Many people suffer from, or feel they are suffering from paying too much rent. But there is a simple method to check. In Romania, residential rent is typically set at 5-7% per year, of the current value of the property. Commercial rental yeilds are 8-12%. Example, if you are staying in an apartment valued at 100k, you can expect to pay between 5000 euros & 7000 euros per year, per year in rent, plus utility bills etc.
Obviously, as a tenant you want to be paying as low as possible on that scale & as an owner, you want to receive as high a yield as possible. If you are outside this 5-7% range, then your rent is not consistent with the market. Sometimes, real bargains to appear & these should be ceased upon if looking to economise. I have seen rental property with a 1% yield before now. In fact we manage a 10 bedroom hotel with a less than 1% yield which is an amazing deal for the tenant, & the landlord is simply happy to have such good tenants. This simple piece of negotiation will ensure the hotel business has a real chance of thriving without being choked by cash flow issues. Spend some time to get the rent right, lock yourself in for a period & then concentrate on other things that matter to you.
You never know until you look around! – definitely, it is worth doing your homework & the brokers at White Mountain will be happy to help you. How can we do this?
At White Mountain, we offer a new kind of service, one that does not exist elsewhere on the Romanian market.
For a small hourly fee, we now offer a Rent Analysis & Negotiation service, to help you optimise the rent you are paying and to get the best deal possible from your existing landlord & if you can’t reach the deal you are happy with, our brokers can find you what you are looking for elsewhere. But for your own benefit, it might be better to stay where you are if you can get the right rental price agreed. We will…
- Examine your current rental fee & to offer you a data-supported comparison of what else you can get for the same money.
- Examine your utilities bills & advise if moving or staying is best for you
- Examine your rental contract & advise on ways to improve
- Evaluate your current deal & advise on what else you can expect for the same money.
Example, you might be paying too much but don’t know how to negotiate a better deal. You might have insufficient furniture, or excess noise, or a parking space you don’t really need. There are many ways to improve your current rental deal & we have the experience to help you get the best deal for you.
When the Irish Embassy in Bucharest asked us to find them a better rental deal in 2014, being at the end of their 10 year contract, we advised them to stay put but to renegotiate a rent reduction of almost 50% based on genuine alternative offers on the market at much better prices. Savings to date ran to six digits already by 2019 & the Embassy is very happy to remain in that location.
Please drop us an email with details of your Bucharest or Brasov rental contract to see how we can save you money.