Our First Rental Income Overview

I was waiting to publish a post with such title for a long time. Yes, we already have real estate income from renting out a garage, but this rental apartment somehow feels different. Owning an extra apartment gives an extra excitement and also a sort of pride. This might fade over time, but at the moment I am very happy to calculate the net income of the first month.

Our tenant has moved in on 4th October, therefore this is not a full month. Still, from now onward I will track our real estate income on a monthly basis. This will be added to the dividends received, and these will add up our monthly passive income. It’s great to have income from different sources!


In October we have received EUR 1,632.47ย income from our rental apartment. This contains the rend from 4th till 31st October, plus one month deposit of EUR 850.


In October we had the following expenses:

  • EUR 987.36 selection fee – This is a one off fee to the real estate company for advertising the property and screening the possible tenants. At the end we have selected the final tenant from a short list. This fee already includes 21% VAT and will not occur again until we need to find a new tenant.
  • EUR 47.34 property management fee – So far I find the property management service quite useful. They arrange the contact signing, make sure that everything is paid on time, and they are the first point of contact in case of questions/complains from the tenant. They also have an online interface where I can track everything. This will be useful once we will have multiple rental properties (let’s dare to dream big ๐Ÿ™‚ ). Just like the rent, this is also a fractional amount from 4th October till month end.
  • EUR 454.75 mortgage payment – This includes both the principal and interest on the extra mortgage we got on our home, furthermore the increased interest on our original mortgage due to the fact that that our outstanding mortgage has gone over 85% of our home value. For more details you can check the earlier post about financing our rental property.
  • EUR 100.05 HOA fees (VvE) – This is the regular monthly fee charged by the home owners association

Net Income

If we deduct all expenses from our rental income, we get EUR 42.97 net income for October. This is not a lot, but we still ended this month cash flow positive. Next month (unless any unexpected expense occurs), we should have around EUR 240 net income. The main expense this month was the selection fee with the related VAT which is only a one off thing.

I am really interested to see how our net income will be in the future, especially considering the mortgage payoff strategy I was talking about in the article on cash on cash return.

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Disclaimer: This post or any other information on the site is not intended to be and does not constitute financial advice or any other advice. I am solely sharing my idea, plan and progress on financial independence and early retirement

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