10 factors for a profitable rental property in Greece
The determining factor for a profitable lease is to determine the contingent of your tenants in the area where you are purchasing property. Greece, for example, is famous for its universities, where education is free even for foreigners. And if your apartment is located near a university, students will prevail among potential tenants. However, it is highly likely that in the summer such housing will be empty, not generating income.
Average rent in the area
Since the rental income will be your bread and butter, you need to figure out the average rent in the area. It should cover mortgage payments, taxes and other expenses. It is also worth analyzing how this amount may change over the next five years. For example, if taxes are expected to rise, then affordable real estate today may turn into bankruptcy in the future.
If you are planning to buy a large house which could be rented by a family with children, you need to consider the quality of the local schools. This will be very important if you ever decide to sell your home. The lack of good schools nearby will not work in your favor.
Of course, no one wants to rent an apartment in a criminal area. At the local police station, it is worth finding out the crime statistics by area. Indicators of vandalism, minor and serious crimes will be important. Also find out if criminal activity is decreasing or increasing.
Another factor that determines a profitable rental house or apartment is being in an area with promising employment opportunities. For example, if a branch of a large company has recently opened in a given area, then its employees will probably look for housing there.
Take yourself on a little trip around the area. Visit parks, find out the availability and location of restaurants, gyms. Check whether there are bus stops close to the potential housing. All these factors attract tenants.
Real estate taxes
Depending on the location of the property, the amount of property tax varies in Greece. Meanwhile, a high tax does not always mean a lack of profit, for example, when the apartment is located in a promising area, where long-term tenants seek to settle. There are also unattractive regions in the country with significant taxes. Be sure to find out the tax information in the city you are interested in as well as the possibility of increase in the near future. It will be helpful to talk to homeowners in the community.
Find out about the development of the area you are interested in in the near future. It testifies to the development of the region. Meanwhile, a large number of additional new housing can compete with your property.
Number of rental offers
If there are too many rental offers in an area, it could be a seasonal phenomenon or a sign of decline. In any case, a large amount of vacant residential spaces always forces their owners to lower rents in order to attract clients. The opposite pattern also works: renting in Greece will be more profitable if there is a shortage of offers from home owners in a specific location.
Another expense item that will have to be deducted from your rental income is insurance. If the area is at risk of earthquakes or floods, insurance costs can significantly reduce rental income.