According to the most recently published data from the Czech Statistical Office for May of this year, the price level has remained very similar for several months now, which is the result of price movements in both directions within a balanced consumer basket. Put simply – some things went up, others went down, so your wallet doesn’t notice the difference. The year-on-year change in May was “only” 2.6%, so unlike in previous years you didn’t read any banner headlines about inflation in the national dailies. How much more expensive has housing become? There is one particular component of the consumer basket whose price growth has long been flirting with double digits, and which, according to the statisticians themselves, has an absolutely decisive impact on the year-on-year rise in the price level. Yes, you guessed it – it’s housing, specifically rental housing. While in February, for example, the year-on-year price growth stood at 6.8%, it is now 7.2% and it can be expected that this upward trend will more or less continue, unless something unexpected happens on the market.
Setting the right rent is always a matter of finding a certain balance
How to negotiate a higher rent? What does this mean for flat owners? Now is a good time to think about how to set the rent appropriately for the period ahead, whether that means the end of this year or the next one. From our experience we know all too well that such haggling is unpleasant for both parties involved. That is why, as part of our management services, we always offer with both Flat Service Partner and Flat Service Garant, to handle all rent negotiations with tenants for you. Quickly, fairly and efficiently. We find out – and above all secure the market rent – thereby maximising the return on your investment property. Owning pays off more than ever Another interesting statistic worth mentioning is the essentially minimal increase in the costs of owner-occupied housing, by just one percentage point. In practice this means that rents are rising significantly faster, and those who live in their own home have an ever greater advantage. It is also a signal that right now is a good time to turn your available funds into a promising investment. Not everyone, however, has the time and energy to deal with the necessary paperwork, property maintenance and finding a suitable tenant. Once the flat is occupied the work definitely doesn’t end – often it only begins. And that is exactly why we are here – Flat Service, with more than 20 years of experience in property management in Prague and the surrounding area.
Rising costs disproportionately affect families with children who don’t own their home
Guaranteed rental income One of our specialities is the Flat Service Garant service, thanks to which you receive a contractually fixed sum of money in your account every month, whether the flat is occupied or not. We simply take that risk on ourselves. And if we manage to find a tenant at a higher sublease rent than the expected sublease rent (the original market estimate), you will receive half of the difference on top. We play fair and we believe that long-term relationships with our clients move the rental housing market forward. Would you like to know how and for how much you can rent out your property without the hassle? Call us on +420 277 000 330 or send a message to sales@flatservice.cz. We will be happy to arrange a personal meeting and calculate, free of charge and with no obligation, how much we can rent your property or properties for.
