Is it worth investing in real estate?

There are many ways to invest the capital we have. One of them is to invest it in rental properties. This has been a popular form of investment for many years and has attracted significant interest from private investors.

Assuming we have accumulated sufficient capital and decide to take this step, we need to answer two important questions: what to buy and where to buy it?

Long-term, short-term, hybrid, and corporate real estate leasing

To make the right choice, you should consider who you plan to rent the apartment to, in what form, and for how long. At first glance, long-term rental seems to be the most advantageous and safest option. Of course, it provides a relatively steady income and isn’t very time-consuming, so if you want to handle it yourself, this is a good solution. In that case, it’s a good idea to buy an apartment in our town, renovate it so that it’s suitable for long-term rental, and enjoy a steady monthly income. Even if our tenant decides to terminate the lease, we’ll most likely find a new one within a month or two. However, limiting ourselves to just one type of rental isn’t the best idea. Currently, short-term and hybrid rentals are becoming increasingly popular, but they work best in tourist destinations.

If we have the opportunity to invest in an apartment—for example, in Gdańsk—let’s consider how to maximize rental income. It may be the case that with a short-term rental system, we’ll earn slightly less in some months than we would with a long-term tenant, but would such a tenant generate profits in the range of several thousand zlotys during the summer vacation season? We can achieve such results by partnering with a professional rental management company.

Investing in Real Estate in Gdańsk

Gdańsk is one of the most popular tourist destinations in Poland. This is not only because of its numerous beaches, but also thanks to its many attractions, historic sites, and the hospitality of its residents. Since the 2012 UEFA European Football Championship (EURO 2012)—when a huge number of people from all over the world visited Poland—Gdańsk has earned a reputation as a very hospitable, interesting city full of opportunities. Research shows that Gdańsk, Kraków, and Wrocław are typically chosen by tourists as their first destination in Poland. Thanks to their presence, apartment owners can maximize their returns on investment.

Poles are just as eager to spend their vacations on the Baltic Sea. For some of them, the sea is something they cannot imagine a vacation without. Gdańsk is developing very quickly, adapting to the needs of tourists, and its lodging capacity is expanding at an incredible pace in response to the growing demand for such services.

An apartment or a room in a condo hotel?

Tourists are increasingly choosing to rent apartments instead of traditional hotel rooms. The homey atmosphere, the chance to spend time together in one room with family or a group of friends, plus a fully equipped kitchen, access to a washing machine, and other amenities, make for a comfortable stay—even for several weeks.

The Tri-City not only combines the charm of a resort with cozy cafes and clubs, but also offers endless opportunities to enjoy “city life” when the weather isn’t suitable for the beach. In winter, Gdańsk entices visitors with beautiful views, its Christmas Market, and a vibrant dining scene that—unlike in small seaside towns—remains bustling all year round.

2020 in the Tourism Industry – Changes in the Rental Market

Currently, the situation in the tourism industry is far from “normal.” Short-term rentals are practically nonexistent during the coronavirus pandemic. No one was prepared for the situation that unfolded. Rental operators faced the difficult task of ensuring profits for both their customers and themselves amid virtually zero tourist traffic and periodic bans on short-term rentals.

If someone chose a good business partner who had built up a sufficient base of corporate clients in a timely manner and collaborated with student organizations that provided housing for Erasmus program participants, they didn’t lose much. Such alternatives and contacts were previously unavailable to private individuals who had been renting out their apartments on their own. The pandemic will continue for some time, so it’s worth considering entrusting your apartment in Gdańsk (or another city) to professionals. That way, it will be a profitable investment rather than a source of worry.

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