How to Keep Your Apartment Competitive on the Changed Property Market

Searching for real estate market news you can read everywhere that rental fees in Budapest are on a very high level so you as a property investor can expect a good return and an ongoing occupancy of your apartment.

However the situation is more complicated. Dozens of new apartments arrived recently to the market, renovated and furnished on a high standard with good location. In contrast, many investors have an apartment with same central location but with 10 years old furniture and worn floor, kitchen, etc. “Obviously the now run-down apartments are even less attractive compared to these new, attractive listings” explained Zsolt Pavelka, Lettings Manager at Tower, in a recent interview. It means that some landlords may need to invest some founds into their property simply to keep it attractive for potential tenants for the same rental fee. At the same time, with a bit more investment you may reach a serious growth in rental value.

Let’s see a real example, how we successfully raised the rental value of a 67 SQM, 2 bedroom apartment in District 8.

Summary:

• starting point: a rundown, unfurnished apartment
• investment: 7450 EUR
• works done: painting, several handyman works, full furnishing
• rental fee before: 330 EUR
• rental fee after: 510 EUR

Before

After

Are you interested how we tripled the rent of another apartment? Read our former article about the Rákóczy Renovation Project.