“I’ll buy an apartment and it will pay for itself from rent!” We hear this sentence several times a week. We always answer: it’s possible, but the devil is in the details. Time for an honest talk about investing in rental apartments. We haven’t been running this agency just since yesterday. We’ve seen successes, but also spectacular failures. Today we’ll share what experience and hundreds of transactions have taught us.
Case study #1: Success
Client bought in 2019 35m² in Grzegórzki for 380,000 PLN. Rent: 1,800 PLN. After 5 years apartment worth 520,000 PLN, rent 2,200 PLN. ROI from appreciation and rent? Over 15% annually. But…
Case study #2: Failure
Another client, 2021, 50m² in Czyżyny for 650,000 PLN on credit. Planned rent: 2,800 PLN. Reality? Searched for tenants for 6 months, lowered to 2,200 PLN. Loan payment: 3,200 PLN. Monthly top-up: 1,000 PLN.
Where’s the difference? Timing, location, financing. First bought cash before price boom, second at market peak with credit leverage.
Krakow realities June 2025:
Average rental yield is 4-5% gross. After deducting tax, management, renovations, 3-3.5% net remains. With mortgage at 6% you’re in minus. Counting on appreciation? Long-term probably yes, but short-term anything can happen.
Best locations for investors:
University areas (AGH, UJ) guarantee constant demand. Grzegórzki, Krowodrza, Ruczaj are sure bets. But competition huge, owners often lower prices.
Office buildings = corporate employees. Zabłocie, Quattro Business Park, around Rondo Mogilskie. Stable tenants, higher prices, less rotation.
Nowa Huta and Bieżanów are dark horses. Lower purchase prices, growing demand, appreciation potential. But you must hit specific location.
Traps nobody talks about:
Rental vacancies. Average 1-2 months yearly apartment stands empty. That’s 8-15% less income. Hidden costs. Washing machine replacement, painting, minor repairs. Minimum 2,000 PLN yearly. Problematic tenants. Once every few years you’ll hit a nightmare. Damage, unpaid bills, eviction. Stress priceless. Taxes growing. Flat tax 8.5% for income up to 100k, then 12.5%. With several apartments you’ll quickly exceed threshold.
Our advice?
If you have cash and patience, rental apartment can be good investment.
But it’s NOT passive income. It’s business requiring time, knowledge, nerves.
Alternatives? REITs, corporate bonds, ETFs. Less hassle, similar returns. But without that satisfaction of owning “your own” property.
In our agency we help investors realistically assess profitability. We don’t sell illusions, only hard numbers and honest advice. Because it’s better to resign before purchase than regret after.
Eternel – Estate Agency
Address: al. Jana Pawła II 58, unit 2.1, Kraków
Phone: +48 577 707 032 (WhatsApp, Telegram)
E-mail: [email protected]
Website: https://eternel.agency
📲 Telegram: @Eterneladmin