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In the world of real estate it is easy to get carried away by complicated strategies: flips, tenement subdivisions, short-term rentals, mixed commercial-residential. Meanwhile the best investments often consist of spotting something that others overlooked, in an ordinary apartment.
This post is exactly about such a situation. In 2018 we found for our client a 70-meter apartment on Rozyckiego street in Lodz for 330 thousand zloty. Seemingly a standard purchase. In reality – an investment which over 8 years gave him a rental return rate of 10.2%, a total of 282 thousand PLN of rental income, and in 2026 was sold for 580 thousand PLN. Total return on investment: about 150% over 8 years.
What was the key? The apartment was designed by the developer in such a way that it could be rented to two tenants simultaneously – as two independent zones. This is a story about the value of recognizing potential that does not require a major renovation, just a good eye.
The client came to us with quite a typical profile of a beginner investor: limited budget, no experience in real estate, expectation of maximum return rate at minimum risk and minimum interference with the apartment.
The financial framework was clear: a budget of about 350 thousand zloty for the entire transaction, including any finishing work and equipment. Long-term rental strategy.
The strategy was simple: find an apartment requiring as little input from us as possible and attractive enough to rent quickly. We started intensive searching.
On the primary market in 2018 70-meter apartments in Lodz typically cost 350-400 thousand PLN. The client had a smaller budget. We had to search smartly.
After several weeks of searching we came across an offer that immediately caught our attention. An apartment on Rozyckiego in Lodz: 70 sqm, 4th floor, balcony, underground garage included in the price. Condition: primary market, developer state. Price: 330 thousand zloty.
The price alone was at the edge of the budget, but the calculation per square meter was attractive – 4,714 PLN/sqm in new construction with a garage was a good number for 2018 in Lodz.
Standardly the developer handed over the apartment “ready” – with finished walls, floors, bathrooms. Only the kitchen, lighting and equipment were missing. The client had 15 thousand zloty for that in the budget – classic finishing would cost 25-30 thousand. We had to be creative.
But there was something else in this offer. Something that changed the economics of the entire investment.
When we viewed the apartment, we saw it right away. The developer had designed the apartment in such a way that it could function as two independent residential zones. Two entrances from the common area, a layout that allowed for a complete separation of the two parts – each with its own room, bathroom and space for a small kitchen. It was not our idea. It was a deliberate design decision by the developer, probably anticipated specifically for investors thinking about rentals.
From a rental perspective this changed everything. A single 70 sqm apartment rented as a whole in Lodz in 2018 typically gave 2,200-2,500 PLN of rent per month. Return rate: ~7-8% per year. Standard.
The same apartment rented as two independent zones gave the potential of 1,400-1,800 PLN from each part – i.e. 2,800-3,500 PLN per month combined. The difference: +30-40% higher income from the same property, the same location, the same area.
We showed the client the numbers. We showed the layout. We showed the actual rental rates in the area. The decision was easy – we buy.
The client had a tight budget. 15 thousand zloty had to be enough for: two kitchens (cabinets, appliances, hood, sink), furnishing two living rooms (sofa, table, lamps), furnishing two bedrooms (bed, wardrobe, lamps), furnishing two bathrooms (mirrors, accessories), lighting, curtains, small fixtures.
That is implausibly little. Standard finishing of one kitchen in a new apartment is 8-12 thousand. Here we had 15 thousand for two kitchens + furnishing two apartments.
What specifically did we do: we went to Ikea and second-hand markets, we used many cosmetic solutions instead of investments (paint instead of new wall finishes), we picked the simplest, most durable kitchen models, we bought basic appliances – functional, not premium, we looked for furniture in promotions and from local manufacturers.
We fit within 15 thousand. The apartment was ready to rent both parts.
This is the philosophy we teach clients: not every zloty spent on finishing raises the rent. A tenant in the 1,450-1,750 PLN segment does not need marble, designer fittings or modern smart cabinets. They need a clean, functional, bright apartment that looks good in photos and works day-to-day. That could be done in 15 thousand. And it worked.
