Letting to students is a solid economic mainstay for property owners in Budapest due to the high number of international students. The achievable rent of 15 to 20 euros per square metre is relatively high compared to the purchase price and many risks of long-term letting can be eliminated or at least minimized here.
Here we present an apartment in the 7th district that appeals to an interesting target group (students of veterinary medicine) and is also affordable for students with “normal” budgets due to its size and layout (5 rooms on 107 square meters).
The model: What makes renting to students attractive?
Compared to long-term rental, there are advantages and disadvantages – but on balance, the positive aspects clearly outweigh the negative.
- Furnished rentals result in higher rents
- Fixed contract term - no premature termination by the tenant possible
- Extension only with the consent of the landlord ("on good behaviour")
- Access to the apartment guaranteed at all times (contracts per room)
- Deposits and parental guarantees offer sufficient security
- If one out of 5 tenants defaults, the income temporarily drops to 80% instead of zero.
- New tenants must be found every 6 - 12 months
- This age group has little (life) experience and often needs support with problems
- There may be cultural issues that have a negative impact on the condition of the home
There are various strategies to mitigate or eliminate the negative points. Professional management takes over daily communication and finds suitable tenants, and a cleaning team that cleans the communal areas and bathrooms every two weeks can prevent damage and also monitor the general condition. Find out more about our service here ”
The location: University of Veterinary Medicine Budapest (VII. district)
Founded in 1787, the University of Veterinary Medicine in Budapest is one of the oldest in the world and is renowned for the high quality of its education and research. Out of approximately 1500 students, about 67% come from abroad, making it one of the most international veterinary universities in the world.
We have observed that many of the veterinary medicine students actually stay here for a longer period of time, so it is more common for tenants to sign 12-month contracts (and then often extend them). However, there are other universities nearby: The international McDaniels College, ELTE for natural sciences, and with a few metro stops you can also reach Semmelweis (Calvin, Metro 4), Corvinus (Vamhaz, Metro 4) and BME (Gellert Hill, also Metro 4).
The area is in the 7th district between the Keleti train station (international connections) with its two metro stations (2 and 4), but Andrassy Boulevard (World Heritage Site) and Grand Boulevard (the large ring road with suburban trains 4 and 6) are also not far away.
You can also quickly walk to the city forest (Varosliget) with numerous attractions, including Europe’s largest ice skating rink in front of Vajdahunyad Castle, Heroes’ Square with two art museums, the Szechenyi Thermal Baths, Budapest Zoo, the House of Music and the large parks.
The apartment: 5 rooms, 2 bathrooms, newly renovated
The building dates from the early 20th century and is well preserved. There is an elevator and the apartment on the 4th floor is very bright and has modern windows.
- Newly renovated 107 sqm apartment in an old building
- PVC-U windows with double glazing
- One of the rooms with balcony
- New and student-friendly furniture - robust, but also aesthetically pleasing
- Design accents improve rentability via internet portals
- Air conditioning in the communal area
- 2 bathrooms each with shower and WC
- Washing machine and dryer
- Internet 1000 Mbit fiber optic
Inspection of the apartment
The video is intended to make it easier for students to decide on a room when they are not on site at the time of booking, which is often the case.
107 sqm / Peterfy Sandor utca 15
Purchase price 299.500 Euro
All furniture and appliances are new (warranty period) and included in the price. The rental income is transferred to the buyer from the time of takeover. The WG Zimmer Budapest service is available for management.
Rental income for 12-month contracts (rent + utilities advance payments):
€2,175 / month = €26,100 p.a.
Gross yield 8.7%
Interested? Then get in touch:
Interested? Then get in touch:
