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Post   /   Juuni 2019

How to make your rental apartment more profitable

How to make your rental apartment more profitable

Real estate is one of the easiest ways to earn some extra money on the side, and luckily there are a number of paths you can take to get there.

  1. One option is to bet on one or more two-room apartments, which are highly liquid and in high demand on the rental market.
  2. Another option is to create a luxury apartment for which you can charge a much higher rate.
  3. Or, third, you can take a shot at short-term rental on Airbnb, Booking.com, or other lodging marketplaces.

Regardless of your business model, however, you should always remember that there is a difference between real estate and real estate. And there is just one single thing that almost unfailingly helps increase the attractiveness of a rental investment and thereby your income: furnishings that are stylish and satisfy modern needs.

Example 1: two-room apartment

Statistics show that most renters are younger people who have only recently started living independently. Having worked for only a short while, they still lack the means to buy their own home and prefer places where all of the essentials are provided. Thus they tend to gravitate towards smaller, middle-priced rental apartments. Two-room apartments are always the most popular choice.

However, there is no short supply of them on the market. Filtering for two-room apartments on any real estate listing website returns hundreds upon hundreds of such properties. However, as a rule of thumb, those that stand out from the rest in terms of their furnishings receive by far the most clicks. But that doesn’t mean that you have to spend a ton of your time and money on creating a distinctive apartment.

Our experience shows that a two-room apartment can be given a stylish and functional interior for as little as 9,000 euros – and that includes kitchen furniture! OCCO’s clients are all assigned a personal designer who will serve as your first point of contact and be there for you throughout the entire process, should you ever have any questions or additional ideas. Your designer will also put together a complete furnishing solution based on your needs and budget. This means that you get all the furnishings you need from one place – at an excellent discounted price only available to dealers and offered to clients who have ordered OCCO’s complete solution.

Example 2: luxury apartment

The second large group of renters aside from young people are foreigners who are residing in Estonia temporarily, which means renting is the most reasonable option. These are often top professionals who have come to the country in connection with specific job duties, frequently together with their family. However, they also tend to be people who can afford much more lavish living conditions, which makes luxury apartments an excellent option for them.

Looking at the Estonian real estate market, there is a clear shortage of high-quality and tastefully furnished luxury apartments. Trends show that the main reason behind the high prices is actually either a good location or a larger than average floor area – meanwhile, the interiors of the apartments are relatively poorly considered. As a result, distinctive furnishings provide a major competitive advantage, allowing the owner to charge, on average, a 17% higher rent. This really adds up over time!

For example, we have seen that once our clients have furnished an apartment with OCCO’s help, they can charge an average of as much as €2,200 a month in rent.  So if you have an apartment with a well-designed floor plan and a good location, but feel that it is lacking in character, contact us right away! Our personal designer will put together all of the necessary products and solutions at a significantly lower total cost than if you were to buy everything separately.

Example 3: short-term rental apartment

Airbnb style accommodation is currently only gaining in popularity as tourists are seeking more immediate and, let’s be honest, more affordable experiences of local life, as well as home comforts that unfortunately cannot be found in hotel rooms. If you have decided to invest in an apartment aimed at the short-term rental market, the aesthetic appeal of the property might just be the most important criterion for your potential customers. Most short-term renters are unable to even visit the apartment ahead of their stay, so the decision is made purely on the basis of the posted photos.

With the help of OCCO’s personal designer and complete furnishing service you can make your short-term rental apartment look great both in photos and in real life. One of our strengths is that we only provide high-quality furniture, which means that the end result is guaranteed to look good for many years to come, and your customers are more likely to leave a high rating.

As we have seen, then, there are a number of paths you can take in the rental business. The ideas above are just a few of the possible options and there are no doubt many other great ways to make a profit from a rental apartment. Whatever your business plan, OCCO can provide a complete set of furnishings for your apartment in your preferred price range to make your investment attractive to customers and ensure that it is profitable.

Need help furnishing your apartment? Click here to see what we can do for you!

Tags

  • home
  • investment
  • rentalapartment

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