The owner lists the apartment for 3,500 PLN. He struggles to find a tenant for a month. He finally signs a contract for 3,400 PLN and feels he's won the deal. But did he really win?
The highest rent does not always mean the highest profit
In renting, it's easy to focus on one number: the monthly rate.
Meanwhile, the more important question is:
How much will the apartment earn over the course of a whole year?
Let's assume two variants.
Option 1
Rent: PLN 3,500 Vacancy: 1.5 months
Annual income:
10.5 × 3,500 PLN = 36,750 PLN
Option 2
Rent: PLN 3,300 Vacancy: 0.5 month
Annual income:
11.5 × 3,300 PLN = 37,950 PLN
The owner who rented cheaper earned more.
Not because he had a better rate.
Because the apartment was priced at market value, it did not lose any value due to the downtime.
Vacant space also costs money
No tenant does not mean no expenses.
The owner can still pay for:
- administration,
- loan,
- insurance,
- solid media,
- announcements,
- travel and presentations.
Rental market research shows that vacancy rates and rents are closely linked. The more vacant units there are, the more difficult it is to maintain a high price.
It's also worth remembering that advertised prices aren't transaction prices. They reflect how much landlords are willing to pay, not always how much tenants actually pay.
How much does it cost to fight for an extra 200 PLN?
Let's assume that the apartment can be rented quickly for PLN 3,200.
However, the owner wants PLN 3,400 and because of this decision he loses one month.
Lost income: PLN 3,200 Additional monthly profit: PLN 200
To make up for the loss, you need:
3,200 PLN ÷ 200 PLN = 16 months
Only after 16 months does the higher rate start to pay off.
Provided that the tenant stays throughout this period and pays on time.
A good tenant also has value
Sometimes a landlord focuses on price and ignores the quality of the tenant.
Meanwhile, a proven tenant who:
- pays on time,
- takes care of the apartment,
- reports faults,
- wants to stay longer,
may be worth more than an extra 100 or 200 PLN per month.
Changing the tenant means the risk of vacancy, refreshing the premises, new presentations and choosing a person we do not know yet.
Therefore, not every raise increases profitability.
How can you tell if the price is too high?
The market usually sends signals quickly:
- many views but few messages,
- many inquiries, but few presentations,
- many presentations but no decisions,
- almost everyone tries to negotiate,
- similar offers disappear, but ours is still active.
This doesn't always mean you need to lower your price immediately.
Sometimes the problem is the photos, description, standard of the apartment or excessively high additional costs.
However, if interest is weak for a long time, it is worth stopping treating the price emotionally.
What is optimal rent?
This is not the lowest price.
This is a rate that provides:
- good annual income,
- short vacancy,
- an appropriate number of candidates,
- the ability to choose a good tenant,
- reasonable risk of rotation.
The optimal rent takes into account not only the monthly transfer, but also time, costs and risk.
The simplest pattern looks like this:
Annual result = rent × number of months paid – vacancy cost – tenant change cost
The most important question
Instead of asking:
“What is the highest rent I can get?”
better ask:
“At what price will my apartment earn the most money per year?”
In the rental market, the owner who enters the highest amount into the contract does not always win.
Often the winner is the one who best manages price, time and risk.