What is income-generating property, and what is it for?

Hmarochos has published our joint article on the different types of income-generating property in Ukraine. In it, we explain in detail how professionally managed income-generating property differs from a conventional buy-to-let flat, and look at its various sub-types.

The article explains how each model works and how they differ in management approach, risk and returns. We hope it gives you a clearer theoretical understanding of all the formats, clears up any confusion over the terms and helps you decide which format suits you best.

1. Buy-to-let flat
   

This is one of the most common ways of investing in property in Ukraine. The investor buys a flat, renovates it, furnishes it, fits it with appliances and lets it out themselves. The owner has to stay constantly involved – finding tenants, keeping track of rent payments, dealing with everyday problems, arranging repairs – and with several flats it effectively becomes a full-time job.

1. Income-generating property (income property)
   

This is a type of investment property in which the building is designed from the outset as a product that meets the needs of both its owner and the people who live in its square metres. Under international classifications, income-generating property is an umbrella term whose sub-categories include residential rental property, serviced apartments, and hotel and resort property.

Historically, income-generating property existed in Kyiv as early as the late 19th and early 20th centuries, in the form of rental buildings. Its key features are a professional management company, which handles maintenance, services, occupancy and other operational matters, and flat layouts designed not only around residents’ everyday needs but also for ease of management.

Ukraine’s modern income-generating property sector began to take shape in the 2020s. According to LUN, there are now 105 income-generating property projects (aparthotels, cottage villages and rental buildings). As of 2025, the term covers managed residential rental property, serviced apartments, and hotel and resort property.

1. Managed residential rental property (Build-to-Rent)
   

This is a distinct segment of income-generating property: residential buildings developed specifically to be let, which operate as a single managed product.

The flats have standardised layouts, fit-out, furniture and appliances, and the management company is responsible for letting, service, maintenance and keeping track of payments.

In this model, the investor buys not an individual flat but a share in the project that earns them passive income, while tenants stay long term.

What fundamentally sets managed residential rental property apart from a buy-to-let flat is that it is run as a system.

1. Serviced apartments
   

These are complete, fully equipped living units with a kitchen and bathroom. Functionally they differ little from flats, but legally they remain non-residential premises. Unlike hotel rooms, serviced apartments are let for mid-term or extended stays, from a few weeks to several months.

As with managed rental property, the management company is central to serviced apartments. It handles letting, cleaning, service, repairs and all everyday matters. For investors, that means no day-to-day operational work and a predictable income; for tenants, it means high-quality service and comfortable, high-standard accommodation.

1. Hotel, aparthotel and resort properties
   

In Ukraine, tourism and leisure property has historically developed separately from the mainstream residential market. These are properties designed for short stays. Unlike homes for long-term letting, they are planned from the outset not as places to live but as part of the tourism infrastructure.

Income comes from a constant turnover of guests. As a result, this model can potentially deliver a higher return per night, but it depends on seasonality, tourist numbers and the security situation in the region.

For a detailed look at each model, the historical background and expert commentary, read the full article here:

https://hmarochos.kiev.ua/2026/02/16/shho-take-dohidna-neruhomist-i-navishho-vona-potribna/