The real estate industry is doing very well at the moment. Demand for short-term and long-term rental is not decreasing. Students prefer to live close to the university and not commute to classes every day from their family home. Young people want to become independent from their parents and live on their own. Transport is so well developed that you can easily jump on a week's vacation or weekend even to the other end of the country. In turn, more and more employees on business trips prefer to rent a small apartment than live in a hotel.
So, if you have a private, uninhabited apartment, you can decide to rent it.
The monthly profit will be additional income. Real estate is a good investment, so many people with all or part of their capital decide to buy a flat to rent. Even when taking out a loan to buy an apartment, the owner will easily cover the cost of the monthly installment from the compensation fee.
It is the most popular in connection with renting an apartment for days for tourists and people on business trips. Short-term rental has the best chance of profit if the apartment has a high standard of finish and is located in the center of large provincial cities, e.g. in Wrocław, Kraków or Warsaw, or in towns of great tourist value, e.g. at the seaside, at a lake or in the mountains. This form of rental gives you a much better chance of more profit, but it is necessary to involve both time and money. There is also a risk involved. After the tourist season, there can be much less visitors, so it may turn out that sometimes you can only earn money for costs.
The owner may rent the apartment to a couple, married couple or family for a minimum period of one year. In addition, in cities with universities, you can also rent a flat to students for a period of at least one year. Long-term rental is more profitable than short-term if the apartment is of an average standard, is located in a student town, on the outskirts of the city, or in a small town without major tourist attractions. This form of rental will not give you a lot of income, but it allows you to receive a steady, reliable income without much effort on the part of the owner.
It is becoming more and more popular to mix the two forms of rental. This possibility is offered by having an apartment in a city that is attractive for tourists, but one with universities. The academic year runs from October to June. Many students look for a rental only for this period, because they return to their family home or go to work abroad during the holidays. The contract can therefore be concluded for a period of 9 months, and in July, August and September, you can rent an apartment for days in the form of tourist apartments.
The advantage of this solution is a certain, steady monthly earnings with a chance to earn additional profits during the holidays. Additionally, students who would not have to pay a fee during the 3-month vacation period would probably be happy to rent a flat for the next academic year. When planning a mixed rental mode, however, it would be necessary to ensure a higher standard of equipment in the apartment. However, in order not to have any problems, it would be necessary to choose quiet students who would take care of the apartment for 9 months and would not cause any damage.
Let's assume that Mr. X owns an apartment in the center of Wrocław. It has 50 m2 and consists of two rooms (20 m2 and 13 m2), separate kitchen (9 m2), bathroom (4 m2) and a hall (4 m2).
The apartment should be fully equipped with furniture, household appliances and electronics, tableware, bedding, towels, etc. One should not forget about decorative elements. For short-term rental, the apartment should be of a high standard. It is worth refreshing the appearance of the apartment once a year by repainting it or slightly changing the accessories.
The price for renting an apartment per day is PLN 200 gross. In the warm months (spring, summer, early autumn) and around holidays and days off, you can count on a lot of occupancy. However, in October, November, January, February and March, the interest in short-term rental may be lower.
It can be assumed that during the 7 months of the year the apartment will be rented for at least 20 days a month, which, when multiplied by PLN 200 gross, gives a monthly earnings of PLN 4,000. After deducting the cost of rent (PLN 600) and other service charges
(PLN 300) is PLN 3,100 a month.
During 5 less attractive months of the year, you can count on rental for about 10 days a month. After multiplying them by PLN 200 gross, we get a monthly profit of PLN 2000 gross. After deducting the rent (PLN 600) and other charges (PLN 200), the remainder is PLN 1,200 per month.
The apartment should only be equipped with basic furniture and household appliances such as a refrigerator or an oven and
basic tableware or pots. It is enough for the apartment to be tidy - there is no need to equip it with a TV,
microwave or fashionable accessories. Renovation of the apartment is necessary every few years.
The contract is concluded for one year. The total gross price is PLN 2,300 for each month. About 600 zlotys of rent should be deducted from this.
Other charges depending on consumption are paid by the landlord. The monthly earnings are PLN 1700 gross. In such a situation, the annual profit amounts to PLN 20,400 gross with a small annual financial and time expenditure of the owner.
The apartment should be fully equipped with furniture, household appliances and electronics, tableware and decorative accessories. Bed linen or towels can only be provided for the holiday period for the duration of short-term rental. After 9-month short-term rental, the priming should be cleaned and the walls should be painted.
The above calculations show that 9 months of long-term rental from October to June will earn PLN 1,700 gross per month (after deducting the costs). In 3 vacation months, when renting for a minimum of 20 days a month, you can earn after deducting the costs of PLN 3,100 per month.
The annual profit is: 9 * 1700 PLN + 3 * 3100 PLN = 24.600 PLN gross with the dedication of a larger amount by the owner only during the first quarter.
Izabela Praska
Editor of Bookable.pl, HoReCa marketing specialist. Specialist in FooDeliver, OrderEngine and Bookable products.