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Micro-apartments as tangible assets for security-oriented savers

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The most important thing in brief:

 

  • Micro-apartments are in demand in urban areas for temporary accommodation by individuals.

  • As a real estate investment, micro-apartments require a manageable capital investment.

  • The return and rental income for these properties are significantly higher than those of conventional apartments.

  • Investing in micro-apartments is worthwhile for investors with a long time horizon and a strong need for security.

Whether students, commuters or singles: they are all looking for small, centrally located and affordable living space with above-average amenities. The supply is limited and growing only slowly. So-called micro-apartments are therefore an interesting option for investors. Micro-apartments are compact, fully equipped rooms with living space usually up to around 30 m², which are rented out for a specific period of time. The achievable returns are usually higher than classic new build or existing properties with lower acquisition costs.

What are micro-apartments?

 

Micro-properties represent modern architecture and living comfort, with functional room concepts in small rooms. These are furnished or partially furnished apartments. These are usually less than 30 square meters and are located in larger complexes with 100 or more apartments. Each apartment usually has its own bathroom and kitchenette. The apartments are stylish and modern in design, equipped with durable materials and modern communication technology.

 

A micro-apartment serves as a temporary home for one or a maximum of two people for a few months or a few years. Students, young professionals or commuters represent the target group of tenants for this flexible form of living.

What are the special features that distinguish micro-apartments from other apartments?

 

Micro-apartments are often furnished. The furnishings are standardized and consist of space-saving and multifunctional furniture. In many cases, the rental agreement includes additional services, such as cleaning service or security. Many micro-apartment complexes offer their residents various communal facilities, such as terraces, lounges or sports facilities.

Advantages of micro-apartments at a glance

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  • relatively low entry prices or investment due to small units

  • usually higher returns compared to traditional properties

  • all-round service package from provider/developer (rental, management, operation)

  • rental pool concept offers protection against loss of rent

  • partial personal use and suggestion of a tenant possible

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Precisely because demand far exceeds supply, you as a landlord have a high degree of rental security. On average, the returns achieved per square meter can even exceed those of multi-room apartments.

 

The administration and management of the micro-properties should be in the hands of experienced operators. This means that as an investor you do not have to worry about tenant changes, renovations, etc. yourself.

Comprehensive advice and support from MLP

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In addition to detailed advice on selecting the property and incorporating the property investment into your personal asset structure, we are also happy to take care of financing and security. Simply arrange an appointment with your MLP advisor.

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