Expert on Rental Market Changes: You Can't Ask More Money from Every New Tenant Today
During years of rapid economic growth, it became somewhat standard that with each new tenant, apartment owners could also raise the price, but over the last year and a half this has no longer been possible. However, there has been no significant price decline for less demanding, or properly maintained smaller apartments, comments Martin Vahter, head of 1Partner Real Estate, on the rental market.
According to Vahter, a couple of years ago the life of a rental investor was significantly easier, as a new tenant was found for an apartment very quickly and usually several rental interested parties competed for a single apartment. "It was somewhat standard that you added 50 euros to the previous price and both the owner and the tenant were satisfied with the deal," says Vahter, who has more than 20 years of experience, noting that the last year has been quite different from this.
"The fact is that high interest rates have created a situation where many owners are happy if the incoming rent even covers the loan payment. A rental investor certainly understands that every empty month produces a loss for them. This suits tenants well, of course, since they have more choice and room for negotiation," comments Vahter, whose clients are not lacking in today, since in difficult times a real estate agency with a wide network is clearly much more helpful to apartment owners. "Daily market knowledge helps to more easily find both the right price and a suitable client, and also save personal time," lists the head of 1Partner Real Estate.
If no new tenant appears even in a couple of weeks, then it's clear that the price needs to come down a bit. "However, if the rental apartment is already being shown to people, the price is probably right, but that still doesn't guarantee closing a deal," describes Vahter what's happening in the market and adds that decent apartments still don't stay with investors for long. "Spring has also brought examples where an apartment that was rented out last fall for 700 euros out of desperation has already found a new tenant for 750 euros," Martin Vahter is moderately optimistic.
