IN THIS BLOG POST, EVERYTHING REVOLVES AROUND THE TOPIC OF MICRO APARTMENTS. WHAT ARE MICRO-APARTMENTS? WHAT SPECIAL FEATURES DO THESE TYPES OF APARTMENTS HAVE? WHAT ADVANTAGES DO MICRO APARTMENTS BRING? AND WHY IT'S WORTH INVESTING IN A MICRO APARTMENT!
Microapartments - What are they?
This blog post is all about micro-apartments. Micro-Apartments, also known as micro flats, are essentially tiny, self-contained living spaces. Typically, they are studio apartments ranging in size from about 14 to 32 square meters. This compact space is designed to accommodate a living area, sleeping area, a bathroom, and a small kitchenette. Additionally, micro-apartments are ideal for furnished temporary living arrangements.
What defines a micro apartment?
Micro-Apartments are furnished or partially furnished living spaces that are typically less than 30 square meters in size. They feature small, modern room sizes with functional spatial concepts. Typically, each apartment has its own bathroom and a small kitchenette. They are often designed in a modern and stylish manner. A micro-apartment is intended for one or maximum two people and is often used as living space for a limited period of time.
For whom is this type of apartment suitable?
This type of apartment is ideal for people with various life situations and needs. In particular, individuals who need to move to another city for a limited period of time benefit from microapartments. Commuters, students, or other professionals can take advantage of them.
What advantages does a micro-apartment offer for the landlord?
- High returns compared to other types of properties
- Possibility of owner occupancy
- Attractive rental prices
- Greater potential for implementing regular rent increases due to frequent tenant turnover
- High demand for micro-apartments
- Less risk from rent control measures or rental price caps
- Sustainability – micro-apartments consume fewer resources and energy compared to larger apartments.
- Low risk due to high demand
- Low operating costs
Is a micro-apartment a worthwhile investment?
Investing in a micro-apartment can be a lucrative venture, especially for investors seeking high returns and low risk. However, it’s important to consider the specific risks and market volatility. The demand for high-quality and modern micro-apartments is steadily increasing. Due to their size, they are often more affordable for tenants. Reasons for this surge include the trend of urbanization, the growing number of single households, and the increasing number of students. This demand for small living spaces provides investors with a wonderful opportunity to invest their capital sustainably and future-oriented. Micro-properties are particularly popular as investments because higher rent per square meter can be charged compared to a normal condominium. Capital investors can expect significantly higher returns in this regard.
Before investing in a micro-apartment, however, you should conduct a thorough analysis of the market and the target demographic. It is also important to consider the location and amenities of the micro-apartment to ensure high demand and a good return on investment.
Important criteria for choosing a micro-apartment
To easily attract tenants for your micro-apartment, there are several important criteria that you as an owner should consider in order to successfully rent out a micro-apartment. Firstly, location is a crucial factor. For example, students prefer to live in close proximity to their university. Commuters prefer to live centrally to be more flexible. Internet connectivity is also essential. Tenants don’t want to worry about internet access and are positively inclined if good internet connectivity is already available. The furnishings of the micro-apartment should also be modern and stylish. It’s important not to overcrowd the apartment so that tenants have the opportunity to store personal items, such as pictures or books. The condition of the property is also important for potential tenants. Since a micro-apartment is usually located in larger complexes with 100 or more units, it’s important that the complex is in good condition.
What to consider when buying a micro-apartment
Location of the apartment: Apartments in the city center of a large city are sought after. The central location offers many advantages for tenants, such as short distances to shops, restaurants, and public transportation. Accordingly, the demand is high, which can lead to quick rental and high returns for landlords.
Public transportation accessibility: In large cities where many people consciously forgo owning a car, proximity to public transportation is a crucial criterion for a micro-apartment. Tenants appreciate short distances to bus, train, or tram stops to be mobile and flexible within the city.
Building condition: Is the building in need of renovation? Older buildings often require repair costs and may have damages that you need to consider.
Infrastructure: Depending on your tenant target group, you should also consider the neighborhood’s infrastructure. Access to shopping facilities or proximity to universities can also be decisive factors.
Conclusion
Micro-apartments are a flexible investment for owners, as demand is increasing, especially advantageous for students and commuters. Additionally, renting out micro-.apartments is often quick and uncomplicated due to high demand. Are you already the owner of a (micro)apartment or do you plan to become one in the future? We manage your properties and offer a comprehensive service.
