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What are the rental yields for apartments in Kotor? (2026)

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SUMMARY

We analyzed apartment rental yields in Kotor, as of 2026, for residential apartment buyers, using the raw dataset provided and turning it into a practical neighborhood-by-neighborhood yield guide.

This tracker is built for foreign individual buyers who want to understand what rental income in Kotor can realistically look like before buying an apartment.

We update this page regularly, so the figures should be read as a current May 2026 snapshot of the Kotor apartment market, not as a permanent forecast.

The main finding is that Kotor studios usually give the strongest return for the lowest total investment, especially in Dobrota, Muo, Radanovići, Škaljari, and Prčanj.

Dobrota is the best balanced area in the dataset. Its studios are estimated at €132,000, €700 monthly rent, 6.4% gross yield, and 4.8% net yield.

Muo, Škaljari, and Radanovići also look useful for buyers who want rental income without paying the full Old Town, Perast, or prime waterfront premium.

The weakest income profile is usually found in the most emotional Kotor locations. Perast, Kotor Old Town, Orahovac, and some premium Dobrota waterfront stock can be beautiful to own, but purchase prices often absorb much of the rent.

The practical risk is seasonality. Small bay villages can look attractive in summer, but winter tenant depth is thinner than in Dobrota, Muo, Ĺ kaljari, or central Kotor locations.

For a beginner foreign buyer, the safest Kotor apartment rental yield strategy is not to chase the prettiest address. The better strategy is to compare net yield, tenant depth, parking, road access, building condition, and resale liquidity together.

The honest interpretation is simple: Kotor can work for rental income, but the best income buys are usually small, practical, well-furnished apartments close to services, Old Town access, or year-round tenant demand.

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Neighborhoods and apartment rental yields in Kotor in 2026

This table compares apartment rental yields in Kotor by neighborhood and apartment size.

For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.

The raw Kotor dataset does not provide separate annual fee, occupancy, time-to-rent, demand, risk, or investment-profile columns, so this article keeps the main table limited to the verified figures available in the dataset. Finally, please note you'll find much more detailed data in our real estate pack about Kotor.

Neighborhood Studio average purchase price Studio average monthly rent Studio gross rental yield Studio net rental yield 1-bedroom average purchase price 1-bedroom average monthly rent 1-bedroom gross rental yield 1-bedroom net rental yield 2-bedroom average purchase price 2-bedroom average monthly rent 2-bedroom gross rental yield 2-bedroom net rental yield
Dobrota €132,000 €700 6.4% 4.8% €195,000 €900 5.5% 4.2% €278,000 €1,250 5.4% 4.1%
Kavač €105,000 €500 5.7% 4.4% €155,000 €700 5.4% 4.2% €221,000 €1,050 5.7% 4.4%
Kostanjica €102,000 €470 5.5% 4.0% €150,000 €650 5.2% 3.7% €214,000 €950 5.3% 3.8%
Kotor Old Town €163,000 €800 5.9% 4.1% €240,000 €1,100 5.5% 3.9% €342,000 €1,500 5.3% 3.7%
Muo €122,000 €620 6.1% 4.6% €180,000 €800 5.3% 4.0% €256,000 €1,150 5.4% 4.0%
Orahovac €119,000 €540 5.4% 4.0% €175,000 €700 4.8% 3.5% €249,000 €1,000 4.8% 3.5%
Perast €146,000 €650 5.3% 3.7% €215,000 €900 5.0% 3.5% €306,000 €1,300 5.1% 3.6%
Prčanj €112,000 €560 6.0% 4.4% €165,000 €730 5.3% 3.9% €235,000 €1,050 5.4% 4.0%
Radanovići €86,000 €420 5.9% 4.6% €128,000 €600 5.6% 4.4% €182,000 €850 5.6% 4.4%
Risan €97,000 €450 5.6% 4.3% €142,000 €580 4.9% 3.8% €203,000 €820 4.8% 3.7%
Stoliv €105,000 €500 5.7% 4.1% €155,000 €650 5.0% 3.6% €221,000 €930 5.0% 3.6%
Škaljari €109,000 €520 5.7% 4.5% €160,000 €700 5.2% 4.1% €228,000 €950 5.0% 3.9%
statistics infographics real estate market Kotor

We have made this infographic to give you a quick and clear snapshot of the property market in Montenegro. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which neighborhoods offer the best net yield among areas people actually want to live in Kotor?

