Registration number 00060 Investment apartment house in Teplice - 10 leased apartments, income over 1 million CZK annually and development potential
As an exclusive representative, we offer for sale a fully occupied apartment house in Teplice, located in Jankovec Street on the edge of the spa district.
The property represents an attractive opportunity for an investor looking for an already functioning revenue-generating facility with regular income from day one, established operation, and several options for further increasing both revenue and long-term value of the property.
The house currently offers 10 residential units with a total area of 516,5 sqm, consisting of 6 flats 1 + 1 and 4 flats 2 + 1. All units are leased, achieving 100% occupancy rate.
Thus, this is not an investment project that still needs renovation, finding tenants, and establishing functional operations. The new owner takes over an established rental property with existing tenant relationships and regular income.
The current monthly rental income from the existing units amounts to 84 300 CZK, thus 1 011 600 CZK annually. At the asking price of 21 500 000 CZK, the current net rental yield (after deducting other annual fixed costs) corresponds to approximately 4,45% p.a.
Significant reserve lies in the current level of rentals, which is set below the current market levels for most units. All existing lease agreements are concluded for a definite period, creating favorable conditions for gradual optimization of rentals during their renewal. By adjusting the rentals to the current market level, it is possible to increase the income from existing units up to approximately 107 600 CZK per month, thus 1 291 200 CZK annually. This would represent a return of approximately 5,75% p.a. at the current asking price, solely by optimizing rentals in existing apartments without considering additional development potential of the house.
Simple management and minimal hassle
A significant advantage of the property is also its energy solution. Each apartment has its own gas boiler, and electricity and gas consumption are billed directly to individual tenants. Thus, the house owner does not need to manage common supplies or deal with administrative and operational complexities related to billing among different apartments.
Apart from rentals, appropriate deposits for water supply, sewage disposal, and other common operating expenses are collected from tenants. Currently, the property is managed by an external administrator who handles routine tasks related to tenants, payments, and house operations. Upon mutual agreement, the new owner can continue using the established management system or take over administration independently.
Potential beyond current returns
Beyond the current ten apartments generating revenue, there are additional spaces within the house that currently generate no income but could be used for future expansion above the existing cash flow.
On the ground floor of the house are two non-residential premises ready for reconstruction with a total area of approximately 100 sqm. After necessary construction modifications, they offer potential use as offices, services, shops, medical practices, or any suitable purpose.
Free attic space covering about 60 sqm provides room for future extension of the residential part of the house by adding one spacious loft unit or two small ones.
The total leasable area of the house may significantly expand in the future compared to today’s state and create more space for growing both income and overall property value.