Have you got an apartment or house in Austria? After renting the property will generate income. If you competently approach the question, it is fully paid off annual maintenance costs of the purchased property and will consistently make a profit.

How much can you Earn?

To find out the real cost of rent, you need to see the cost of similar objects in the same region (for example, on the site of the federal state, region, and city). A good source of information is local tourist offices’ brochures. They list all rented apartments in the area.

For example, in the most expensive part of Vienna (Innere Stadt), the rental yield is 1.7-2.3%. Therefore, no one buys here the property for renting out. The situation is slightly better for landlords in areas of the capital – Margareten, Mariahilf, Leopoldstadt, Hernals, and Favoriten.

The profitability of renting a small apartment in them is 5%, and spacious apartments – up to 3-4.4%. Salzburg is no less profitable, it will bring 2.4-3.8% yield.

What Kind of Real Estate is in Demand?

In the segment of small apartments tenants choose housing with the area up to 65m², and in large condominiums prefer to choose the ones which are more than 100 m². Invariably more expensive are the upper floors and green areas. For short-term rentals (up to 6 months), the demand prevails for furnished apartments and rooms in large residential areas, where there are large training centers and marketplaces.

The most popular kinds of housing are primarily the following:

• Apartments with a minimum of decor, without the owner’s personal belongings and closer to the cultural attractions are taken mostly by tourists (usually for a week).
• Mini-apartment (with and without furniture, in different areas with a large range of prices) for two people.
• The studio is an inexpensive and compact (living space of less than 2.8 m²) solution for a student, employee or worker. A bedroom is combined with the living room.
• Luxury business apartments for business people (with all the amenities, high-speed Internet and excellent transport infrastructure).

Property Management

There are companies to help real estate investors that manage property by proxy. The list of their services includes:

• Calculating operating expenses.
• Billing for heating and hot water.
• Transmitting reports to the owner for the last year (during January-June).
• Taking care of the cleaning and maintenance of the house (the costs are approved in advance by the owner).
• Monitors the timeliness of maintenance activities.
• Convening a general meeting to discuss with the owners the condition of the house, changes in costs twice a year.

The price of house management services depends on the number of apartments in the house and their area. The national average cost is € 3.30/m².