Renting out a house. A profitable investment?

People investing in property usually decide to buy a flat in an attractive area. Buying a detached house to let is a much rarer phenomenon and is less popular because of the potentially smaller pool of interested tenants.

Average rents for houses in Katowice hover at 2-5 thousand PLN gross. It should be noted that the cost of renting the largest houses, built to a high standard, can be as much as 6-8 thousand PLN gross. For comparison, a larger flat of about 100 square metres with 4 rooms in Katowice costs on average 2-4 thousand PLN to rent. House owners sometimes find clients among companies, which sign long-term tenancy agreements.

Who rents houses?

Companies become interested in houses when the properties are located on main arterial roads and are easy for customers to reach. Parking around the property is also an important matter. Besides businesses, students and larger groups of people, who usually share the rental costs, are also interested in renting a whole house.

Depending on the functional layout of the building, the owner may be able to adapt individual parts of it so as to offer single rooms separately. This makes it easier to find a tenant in a shorter time, because it is always easier to find people willing to rent individual rooms than a whole property.

READ ALSO – RENTING A FLAT TO FOREIGNERS

The specifics of renting out a house

You should also pay attention to the specifics of a property intended for rental. A house requires more spending on maintaining its technical condition and upkeep than a flat. The constant use of the property by a group of people, as well as long-term letting, make periodic maintenance and repairs necessary more often than when the building is used by its owner.

When investing in a house to let, you should compare listings on two markets: the primary and the secondary. Because of the greater supply, choosing from the secondary market is usually more profitable and it is easier to find a building in a suitable area. However, if you decide on a property from the secondary market, you must also expect to incur additional costs in the form of possible renovation. Properties from the primary market often offer a higher standard, as well as a more modern use of space.

READ ALSO – INCOME TAX ON PROPERTY RENTAL

Renting out a house – profitability

The profitability of renting out a house in Silesia is comparable to that of renting out a flat. For example, by renting out a house in Katowice-Brynów of about 200 m², its owner can receive about 3,500 – 4,500 PLN. It should be noted that the landlord’s costs must include income tax, insurance and periodic repairs. Assuming that the cost of buying the house was about 1 million PLN, the profitability of renting can be put at 4-5%. This is therefore a yield almost matching that achieved from renting flats, which in Katowice, for two-room flats, is 5-6%.

When deciding to buy a house to let, you should consider who you are buying it for. If you want your tenants to be companies, the profit will be more certain, higher and long-term. If you let the property to families, the profits may not be as high.

If you need help buying a property to let, or are looking for a tenant for your property, contact the agents of the Katowice estate agency REMAX Gold. Here you will get comprehensive advice and information on how to make a property intended for rental more attractive.