How to rent out your place?

As there is a risk that about two out of ten applicants for renting an apartment may have solvency problems, it has already become common practice to check the solvency of future tenants in the Creditinfo system. “Landlords often choose more reliable tenants than riskier or unpleasantly communicating tenants who offer a higher price 30–50 Eur / month, ”says the interlocutor, real estate broker, J. Zabarauskienė. The amount of the deposit has also changed. As a result of the habits of the so-called millennium generation, the one-month rent deposit, previously considered standard, has risen to two months.

The two-month deposit usually covers the landlord's last month's rent, as the notice period is usually one month, the utility fee, and the rest is refunded if the apartment is left tidy, ”J. Zabarauskienė explained to Investuok magazine.

The real estate broker points out that at least four out of ten potential tenants have pets recently. Such tenants, as well as families with small children, are not traditionally the most desirable, but if you decide to choose a tenant with pets, you can manage the risk by increasing the deposit, increasing the rental price (according to J. Zabarauskienė, usually tenants with pets pay 20-50 Eur / month. more) or additionally insure the apartment.

And real estate expert M. Kaušinis urges to calculate not only the purchase and installation price and rental income, but also to think about the liquidity of the acquired housing in the future and not to forget to anticipate retreat routes.  At the request of Invest magazine, he provides several options for such thinking. According to the real estate expert, for about 12 thousand Eur it is possible to buy a garage and rent it for 100 Eur / month. The return is small, but such an investment will pay off in 10 years. If you have about 50 thousand Eur, available for about 30 thousand Eur to buy a dormitory-type apartment, and to invest the remaining money in its installation and rent for approximately Eur 250-300 / month. If you invest about 100 thousand Eur, it is possible to buy and repair an apartment of old construction and get about 500 Eur / month.”