Buying a rental flat as an investment

A rental flat can bring a steady monthly income, but it isn't fully passive: tenants change, pipe renovations are expensive and interest rates vary. This guide helps you calculate whether a flat is profitable before you buy and handle the tax on rental income correctly.

You will need

• The housing company's manager's certificate (isännöitsijäntodistus) and maintenance needs report
• A loan offer from the bank
• A spreadsheet
• A tenancy agreement template
• Login for MyTax (OmaVero)

Steps

1. Find out the local rent level

   Look at the asking rents for similar-sized flats in the same area in rental ads and statistics. Also find out how quickly flats get rented. One empty month can easily wipe out a whole year's profit.

2. Calculate the cash flow

3. Look into the building's condition

4. Prepare for interest rate risk

5. Account for purchase costs

6. Choose your tenant carefully

7. Keep records of income and costs

8. Report your rental income

9. Decide how to manage it

The full guide with every step is for members. Try 7 days for €0.99.

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