Some work full-time, others run their own business, others rent their apartment for profit. This is the best time to earn on rent because the real estate market shows that renting apartments is much more popular than buying them. The reason is prosaic – thanks to this solution, we can change our place of residence at any time, we do not have to buy all the equipment, because it is often provided by the owner of the property, and our monthly bills are lower than if they were joined by a mortgage installment. So if we only have a flat that we could provide to tenants, it’s a shame not to take advantage of this opportunity. Let’s find out how much you can earn per month for renting an apartment.
Before we implement a rental earning plan, we must first have an apartment. Due to the fact that not everyone receives such property inheritance from a family member, acquiring it may cost us a little money and money. Apart from winning an apartment in the competition, there is actually only one option – taking a mortgage. However, before we decide on its height, let’s do the appropriate research. The whole idea is to buy the property as cheap as possible, but in the best location and in good condition.
Apartments on the upper floors are cheaper. However, they lose sight of families with small children who find it difficult to move freely in a pram. The advantage of those on the outskirts of the city will certainly be peace and quiet. Despite this, this location will not attract the attention of most people who do not have a car, because such areas are usually less communicated with the city center and extend the time of commuting to work or shopping. Let us not be tempted by the lower price of such premises. It will make us indebted to the bank for a smaller amount, but we will close our way to higher rental income.
On the other hand, if we do not think of it as a long-term source of financing, and we only mean the subsequent sale of a profitable flat, less attractive locations may also meet the expectations of many landlords. We recommend buying an apartment that has already been renovated and furnished, because we are not going to use it anyway and we do not like it. The larger the area and the higher standard we offer to future tenants, the more we can earn on it.
Earning a rent carries some risk. After all, we theoretically let people in whom we know nothing and trust them. Many tenants reduce the risk and require their tenants to pay a deposit, which will cover any losses (broken equipment, damaged furniture, etc.). Most often it is two or three times the monthly rent. In addition to this requirement, it is good practice to cast for future tenants. Of course, a few minutes of conversation will not give us a guarantee that the tenant will not cause problems, but sometimes it is worth relying on intuition. In case of need, our points will be taken care of by subsequent points of the agreement signed with the tenant (s).
We also remember to settle the tax on renting an apartment. Paid access to your apartment to someone is nothing other than enrichment for the Tax Office, so you must pay tax on it. Our only responsibility is to decide whether we will do it as part of our business operations or as a lump sum as private individuals. It is also worth considering how much you can earn for renting an apartment? About this in the next paragraph.
How much can you earn real? It is difficult to provide a standardized rate, because it depends on the location, size and condition of the apartment. Each case is individual and we will not run away from a thorough analysis of the real estate market with an indication of a thorough understanding of prices for renting apartments in the area. In a city inhabited by approx. 300 thousand residents, which is an important point on the labor market and on the map of higher education, the minimum rental fee is 1000-1300 PLN (it does not include rent and utility bills). In this situation, we must rather expect not one, but several tenants who will divide the rooms between themselves and reduce the cost of renting. For us, from a financial point of view, it doesn’t matter much. We will earn the said amount if investing in real estate brought us a flat in a district far from the center, of a decent standard, in a tenement house or block of flats.
If we bought the premises in a more attractive location, renovated and fully equipped, we have the right to value the rent for at least PLN 1,500 per month (+ rent).
It is not worth changing, or more precisely – increasing prices during the casting, because we will alienate tenants and delay signing of the contract. And every day without a tenant is a potential loss for us, because we have to pay the rent out of our own pocket. Since our insight into the market has shown that we should demand PLN 1,200 for rent, let’s not get up to it and stay with this amount, unless under the influence of negotiations we decide to reduce it.
The sooner we find a tenant, the better chance we can earn from renting and greater profits. Let’s not forget that for this to happen, the apartment must also be properly presented. We must therefore ensure clear, good photos of each room, a detailed description of the premises, with detailed equipment, as well as its location. Let’s choose up to three classifieds websites, on which we will place an offer and limit its visibility time, e.g. to 2 weeks. Thanks to this we will know the response. If it is small, you may need to improve something in the content of the advertisement, if it is large, at least we will quickly find a tenant.
The price range of apartments in every Polish city is huge. Studies show that landlords in Częstochowa earn the least. They earn a little more in Poznań and Katowice, while Warsaw, Kraków, Gdańsk and Wrocław are real veins of gold.
The demand for flats is still growing and many tenants agree to high rates, as long as they have a place to live. For landlords, this equals earnings of at least the lowest national per month (if we have more than one apartment, we only perform the multiplication operation). However, on an annual basis, it is a minimum of several thousand zlotys. This amount can easily become a permanent source of income for the owner of the apartment or a noticeable addition to the monthly household budget. As you can see, earning from rent is possible. You just need to approach the subject wisely and count on strength.