Airbnb 2 Go – Airbnb apartments, renovated and fully equipped
Building at the Janos Pal Papa Square from outside
Building at the Janos Pal Papa Square from outside

While it is difficult to impossible to invest in centrally located Airbnb accommodation in other major European cities, the location in Hungary and Budapest remains exceptionally attractive (as of 2024):

  1. No blanket bans or time restrictions implemented or planned
  2. Budapest is a capital city with 365-day tourism, which hotels alone cannot cover.
  3. Very low taxation if you run it as a private individual

“AirBnb 2 Go” – cash flow from the first day

In this series we market apartments that already have everything you need to run a short-term rental – all the furniture, appliances, air conditioning, dishes, bedding, internet connection and most importantly: the approval of the tourism authority (necessary for the license). The apartments have the right mix of location, size and interior design. In this way, they achieve good capacity utilization throughout the year and ensure a constant cash flow for the owner.

  • Central location with very good transport connections (metro / S-Bahn)
  • Room layout similar to the large hotel suite, but with added value thanks to its own kitchen
  • The design and furnishings are geared towards Airbnb guests. We make sure that as broad a target group as possible is eligible for the apartment (preferably all age groups).
  • Professional photos and presence on Airbnb are prepared or already live
  • The city’s quality inspection has been passed – this is the prerequisite for a license
  • The apartment is fully equipped and is already listed on Airbnb
  • We help with the transfer of the license to the new owner

Location of the apartments:
II Janos Pal Papa Square

The apartments are located on the second floor of a building right next to the largest inner-city park, Pope John Paul II Square. The monumental East station (Keletifor international connections) is only a few hundred meters away, as are the metros 2 and 4 and the 4 and 6 suburban trains, which run 24 hours a day, are also within walking distance.

The interior of the building was recently renovated. The façade and roof are in perfect condition. Each apartment has its own access via the bright and friendly inner courtyard. The windows face the street – it is a one-way street with little traffic.

Creation of the apartments: Complete renovation and partitioning of an old apartment.

The two apartments are the result of the division and renovation of a larger old apartment was created. Each has its own entrance (permission has been granted by the city) and its own electricity supply, water meter and internet connection.

The gas heating has been removed and the heating and cooling is provided by modern inverter air conditioning systems. Airbnb representatives themselves recently confirmed to us that air conditioning is seen as a necessity by guests in Budapest, especially in the summer months.

All electrical and water pipes were removed and re-laid to modern standards. The municipal utilities have upgraded the electrical connection so that there is sufficient capacity for operating air conditioning systems, stoves and other appliances. The showers are designed at ground level and with sufficient slope so that there is no risk of water not draining away. All building materials are high quality and durable.

The furniture is brand new and comes with guarantees, as are the appliances (air conditioning, stove, extractor fan, fridge, hot water tank, TV).

The windows and doors are still made of wood and have been restored to maintain the classic look of the apartment from the outside. One remarkable feature is the beautiful double door in apartment A, which opens from the hallway into the spacious living room and bedroom.

Airbnb 2 go - Grundriss der beiden Apartments, die separat gekauft werden können
Frisch renovierte Altbauwohnung für die Kurzzeitvermietung - als Studio Apartment auch für die Langzeitmiete geeignet.
km8 bilder 0007 IMG 1198 - Immobilien in Budapest
km8 bilder 0012 IMG 1166 - Immobilien in Budapest

A walk through the first apartment (“A”)

Airbnb apartment A – 37sqm

Equipment for 2 persons

  • fully equipped kitchen with stove, extractor fan, fridge, microwave
  • Bathroom with 120l hot water tank, walk-in shower
  • Inverter air conditioning for cooling and heating
  • Large room with dining area for 4 people
  • 160 cm bed, sofa corner, TV with wall bracket
  • Original, restored wooden windows and doors


Forecast for gross revenue

in a similar location, equipment and size – EUR 16,000 p.a.

What is left net?

The net return varies depending on whether and which company is commissioned with the management (only then can we speak of “passive income”). In addition, there are levies (contribution tax, building tax), the flat-rate income tax, expenses for cleaning, maintenance and repairs, as well as housing benefit and consumption costs. As a rule of thumb, 40% should be deducted from the gross profit.

In this example, the net profit after tax would be EUR 10,000. However, this figure is an estimate and therefore not guaranteed.

