Renting Property in Montenegro, Introduction:
Why Montenegro is an Attractive Rental Market in 2025?
Montenegro’s real estate market is thriving, with rising demand from both tourists and digital nomads. Whether you’re considering purchasing property for short-term rentals or a long-term rental investment, the country’s attractive lifestyle and tax benefits are making it a prime destination for property investors. In this post, we’ll dive into the ROI of renting property in Montenegro, and whether it’s a profitable investment opportunity in 2025.
1. The Basics: Types of Rental Properties in Montenegro
Short-Term vs. Long-Term Rentals: What’s the Difference?
- Short-term rentals (e.g., Airbnb, vacation homes) tend to offer higher daily rates, especially in tourist-centric regions like Budva, Kotor, and Tivat.
- Long-term rentals provide more predictable income, attracting expatriates, digital nomads, and local residents who need stable housing.
2. Key Locations for Rental Property Investment in Montenegro
Best Cities and Regions to Invest in Rental Properties
- Budva: A popular coastal city with high tourist traffic, making short-term rentals lucrative.
- Tivat & Porto Montenegro: Known for its luxury marina, these areas are ideal for long-term rentals, particularly among affluent expatriates.
- Kotor: A UNESCO World Heritage site with growing demand for both short-term and long-term rentals due to its rich history and appeal.
- Herceg Novi: A quieter option offering steady demand for long-term rentals at lower property prices.
3. 2025 Market Trends: What’s Driving Rental Demand in Montenegro?
Tourism Growth and Digital Nomads Fueling the Demand
- Tourism continues to be a major driver for short-term rental properties. In 2025, Montenegro is seeing a record influx of tourists, especially to Budva, Tivat, and Kotor.
- The introduction of the digital nomad visa in Montenegro has attracted a growing number of remote workers, creating a steady demand for both long and short-term rentals.
4. The Financials: ROI for Renting Property in Montenegro
Rental Yields: What You Can Expect in 2025
- Short-term rentals can yield annual returns between 6% and 12%, particularly in high-demand areas like Budva and Tivat.
- Long-term rental yields offer steady returns of around 4% to 6%, ideal for investors seeking reliable income without the volatility of the short-term market.
Here’s an example calculation for short-term rental:
- Property Price: €250,000
- Average Daily Rental Price: €100
- Occupancy Rate: 70%
- Annual Revenue: €100 x 365 days x 0.70 = €25,550
- ROI: (€25,550 / €250,000) = 10.22%
5. Hidden Costs of Renting Out Property in Montenegro
Understand the Full Financial Picture Before Investing
- Maintenance and Repairs: Regular upkeep and minor repairs are a cost to consider when budgeting for rental properties.
- Agency Fees: Property management services can take between 10-15% of your rental income.
- Property Taxes and Insurance: Costs will vary depending on the property type and location, so it’s essential to factor these into your financial calculations.
6. Tips for Maximizing Rental Income in Montenegro
How to Increase Your Rental Property’s Appeal
- Furnishings and Amenities: Investing in modern, stylish furnishings, high-speed internet, and air conditioning can make your property stand out.
- Marketing Your Property: List your property on top platforms like Airbnb, Booking.com, and local Montenegro property sites.
- Seasonality: Adjust your rental prices during peak tourist seasons and low seasons for optimal profitability.
7. Conclusion: Is Renting Property in Montenegro a Good Investment in 2025?
Montenegro continues to be a profitable market for rental property investors in 2025. Whether you’re considering short-term rentals in tourist hotspots like Budva or long-term rentals in Tivat, Montenegro’s real estate market offers high potential returns for savvy investors. With careful planning and property management, renting out property in Montenegro can provide a strong ROI in 2025.
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Interested in investing in Montenegro? Contact us today for expert advice on the best rental properties, investment opportunities, and detailed guidance on making the most of the Montenegro rental market.
