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POSTED ON SEPT 24,2020

What real estate is most often bought for rent in Vienna

Overview of the Austrian property that is most often rented. What real estate to buy for investment

What real estate
is most often bought for rent in Vienna

Renting out an apartment in Vienna is a great way to get a stable monthly income. However, in order to get the most out of it, you need to be very careful when choosing a property that you purchase and then rent out.

    Vienna rental prices

    To find out the real rental cost, you need to look at the cost of similar objects in the same region, for example, on the website of the federal state, region and city. A good source of information is brochures from the local tourist office. They list all the rented apartments in the area.

    Vienna is a profitable option for homeowners: the average rent here is € 12-17 / m². However, the area of the city must also be taken into account. For example, in the most expensive part of Vienna (Innere Stadt) the rental yield is 1.7-2.3%. Therefore, no one buys apartments here for rent, mostly rich townspeople live here.

    The situation is slightly better for landlords in the other capital's districts - Margareten, Mariahilf, Leopoldstadt, Hernals and Favoriten. The profitability of renting a small apartment there is 5%, and of a spacious apartment - up to 3-4.4%.

    A small apartment (up to 50 m²) in Vienna (depending on the area) can be rented out for € 670-1060 per month. And for a spacious apartment (130 m²) it is quite possible to receive from € 1300 to 2500 (excluding taxes, repair costs and broker commissions). However, the net profitability of large apartments is 1.5-2% lower than that of small ones.

    What real estate is in demand?

    In the past few years, tenant tastes have changed. In the segment of small apartments, an area of up to 65 m² is more often chosen, and in large condominiums - more than 100 m². Consistently more expensive are the upper floors, green areas and areas near the city center. People willingly pay extra for the balcony, terrace and lift.

    For short-term rentals (up to six months), furnished apartments and rooms are the most popular options:

    • Apartments with a minimum of decor, without personal belongings of the owner and closer to cultural attractions are chosen by tourists (mainly for a week).
    • Mini-apartments (with or without furniture, in various areas and of a wide range of prices) - mostly for two people.
    • The studio is a cheap and compact solution for a student or worker. The bedroom is combined with the living room.
    • Luxury apartments - for business people (with all amenities, high-speed internet and excellent transport infrastructure).

    Is it possible to rent an apartment on your own?

    Neither party of the agreement is required to hire a realtor. However, it is worth remembering that experts are well aware of the current prices, supply and demand. Therefore, they are more likely to find a renter faster and achieve higher income.

    In fact, it is very hard to successfully rent an apartment for a long time without attracting an agent. Therefore, in order to be sure of getting the maximum benefit, it is better to consult a specialist.

    The right choice of an agent is the key to success. Professionals do not arrive late for appointments, do not lose or confuse keys for apartments, know everything about operating costs and are always in touch.

    Almost all reputable agents work through online real estate portals. The starting point of an Internet search is an address. It is important to find out which of the intermediaries advertises apartments and houses in the area.

    Recommendations from friends and neighbors will be helpful. A good agent knows everything about the local real estate market. He always has people willing to settle nearby.

    An obligatory step is the analysis of online ads for the area of interest. Particular attention should be paid to the authors of the best photographs and descriptions that the tenant will surely like.

    An expensive business card and a good website is the best self-promotion. It is also important to have a business license, "Real Estate Card" of the Federal Economic Chamber of Austria, membership in a reputable association of brokers and office.

    A reliable agent always answer the calls during the day. Is it difficult to get through? You need to think about whether you should trust him with your real estate. After all, potential tenants are likely to face the same problem.

    Property management

    Companies that manage property by proxy can help the real estate investors. Their list of services includes marketing, booking, drop-off, cleaning and maintenance. The service allows the homeowner to receive the maximum annual rental income.

    The administration representing the interests of the homeowner operates under the Housing Property Law:

    • Calculates operating expenses.
    • Bills for heating and hot water.
    • Send reports for the last year to the owner(during January-June).
    • Takes care of the cleaning and maintenance of the apartment (costs are approved by the owner in advance).
    • Monitors the timeliness of maintenance activities.
    • Convenes a general meeting twice a year to discuss with the owners the condition of the house, changes in expenses, future investments, complaints and concerns.

    The cost of house management services depends on the apartment characteristics. The national average is € 3.30 / m². In addition to his own living space, the owner has to pay for the maintenance of a part of the common area.
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