The best net-yield neighborhoods among areas people actually want to live in Kotor are Dobrota, Muo, Škaljari, Prčanj, and Radanovići.

Dobrota is the safest overall choice because it combines rent depth with real everyday livability. The dataset estimates Dobrota studios at €132,000 purchase price, €700 monthly rent, 6.4% gross yield, and 4.8% net yield.

Muo and Ĺ kaljari are strong because they stay close to Old Town demand without Old Town prices. Muo studios show 4.6% net yield, while Ĺ kaljari studios show 4.5% net yield.

Prčanj gives a useful lifestyle-yield balance. A studio is estimated at €112,000 and €560 monthly rent, giving 6.0% gross yield and 4.4% net yield.

Radanovići has some of the strongest numbers, with studio and 2-bedroom net yields around 4.6% and 4.4%. The trade-off is that it is more practical than emotional for foreign buyers, so resale liquidity may be weaker than in Dobrota or Muo.

The practical takeaway is that Dobrota is the best balanced, Muo and Škaljari are better value near core demand, and Radanovići is higher-yield but less liquid.

Where can I find apartments with above-average yields and below-average entry prices in Kotor?

The clearest areas with above-average yields and below-average entry prices in Kotor are Radanovići, Škaljari, Kavač, Muo, and Prčanj.

Radanovići has the lowest estimated entry prices in the dataset. Studios are estimated at €86,000, 1-bedroom apartments at €128,000, and 2-bedroom apartments at €182,000.

The yield is still useful. Radanovići studios show 4.6% net yield, while 1-bedroom and 2-bedroom apartments both show 4.4% net yield.

Škaljari is more central and easier for a beginner to understand. A studio is estimated at €109,000 with €520 monthly rent and 4.5% net yield, while a 1-bedroom apartment is estimated at €160,000 with 4.1% net yield.

Kavač also looks practical for buyers who want access between Kotor and Tivat. Its 2-bedroom apartments show €221,000 purchase price, €1,050 monthly rent, 5.7% gross yield, and 4.4% net yield.

The honest interpretation is that these areas are cheaper because they are less prestigious than Old Town, Perast, or prime Dobrota waterfront. That discount can help rental income, but it also means the buyer must be more careful about parking, access, building quality, and resale demand.

Where does the rent level justify the purchase price most clearly in Kotor?

The rent level justifies the purchase price most clearly in Dobrota, Muo, Škaljari, and Radanovići.

Dobrota has the strongest evidence of rent depth in the dataset. Studios are estimated at €700 monthly rent on a €132,000 purchase price, while 1-bedroom apartments are estimated at €900 monthly rent on €195,000.

Muo also looks rational for rental income. A studio at €122,000 and €620 monthly rent produces 6.1% gross yield and 4.6% net yield.

Škaljari works because the entry price is lower than Old Town while still staying close to central Kotor demand. A 1-bedroom apartment is estimated at €160,000 and €700 monthly rent, which gives 5.2% gross yield and 4.1% net yield.

Radanovići has a different type of logic. The rent is lower, but the purchase price is much lower too, which is why the net yield remains strong across studios, 1-bedroom apartments, and 2-bedroom apartments.

We have actually built the our real estate pack about Kotor to make sure you won’t buy in the wrong area. Check it out.

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Where is the best place to buy if I want stable rental income rather than maximum yield in Kotor?

The best place to buy for stable rental income rather than maximum yield in Kotor is Dobrota, followed by Ĺ kaljari and Muo.

Dobrota does not only offer attractive yields. It also has everyday services, long-term livability, and broader tenant demand than smaller bay villages.

