Warsaw 3-bed at PLN 4,148,000 and PLN 25,700/month — does it stack up?

K

kian_roofs

Landlord
Established
We are split between analysing the apartment’s energy costs first and stress-testing the financing before anything else. The Warsaw three-bedroom is priced at PLN 4,148,000, and the suggested rent is PLN 25,700 per month, implying a gross yield of about 7.4%.

Our budget includes management, routine repairs, a larger repair reserve and some vacancy, but this would be our first rental. Energy performance could affect both tenant demand and the costs we may have to carry, while interest changes or a longer gap between tenants could have a larger effect on cash flow. Should the next step be obtaining actual building-charge and insurance figures, then rerunning the deal with lower rent, extra vacancy and less favourable finance?
 
The gross calculation works, but I would focus on building charges and anything the landlord must cover rather than assuming the tenant bears every running cost. Ask for the actual charge history, planned common-area works, energy information and an insurance quote. I’d also model at least one rent-free turnover period plus cleaning or minor refurbishment between tenants. A target net yield is personal, but decide it only after financing and tax, not before.
 
How was PLN 25,700 established: a signed lease, comparable completed lettings, or an agent’s asking-rent estimate? That missing fact matters more than fine-tuning the maintenance reserve. At this price level, a modest reduction in achieved rent or a longer search for the right tenant could move the result noticeably. I’d run a second case with lower rent, extra vacancy and full management cost.
 
I partly disagree that energy performance is the main uncertainty. It matters, but the rent assumption and exit value could dominate the calculation. A 7.4% gross yield leaves a cushion, yet it is not the same as cash return once purchase costs, property tax, insurance, nonrecoverable building expenses and financing are included. Since this is a first rental, I would not accept a thin net result merely because the apartment itself looks low-maintenance.
 
That’s fair. I’d turn this into a document-based exercise: request recent building-charge statements, energy records, details of upcoming works and evidence supporting the projected rent. Then price insurance and management separately, and have the Poland-specific tax treatment confirmed rather than guessing. Compare an all-cash case with financing at a higher cost than expected. If the deal only works at PLN 25,700 with near-perfect occupancy, the headline yield is doing too much of the selling.
 
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