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In real estate, there is a common belief that “the bigger the apartment, the better the investment.” That is not always true. Sometimes a small space in a great location, with a smart design and quality finishing, can deliver a higher return per square meter than a flat twice the size in a worse location.
This post is exactly about such an apartment. 15.29 square meters in a tenement house on Legionow Street in Lodz, right next to Manufaktura. Bought in 2021 for 86,000 PLN, completely renovated, rented out within two days of being put on the market. Sold in 2023 for 195,000 PLN – that is 12,753 PLN/m², an above-average price even for the Lodz market of that period.
What does this tell us? That the size of the property does not determine the success of the investment – location, design and quality of finishing do. Plus a good team that can tie it all together into a coherent whole.
In 2021 a client approached us with a very specific investor profile. Budget: about 150,000 PLN for the whole transaction – purchase plus renovation, all from their own funds, without a loan. Goal: to buy an investment apartment for rent in the center of Lodz.
What set them apart: they were not afraid of a renovation. Many beginner investors look for “move-in ready” apartments, ready to rent from day one. This client was open to a property that needed work – if it made economic sense.
They had one tough requirement: a parking space. In the center of Lodz that is not a given – tenement houses from the 1930s were not designed for garages, and most secondary-market flats do not have a dedicated parking spot. That criterion ruled out a large share of the offers from the very start.
We started looking.
After several weeks of searching we came across an offer that immediately caught our attention. An apartment in a tenement house on Legionow Street in Lodz, right next to Manufaktura – one of the most recognizable locations in the city. First floor, parking space, plus a small storage cellar. The window faced the courtyard, not the busy street – which for the tenant means peace and quiet, and a good night sleep.
Price: 86,000 PLN.
It sounded like a good deal – and it was. But there was one detail that for most viewers was a deal-breaker. The apartment was 15.29 m² and required a complete renovation.
Most investors reject such properties straight away. “Too small”, “you cannot live there normally”, “it will be hard to find a tenant”. These are reasonable concerns – but only if you do not have a good design and a team that can deliver it.
Apartments of 15-20 m² in Lodz city-center tenements are a market rarity. Supply is limited and demand – as it turned out – is high. The client decided to take on the challenge. He bought the apartment for 86,000 PLN.
Now we had to show that it made sense.
We invited an architect we work with on similar projects to collaborate. We gave him a brief that sounded like a joke: design a fully functional apartment within 15.29 m² – with a living room, kitchen, bathroom and bedroom. Plus the client requirement: a functional kitchen with a large fridge (because tenants want to cook at home, not just order takeaway). Plus a workspace. Plus storage.
In the end we managed to create a design that included: a living room with seating and a relaxation area, a functional kitchen with a full-size fridge, an induction hob and a working surface, a bathroom with a shower (a hidden boiler compartment on the mezzanine, so it would not take up floor space), a bedroom on the mezzanine with a double bed, a workspace in the form of a windowsill desk, and storage integrated with the staircase to the mezzanine – every step doubling as a drawer or shelf.
These are exactly the design decisions that make the difference between a “shoebox apartment” and a functional micro-apartment. Instead of fighting the limited footprint, the designer used every centimeter – the mezzanine added a separate sleeping zone without sacrificing ceiling height in the main area, the stairs turned into a wardrobe, the windowsill became a desk.
Paper accepts everything – but the real challenge began once the design was approved.
What started in March was finished a month and a half later. In the meantime, dozens of bags of rubble were carried out of the apartment. Even we could not believe how much could be removed from such a small space.
Literally everything had to be done: walls – replaced, leveled, plastered; electrical wiring – completely from scratch; water and sewage installation – new pipes, new connections; floors – with additional insulation (more on this in a moment); windows and doors – replaced; carpentry – kitchen, mezzanine, stairs, wardrobe – all custom-made.
Along the way we had to make technical decisions that would affect the tenant comfort for years to come. Two were especially important.
Decision 1: floor insulation. The apartment was located above a passageway – meaning that under the floor, instead of a heated room, there was an open driveway leading into the courtyard. We knew that without additional insulation the apartment would be cold in winter, and the tenant – unhappy. We decided to insulate the floor with mineral wool. An extra cost, but for the tenant comfort (and our own peace of mind) – essential.
Decision 2: electric or gas heating? We considered installing gas heating with a dual-function boiler. After running the numbers (installation, certificates, inspection, annual servicing) we concluded that for 15 square meters electric heating is cheaper and simpler. A small apartment heats up quickly, good insulation limits losses – and that is exactly how it played out in practice.
There were more space-saving ideas. The water heater hidden on the mezzanine, so it would not take up valuable space in the bathroom. The windowsill desk we already mentioned. The stairs-wardrobe combining two functions in one piece of joinery. Each decision was a compromise between price, functionality and aesthetics – and each one could be justified by the rental return.
After 1.5 months of hard work the apartment was ready. The result surprised even us.
After the renovation the apartment took on a completely new character. An open day zone with a kitchenette, a bedroom on the mezzanine, a full-size bathroom – all tied together by a coherent aesthetic: terrazzo, wood, white, green and black details.