The Dobrota figures are reliable for a cautious buyer because they are strong without looking unrealistic. Studios show 4.8% net yield, 1-bedroom apartments show 4.2%, and 2-bedroom apartments show 4.1%.

Ĺ kaljari is useful because it is practical and close to Old Town jobs, services, and transport routes. Its studio net yield is 4.5%, while 1-bedroom apartments show 4.1%.

Muo has a more scenic profile, but it still benefits from proximity to Old Town demand. A studio in Muo is estimated at €122,000 and €620 monthly rent, which is a strong income relationship for Kotor.

The trade-off is simple. Stable rental income in Kotor usually means accepting a slightly lower headline yield in exchange for easier renting, better tenant depth, and a cleaner resale story.

Which apartment type gives the best return for the lowest total investment in Kotor?

The apartment type that gives the best return for the lowest total investment in Kotor is usually the studio apartment.

Studios have the lowest absolute purchase prices in the dataset. The estimated studio range runs from €86,000 in Radanovići to €163,000 in Kotor Old Town.

The yield advantage is also visible. Studios show 4.8% net yield in Dobrota, 4.6% in Muo, 4.6% in Radanovići, 4.5% in Škaljari, and 4.4% in Prčanj.

One-bedroom apartments can still be attractive, especially in Dobrota, Kavač, Radanovići, and Škaljari. But they usually require a higher ticket size, from €128,000 in Radanovići to €240,000 in Kotor Old Town.

Two-bedroom apartments earn higher monthly rent, but the purchase price rises too. In Perast, for example, a 2-bedroom apartment is estimated at €306,000 and €1,300 monthly rent, but the net yield is only 3.6%.

We give you more details in the our real estate pack about Kotor.

Which neighborhoods offer strong rental income with the lowest vacancy risk in Kotor?

The neighborhoods that offer strong rental income with the lowest vacancy risk in Kotor are Dobrota, Kotor Old Town, Muo, and Ĺ kaljari.

Dobrota is the best all-round option because demand is broader and less seasonal. It works for long-term tenants, not only for visitors who want a postcard location.

Kotor Old Town has high rents, with estimated monthly rent of €800 for studios, €1,100 for 1-bedroom apartments, and €1,500 for 2-bedroom apartments.

The issue with Old Town is that operating friction can reduce the real result. Heritage buildings, stairs, noise, parking problems, and maintenance can make net yield weaker than gross yield suggests.

Muo benefits from proximity to Old Town, while Ĺ kaljari benefits from practicality and lower prices. Both areas offer a clearer income case than more seasonal villages.

The honest interpretation is that high rent alone is not enough. Dobrota is usually safer than Old Town because the tenant base is deeper and less dependent on seasonal emotion.

infographics rental yields citiesKotor

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Montenegro versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

Which areas look overpriced relative to their rental income in Kotor?

The areas that look overpriced relative to rental income in Kotor are Perast, Kotor Old Town, Orahovac, and some premium Dobrota waterfront stock.

Perast is the clearest example in the dataset. Estimated net yields are only 3.7% for studios, 3.5% for 1-bedroom apartments, and 3.6% for 2-bedroom apartments.

The problem is not weak desirability. The problem is that purchase prices reflect beauty, scarcity, heritage, and bay prestige more than long-term rent.

Kotor Old Town has a similar issue. A 2-bedroom apartment is estimated at €342,000 and €1,500 monthly rent, but the net yield is only 3.7% after realistic ownership friction.

Orahovac also looks weaker for income buyers. The 1-bedroom and 2-bedroom net yields are both estimated at 3.5%, which is low compared with Dobrota, Muo, Škaljari, or Radanovići.

The trade-off is not bad neighborhood versus good neighborhood. These areas can be excellent lifestyle purchases, but they are less efficient if the main goal is rental income in Kotor.

Which neighborhoods should I avoid even if the rental yield looks attractive in Kotor?

Beginner investors should be careful with Radanovići, Kostanjica, Stoliv, and some cheaper Risan apartments even when the rental yield looks attractive.

