Buying an investment property? You can easily rent one of these

Housing investment remains one of the most popular ways to grow wealth in Finland - and for good reason. Not only does renting provide a steady and regular income stream, but the appreciation of property values can further enhance the return on your investment over the long term. Developments in the rental market in recent years have shown that there is plenty of demand, especially in city centres and their surrounding areas, where services and transport links are easily accessible.

However, not all apartments are as easy to rent. Lack of certain features or major renovation needs can lead to prolonged empty months or lower rents. In this guide, we'll show you how to identify an investment property that you can rent easily, at an optimised rent level and with minimum turnover. Whether you are just considering buying your first investment property or are an experienced landlord, this guide will give you concrete advice and profitable tips.

1. Location

Location is not something you can control, and should therefore have a decisive influence on your choice of investment property, especially in terms of demand and price levels. In urban areas in particular, tenants often prefer central or suburban areas with comprehensive services and good transport connections. This section explains why location is an important factor for home investors and what aspects to consider before making a purchase offer.

1.1 Transport links

Renting is particularly popular among students and young adults. Living in large cities and town centres is, of course, the most attractive option for them. Transport links ensure access to and within the main areas, whether for everyday services or leisure activities.

Good transport links attract tenants
Good public transport links, such as metro, train, bus or tram, greatly increase the attractiveness of an apartment. Tenants appreciate the possibility of getting around without their own car, and this is even more important in large cities or student centres. The better the accessibility, the wider the pool of potential tenants.

Proximity to centres of education and employment is a plus
Many tenants want to live within easy reach of their workplace or place of study. A location within minutes of major destinations allows for higher rents. In addition, fast connections increase the demand for housing all year round.

Parking is also of interest to many
While public transport is a great asset, many tenants need a parking space. If it is difficult to find parking in the building or in the neighbourhood, this can put off potential tenants. Parking spaces are particularly high on the priority list for families and commuters.

1.2 Services and attractiveness of the area

Grocery stores, health services and schools
With the nearest grocery store a stone's throw away and health services or schools within walking distance, living is easy. This is directly reflected in the attractiveness of renting: for many people, ease of everyday life is the most important criterion when choosing a home.

Cultural, leisure and sporting services
Cafés, restaurants, libraries, cinemas and sports halls make the neighbourhood attractive for all walks of life. Young professionals, families with children and retired people each value their own set of services, so the wide range of facilities on offer ensures that there is demand for housing from a wide range of target groups.

Development prospects and appreciation
An area where new services, such as shopping centres or recreational areas, are planned may experience rent increases in the future. Public transport improvement projects (e.g. a new tram line or a ring road) can also significantly increase the value of a home. Investors should keep an eye on local planning and city development plans.

1.3 Reputation and security of the district

Long-term tenancies and a peaceful environment
While Finland is still a relatively safe country to rent almost anywhere, a reputable and safe neighbourhood will still increase the number of long-term tenants. When crime is low and the neighbourhood is pleasant, tenants are willing to pay a slightly higher rent for a long and carefree stay. For example, the proximity of metro and train stations can have an impact on residential amenity, especially in the evening and at night.

Clean and pleasant environment
Clean communal and outdoor areas, planting and lighting contribute to the overall appearance of a neighbourhood. A pleasant neighbourhood creates a positive first impression when a tenant enters a dwelling.

Social community
Active residents' associations in the neighbourhood, community groups and events can be particularly relevant for middle-aged and retired people. Even if tenants do not always stay in the same rental property for a few more years, for many people it is still important that there is a good spirit in the housing association and the neighbourhood and that there are clear common rules.

2. The situation of the housing company and renovations

The condition of the building society and planned renovations are vital information for the investor. Even if the area, location and amenities are top-notch, an unrenovated or poorly maintained property can cause unexpected expenses and make the property less attractive to tenants. In this section, we look at what an investor should find out about the condition of a property before deciding to buy, and how major renovations affect the value and rentability of the property.

2.1 A well-managed housing association

Economic stability

A well-managed housing association often has a proactive repair plan and sufficient funds for future renovations. This reduces the risk that an unexpected renovation will inflate the rent or force the building society to take out a substantial loan.
Before making a bid, the investor should ask to see the latest financial statements, budgets and minutes of the general meeting of the company.

