Bars and Return? How does the number of bars around a property impact its rental return?
Stellax algorithm bases its return estimation on >40 property characteristics and one of them is the number of bars in close vicinity of each property.
Above is a visualisation of dependancy between rental yield and number of bars across Dutch provinces (the yield and provinces are on X and Y axis respectively, the size of a circle represents the number of bars).
North and South Holland are really into having a pint or two after work, aren’t they?
The evidence on dependency is mixed, but in general the properties with the highest yield do not have many bars around them.
Maybe the tenants do not spend money on drinks and can pay a higher rent? Maybe 🙂 but I believe that again the number of bars is in a way a measure of risk. You find more bars in developed cities (less risk) as opposed to farmlands (more bars less risk sounds a bit counterintuitive though 🙂 )
Another observation is that many of the lowest yield properties have a small number of bars around them. Possibly because those are luxurious objects outside of the cities and party lifestyle.
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