How to assess the short-term rental potential of an investment flat

In real estate investment, "what rent will this apartment bring?" is one of the most important questions to answer before a purchase decision. Investors thinking about hospitality have additional topics to cover. The framework below helps you assess an apartment through that lens.

1. Location and source of demand

• Distance to transport points, tourist areas, hospitals, universities and business centres.
• Which guest profile the neighbourhood attracts (tourist, business traveller, long stay).
• Safety of the surroundings, noise levels and food and drink options.

2. Building and management

• The building's age, lifts, security and the condition of common areas.
• The building management's view of short-term rental and the provisions in the management plan.
• The entry and exit routine and relations with neighbours.

3. Physical features of the property

• Floor area, room plan and bed layout. Small, functional plans are often more practical for guests.
• Standout features such as daylight, view and balcony.
• Renovation and furnishing needs.

4. Regulation and permit status

The permits and conditions required for short-term rental can differ by property and area. Before buying, check current regulation and the property's compliance with those conditions with official sources and, if necessary, a specialist. You can also read our articles that give general information on this topic.

5. Cost items

In an investment assessment you need to look not only at the purchase price but also at running costs:

• Building fees and charges
• Utility bills and internet
• Cleaning, laundry and consumables
• Maintenance and repairs
• Platform and operating costs
• Tax and legal obligations

6. Operations plan

Who will manage the property? If you will manage it yourself, review the time, team and tools you will need. If you will work with an operator, clarify the scope of service, the reporting routine and responsibilities from the start.

7. Keep income expectations realistic

When estimating income, consider optimistic and cautious scenarios together. Allow for occupancy and price changing by period, and for a settling-in time at the start. No estimate guarantees an outcome.

A short checklist before buying

1. Does the location fit the target guest profile?
2. Do the building and its management allow short-term rental?
3. Are regulation and permit status suitable?
4. Have renovation and furnishing costs been calculated?
5. Who will run operations, and how?
6. Has the income expectation also been tested with cautious scenarios?

Frequently asked questions

Is every apartment suitable for short-term rental? No. Location, building and regulatory compliance are decisive.

Is a small or a large apartment more suitable? It depends on the guest profile. In most city stays, small and well-planned apartments are in demand.

Who can I get support from before buying? We can assess a property's hospitality potential together with you. You can get in touch or browse our solutions.