Active government and maintenance company

With an active and open board, residents are kept informed about repairs and maintenance work. This prevents potential problems from escalating.
A quality maintenance company will ensure that the building's communal areas, yard areas and snowworks are regularly maintained. This increases the comfort of living and gives the tenant the impression of a well-maintained environment.

2.2 Pipe and façade renovation: risk or opportunity?

Value-enhancing renovations

Major renovations, such as plumbing and facade renovation, can be daunting at first. However, they will upgrade the property for decades to come and can increase the value of the property and a tolerable rent level in the eyes of prospective tenants.
If major renovations have already been carried out, it usually means quiet years without major financial surprises. Tenants will appreciate a house where major renovations have been carried out well in advance.

Temporary handicaps for renting

During the renovation, the comfort of the home may deteriorate, which, in addition to tenant dissatisfaction, may lead to short-term rent reductions, or even termination of the tenancy. For example, a plumbing repair may require the provision of temporary accommodation for the tenant.
Some investors take advantage of the renovation period by upgrading the interior of the property to make it more competitive and possibly increase the rent after the renovation.

2.3 Renovation plan and other issues to be considered

Pay attention to the minutes of the general meeting

The minutes of the general meeting of the building society provide valuable information on future renovation schedules, cost estimates and decisions that may affect the consideration.
Also note whether there are any disagreements or disputes in the association: these can have an impact on the atmosphere and the smoothness of decision-making.

Amount of consideration

Compare your housing company's fees with those of similar properties. If they are significantly higher or rising rapidly, this could be due to repair debts or a poorly planned budget.
And if the consideration is exceptionally low, find out if there are any major renovation works ahead that have not yet been budgeted for.

Summary from an investor's perspective

Look for a housing association with a sound financial situation, clear renovation plans and an adequate repair budget. This will reduce unexpected costs and increase the likelihood of long-term tenant comfort.
Also make sure that the facade and common areas of the house are in a tidy condition. Repairing a crumbling exterior can involve significant additional costs that are not always easy to finance with rental income.

3. Condition and equipment of the dwelling

The smooth rental of a rental property is largely based on how well the property meets the needs of today's tenants. A functional floor plan, adequate storage space and a modern kitchen and bathroom are threshold issues for many potential tenants. In this section, we look at the factors that a property investor should consider to ensure that a property is as attractive as possible in the rental market.

3.1 Floor plan and surface area

Efficient use of space

In smaller apartments, such as studio flats and two-bed flats, a clear floor plan is particularly important. A wrong room layout or pass-through rooms can make the apartment feel more cramped than it actually is.
Open-plan kitchen and living room combinations are popular today, as they create an airy and bright impression. It also makes furnishing easier, which appeals to a wide range of tenants.

Sufficient room numbers and flexibility

Triplexes or larger apartments often attract families or caravans. One extra room can increase the asking rent proportionally much more than the square footage alone would suggest, because it allows for a remote workstation or a children's room, for example.
If an apartment can be easily renovated, for example by removing walls or changing room layouts, its value on the rental market will increase in the long run.

3.2 Storage solutions

Wardrobes and fixed cupboards

Adequate storage space is high on many tenants' priority list. Well-designed, fixed storage systems (e.g. sliding door wardrobes) can increase the attractiveness of an apartment.
Especially in the case of small apartments, storage solutions determine how functional the tenant perceives everyday life. A separate basement closet or storage room is also an appreciated addition.

The number of stray cells should be minimised

For example, storage lockers under the stairs or bed base boxes can make a crucial difference from the occupant's point of view, although they may not be expensive to implement.
Small improvements, such as a laundry cupboard in the bathroom or pull-out drawers in the kitchen, can please tenants and add to the practicality of the apartment.

3.3 Modern solutions and added convenience

Balcony, sauna and hallway functionality

A balcony or terrace is an additional space that Finns appreciate and invest in. A glazed balcony will last longer, making it more comfortable for tenants.
A private sauna is seen as a luxury, but not necessarily a must for all tenants. If the target group is particularly Finnish families or couples, a sauna can be a good attraction.

Modern kitchen and bathroom

In the kitchen, a dishwasher and adequate counter space have long been basic requirements for those who appreciate modern living. In the bathroom, a washing machine connection, a shower screen or cabinet and underfloor heating increase the comfort of living.
Expensive special solutions don't always raise the rent proportionally, but for many tenants, a timelessly renovated kitchen and bathroom will justify paying a slightly higher rent.

