Be Careful with Projects Offering Rental Guarantees

A rental guarantee is not always a bad arrangement. However, investors should always ask how the guarantee is being financed.

Is a Rental Guarantee Really Additional Income?

Some projects offer investors, for example, a guaranteed monthly rent of €1,100 for three years. At first glance, this may seem like a high and secure source of income.

However, one essential question should be asked:

“Is this rental payment genuinely generated by the market, or has it already been built into the purchase price?”

In some cases, a property’s sale price may be set above its market value. The payments later made to the investor as a “rental guarantee” may effectively be structured as instalments returning part of that inflated purchase price.

For example:

• An apartment with a genuine local market rent of approximately €500,
• may be marketed to an investor with a guaranteed monthly rent of €1,100.

However, the property’s sale price may also be significantly higher than that of comparable apartments.

In this scenario, the investor may believe they are receiving a high rent. In reality, part of the additional amount may simply represent a return of the higher price paid at the time of purchase.

For this reason, when assessing a rental guarantee, investors should look beyond the monthly payment and examine both the property’s true market value and comparable sale prices.

What Matters Is Not the Guarantee, but the Real Rental Potential

When professional investors assess a project, they look for answers to the following questions:

• What are similar apartments in the area genuinely renting for?
• Is the sale price consistent with comparable properties?
• What is the expected market rent once the rental guarantee ends?
• What is the financial strength of the company providing the guarantee, and what are the contract terms?
• Will the investment’s return remain sustainable after the guarantee period ends?

In the long term, what matters is not the high rental figure shown on paper, but the actual rental income the property can generate under open-market conditions.

Our Approach

Our firm aims not only to help investors obtain a Greek Golden Visa or Greek residence permit, but also to offer a sustainable and transparent investment.

For this reason, when selecting projects, we assess the following factors together:

• Comparable sale prices
• Actual rental levels in the area
• Long-term capital-appreciation potential
• Rental demand
• The investment’s overall return

We recommend that our clients base their decisions on market data—not solely on marketing promises.

Remember: A high rental guarantee alone is not an indication of a good investment. What matters most is that the property you purchase has a genuine market value and can continue generating strong rental income after the guarantee period ends.