Case study: how not to do a renovation
At Renty, we don’t just sell investment properties—we also handle their setup for rental and ongoing management. In practice, we often encounter situations where clients ask us to audit the quality of renovations in their newly purchased apartments. That’s exactly what happened in this case.
Situation: The Client Took on Property Selection and Renovation Themselves
A client was referred to us through our partners with a request to purchase an apartment in Greece for the Golden Visa program. Their main goal was to acquire a property that met the program’s requirements while also generating rental income.
At the time of the request, we presented two options:
Renty’s Ready-to-Rent Apartments
Properties from our portfolio that were already undergoing renovation.
Transparent reporting on each stage of the renovation and contractually guaranteed timelines.
Ongoing property management to ensure the promised rental yield that met the client’s expectations.
Consultation and Assistance with Open Market Selection
Helping the client choose an apartment from the open market.
Legal due diligence, deal evaluation, and full transaction support.
Additional services: technical supervision and renovation management to ensure high-quality standards.
We strongly recommended the first option, as we have full confidence in the quality of our properties. However, the client hesitated. They were concerned about renovation costs and believed that they could achieve the same quality at a lower price than what Renty offered.
Client’s Choice: Independent Market Search
Initially, the client considered purchasing an apartment from us but ultimately decided to search independently. We assisted in selecting a property with a focus on rental income—one in a prime location, suitable both for leasing and for Golden Visa eligibility.
The investor acquired a run-down apartment intending to renovate and resell it. With prior experience in the Greek real estate market, they expected everything to go smoothly. On paper, the deal seemed flawless: legal due diligence was conducted, and all documents were in order.
Disclaimer: per our agreement with the client, Renty does not publish photos of the apartment in open sources. If you’re interested in this case and would like more details or examples of similar projects, feel free to reach out!
The Problem
The renovation was carried out by a third-party team without supervision. The result? A disaster. Instead of a ready-to-rent investment property, the client was left with a major headache. The apartment was unlivable, let alone suitable for leasing.
Even worse, after completing the subpar work, the contractors left the keys on a construction site and disappeared, barely responding to messages. Unfortunately, this is a common issue for investors applying for the Golden Visa. Developers know that clients live abroad and often treat projects with indifference—taking the money, doing poor-quality renovations, and vanishing.
When we arrived for the inspection, we were, to put it mildly, unpleasantly surprised.
The client paid a significant amount (around €250,000) but was left with serious issues. Just imagine: you invest your money, expecting a profitable real estate asset, only to be met with complete disregard.
What We Found:
Tile grout and joints were uneven—some even in different colors (!).
Plumbing panels were installed with large gaps.
Electrical outlets were made from cheap materials, breaking easily—a critical safety risk for rental properties.
Appliances and fixtures (kitchen, plumbing) were of questionable origin (low-quality, unbranded Chinese products).
Furniture and appliances were poorly installed, unstable, shaky, or squeaky.
Kitchen panels were installed incorrectly.
The agreed-upon standards stated in the contract were ignored—wrong materials, incorrect outlet placements, and unapproved appliance brands.
Solution: Resolving the Situation
Several months later, the client has lost time, money, and trust in the market. We stepped in to help fix the situation, but the renovation still requires significant additional investment, and legal proceedings are ongoing.
Due to the poor workmanship, the client was forced to pay twice for certain repairs. Additionally, they lost potential rental income—the time spent on corrections could have been used for leasing the apartment and generating profit.
How We Addressed the Problem:
✔ Conducted a full inspection of the property and documented all defects and violations.
✔ Engaged legal experts to file claims against the contractor, pushing for rectification of the work. Acknowledging the complexities of litigation in Greece, we also suggested alternative solutions.
✔ To minimize losses, we proposed two scenarios:
Defect correction: Fixing the most critical areas to make the property rentable with minimal loss of rental income.
Full renovation redo: If partial repairs were not viable, we recommended a complete overhaul with a new contractor.
We also offered to source and install new furniture and appliances if the original contractor refused to rectify the defects.
Developed a property management plan (long-term or short-term rental) to mitigate the client’s losses.
Conducted negotiations with the client, providing them with detailed reports and recommendations.
We are actively working to bring the apartment up to rental standards. Despite the setbacks, our main goal remains clear:
✅ Minimize the client’s losses
✅ Preserve the property’s investment potential
✅ Ensure stable rental income
Key Success Factor: One-Stop Management
A critical takeaway from this case is the importance of handling property purchase, renovation, and management within a single trusted company. This creates a shared objective—to complete the renovation quickly and get the apartment rented and profitable as soon as possible.
