
— Yes, servicing cars in Herceg Novi is a bit tricky. We still haven’t found a workshop here that fully meets our needs. So, for the most part, we only do oil changes locally. For everything else, we go to Tivat, to a Russian auto service that, I think, every Russian here knows. They’re great guys — they handle both spare parts and repairs quickly and efficiently.
— Do you plan to expand? Maybe start renting out motorbikes or bicycles? These are popular with European tourists, especially.
— We do plan to expand, up to a certain scale. At the moment, we’re not planning to rent out motorbikes or bicycles, because in our first season we saw low demand for them — at least that’s how it seemed to us.
— How would you rate your first season in this business? Many say the summer was a failure. Did that affect you?
— Honestly, it’s hard to evaluate our first season just yet — we’d need at least a second season to compare. 😄 But there was work, and we gained some regular customers, both among locals and tourists.
— How is your workflow organized? Where do you find clients, how do you advertise? What works best?
— We find clients through different channels: social media, travel agencies, and word-of-mouth. The most effective method is recommendations from people who have already used our services. We’re also currently developing our own website.
— Who usually rents your cars (I mean — mostly Russian tourists or foreigners)? What’s the average rental period and price? Which class of car is most in demand?
— Cars are rented by both Russians and foreigners, but there are definitely more Russian-speaking clients. Rental durations vary a lot, so prices also vary — the longer the rental, the cheaper the daily rate. Small cars with automatic transmissions are in the highest demand. But it’s important to have a variety — everyone has different preferences.
— Wishing you success in business and safe roads! 😊
Watch another review about immigration to Montenegro.
