Rental deal in Rome: €409,400 purchase, €1,913/month — sanity check

[travelsAndGrove]

I would like the Rome country home to produce a dependable rental return, but the margin may not survive realistic ownership costs. The price is €409,400 and the expected monthly rent is €1,913 for three bedrooms. That is about 5.6% gross over twelve months, or roughly 5.1% if I assume only eleven months of rent.

Rather than focus only on the purchase price, I am testing vacancy, management, ongoing upkeep and a fund for substantial work. Weak energy performance could affect costs, achievable rent or both. I now need property-specific figures for insurance and recurring charges, plus evidence that the rent is realistic. What level of net return would balance those risks, and which assumption would you stress most heavily?

 

[clear_ink]

First clarify whether €409,400 is only the purchase price or your all-in cost. At roughly 5.1% gross on eleven months, transaction costs, annual property charges and energy-related work could remove the cushion quickly. I’d get property-tax and insurance figures for this exact home rather than use a general Rome estimate. Is the €1,913 rent supported by comparable long-term rentals, and is management included even during vacancy?

 

[luca.east]

I wouldn’t assume property tax is the main danger. Tenant turnover and maintenance may matter more for a country home, especially if the realistic tenant pool is narrower than for a central apartment. The rent estimate needs context: long-term or short-term, furnished or unfurnished, and does the tenant pay utilities? Without that, the energy rating could affect either your costs, achievable rent, or both.

 

[luca.east]

Carlos’s all-in-cost question is decisive, but I agree the operating assumptions also need stress-testing. I’d run one case with €1,913 for eleven months and another with lower rent plus a longer gap, then add written estimates for insurance, management, annual property charges and likely energy work. Test financing separately at a higher payment than expected. Personally, below about 4% net before financing, I wouldn’t see enough margin here for repairs and estimation error.