How to Set the Right Rent

Rent is the single most important decision in the rental business. Set it too high — the flat sits empty, and every vacant month eats several months' worth of markup. Too low — you lose income every year that no one gives back. Here's how to set the price from data, not gut feeling.

1. Start from the market, not from your expectations

Look at what comparable flats in your area actually rent for — not what listings ask, but what was agreed. Compare by:

• Floor area and number of rooms
• Neighborhood and transport links
• Condition and furnishing (furnished or not)
• Floor, balcony, parking

Listing prices are often 5–10% higher than the final deal — factor that in.

2. Estimate the real yield

Gross rental yield is simple to calculate:

Annual rent ÷ property value × 100%

For example, €700/month × 12 = €8,400 per year. If the flat is worth €140,000, the gross yield ≈ 6%. But the net yield is always lower — subtract:

• utilities not covered by the tenant;
• taxes (income tax, etc.);
• repairs and depreciation;
• vacant months between tenants;
• management (your time is a cost too).

3. Don't forget occupancy

A higher price with 2 vacant months a year often earns less than a slightly lower price with a continuous tenant. Run both scenarios:

A stable, reliable tenant is often worth more than +€50 on the price.

4. When to raise the rent

• Indexation — write an annual price review into the lease (e.g. tied to inflation) so you don't renegotiate from scratch.
• After investments — you renovated the kitchen or furniture — a price rise is justified.
• When the market rises — but for a loyal tenant, a sudden jump can cost more than losing them.

How to track this with Rivio

A pricing decision needs the true yield in view — income minus utilities, taxes, and vacant periods. Rivio shows each property's income history and reports in one place, so you price from numbers, not gut feeling. Your first flat — free.