7 rules to follow when buying a flat for rent
Buying the first flat for rent is a very important moment in the investor’s life. After all, we don’t buy a flat every day. It is very important that this is a well-thought-out investment. You invest considerable funds, so learn and read as much as possible using the knowledge of other investors.
• Don’t buy the first apartment you see. In this case, impulsiveness may only be a disadvantage. Watch the apartments and check. The Internet is a significant facilitation here, which will help you make the initial selection. It should be emphasized – initial. Every apartment that you find interesting is worth visiting. This rule applies primarily to secondary market housing.
• Start with something small. A studio apartment, small two rooms, is a much better choice than living in an apartment building. Starting with something small, you minimize possible losses and give yourself a chance to gain practical knowledge about renting. Not only that, the price is always an advantage for the tenant. With smaller apartments, you can afford a lower rental price, and a few square meters less will become insignificant with a reasonable interior arrangement.
• Try to find an apartment with low fees. This applies not only to the costs of fees to communities or cooperatives, but also to further service charges. Even if you buy an apartment in the middle of hot summer, remember that winter will come after it. Heating costs can be significant, so the best option would be flat-rate. There are relatively few such flats. Remember, however, that we do not like eclectic heating the most, so avoid it as well.
• Think who you will be renting the apartment to. If you want to rent an apartment to young people who are just entering the labor market, focus on the price. It can work wonders, because the cheaper the apartment, the faster you will take it out. Families with children will already be looking for a higher standard. You can also rethink the type of rental. Perhaps you have the time and energy to focus on short term rentals. Then look for an apartment in the very center of which its advantage is mainly its location.
• Buy a new apartment or an apartment on the secondary market? There is no clear answer to this question, or maybe otherwise – it is directly related to the answer who is to be your tenant. A new apartment requires much higher finishing costs and is addressed mainly to families. Usually it will be more expensive than an apartment on the secondary market. It should be remembered that in accordance with the regulations in force, developers are not allowed to build apartments below 25 meters. We can find such offers on the secondary market.
• Don’t be driven by your own needs. Of course, it’s important for tenants to live well. However, no one will pay you extra for the view from the window or the high standard of the device. Try to make the decor as universal as possible. Do not shape the tenant’s taste, perhaps it is completely different from yours.
• Buy an apartment below market value. This is a very difficult rule, but try to follow it. Search the market for opportunities and treat these searches as work. Every zloty saved is your profit in the long run.