Letting out your first flat - what should you know?

Investing in a flat to let is an unrivalled way of investing your money – so it is no wonder that so many people decide to enter the housing market by letting out a property bought for that purpose. Before that happens, however, we should prepare properly, so that our first letting is truly a success. What should we pay attention to?

Who will our tenants be?

This is generally a question worth thinking about long before buying a property to let. Why? Who will be interested in our listing is largely determined by the location, the size of the flat and the number of rooms. Students and people just entering the job market often value a location close to the city centre – that is, where city life is at its liveliest. Families with children, in turn, readily choose flats in a quieter area, but one that is still well connected. For them, the floor area of the flat will also be very important; students, by contrast, will often be more willing to compromise on this – which does not mean that a larger flat at a good price will not appeal to them!

Long-term or short-term letting?

Flat owners most often let their properties under one of two kinds of tenancy: long-term or short-term. Which one we should choose depends, again, on the group of tenants we are targeting. Young families will probably opt for a tenancy lasting years; students, meanwhile, more readily choose to sign an agreement for a year. Choosing a long-term tenancy will give us a degree of stability – a single agreement is enough to secure a steady income for a longer period.

Short-term letting, on the other hand, is an excellent solution in cities that attract tourists; cultural and business centres and tourist resorts. If we own a flat in an attractive location, we are unlikely to complain of a lack of interest, and short-term letting itself should bring considerably greater profits than long-term letting. An interesting option is to combine both forms of letting. We can choose this if, during the academic year, we let the flat to students, and during the summer holidays – to tourists or visitors from abroad.

How should we handle the agreement? – the formalities

Drawing up agreements is not simple. A good agreement should protect the rights of both the owner and the tenant of the flat, which is why it is so important that it is prepared as precisely as possible. Along with the agreement, it is also worth preparing a handover report (protokół zdawczo-odbiorczy), which can prove invaluable when settling accounts once the tenant returns the flat.

When letting a flat for the first time, it is worth seeking help. On the internet we can find ready-made agreement templates – they can be a good starting point. Support can also be provided by the estate agent we work with.