Looking to invest in property in Montenegro and earn rental income? Kotor and Budva are two of the best-performing cities on the Adriatic coast. With rising tourism, growing demand for holiday rentals, and attractive prices compared to other European countries, property investment in Kotor and Budva offers promising returns.

In this guide, we break down what kind of ROI you can expect, what affects your income the most, and how to maximise your results.


Why Kotor and Budva Are Key Cities for Rental Property Investment in Montenegro

Both Kotor and Budva have become real estate hotspots for foreign investors, and for good reason.

Kotor offers year-round appeal, drawing in culture lovers, digital nomads, and cruise tourists. Its historic charm, UNESCO World Heritage status, and peaceful atmosphere make it ideal for long-term rental properties in Montenegro or premium short-stay listings.

Budva is a top choice for those looking to invest in high-yield holiday rentals. With a vibrant nightlife scene, beautiful beaches, and summer festivals, Budva attracts thousands of tourists every month from May to September. For short-term rental investors, this seasonal surge can deliver powerful returns – especially if your property is close to the beach or the Old Town.

Whether you’re focused on steady income or peak-season profit, Kotor and Budva rental markets offer solid opportunities with strong ROI potential.


What ROI Can You Expect from Rental Properties in Kotor and Budva?

If you buy the right property in the right location, rental yields in Kotor and Budva typically range between 5% and 11% gross annually. Smaller studios tend to generate lower returns (5–7%), while renovated apartments in the Old Town or sea-view properties can reach up to 10–11%, depending on condition and marketing.

Key factors that influence your ROI include:

  • Proximity to major attractions (like Kotor Old Town or Budva beach)
  • Property condition and interior design – modern, furnished spaces rent better
  • Seasonality – Budva has a strong summer season, Kotor is more balanced year-round
  • How the property is managed – using a professional local team can raise occupancy and reduce costs
  • Listing quality – great photos, strong reviews, and response time affect your success on Airbnb or Booking

To increase ROI on rental property in Montenegro, it's essential to understand your guest profile, align your pricing with market demand, and reduce vacancies through smart marketing.


How Evkowski Company Helps You Maximise Rental Income and Protect Your Investment

At Evkowski Company, we help international clients like you go beyond just buying property – we help you create a working investment that earns consistent rental income.

Here’s how we support your property investment journey:

  • In-depth rental market analysis before purchase
  • Full assistance with legal checks, negotiations, and contracts
  • Renovation management and furnishing to boost rental appeal
  • Setup of online listings, pricing, and guest management
  • Long-term property and income management, even if you live abroad

Whether you want to generate passive income in Montenegro, build a portfolio, or manage your property hands-off, we customise the support around your goals. Read more here.


Ready to Calculate Your Potential ROI?

If you’re thinking about buying a rental property in Kotor or Budva, we’d love to help.
Let’s take a real look at what your investment could earn – and how we can optimise it for long-term success.

Contact us at invest@evkowski.com