Is it better to invest in studio flats or large flats?

Several factors influence which flat tenants choose, above all size, location and price. Suppose we have a choice of two flats in a similar area. Is it better to invest in a studio flat or a large flat to let?

How much does it cost?

The first yardstick is the purchase price of the flat. Studio flats, because of their size, are cheaper, but when we calculate the price per square metre, it may turn out that buying a larger flat is more profitable. So at the start, everything depends on the budget we have.

The second stage is renovation. It is rare for a flat to be ready for letting straight away. So we need to work out the cost of renovating the premises. Here too, the final amount will probably be lower for a studio flat.

We will not see a big difference, however, when it comes to the basic furnishing of the flat. A bathroom will cost about the same, and so will fitting out the kitchen. And that is basically enough to let a flat. Quite a few tenants have their own beds and wardrobes, or are ready to buy them, so we do not have to furnish every room straight away.

And finally, the rent for the flat. When we compare the rents for a studio flat and a two- or three-room flat, it may turn out that they do not differ much. Of course, the larger the floor area, the higher the rent, but does it rise enough to cover the cost of the renovation we had to carry out earlier?

READ ALSO – HOW TO BUY A FLAT BELOW MARKET VALUE?

Who do we let to?

The size of the flat can affect who responds to our advertisement. Studio flats in Katowice are very popular and such a flat is easy to let, but their tenants may also be more mobile. It is easier to move into and out of a studio flat, because the tenant has fewer things to transport. Small flats appeal to singles and young couples alike, sometimes with a small child.

A large flat will interest a bigger family whose income allows them to rent a flat with several rooms. So we can assume, especially if they have children, that they will be less willing to move out. That can mean regular monthly income and no major problems. On the other hand, large flats in Katowice are popular among groups of young people living the student lifestyle. Their mobility is much greater, and paying the bills can be hit and miss.

Before choosing a property – a studio flat or a large flat – it is worth thinking about what kind of tenants we want to host and how much time we are ready to devote to finding the next ones. This task can of course be entrusted to an estate agent, on the understanding that their fee is paid by the new tenant.