Passive income from real estate. Poles loved this solution

Why does long -term rental of apartments don't seem so attractive anymore? – As for long -term rental – this trend has clearly slowed down. Peak was at the time of the outbreak of the full -glass war in Ukraine and the mass influx of refugees to Poland, but now it is much calmer on this market. Investors are decreasing on it – and it's hardly surprising, because the ratio of real estate prices for rental profits is not very attractive now – believes Marcin Drogomirecki.

A short -term rental boom

That is why short -term rental becomes an alternative. – This can be an interesting solution in tourist -attractive locations – but also where there is no rich hotel base. Certainly short -term rental makes sense even in Krakow, which can be called the Polish capital of pieces. There is a shake of tourists – not only there. Poland is becoming more and more attractive in tourists, it is considered an interesting and safe country at the same time. Good phrases can give a flat in the Tri -City – especially in the season. This summer, on a long August weekend, the rates for several days of renting an apartment matching rent rates for a month of renting the same premises, e.g. in October – says Marcin Drogomirecki. Recent data, moreover, confirms that tourism in Poland is experiencing a real flourishing.

– Apartments for rent in smaller, but interesting and willingly visited by tourists are also popular. First of all, it is the Baltic coast, but also the mountains or towns in Lower Silesia -adds the expert of the Morizon-Gratka group.

Andrzej Stecki, head of the Bookinghost platform, which mediates in short -term rental of premises, recently admitted in an interview with Business Insider Polska that the trend is very clear – and more and more often Poles are discouraged by renting their apartments in a “traditional”, long -term way.

– approx. 30 percent owners earn more with us than they would earn in long -term rental. However, the key is that you can rent a place in a safe way with us. Without worrying that if someone does not pay, you will have to fight him a year or two to move out. Of our owners of premises in Warsaw, they are quite a large part are those who had bad experiences with long -term rent. We have a tenant who previously rented a long -term apartment for three years. He didn't see it from this or a zloty – Andrzej Stecki told us.

So how much can you earn on a short -term rental if you have an average two -room apartment in Warsaw? -I think that on average it is 5-6 thousand. PLN per month. We have those who earn 7,000 PLN, we have those that 3,500 zloty. However, Poland is changing a lot – says Andrzej Stecki, head of Bookinghost.

See also: 7 thousand PLN in a month. That's how much a two -room apartment in Warsaw can “earn”

Of course, you must always make meticulous calculations if you want to count on passive income. Of course, apartments in the best locations in Poland are cheap. Krakow, especially the historic center of this city, is extremely popular among clients of short rent. However, according to the analysis of the Morizon-Gratka group, in July prices per sq m in the Old Town in Krakow approached the average of 20 thousand. zloty.

According to our conversations with representatives of the real estate industry, the popularity of short -term rental drives something else – There are more and more large events in Poland that sometimes download tens of thousands of people. These are concerts of world stars, such as Taylor Swift or Jennifer Lopez, great music festivals – but also large sporting events. – It arouses the imagination of investors that at such moments, apparently rates for accommodation can jump up to many thousands of zlotys – says one of our interlocutors.

Short -term rental. You have to be careful

“Embrace” everything yourself, or he can order a short -term lease management of a specialized agency – this is one of the main elections of every investor.

– The key question, which is facing such an investor, concerns whether to manage your property yourself or order it to be a specialized agency. If someone wants to choose this first model, it is obviously advisable to have premises for rent near their place of residence. However, the popularity of the agency model is growing. If you have several or several apartments for rent, it is difficult to deal with cleaning the laundry or ongoing service of guests yourself – Marcin Drogomirecki tells us.

Agencies not only rent premises, but also cleaning or minor repairs. On the other hand-they usually collect 20-25 percent from rent. It happens that investors who buy more apartments go to “agency” mode – because they are simply unable to manage their real estate. Less often, but it happens that along with subsequent investments, the owners give up cooperation with the agency, because they want to get involved in renting “full -time” – and that's why they prefer to do everything themselves. Here, of course, you can not quite talk about “passive income”, because independently to rent a flat for a short term can be very engaging.

It should also be remembered that maintenance and possible commission for agencies is not the end of costs. If you are rented through popular portals, you have to reckon with a commission for such websites for several percent. Renting, apart from such websites, is becoming less and less popular every year – and it is more and more difficult to find customers outside Booking or Airbnb.

The key to a successful investment is, of course – as in real estate – location. Short -term rental is popular mainly in the largest agglomerations or resorts. – While at the rental of long -term buying a flat in centers such as Toruń, Bydgoszcz, Olsztyn or Szczecin can be a hit, in the case of short -term rental I would rather think. For now, such investments are profitable primarily in “hottest” locations. In these slightly less attractive there is a risk that the apartment will simply become empty for a long time – one of the investors tells us.

IMPORTANT: The article is only informative. Investment decisions should be preceded by your own risk analysis and financial situation.

Author: Mateusz Madejski, Business Insider Polska journalist