Investment properties for sale

An investment property is bought for its net operating income: rent minus running costs, maintenance, property taxes, insurance and management. Start with the rent roll. Who are the tenants, what do they pay, when can they give notice, and how many units are empty? One large commercial tenant carries a different risk from twenty flats, and a tenant who can leave next year is worth less than one locked in for several years.

Then look at the building. Roof, façades, windows, installations and drains can call for major investment that does not show in the operating accounts. Ask for the maintenance plan and any condition or building surveys, and have an independent surveyor inspect the property before you bid.

Property is valued on yield. Sitavo’s indicative range is 8–15 times annual net operating income, derived from a required yield of roughly 6–12%. Low risk, a good location and long leases mean a lower required yield and a higher price. Vacancies, a maintenance backlog and uncertain tenants pull the other way. The range is a general market range and does not replace a valuation of the specific property — have a qualified valuer assess it. The price estimate gives a first indication.

• Gross rental income and what remains after vacancies.
• Operating costs: property taxes and charges, insurance, maintenance, management and shared costs.
• Net operating income and the yield it represents at the asking price.
• Rent levels compared with what the rules allow.
• Debt and mortgages on the property, and whether they can be taken over.

• Rent roll and every lease, including addenda and special terms.
• Operating accounts and budgets for recent years that match the bookkeeping.
• Rent reviews, pending rent tribunal cases and tenant complaints.
• Maintenance plan, condition and major works carried out or planned.
• Land register extract with easements, charges and the local plan.
• Energy label, insurance and property taxes.

Danish rent legislation is extensive and changes over time, and it decides what rent may be charged and how it can be adjusted. Have a lawyer experienced in Danish property review the leases. Sellers can share them in a data room behind an NDA, so you can read them before making an offer.

If you buy the property itself, the title deed must be registered in the Danish land register before your ownership is secured. Tenants keep their leases, and deposits and prepaid rent are settled between buyer and seller. If you buy the company that owns the property instead, all contracts, loans and liabilities stay with the company and no new deed is registered, but the company needs a more thorough review. See the guide to asset versus share sales. Restrictions may apply to buyers from abroad purchasing real estate in Denmark, so check your position with a Danish lawyer before you bid.

Danish property is typically financed with mortgage credit, bank loans and equity, and financing should be in place before you make a binding offer. Messaging sellers and making offers on Sitavo is free, and price and terms are agreed in the deal workflow. Sitavo does not handle the purchase price, and in property deals it is common to use a lawyer who also handles registration and holds the funds. Read how payment works, and set up a search alert if the right property is not listed yet.