4. Surface materials and finishing

A tenant's first impression of an apartment is often based on visible surfaces. Therefore, high quality and durable surface materials and careful finishing are important investments for the investor. Well-executed surface renovations can help to differentiate a property from the competition and increase rental demand within reasonable limits.

4.1 Flooring materials

Laminate - Cost-effective and durable

Laminate is a popular choice for rental properties. High quality laminate is hardwearing, easy to clean and retains its clean appearance for years.
Laminate also has the advantage of a reasonable price-quality ratio. It is suitable for many interior styles thanks to its neutral colour options.

Vinyl plank - Quiet and water-resistant

Vinyl flooring is a modern alternative that is more moisture resistant than laminate and is soft and comfortable to the feet. It is also quieter than traditional laminate in terms of sound levels.
Although vinyl plank may cost more than laminate, it can save on repair costs in the long run, especially in hallways and kitchens.

Parquet - Premium feel, but high maintenance

Parquet flooring creates a dignified impression and can raise the status of a rental property. However, it requires regular maintenance (e.g. sanding and varnishing) and is a more wear-sensitive solution.
Parquet flooring is usually worth buying in higher-rent urban areas, where tenants are prepared to pay extra for high-quality materials.

4.2 Finishing walls and ceilings

Neutral shades - Lower risk

Light, neutral colours (different shades of grey, white and beige) are often preferred in rental apartments. They make the space feel more spacious and work easily with a wide range of interiors.
Colourful accent walls should be used in moderation: a single accent wall can add flair, but too bold a colour can limit tenants' interest.

Easy to clean surfaces

High-quality, wash-resistant paints are particularly suitable for kitchens and hallways where wall surfaces are exposed to splashes and abrasion.
When choosing wallpaper, it's a good idea to go for easy-to-remove or re-paperable options, so it's easy to update surfaces when needed.

4.3 Worktops and other kitchen finishes

Practicality first

In the kitchen, the most important criteria are durability, cleanability and a suitable appearance. A laminate worktop is a cost-effective choice that is easy to keep clean.
Stainless steel or quartz composite worktops are highly resistant to wear and tear, but they increase the cost of renovation significantly. Evaluate whether a more expensive worktop will bring a sufficient upside to your rent.

A consistent and neutral look

Integrated appliances create a modern look and make it easier to keep your kitchen tidy. Tenants also appreciate the clear, consistent lines of cabinet doors and flat materials.
Avoid overly unusual colour choices and details that can be expensive to update later.
ventilation also keeps surface materials in better condition in the long term.

Energy efficient appliances

More and more tenants are paying attention to the energy rating of the fridge, cooker or dishwasher in the apartment. A+++ appliances are no longer just a selling point, but have in many cases become an expected value.
Although energy-efficient equipment may be slightly more expensive to purchase, it reduces running costs and extends the life of the equipment.

4.4 Ecological materials and indoor air quality

Natural building materials

Wood fibre insulation, recycled cellulose wool or other eco-friendly alternatives will appeal especially to tenants who value a sustainable lifestyle. For an investor, these materials can be valuable talking points when marketing a property as a "green choice".
Similarly, the low emission (M1 rating) of paints and other surface materials can score extra points for an environmentally conscious applicant.

Indoor air health

Good ventilation, odourless finishes and regular maintenance prevent mould and damp problems. Healthy indoor air is one of the most important criteria for avoiding short tenancies and unnecessary problems.
As an additional feature, there are also green walls or other indoor air purification solutions on the market, which emphasise the modern and environmentally friendly image of the dwelling.

4.5 Making everyday life easier with green choices

Waste sorting and recycling opportunities

More and more tenants are paying attention to recycling opportunities. Does your building have a good waste sorting system? Are bio-waste bins easily accessible? These things affect the overall housing experience.

Bicycle storage and electric car charging points

Ecological thinking also extends to transport. A bike storage facility or electric car charging points can be a clear attraction for certain groups of tenants, especially young adults and families who want to reduce their carbon footprint.

5. After buying an investment property: finding a tenant and the basics of a rental contract

Once the investment property purchase has been successfully completed, the next step is to find a suitable tenant and secure a stable rental income. When looking for a tenant, it is important to be methodical and to take into account the factors that will facilitate a reliable and long-term tenancy. In this section, we cover the key tips for finding a tenant and briefly go through the minimum things to consider in a tenancy agreement.

