Room rental involves renting out rooms in the same property to multiple individuals who do not form a family unit. In many cases, this is a very interesting investment because the rental yield will be higher than if you rented the entire property to one person or family. That’s why many real estate investors are always looking for room rental properties. There is slightly more management work involved because you need to find multiple tenants per property, but there is a lower risk of vacancy. Room rental is popular in many cities among young renters because it offers an affordable alternative to living close to the city center.
In most cities, room rental is strictly regulated: you need a permit, and the room rental property must meet the necessary requirements regarding sound insulation, fire safety, room layout, and common areas. Furthermore, there is often a maximum number of permits available per neighborhood. This means that in most cases, no new permits are issued, and purchasing a property hoping to obtain a room rental permit carries significant risks for an investor.
Where do you find room rental properties?
As indicated, obtaining new permits is very difficult, so it’s best to buy such a property from another investor. You can search on various marketplaces for investment properties, but unfortunately, attractive room rental properties often never appear on the public market because they are sold off-market.
And while it’s an excellent strategy to get extra return from your real estate investment, quite a bit comes with it: Until when is the permit valid? Was it officially issued? And does the property meet all current requirements? Because during an inspection, a permit can also be revoked, which can turn out very badly for your investment. So definitely conduct thorough research.
If you want to enjoy the results but aren’t keen on all the work involved, then BRXS might be a good solution for you. We have many good room rental properties in our offerings that we often acquired off-market. You can start from €100, and every three months, you receive your share of the rental income, benefit from long-term value appreciation, and you can track your investment closely as if you were the landlord yourself.
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