For any serious investor the capitalization of property is an important consideration. By capitalization we refer to the income generated from property investment whether it is from land, commercial warehousing, shops, offices or residential accommodation.

The ratio between annual rents received and the cost of the investment is known as the yield. Property rentals in Montenegro should produce an average net yield of 5% for residential properties and 7% for commercial properties as of today’s date of September 2009.

Commercial rentals and bare land (leasehold land) normally receive an all year round income whereas residential properties generally expect to rent for the three months of summer holiday period.

Although domestic Property rentals in Montenegro are being increased by extending the tourism period to the shoulder months of May and September. In popular coastal towns such as Kotor the winter cultural season can bring rentals to nearly all year-round.

Property rentals in Montenegro tend to be more attuned to the domestic market as foreign tenants are those who require a regular change over. Given rental enquiries are through one or two internet sites, it is the property owners who make the arrangement and the agent is required to “Meet & Greet” and organizes the cleaning, laundry, and maintenance.