How to make money from rental buildings

How to invest in rental buildings and generate passive income

Investing in income-generating property is a way not only to preserve your capital but also to secure a stable passive income. Rental buildings and serviced flats, a model popular worldwide, are steadily gaining ground in Ukraine too. If you want a profitable investment that earns income ‘on autopilot’, this is the segment to look at.

What are rental buildings?

A rental building is a property designed and built specifically to be let. Its structure, layout and on-site amenities are geared not to buyers who will live there, but to investors seeking rental income.

Serviced flats are self-contained units within these buildings, ready to move into. They have modern finishes and may come furnished and fitted with appliances. A management company handles the letting and maintenance.

The benefits of investing in income-generating property:

• Passive income without the day-to-day hassle
  Owners don’t have to find tenants, sign contracts, arrange repairs or organise cleaning – it is all part of the management package.

• Predictable returns
  In projects with a transparent business model, you can estimate returns in advance and plan your cash flow.

• Scalability
  You can gradually expand your property portfolio without adding to your operational workload.

• Protection against inflation
  Property has traditionally been seen as an asset that holds its value in a crisis.

• Capital growth
  As the market grows, the asset gains value too, so investors have the chance not only to earn income but also to make a profit when they eventually sell.

How do I get started?

The simplest way to start is with a serviced flat. It lets you try out the approach with minimal risk, backed by a professional operator.

What should you do? First, assess the property.

Look closely at:

• Location (proximity to the metro and business districts)
• The fit-out specification (White Box or furnished), as this affects how much more you will need to spend to get the flat ready to let
• The management company’s experience and the services it provides
• The return calculation
• Sign the contract and choose a strategy

You can aim for long-term or short-term lets (for example, to people relocating or travelling on business). You discuss the strategy with the developer or operator.

Who is this for?

• Beginners who want to earn passive income without getting involved in day-to-day operations
• Experienced investors looking to diversify their portfolios
• Ukrainians abroad who want to invest in Ukraine remotely
• Entrepreneurs looking to preserve and grow their spare capital

Serviced flats and rental buildings are a modern, profitable way to invest in income-generating property. You earn passive income, protect your money from inflation and invest in an asset that is easy to understand and transparent. The key is to choose reputable developers and to work out the numbers before you sign the contract.

If you’re looking for a real opportunity to invest in income-generating property today, take a look at our Standard One projects.

We were the first in Ukraine to develop Build-to-Rent rental buildings (built specifically for letting), and we have already seen that the format works.

The format is designed for investors seeking a stable rental income. Each building is planned around the needs of today’s affluent tenants, which ensures steady demand for the flats.

Our first completed project, S1 VDNG, is fully let and running steadily, and our investors receive a monthly income without dealing with tenants, repairs or tenancy agreements. It has confirmed that there is demand for high-quality rental homes in Kyiv, and that a well-designed model delivers predictable financial results.

We are now building S1 Obolon, a new rental building in a prime location just a 2-minute walk from Minska metro station. Tenants will have everything they need: stylish flats, extensive on-site amenities and hotel-style service. For you, there is full management, a transparent business model and projected returns.

If you’re interested in a ready-made investment with predictable demand and a projected profit, contact the S1 sales office.