Airbnb apartment B – 32sqm

Equipment for admission for 4 persons

  • Two 160 beds in separate rooms, one with a workstation, the other with a kitchen. Both are lockable and access to the bathroom is right in the middle between the two rooms
  • fully equipped kitchen with stove, extractor fan, fridge, microwave
  • Bathroom with 120l hot water tank, walk-in shower
  • Two inverter air conditioning units for cooling and heating the two bedrooms
  • 43″ TV with wall mount
  • Original, restored wooden windows


Forecast for gross revenue
in a similar location, equipment and size – EUR 19,000 p.a.
(due to the possibility of using the apartment with 4 people)

What is left net?

The net return varies depending on whether and which company is commissioned with the management (only then can we speak of “passive income”). In addition, there are levies(contribution tax, building tax), the flat-rate income tax, expenses for cleaning, maintenance and repairs, as well as housing benefit and consumption costs. As a rule of thumb, 40% should be deducted from the gross profit.

In this example, the net profit after tax would be 12,000 euros. However, this information is an estimate and therefore without guarantee.

A corridor through the second apartment (“B”) for up to 4 people

Services and equipment worth €16,000
included in the purchase price:

  • Tailor-made kitchen and complete furnishings and appliances optimized for Airbnb (11,500)
  • Inverter air conditioning systems for cooling and heating with installation (2,000)
  • Complete initial equipment (design and decoration, plants, crockery, kitchen utensils, bathroom equipment, cleaning products) (1,500)
  • Assistance with transferring the license to the new owner (600)
  • Professional photos for marketing on Airbnb (400)

Apartment A – 37sqm – Purchase price € 120,000
Apartment B – 32sqm – Purchase price € 125,000

APARTMENT A+B TOGETHER:

Purchase price € 230,000 (savings of € 15,000)

Gross
Airbnb income approx. 35,000 € p.a.
Net after taxes incl. Management approx. € 22,000 (8.9 % net return*)

Gross student rental income approx. € 13,200 p.a.
Net after taxes incl. Management approx. 9,900 € (3.9% net yield**)

* To calculate the net yield , we use the following as a basis the purchase price including all ancillary costs (land transfer tax 4%, estate agent’s commission 3.5%, lawyer/notary 0.75%). The profit after tax varies depending on whether and which company is commissioned with the management. In addition, there are levies(contribution tax, building tax), the flat-rate income tax, expenses for cleaning, maintenance and repairs, as well as housing benefit and consumption costs(electricity, internet, house allowance in total approx. 120 € per month). As a rule of thumb, 40% should be deducted from the gross profit. From a gross amount of 20,000 euros, approx. 12-13,000 euros per year would remain. Please note: This is an estimate based on experience and not a guarantee for the future.

** The long-term rental scenario must always be taken into account in the event that laws are tightened or short-term rentals are banned. The income is lower for long-term rentals or rentals to students. Here you can assume a basic rent of around 550 euros per unit, with the tenant paying the ancillary costs. Management is also due here, 10% of the net rent, and the taxes are a flat rate of 13.5% (15% income tax minus a flat-rate cost allowance of 10%) – to be on the safe side, we round everything up to 25%, which must be deducted.

km8 bilder 0009 IMG 1184 - Immobilien in Budapest
km8 bilder 0014 IMG 1148 - Immobilien in Budapest
km8 bilder hoch 0005 IMG 1176 - Immobilien in Budapest
km8 bilder hoch 0002 IMG 1200 - Immobilien in Budapest

The AirBnb TÜV in Budapest –
Since 2020, it’s no longer possible without

Since 2020, the situation for short-term rentals in Budapest, but also in Hungary in general, has changed drastically. The city checks the suitability of the apartment for the hospitality industry on the basis of a long list of criteria, i.e. the requirements are similar to those of the hotel industry.

The thickness of the mattress is also measured – if it is too thin, the apartment will fail. Want some examples?

  • Are there cracks in the floor (old parquet)?
  • Is there a dressing room mirror?
  • How many hangers are available?
  • Carbon monoxide detector, smoke detector?
  • Does every guest have enough pillows, blankets,
  • Each guest has their own bedside cabinet, etc.
Overall, this innovation is to be welcomed, as the regulation increases the quality of the offer and, in the long term, the acceptance of the model in Budapest and Hungary. In addition, it can’t hurt if the range doesn’t grow as quickly as it did before 2019.
km8 bilder hoch 0007 IMG 1164 - Immobilien in Budapest
km8 bilder hoch 0008 IMG 1159 - Immobilien in Budapest
More posts from our blog for investors

Wählen Sie Ihren Termin zum Kennenlernen -
natürlich kostenlos.

Die Kommunikation findet zu jeder Zeit in deutscher Sprache statt –
auch bei Terminen vor Ort in Budapest.

Choose your date to get to know each other -
of course free of charge.

Communication takes place in English at all times –
also for appointments on site in Budapest.