We rented the apartment quickly – both parts found tenants within the first months from being put into use. The rents: 1,750 PLN (larger part) + 1,450 PLN (smaller part) = 3,200 PLN per month combined.
What did this mean financially? The numbers:
| Item | Amount |
|---|---|
| Purchase price (with garage) | 330,000 PLN |
| Adaptation and furnishing | 15,000 PLN |
| Total investment | 345,000 PLN |
| Monthly rent (combined from both parts) | 3,200 PLN |
| Annual rent (at ~11 months of effective rental) | ~35,200 PLN |
| Gross return rate | ~10.2% |
A comment on these numbers: 10.2% is the gross return rate, before deducting tax, management costs, minor repairs. The real net rate in Polish conditions: 7-8%. That is still an excellent result – twice as high as a bank deposit, with the prospect of asset value growth.
For comparison, the same property rented as one large 70-meter apartment would give 2,200-2,500 PLN of rent per month. The return rate would drop to 6-7.5% gross. In other words, the developer’s design of two zones + our knowledge of how to use it gave the client a 30-40% higher return than a classic investment.
The apartment was rented for 8 years practically without breaks – occasionally there were monthly vacancies when changing tenants, but never longer.
After 8 years the client decided to sell. The apartment was sold for 580 thousand zloty. That gave the following investment summary:
| Item | Amount |
|---|---|
| Total investment in 2018 (purchase + adaptation) | 345,000 PLN |
| Sale in 2026 | 580,000 PLN |
| Asset value increase | +235,000 PLN (+68%) |
| Total rental income (8 years) | ~282,000 PLN |
| Total return on investment | ~150% in 8 years |
These are numbers that make an impression. From 345 thousand invested in 2018, 580 thousand of asset value + 282 thousand of rental income emerged. In 8 years. From an apartment that required 15 thousand of adaptation – not a major renovation, not a wall reconstruction, not a change of purpose. Just a creative approach to finishing and well-recognized property potential.
If you are considering an investment in a rental apartment, here are five takeaways from this case study:
1. Read the floor plan, not just the price per meter. The best investments require an understanding of the functional layout of the property – not just the number per square meter. Two apartments at the same price can have radically different rental potential depending on the layout.
2. The primary market has its strengths. Apartments from a developer are often well-designed for rental – taking into account typical investor needs. Sometimes the developer designs functional divisions themselves which the investor can use.
3. Not every zloty spent on finishing raises the rent. Smart equipment for 15 thousand can give the same rent as premium finishing for 50 thousand. Every renovation decision should be justified by a return in rent, not by personal aesthetics.
4. Asset value growth is a bonus, not the basis. The client earned from rent for 8 years (282k PLN). The +235k PLN value growth was a nice addition – but if the market collapsed, the rental income would have continued. A good investment works regardless of price cycles.
5. Not every property suits every investor. This specific model requires a certain type of property (designed for division), a certain administrative tolerance (two rentals, two sets of contracts, double handling) and awareness of legal-tax aspects. It works great – but only for people who understand what they are entering into.
Every apartment on the market has its story and its potential. Some are obvious – a two-room ready-to-rent with a standard layout and market rent. Others require an eye that will spot non-standard potential – like this 70-meter property, which instead of one “average” rental gave two strong ones and a 30-40% higher annual return.
Our role is to help you recognize which way is worth going with a specific property. Not every investment has to be spectacular – sometimes the best are the ones that work stably for many years, like this one on Rozyckiego.
If you are considering an investment in a rental apartment in Lodz or Warsaw, book a free consultation. We will value the rent on the apartment, analyze the potential of the property you are considering, suggest a strategy. What we did for the client from this case study 8 years ago, today we do for hundreds of investors.
And if you already have an apartment and need help managing it – check out our management packages. Three levels of protection tailored to different owner needs.
The apartment on Rozyckiego is one of hundreds of examples. Every property under our care has its story – and its owner, for whom we work.
Every real estate investment requires individual legal, tax and community/cooperative regulations analysis. The above description is a case study of a specific property and does not constitute investment recommendation, legal advice or tax advice. Rental models with more than one contract may be subject to specific legal and tax requirements. Before making an investment decision, consult a lawyer and a tax advisor.
