Residential rental properties for sale

In a Danish residential property, rent is governed by rent legislation, and the rules depend on factors such as when the building was constructed, how many units it has and how the rent was set. Rent above the permitted level can be reduced, and you cannot count on raising rents freely. Have a lawyer or an experienced property manager assess whether the rent levels hold before you base your calculation on them.

Ask for the rent roll with rent, deposit, move-in date and any improvements added to the rent. Look at how often tenants change and how long units stand empty between lettings.

Sitavo’s indicative range for property is 8–15 times annual net operating income, equivalent to a required yield of roughly 6–12%. Well-maintained residential buildings with stable tenants usually sit at the high end, while those with a large maintenance backlog sit lower. Get a valuation, and recalculate the net income yourself with realistic costs for maintenance and management.

Residential tenants in Denmark have strong rights, and landlords have a duty to maintain. Check whether funds are set aside for maintenance, whether there are pending rent tribunal cases, and whether tenants have a residents’ committee. Major renovations can affect both rents and relations with tenants.

• Rent roll and every lease.
• An assessment of rent levels under the rules that apply to the building.
• Operating accounts, maintenance plan and condition.
• Rent tribunal cases and tenant complaints.
• Land register extract, easements and loans.

Read the general advice on buying property, and compare with commercial properties for sale.