The rental market can be quite complicated for a beginner – and full of pitfalls – so what should you look out for as a new landlord to make sure you don’t overspend before you start earning money? Where can you easily waste it?
Rent price is too high
The first issue that can cause your rental ad not to attract prospective tenants is a price that is too high. This usually results from a lack of market analysis and no market knowledge. If you do not know how much your apartment is worth, what the prices in the area are like, and what advantages and disadvantages may affect your income, you are not able to correctly determine the amount of rent, and as a result you earn less than you could, or you wait longer than you should for a tenant - and the apartment stands empty.
There are various ways to estimate how high the rent should be. The first one is simply "see how much the competition in the area is charging and apply a similar price" - our rent calculator, which checks the rental prices of over 150 thousand properties recently available on the most popular rental ad portals in Poland and will tell you what prices look like in your area, can help you in this task.
Another solution is to calculate the annual rate of return on investment, based on the prices of apartments for sale in the area (i.e. how much you would earn on the apartment if you bought it for investment purposes). Currently, it is estimated that an apartment in a large city can bring (depending on, among other things, size and location) about 4-5% return on investment per year.
More detailed information on how to calculate the rental price can be found in a separate article.
Poorly prepared flat listing
The monthly rent amount is one of the most important factors that affect how quickly you will be able to find a tenant, but it is not an only one. What might be as important is the ability of "selling" the apartment well. Of course, the tenant will physically see their apartment some time - but these days most transactions take place online - and the potential tenant will see it online before making a decision.
It is important to present your property well. Start with photos - because each of us "buys with our eyes". The photos should be large, show the apartment in its entirety (at least one from each room) and the building itself - even the entrance to the staircase, so that it is easy to find the premises once you have arranged a meeting, or so that the person viewing your listing can assess the surroundings of the apartment.
Renting your apartment "as is"
This is often the case with, for example, an inherited apartment. After removing private items, the person who took over the apartment wants to immediately put it on the market. This can cause two problems - the first may be time of waiting for a new tenant (due to worn-out furniture or the apartment itself) - but this time can be shortened by a lower price. However, a bigger problem that can arise in such a case is the fact that the new owner does not really know the condition of the apartment - and unforeseen problems can arise, for example resulting from old appliances or problems with the supply of utilities (e.g. a broken and old gas furnace, or radiators that do not heat).
How to avoid these types of problems? First of all, by inspecting the condition of the apartment. Then you are aware of the problems and can fix them before they appear. You can also refresh the apartment, remove damaged furniture or equipment, or even repaint it before the lease begins.
We change the rental industry
In Poland, the rental laws favor the tenants, even in cases of fraud. At Rendin, we champion fairness for both parties! Our solution supports equitable rental relationships by providing landlords with:
Professional legal aid whenever they need it
Rent payment guarantee
Property damage reimbursement
We envision modern property renting as simple, accessible, and, most of all, secure for both landlords and tenants.
Renting your apartment "as is"
This is often the case with, for example, an inherited apartment. After removing private items, the person who took over the apartment wants to immediately put it on the market. This can cause two problems - the first may be time of waiting for a new tenant (due to worn-out furniture or the apartment itself) - but this time can be shortened by a lower price. However, a bigger problem that can arise in such a case is the fact that the new owner does not really know the condition of the apartment - and unforeseen problems can arise, for example resulting from old appliances or problems with the supply of utilities (e.g. a broken and old gas furnace, or radiators that do not heat).
How to avoid these types of problems? First of all, by inspecting the condition of the apartment. Then you are aware of the problems and can fix them before they appear. You can also refresh the apartment, remove damaged furniture or equipment, or even repaint it before the lease begins.