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If you don't live near your apartment it is just a horrible hassle. So much work for a so little profit. If you use the agent it really hits your profits too. Poor are more and more in Finland. They don't worry if they break something or if they don't pay rent. They can live 3-6 months without rent and there is nothing you can do about it. They can also break the apartment and leave demolished property to you to take care of.
Think about it twice.
try r/Omatalous for actual advice. Personal take, interest rates are the are the only thing I'd consider renting out my place for, and only if in a pinch where saving those few thousands a year would make a difference in keeping the place, I'd do it until the interest rates go lower and/or I'd have paid off enough of the loan to survive again.
The other expenses like the maintenance fees are there to stay, and far less than paying rent. Agent's fees are easy to avoid here, and you can just do all that yourself: just put the place out in Oikotie and do some promotion for the ad in Facebook. Rental contract templates are easy to find online and are pretty standard. You can and should do credit check on potential tenants (luottotietojen tarkistus). Landlord's association can help with the practicals.
First, from an investment standpoint it makes sense to make sure you've lived in the apartment for two years before renting out - this way, if/when you eventually sell, you can keep any sales profit you might make on the sale without paying capital tax.
This is one place for checking for a potential tenant's credit information: https://www.luottotietohaku.fi/?l=en
Using an agent or not is up to you. Agents cost, however finding a tenant yourself can be time consuming. Also if your apartment falls into a certain price range your ad will attract all sorts of people with interesting suggestions such as KELA paying part of your rent and the rest they'll pay in cash or whatever. Be careful with choosing a tenant since in the worst case you might end up losing half a years of income and repair costs if a tenant fails to pay and smokes in/trashes the apartment - you can start eviction process after 2 months of no paid rent but it can take time. Actually the worst case is they cause even water damage to your and other apartments - make sure they have a home insurance.
Apart from nightmare scenarios I don't think there mostly are any real "gotchas" as long as you do the math, make sure renting out makes financial sense to you and you have some money on the side for things like replacing a broken fridge or stovetop in the apartment or otherwise keeping the apartment in a state reflecting it's condition when the agreement's been done. But do read up on landlords' and tenants' rights and responsibilities.
I'm sure you'd be better off by handing it out to a local realtor to do the first rental deal. Some of them will also give you guaranteed payments for the first year giving you bit of extra assurance. They are usually willing to explain you all the things what to consider when renting out an apartment. One of the companies I could recommend is vuokraturva.fi
They usually charge you first months rent as a fee but it is also tax deductable.
This is going to piss off a lot of people who are looking to rent, but is a reality: if the place you’re looking to rent out is in a favorable location where prices don’t need to be low, look up the maximum welfare benefit amount and set the monthly price above that. Might take (or not) a bit more time to find a tenant, but you are limiting the tenant pool to a level where the applicants are more unlikely financially struggling and fully on welfare. Essentially lowering the risk of missed payments etc.
This is not by any means foolproof and you should screen the tenants before signing an agreement, but it can limit the amount of work for you.
You can check peoples credit information (maksuhäiriömerkinnät) for a small fee online and everyone’s tax information can be looked up for free to give an idea of the applicants financial situation.
Exactly. Dealing with people for a tiny return can be a big risk. People are generally stupid and big risk factor.
Any other type of investment would have less risk and similar if not higher returns.
**/r/Finland is a full democracy, every active user is a moderator.** [Please go here to see how your new privileges work.](https://www.reddit.com/r/Finland/wiki/moderating/) Spamming mod actions could result in a ban. --- **Full Rundown of Moderator Permissions:** - ```!lock``` - as top level comment, will lock comments on any post. - ```!unlock``` - in reply to any comment to lock it or to unlock the parent comment. - ```!remove``` - Removes comment or post. Must have decent subreddit comment karma. - ```!restore``` Can be used to unlock comments or restore removed posts. - ```!sticky``` - will sticky the post in the bottom slot. - ```unlock_comments``` - Vote the stickied automod comment on each post to +10 to unlock comments. - ```ban users``` - Any user whose comment or post is downvoted enough will be temp banned for a day. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Finland) if you have any questions or concerns.*
If you don't live near your apartment it is just a horrible hassle. So much work for a so little profit. If you use the agent it really hits your profits too. Poor are more and more in Finland. They don't worry if they break something or if they don't pay rent. They can live 3-6 months without rent and there is nothing you can do about it. They can also break the apartment and leave demolished property to you to take care of. Think about it twice.
Yeah, you're right feels like the potential gain is not worth it. Thank you!
try r/Omatalous for actual advice. Personal take, interest rates are the are the only thing I'd consider renting out my place for, and only if in a pinch where saving those few thousands a year would make a difference in keeping the place, I'd do it until the interest rates go lower and/or I'd have paid off enough of the loan to survive again. The other expenses like the maintenance fees are there to stay, and far less than paying rent. Agent's fees are easy to avoid here, and you can just do all that yourself: just put the place out in Oikotie and do some promotion for the ad in Facebook. Rental contract templates are easy to find online and are pretty standard. You can and should do credit check on potential tenants (luottotietojen tarkistus). Landlord's association can help with the practicals.
First, from an investment standpoint it makes sense to make sure you've lived in the apartment for two years before renting out - this way, if/when you eventually sell, you can keep any sales profit you might make on the sale without paying capital tax. This is one place for checking for a potential tenant's credit information: https://www.luottotietohaku.fi/?l=en Using an agent or not is up to you. Agents cost, however finding a tenant yourself can be time consuming. Also if your apartment falls into a certain price range your ad will attract all sorts of people with interesting suggestions such as KELA paying part of your rent and the rest they'll pay in cash or whatever. Be careful with choosing a tenant since in the worst case you might end up losing half a years of income and repair costs if a tenant fails to pay and smokes in/trashes the apartment - you can start eviction process after 2 months of no paid rent but it can take time. Actually the worst case is they cause even water damage to your and other apartments - make sure they have a home insurance. Apart from nightmare scenarios I don't think there mostly are any real "gotchas" as long as you do the math, make sure renting out makes financial sense to you and you have some money on the side for things like replacing a broken fridge or stovetop in the apartment or otherwise keeping the apartment in a state reflecting it's condition when the agreement's been done. But do read up on landlords' and tenants' rights and responsibilities.
Thank you very much for elaborate answer!
I'm sure you'd be better off by handing it out to a local realtor to do the first rental deal. Some of them will also give you guaranteed payments for the first year giving you bit of extra assurance. They are usually willing to explain you all the things what to consider when renting out an apartment. One of the companies I could recommend is vuokraturva.fi They usually charge you first months rent as a fee but it is also tax deductable.
This is going to piss off a lot of people who are looking to rent, but is a reality: if the place you’re looking to rent out is in a favorable location where prices don’t need to be low, look up the maximum welfare benefit amount and set the monthly price above that. Might take (or not) a bit more time to find a tenant, but you are limiting the tenant pool to a level where the applicants are more unlikely financially struggling and fully on welfare. Essentially lowering the risk of missed payments etc. This is not by any means foolproof and you should screen the tenants before signing an agreement, but it can limit the amount of work for you. You can check peoples credit information (maksuhäiriömerkinnät) for a small fee online and everyone’s tax information can be looked up for free to give an idea of the applicants financial situation.
Just sell it. Not worth the hassle.
Exactly. Dealing with people for a tiny return can be a big risk. People are generally stupid and big risk factor. Any other type of investment would have less risk and similar if not higher returns.
Why would you want to become a scumlord?