Dreaming of getting a buy-to-let home?

Read about the benefits of buy-to-let investment and review our tips and checklist for buyers of buy-to-let properties.

Benefits of investing in a buy-to-let home

1. You get a steady monthly income when you rent the apartment to someone else.

2. About 70–80 % of a buy-to-let home is eligible as collateral, so you will usually only need money and/or collateral for 20–30 % of the home price.

3. When you choose the buy-to-let home wisely, you can affect the yield. For example, renovation raises the home’s collateral value.

4. Your asset will be well protected against inflation.

5. The risk related to investing in a buy-to-let home is low. The long-term development of home prices has, historically speaking, had a rising trend. A temporary drop in prices does not affect the rental yield.

6. You can deduct loan interest, service charge and renovation costs from your capital income.

Fill in a loan application already when planning on investing in a buy-to-let home. Apply for loan

Read more about interest deduction for a loan taken out for investment purposes (vero.fi)

More calculation, less sentiment

In order to find a good buy-to-let home, you should actively monitor the supply of housing in the area that interests you, and also the level of sales prices and rental rates. Also remember to check what other services there are in the area. Be careful and patient when choosing a buy-to-let home – you may not find the right one overnight.

More calculation than sentiment is needed when choosing a buy-to-let home. Learn to calculate the real rate of return of the buy-to-let home, so that you can compare different properties with each other. The rate of return consists of two components: the monthly rental yield and the change in the value of the apartment. It is easy to calculate the rental yield: (rent –- service charge) *12 /purchase price = yield percentage. The change in value is realised only when the apartment is sold.

Checklist for buyers

Check that the housing cooperative and the apartment itself fulfil at least the following criteria.

Housing cooperative:

  • Large renovations, such as pipeline and façade renovations have been completed within ten years.
  • The repair plan reveals future renovations.
  • The financial standing is in good shape. Check the housing cooperative details in the house manager’s certificate and its appendices: the financial statements, the annual report and the articles of association.
  • The general level of cleanliness is good.


  • The service charge is reasonable. The smaller the service charge, the larger the income.
  • Good location
  • The transport connections are functional.
  • The location is in a town/city where the population is growing and where there are, for instance, educational institutions and large employers.
  • Basic services are located within a walking distance.
  • No mould damage.

Also find out:

  • What is the general condition of the apartment? Is the kitchen or bathroom, for instance, in need of renovation?
  • Is the apartment plan functional?
  • Is the lot owned or leased?
  • In what floor is the apartment located? The prices of apartments located in upper floors are always the highest.
  • Is there a lift in the building? The lift matters more if the apartment is located in an upper floor.
  • Are there factors causing noise nearby, such as a large road, a railroad etc.?
  • What heating system does the building use? How energy efficient is it?
  • Are there parking places in the housing cooperative? What about a bike storage room?
  • Is there a sauna in the apartment or in the building?

Never invest in a buy-to-let home without seeing it.

If something about the apartment bothers you, it is also likely to bother the potential tenant. Do not hesitate to ask the seller, the real estate agent or the house manager any questions that you have.

The rights and duties of the buyer (Finnish Competition and Consumer Authority)

Are you interested in diversified buy-to-let investment?

OP-Rental Yield invests in rental apartments and other real estate, offering the opportunity to invest diversely in real estate instead of buying just a few properties. Investing in a fund is easier and considerably less time-consuming than direct property investments. It saves you the trouble of, for instance, finding a tenant and maintaining the apartment. Read more about OP-Rental Yield

Check out our housing and real estate funds

The home loan is granted by the OP cooperative bank. Real estate brokerage conducted by OP Home across the country