5.1 Best timing and effective channels

Pay attention to the seasons

Demand for rental housing is at its highest in June-August and January-February. Take advantage of the high season, especially in cities and student destinations.
Start marketing your home 1-2 months before you want to start renting. This will give you more potential applicants and time to compare options.

Marketing channels

Housing portals (such as Oikotie, Etuovi, Vuokraovi and Tori.fi) provide extensive visibility. Invest in quality photos and informative ad text.
Social media (Facebook Marketplace, regional rental housing groups) can be particularly effective in reaching young adults and students.

5.2 Tenant selection criteria

Financial situation and credit history

Always check the tenant's ability to pay: do they have a regular income or stable student support? If necessary, ask for proof of salary guarantees or proof of a place of study.
A credit check is generally recommended. If the applicant has a history of payment defaults, take the time to find out the nature and timing of these.

Living situation and length of residence

Ask about the applicant's daily life and future plans: do they want to live for a longer period or is it possibly a short period?
It is important to discuss any special needs (such as parking space or pets) in advance to avoid misunderstandings later.

5.3 Interview and background checks

The personal encounter

An apartment screen or video call is a good way to get a first impression of the applicant. Even a short conversation will show how carefully the applicant takes the rental property.
References or contact details of previous landlords are a valuable source of information about the applicant's rental history.

Open communication

Tell the applicant clearly what you want in a good tenant and leave room for questions. Appropriate and trusting interaction from the start will help avoid problems in the future.

5.4 Main points of the rental agreement

Duration of the contract and termination conditions

Clearly specify whether the contract is open-ended or fixed-term. Set notice periods in accordance with the law and common practice (e.g. 1 month for the tenant, 3-6 months for the landlord).
When you sign the contract, it is also a good idea to discuss possible rent review criteria (index or percentage increase).

Rent amount, payment date and security deposit

Please indicate the monthly rent, the payment date and any other charges (water, electricity). Agree who will sign the electricity contract.
The amount of the deposit is usually set at 1-3 months' rent. Please clearly state the conditions under which the deposit will be returned at the end of the tenancy.

Pets, smoking and other conditions

If there are restrictions on pets or smoking in the apartment or housing association, state these explicitly in the contract.
Prohibit or allow alterations, such as painting or drilling, and agree in advance, for example, on loft smoking if it is prohibited by the building society's rules.

By carefully searching for a tenant and drawing up a proper contract before the tenancy starts, the property investor creates a sustainable basis for a profitable and straightforward rental business.

6. Checklist - Buying an easy-to-rent investment property

The hallmarks of an easy-to-rent apartment are an excellent location, a well-functioning housing association, up-to-date facilities and a layout that meets the needs of today's tenants. With these basic elements in place, the property will stand out from the competition, reduce the number of empty months and keep rents stable. The checklist below helps to outline the key points that an investor should pay attention to, both when considering a purchase decision and during the rental phase.

Checklist

Condition of the building society and renovations
- Is the housing company serious and well-maintained?
- What major renovations (pipes, façade) are planned or already done?
- Are these renovations already reflected in the rentals or in the housing association's budget?
Location and services
- Are transport connections (public transport, main roads) good?
- Are basic services (shops, health services, schools) easily accessible in the area?
- Are there any development prospects in the area, such as new services or construction?
Condition and layout of the dwelling
- Is the layout of the apartment clear and the square metres efficiently used?
- Is there enough storage space (wardrobes, cupboards, storage room)?
- Is the bathroom and kitchen modern and in good condition?
Surface materials and finishing
- Is the flooring made of hard-wearing material (e.g. laminate or vinyl plank)?
- Are the wall surfaces neutral and easy to maintain?
- Is your worktop or kitchen finish up to date and practical?
Energy efficiency and environmental friendliness
- Are the windows, insulation and ventilation in good condition (heat recovery, triple glazing)?
- Does your home or housing company have smart solutions (smart thermostats, energy-efficient appliances)?
- Does the housing company take into account recycling, bicycle storage and other green services?
After the purchase of an investment property
- Use effective marketing channels (housing portals, web), time your advertisement to coincide with the seasons
- Make a clear rental agreement that sets out the basics (amount of rent, security deposit, duration)
- Assess the tenant's background and ability to pay to ensure the most stable tenancy possible

Want to find a reliable tenant to guarantee a return on your investment property? Read more on Immodan's page for landlords and rent your property to businesses.

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