The potential earnings from renting an apartment in Croatia can vary significantly, as highlighted by a recent discussion among property owners. One landlord revealed that they earn up to €23,000 annually after expenses, a figure that has caught many in the rental market off guard. However, this level of income is not attainable for everyone, heavily depending on location.
As the tourist season in Croatia comes to a close, landlords are reviewing their revenue. While some celebrate a profitable year, others lament lower earnings amid rising costs. The standout case discussed on Reddit was that of a Croatian earning €23,000 a year from a centrally located apartment in Rijeka.
This owner charges €350 per night during peak season, accommodating up to six guests. After accounting for discounts and a 19% commission charged by the booking platform Booking.com, they net approximately €250 per night.
This income figure sparked surprise among users on the forum, with some questioning what amenities justify such a price. Others noted that comparable hotel accommodations for six could be even more expensive, according to the Index.hr portal.
Many Owners Earn Significantly Less
In contrast, not all rental properties achieve similar results. One owner of a 40-square-meter apartment in Pula shared that they rent it from mid-May to the end of September, netting around €6,500 annually after expenses. Their mother assists with cleaning, helping to reduce costs.
Another owner from Istria reported even lower earnings, dropping from around €6,000 to €4,900 this year. A similar scenario was reported by a landlord in Omiš.
This led to suggestions that some landlords consider long-term rentals to avoid the repeated cleaning, guest check-ins, and other responsibilities associated with the tourist season.
Repairs and Other Expenses
An apartment owner on Hvar Island warned that rental management comes with unexpected challenges. They noted a shortage of craftsmen and service technicians on the island, making repairs to malfunctioning air conditioning units or dishwashers a significant concern.
Conversely, another landlord from Hvar reported a more positive experience, stating that with early planning, they can secure necessary services and consistently invest in property improvements to enhance its rental value.
Participants in the discussion also emphasized that landlords should set aside funds for future repairs, furniture replacements, or appliance upgrades. Energy costs, taxes, laundry, and commissions from booking platforms also impact the overall profitability.
The examples from Croatia illustrate that high rental prices do not guarantee equal profitability for all owners. While one landlord might retain over €20,000 annually, another may only earn a few thousand. Factors such as location, potential guest capacity, expenses, and the effort required by the landlord play a crucial role in determining rental income.
