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THE LAKE PROJECT

1 - Specification rental income 10 - 20 years

On small screens, you may need to swipe your finger to see the whole table.

When you renovate your cottage, rental income will increase because of three reasons:

  1. We will increase the rental price (per day) of your cottage with approximately an extra 20% after external renovation and with an extra 30% after internal renovation.

  2. The number of days in the year that your cottage can be rented out will increase, because we can rent out your cottage 12 months per year (against 7 months with a non-renovated cottage) and because of the larger target group that seeks after more modern vacation housing.

  3. Your share of the rental income will increase from 50% to 60%, after completing both external and internal renovation.

Below we calculate for you what the rental income will be for, again, a 319,000 SEK cottage while spending 2 weeks of vacation in your cottage in July and 1 week in October. But now with the following renovation scenario: exterior renovation of the cottage completed by end 2025 and an interior renovation completed by end 2027.

Obviously, this means we start in 2024 and 2025 with the rental income of a non-renovated cottage,

so in these two years the rental income is the same as in our example for a non-renovated cottage. Please note that in our calculation we have not included the positive effect of being able to rent out your cottage more days per year (b), as we do not have historical data to assess this effect and we prefer to err on the save side. This means that the calculations below are conservative.

RENTAL INCOME 2024 – 2033 (10 YEARS)
Rental income is inflation corrected annually by 2% per year
100% rental income (SEK)
50% rental income owner (SEK) / Period 2024 – 2027
2024
81 000
Rental income for non renovated cottage 2024 – 2025
2025
82 620
2026 (1)
100 796
(1) Exterior renovation completed in 2025 = +20% higher rental price in 2026 and 2027.
2027
102 812
TOTAL
367 228
183 614
50% x 367 228 = 183 614 SEK
60% rental income owner (SEK) / Period 2028 – 2033
2028 (2)
135 712
(2) Interior renovation completed in 2027 = +30% higher rental price and 10% increase in owner’s share of rental income (from 50 % to 60 %), as of 2028.
2029
138 427
2030
141 195
2031
144 019
2032
146 899
2033
149 837
TOTAL
856 090
513 654
60% x 856 090 = 513 654 SEK
57.0% total average rental income owner (SEK) / Period 2024 – 2033
TOTAL
1 223 318
697 268
57% x 1 223 318 = 697 268 SEK

When a total renovation is done, the renovation costs are estimated to be somewhere around 900 000 SEK – 1 000 000 SEK. This is the amount we paid for the total renovation of our (show model) cottage S13:

  • Outside Renovation costs between 550,000 – 600,000 SEK.

  • Inside Renovation costs between 350,000 – 400.000 SEK.

  • Total Renovation estimated on 900,000 – 1 000,000 SEK.

See even the following link for a more detailed description of the outside renovation of cottage S13:

https://langasjonas.com/en/renovation-model-cottage-s13/

RENTAL INCOME 2024 – 2043 (20 YEARS)
Rental income is inflation corrected annually by 2% per year
100% rental income (SEK)
50% rental income owner (SEK) / Period 2024 – 2027
2024
81 000
Rental income for non renovated cottage 2024 – 2025
2025
82 620
2026 (1)
100 796
(1) Exterior renovation completed in 2025 = +20% higher rental price in 2026 and 2027.
2027
102 812
TOTAL
367 228
183 614
50% x 367 228 = 183 614 SEK
60% rental income owner (SEK) / Period 2028 – 2043
2028 (2)
135 712
(2) Interior renovation completed in 2027 = +30% higher rental price and 10% increase in owner’s share of rental income (from 50 % to 60 %), as of 2028.
2029
138 426
2030
141 195
2031
144 018
2032
146 899
2033
149 837
2034
152 834
2035
155 890
2036
159 008
2037
162 188
2038
165 432
2039
168 741
2040
172 115
2041
175 558
2042
179 069
2043
182 650
TOTAL
2 529 572
1 517 743
60% x 2 529 572 = 1 517 743 SEK
58.73% average total rental income owner (SEK) / Period 2024 – 2043
TOTAL
2 896 800
1 701 357
58,73% x 2 896 800 = 1 701 357 SEK