investment in short term rentals
DESCRIPTION
Short-term rental apartments in Prague, Czech Republic are an underestimated opportunity for investors to achieve yields 50-100% higher than with standard long term rentals. Bohemian Estates (BE) is now bringing you a complete, hands-off and hassle free short-term rental product so you can take benefit of this investment opportunity.TRANSCRIPT
Bohemian Estates International, s.r.o.
Francouzská 30,
Prague 2, 120 00
Czech republic
Investment in short term rentals
WWW.BOHEMIANESTATES.COM
Bohemian Estates International, s.r.o., Francouzská 30, Praha 2, the Czech Republic, tel: +420 222 222 500
Website: www.bohemianestates.com/en, Email: [email protected]
SHORT-TERM INVESTMENT APARTMENTS IN PRAGUE
Investment opportunity with 8% yield
Short-term rental apartments in Prague, Czech Republic are an underestimated opportunity for
investors to achieve yields 50-100% higher than with standard long term rentals. Bohemian
Estates (BE) is now bringing you a complete, hands-off and hassle free short-term rental product
so you can take benefit of this investment opportunity.
Key points:
Short-term rentals offer higher yield than long-term rentals. On average 8% vs. 4% with
long-term rental.
Limited space and available property in Prague city center offers excellent growth
potential.
Prague, one of the most popular European tourist destinations offers stable occupancy rates
– rising number of tourists every year (approx. 6mil. in 2012).
Apartment may be used for recreational or representational purposes by the owner (family,
business partners).
How it works:
1. APARTMENT SOURCING - BE sources suitable property from all available offers on
the whole Prague market.
2. PURCHASE - Investor receives professional property investment, legal and construction
advice and guidance during the entire purchase process, resulting in a simple, hands-off
experience.
3. RENOVATION - If purchased apartment is unconverted, additional profit can be made
through renovation of the apartment (optional, arranged by BE).
4. FURNISHING - Furnishing and preparation of the apartment for rental.
5. MANAGEMENT - Full short-term rental management (professional photos, marketing,
occupancy, bookings, payments, checking in/out of tenants, utility management, and
maintenance).
We provide you with an example of an apartment purchased, prepared and managed on a
short-term rental basis by BE. For information, photos and numbers please see page below.
Bohemian Estates International, s.r.o., Francouzská 30, Praha 2, the Czech Republic, tel: +420 222 222 500
Website: www.bohemianestates.com/en, Email: [email protected]
Model 2 bedroom flat, Ostrovní Str. 1, Prague Photos before renovation:
Photos after renovation:
Bohemian Estates International, s.r.o., Francouzská 30, Praha 2, the Czech Republic, tel: +420 222 222 500
Website: www.bohemianestates.com/en, Email: [email protected]
Photos of the apartment ready for short term rental:
Bohemian Estates International, s.r.o., Francouzská 30, Praha 2, the Czech Republic, tel: +420 222 222 500
Website: www.bohemianestates.com/en, Email: [email protected]
Investment profitability: Ostrovni 2 bedroom, Prague 1 Cur.rate: 1URr= 25CZK, 1GBP=30CZK
PURCHASE COSTS CZK EUR GBP m2
Area m2 75
Purchase price 4 000 000 CZK € 160 000 £133 33354000 CZK/2150 EUR/1780 GBP
Renovation cost 500 000 CZK € 20 000 £16 667
Furnishing cost 75 000 CZK € 3 000 £2 500
Sourcing fee 3% 145 200 CZK € 5 808 £4 840
TOTAL PURCHASE COST 4 720 200 CZK € 188 808 £157 340
SHORT TERM RENTAL CZK EUR m2
Conservative occupancy in % 70,00%
Rent/day 2 150 CZK € 86 £72
Rent/month 45 150 CZK € 1 806 £1 505
Gross rental income/year 549 325 CZK € 21 973 £18 311
Annual marketing and management fee 30% -164 798 CZK -€ 6 592 -£5 493
Annual utility fees -36 000 CZK -€ 1 440 -£1 200
Annual cleaning cost -36 000 CZK -€ 1 440 -£1 200
Annual net rental income 312 528 CZK € 12 501 £10 418
Monthly net rental income 26 044 CZK € 1 042 £868 347CZK/14EUR/12GBP
Net Yield in % 7,81%
Annual diff btw short and long scenario 144 528 CZK € 5 781 £4 818
Diff btw short and long scenarioin % 86,03%
LONG TERM RENTAL CZK EUR m2
Rent/month 14 000 CZK € 560 £467 186CZK/7EUR/6GBP
Rent/year 168 000 CZK € 6 720 £5 600
Net Yield/year 4,20%
If your apartment is currently leased on a long-term basis and you would like to receive
information on its short-term rental scenario potential, please let us know.
For detailed analysis of your potential investment please see the attached excel file.
We would be happy to send you direct referral from one of our happy clients upon request.
Contact: Bc. Robert Poppl – Real Estate Director
Tel: +420 608 832 362
Email: [email protected]