hana.north
Property manager
€3,919 a month is the figure that has to justify an €837,200 purchase. On paper that is about 5.6% gross for this 5-bed coastal-style home in Lyon, but the return becomes much less persuasive if either the rent or the recurring costs are optimistic.
The building looks sound from the information available so far. My model includes gaps between tenants, management costs and ordinary upkeep, with additional cash held back for more substantial work. The less certain inputs are the property tax, insurance, turnover costs and the effect of financing changes on cash flow.
For those who know Lyon rentals, which expense tends to be missed or understated? I am particularly interested in whether you would challenge the €3,919 rent first or increase the maintenance provision. A modestly lower rent would hurt every month, while an inadequate repair fund could produce a much larger one-off problem.
The building looks sound from the information available so far. My model includes gaps between tenants, management costs and ordinary upkeep, with additional cash held back for more substantial work. The less certain inputs are the property tax, insurance, turnover costs and the effect of financing changes on cash flow.
For those who know Lyon rentals, which expense tends to be missed or understated? I am particularly interested in whether you would challenge the €3,919 rent first or increase the maintenance provision. A modestly lower rent would hurt every month, while an inadequate repair fund could produce a much larger one-off problem.