The kitchen fits everything you need to cook at home – sink, induction hob, large fridge, washing machine, worktop, upper and lower cabinets. Terrazzo on the wall above the counter added the kind of character you would not find in a typical rental studio.
The living area is the other end of the same space – a sofa, a spot for prints, a windowsill turned into a desk with room for a laptop and a drawer.
Detail and finishing – that is exactly what separates an “off-the-internet” apartment from one that gets rented in 2 days at an above-market rate.
The mezzanine added something that 15-square-meter apartments rarely have – a real sleeping zone, separated from the everyday space. A double bed, an upholstered headboard, bedside lamps – yes, all of that fits on a mezzanine of a low ceiling height.
The bathroom – full-sized, with a shower, basin, toilet and storage. Wood on the shower wall and terrazzo on the others – a combination that also works well in terms of acoustics and aesthetics in a small space.
After the renovation we took photos. We posted the listing. Within two days the apartment had a tenant.
Rent: 1,400 PLN plus utilities. For a 15-square-meter apartment that is a competitive rate, but per square meter – 91.5 PLN/m² per month, which was at the top end of the market range for Lodz in 2021. For comparison: a 50-square-meter apartment in the same area was renting at the time for 60-70 PLN/m².
This is one of the main advantages of small apartments in great locations: a higher rental rate per square meter. Tenants accept a higher price-to-area ratio because the total amount is still lower than for a larger apartment – and the location, design and equipment compensate for the missing square meters.
The apartment was rented without breaks for nearly 2 years – from 2021 to the end of 2023. Tenants changed, but vacancies were just short, single periods between contracts.
At the end of 2023 the client decided to sell. The apartment was sold for 195,000 PLN. That gave the following investment summary:
| Item | Amount |
|---|---|
| Purchase price | 86,000 PLN |
| Transaction costs (notary, tax) | ~4,000 PLN |
| Renovation (with architect, custom joinery, mineral wool) | ~54,000 PLN |
| Total investment | ~144,000 PLN |
| Sale in 2023 | 195,000 PLN |
| Profit on sale | ~51,000 PLN (~35%) |
| Price per m² at purchase | 5,624 PLN/m² |
| Price per m² at sale | 12,753 PLN/m² |
Plus, of course, the rental income over 2 years – around 33,000 PLN of revenue from rent (1,400 PLN x 12 months x ~2 years of effective tenancy).
Worth noting: the apartment was sold at 2.3x the price per square meter compared to the purchase. That is not just a market effect (the Lodz market grew about 40-50% in this period) – it is also the effect of transforming the property: from a 15-square-meter ruin into a finished, functional micro-apartment that rents instantly.
The client exited the investment with a clear profit on the sale, on top of two years of rental income. In total, the investment paid for itself with a surplus.
If you are considering investing in a rental apartment, here are five takeaways from this case study:
1. Location matters more than size. 15 m² next to Manufaktura rents faster and at a higher rate than 40 m² on the outskirts. A nice apartment in a poor location is a much harder investment than a small apartment in a great one.
2. Small apartments command a higher rate per square meter. Tenants accept a higher price-to-area ratio for small units because the overall rent is still affordable for them. This often produces a better return on investment than a larger unit in the same area.
3. A good design can work miracles. The difference between a 15-square-meter “rental studio” and a 15-square-meter micro-apartment is not 5-10,000 PLN more in renovation – it is a different market segment, a different rent and a different speed of letting. Investing in an architect pays off many times over.
4. Technical decisions have long-term consequences. Insulating the floor above a passageway is an extra cost up front – but skipping it would have meant a cold apartment, unhappy tenants, vacancies and a lower rent. Every renovation expense should be evaluated through the lens of 5-10 years of operation, not just the first year.
5. Small gems disappear from the market quickly. Apartments of 15-25 m² in good central Lodz locations are rare. Limited supply, high demand – whoever does not hesitate, wins. The fear of small footprints is often a fear of the unknown – and it costs investors good deals.
Every apartment has its own story and its own potential. Some are obvious – two-room flats ready to rent, classic layout, market rent. Others require an eye that sees potential where others see only limitations. A 15-square-meter apartment in a tenement is “too small” for most investors. For a properly equipped team it is the best opportunity on the market – one that the competition simply does not notice.
We help clients with both types of investment – from standard two-room flats to non-obvious gems. We bring not only market know-how but also the back-end: architects, renovation crews, tenant verification, long-term management. Everything that turns “an apartment to renovate” into “a stable investment that works on its own.”
If you are considering investing in a rental apartment in Lodz or Warsaw, book a free consultation. We will estimate the rent, assess the potential of a specific property and suggest a strategy. What we did for the client from this Legionow case study, we do today for hundreds of investors.
And if you already own an apartment and need help managing it – check out our management packages. Three protection levels tailored to different owner needs.
The Legionow apartment is one of hundreds of examples. Every property in our care has its own story – and an owner we work for.
Author: Konrad Kopczynski
