Rough idea on rental prices for Wroclaw, Poland

Hi,

Im looking for a rough idea on how much rent I could generate for an apartment in Wroclaw. Im looking at spending 440-550k, so something thats at a fairly good standard and in a decent location. Would furnished be a good idea or at these sort of prices would most tenants have their own furniture and sorts?

Im also considering Opole, obviously not spending the same amount. I feel 1 decent apartment in Wroclaw would be easy then 2 medium ones in Opole, Population and Wroclaw being a nicer city as well (no offence Opole haha). Im looking at supplementing my income not trying to solely live of it.

What sort of management costs would be applicable as well?

Im able to spend more if needed, I have an amount that i would like to generate from rental/s, however I dont have a bottomless pit of money obviously haha

Thank you.

Do you want a small apartment closer to the centre or bigger one further from it? How close? The Old Town and vicinity, the locations around it or suburbs? What rental conditions? Weekend/weekly rents from tourists or steady income from one lodger? Why Wrocław and not Poznań or Krakow? How much rent do you expect?

Hi Pawian,

Im looking to rent to residents really, id rather have a steady income flow and charge a bit less then dealing with a tourists/Air BnB kind of thing. I dont know Wroclaw at all really, my wife cousin lives there and recommends the south east.within 5-10km from center is fine Monthly rent i guess is the norm.

Edit: sorry clicked post to soon

If it was furnished and in a good location maybe 2100 - you need to pay tax on that and after your costs, vacancy, mgmt fees, repairs etc you will do well to pocket 1300.

Especially watch out for big projects like fixing the roof or parking if the whole building - these can easily wipe out a few months income and the closer you are to the center then the more likely you will be in an older building where those costs are needed.

Thanks cms

We are looking at the new builds in the area, so hopefully that would mitigate those risks. Are those prices at the full 550K mark?

@Pawian

We are looking at Wroclaw really because of it proximity to the Opole region, we will either come to Opole of Nysa area.

Yes - I am thinking of a 60-70sqm place.

@OP,why dont you consider buying a commercial unit there?The renter,if you lucky can last you forever if his business takes off.Residentials are always a headache with tenants coming and leaving and destroying the flat.Returns might be2/3 % less but almost no headache if you get the right tenant.I prefer Restaurants,as one tenants fails there is always a new dreamer in line waiting.

@Cargo pants

Ive not really considered this option. Ive never invested in commercial before and have no understanding of that market, but im intrigued none-the-less.

Any pro tips you mind sharing? or things to consider?

For that money you will not be able to get a commercial place.

Also no idea about other sectors but if it's retail there is some serious overcapacity in Wroclaw right now and rents are falling as a result. Unless you have experience you are better off keeping it simple and sticking to an apartment

You may expect ~4% net return on your investment (after tax, maintenance cost, assuming long-term tenants and 90-95% occupancy). Factor in currency risk if you don't have permanent ties to Poland (if you decide to sell one day).

Best thing to do is to look at Wroclaw (say gumtree) and find out how much property are being rented for and in what location. Then search for properties to buy.

Factor in that unless the contracts with your tenants are legit (i.e. signed in a notariusz office) you may find it difficult to get rid of unwanted tenants. This agreement should say how and when the rent is due and that you can ask them to leave for non-payment. Factor in any damage they may do, take thousands of dated photographs and make the tenants sign them before they move in. Get these photos to the notariusz as evidence.

Renting is not what it used to be - sometimes you get good tenants and sometimes you will wish that you had never even bought the property. The decision is yours.

@terri,

Thanks for your thoughts. Didnt really expect it to be such an issue with tenancy agreements, Are the laws more orientated towards tenants?

Any other thoughts on possible investments? Im just looking to supplement my income at this stage.
Im also looking into Shares and term investments as well.

Yes he can.I dont know the prices in Wroclaw area but they are lower then Warsaw,I suppose.He can even buy a small 30/40/50 sq m commercial restaurant/take away joint to rent.If he looks hard for it there are plenty of deals STILL in Poland.Infact smaller places yield more even 8/9/10% and can pay reachout tax under 100k a year @ 61/2%.Better then freaking ugly residential crap,dealing with suitcase tenants.He can always sign a 777 umowa and in case he has to throw them out,it takes only 7 working days.

quote=Flannel]Im also looking into Shares and term investments as wel[/quote]
Dont dare do that until you are willing to take a hit.Polish market is corrupt as hell they will chew your money like....Stick to property a sure shot deal,even if you error one just has to wait a cpl of more years to get your investment out.