Interview by Andrea Harper, Deputy Editor, Property Secrets

Brno's rental market adds up to a solid investment says our Czech property expert Eva Kavkova, who has spent three years establishing a portfolio in the city.

One of the strongest endorsements we can find for PS clients is when our local agent invests in an area.

Eva's portfolio includes four units on a small development at Videnska Street, in the Red Hill area, and six units in the city centre at Soujenicka Street. She is now planning to increase her portfolio by 50% with five units at Golden Brook 2.

We asked Eva, who is our PS partner in Czech, why Brno is a favourite investment city, how the market is performing and some inside tips on the local rental market.

Why have you decided to base your portfolio in Brno?

Two key factors stand out for me - the low base price and the ready-made rental market.

For me, the numbers really add up. In Brno, the average psm is CZK45,000 for a mid-range property, but in Prague, the same property can cost CZK60,000psm. That's a difference of CZK15,000 - an increase of one third. For me cash flow is crucial.

In Brno, I know I can cover the mortgage payments and, thanks to such a strong rental market, my properities are always let.

Brno has the second largest student population outside Prague with 60,000 students and that is going to increase by another 5,000 when the new medical university campus is completed.

There has been huge FDI coming into the area from companies such as Vodafone and Siemens so there are a lot of workers moving into the city on temporary contracts.

How do you decide what makes a good investment property?

I use exactly the same criteria as when I'm looking for a Property Secrets deal. Location is always the key thing. I'll walk round an area to see what the facilities are - where the tram stops are and what shops are in the area.

I carry out a lot of research on the rental market in an area - checking out the demand, average prices and void periods.

A key thing I always look for when checking out an area is whether there are any new build projects under construction or anything in the pipeline. If there is no new build, then I know there isn't going to be a situation of over-supply in the immediate area.

I have a lot of local contacts I use for information and, of course, I have built up my own local knowledge over the years. I find the best thing is to just hit the streets and walk round. This is how I found my first units at Videnska Street, which hadn't been advertised as they were part of a small project by a local developer.

The rental market is a big attraction of Brno, but how strong is it really?

I've just had six units at Soujenicka Street complete and come on to the rental market in December - and they are all fully let.

Five let straight away and the last one was on the market for less than a month before we had a tenant.

Currently, I'm getting CZK10,500 for a studio and CZK16,000 for a one bed, which is in-line with average market prices.

How do you find tenants?

I use a local agent but its important not to sit back and leave them to just get on with it. I'm always very proactive, calling them up, talking to them about the market and checking on my units.

I've got a really diverse mix of tenants, which actually reflects what is happening in Brno at the moment.

I have a corporate let with City Bank, which is good for cash flow as I have a guaranteed rental with a one year contract.

There is a very high demand for corporate lets at the moment as the FDI companies are initially bringing in their own teams to get the businesses operational.

That means there is a growing number of well-paid staff, who have migrated to the area on temporary contracts, usually for a year.

I also have a Hungarian tenant, who uses one of my lets as a crash pad when he's working late, as it works out a lot cheaper than a hotel.

The rest of my rentals are let to students who I have found to be good, reliable tenants.

What kind of units are in demand in the rental market?

There is a definately a shortage of lower middle class apartments and the greatest demand is for studios and one bed units.

Tenants are now looking for furnished apartments and this is becoming the norm in the rental market.

If you want to let your unit quickly - it must be furnished.

There's no need to go overboard, just keep it modest. All you need is the usual dining table with chairs, a sofa and a bed. I buy the furniture for my rentals from IKEA and have a budget of around CZK30,000 (approx £891).

What are your investment plans in Brno?

I am now adding to my portfolio with five more units at Golden Brook 2. I know the developer and he got the land very cheap. This is why units here are priced so low and it has a great location, right on the door step of a ready-made rental market of 5,000 new students at the medical campus.

How do you see the rental market in Brno developing?

Brno already has a proven rental market and I see that getting stronger.

There is a lot of commercial building currently going on in the city and this is going to create more housing demand as workers take up new jobs.

We are seeing the start of a couple of new trends.

Students are now begining to stay in the city after graduation because of the good employment opportunities. They are moving out of their student digs into private rented accommodation to enjoy a better standard of living.

After a couple of years, when they have gained some job security and have increased their earnings, then they will move into the luxury rental market or take their first step on the property ladder.

There is also a growing number of contract workers in the city. This is because the global companies are bringing in their own mangement teams to establish the business. These senior managers are usuually transferred to the area for up to a year on temporary contracts.

I do have another unit in Prague, which I bought because it was a very good price; but, right now, nothing quite matches the energy and growth of Brno.