Check the permitted use
Before calculating, establish whether the proposed rental arrangement suits the specific property and which rules apply. Permanent housing, temporary accommodation and tourist use are not automatically interchangeable. Do not carry expected income from one model into another without checking legal and operational conditions.
Organise two sets of costs
Initial outlay includes the purchase, applicable transaction expenses and preparing the home. Recurring costs may include maintenance, insurance, owner’s charges, management and repairs where relevant. Show taxes and financing separately. Allow for time without a tenant rather than assuming an entire year will be paid.
Test the plan under pressure
Prepare a base case and a less favourable one: lower income, an additional repair or a longer search for a tenant. Label figures as assumptions, supported by a source or individual calculation. Check whether you could meet obligations if conditions worsen. This prepares a discussion with specialists; it is neither a forecast nor a promised return.
A practical DIAMAR editorial guide. Confirm the conditions that apply to your circumstances.
