Housing for rent – number game and the most important laws of Roi

The market responds rapidly to even the slightest fluctuations: competition between landlords is growing, tenants become more demanding, and trust comes only through a clear strategy. And today’s financial realities show that personal financial management is becoming increasingly important. Pension reforms in Lithuania clearly show that relying solely on the pension system is no longer enough – additional sources are needed to ensure a dignified dignity. This means that we must not only think how to live today, but also to take care of our financial future.

When choosing a home for rent, it is important to imagine not only the numbers but also the person who will live in that dwelling. Is he looking for a quiet quarter? Is it necessary for a quick communication with the center? The answers not only help you plan your return, but also choose the type of tenant and communication with them.

Eglė Savostas, Head of Analysis Division of Citus; Photo by partner

Housing for rent should be seen as a financial tool. Its attractiveness depends primarily on versatility, local liquidity and potential return.

Citus analysts estimate that the Vilnius rental market currently generates an average of 5 percent. but in some neighborhoods or projects, this return may reach 5.5-6 %. The return indicator is calculated by distributing annual lease income from the total amount of the investment.

Location has the greatest influence on the return. Tenants usually look for convenience rather than a video through the window: how many minutes before work, or close to public transport, whether there is a shop, a kindergarten, a sports club.

Real estate project « As in New York by Citus ». Photo by partner

Currently, the most expensive neighborhoods in Vilnius, according to Citus data, are the Old Town (about 23 Eur/sq. M), Paupys (about 22 Eur/sq. M) and Naujamiestis (about 19 Eur/sq. M). These are places where everything is reached on foot and the rhythm of life does not stop. However, it is also worth noting the neighborhoods, the value of which is rapidly rising. For example, in Markuciai and Žirmūnai, the rents have risen by more than 50 % over the last five years and as much as 58 % in New Town. This means that areas in the change phase often have a great investment potential.

According to the supply, 2 -room apartments are currently dominated by the Vilnius rental market, with almost half of the total supply; 1 room. The apartments make up about 33 and 3 – about 15 percent. Such a distribution indicates that 1 and 3 room apartments are also worth considering. Their supply is lower and the rent can be up to 15 percent. higher. In addition, they are more attractive to families or long -term tenants, which means lower rotation and more stable income flow.

Photo by partner

When buying a home with the aim of renting it, it is important to understand that this is not a personal solution but on the market. This dwelling must not match the taste of the owner: it must be attractive to the widest possible wheel of tenants.

When setting the price, it is easiest to analyze similar objects in the same area. Secondly, to evaluate the condition and features of the dwelling: a well -maintained, modernly equipped object can be rented at a higher price. An important factor is seasonality, as the rental price before September, the beginning of the school year, is often higher due to demand.

Visualization of the real estate project « As in New York by Citus ». Photo by partner

Finally, the rental duration also affects the price: long -term contracts, despite the often lower price, ensure a steady income. Short -term rent can provide higher prices, but with higher risk and potential downtime.

It is often not realized that one month when the dwelling remains unreasonable may be more loss -making than the lower rent.

For example, if you want to rent a home for 700 Eur/month, but the real market price is 650 EUR/month, monthly downtime, will not only output rent, but will still be covered by utility bills, which amounts to about 150 Eur/month. Immediately with a lower price, the annual income would have been € 7,800; With a higher price a month – 7,550 Eur.

Photo by partner

It is important to evaluate all components: loan interest, asset care costs, long -term value growth. Even with a more modest return on rent, the investment can be profitable if the value of the dwelling is growing.

A good landlord is not the one who wants to earn as much as possible, but the one who knows how to predict, adapt and think forward. Today’s rental market requires flexibility and quick response. But in a sense, it’s a good news.