Radanovići shows strong net yields of 4.4% to 4.6%, but the demand profile is more practical than lifestyle-led. It works best for local workers, commuting tenants, and budget-sensitive renters.

Kostanjica can look affordable, with studios estimated at €102,000 and 4.0% net yield. But larger units fall to 3.7% and 3.8% net yield, which leaves less room for vacancy or weak winter demand.

Stoliv also needs careful unit selection. Studios show 4.1% net yield, but 1-bedroom and 2-bedroom apartments both show only 3.6% net yield.

Risan has a lower purchase price, but lower entry cost does not automatically mean stronger income. Its 1-bedroom apartments show 3.8% net yield, while 2-bedroom apartments show 3.7%.

The main risk is buying the wrong unit: poor road access, no parking, weak furnishing, an older building, or a location that is charming in summer but quiet in winter.

Which neighborhoods look risky even though the rental yield is high in Kotor?

The neighborhoods that can look risky even though rental yield is high in Kotor are Radanovići, Muo, Prčanj, and some Škaljari units.

Radanovići’s risk is tenant depth and resale liquidity. It gives strong yields because prices are lower, not because renters pay a premium for lifestyle.

Muo’s risk is access and congestion. A studio looks attractive at 4.6% net yield, but the specific apartment needs strong access, parking, and a realistic rent plan.

PrÄŤanj offers good lifestyle value, but winter demand can be thinner than in Dobrota or Ĺ kaljari. A strong sea-view unit with parking is very different from a dark older apartment on a difficult road.

Ĺ kaljari is safer than its practical image suggests, but only when the unit is close to services and central Kotor access. A cheap apartment in a weak building should not be treated as equal to the neighborhood average.

The practical rule is to ask why the yield is high. If the answer is a lower price plus real tenant demand, the deal may work. If the answer is only a low price, vacancy and resale risk may be hiding in the numbers.

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What neighborhoods should I avoid when buying a rental apartment in Kotor?

A beginner rental investor in Kotor should avoid weak units in Kostanjica, Stoliv, Risan, Orahovac, and Radanovići unless the price is clearly discounted.

This is not a full-neighborhood ban. It is a warning that these areas are less forgiving than Dobrota, Muo, or Ĺ kaljari for a first rental purchase.

Avoid Kostanjica if the apartment has no strong view, weak access, or unclear long-term tenant profile. The 1-bedroom net yield is only 3.7%, which does not leave much margin for mistakes.

Avoid Stoliv unless the unit is clearly better than average. The dataset shows 3.6% net yield for both 1-bedroom and 2-bedroom apartments, which is modest for a seasonal bay location.

Avoid overpriced 1-bedroom and 2-bedroom units in Risan. The purchase prices are lower than in Perast or Old Town, but the net yields of 3.8% and 3.7% are not enough to make every deal attractive.

Avoid Radanovići only if you want an easy foreign-buyer resale story. It can work well for income, but the buyer must accept a more practical inland rental market.

Which neighborhoods are seeing rental demand weaken, and why, in Kotor?

The neighborhoods where rental demand looks softer in Kotor are Stoliv, Kostanjica, Orahovac, and parts of Risan.

The weakness is not collapse. It is thinner year-round tenant depth, especially outside the strongest tourist months.

Stoliv and Kostanjica still attract lifestyle interest, but the dataset shows only moderate net yields. Stoliv 1-bedroom and 2-bedroom apartments are both estimated at 3.6% net yield, while Kostanjica 1-bedroom apartments are estimated at 3.7%.

Orahovac has a similar issue. The 1-bedroom and 2-bedroom categories both show 3.5% net yield, which suggests that purchase prices are not being fully supported by year-round rent.

Risan is cheaper, but the tenant pool is narrower than in Dobrota or central Kotor. Lower prices help, but they do not remove the need for parking, condition, furnishing, and good access.

The practical recommendation is to monitor these areas rather than reject them. Buy only with a price discount, strong micro-location, realistic furnishing standards, and a clear tenant plan.

Which neighborhoods are seeing new developments that could create stronger rental demand in Kotor?

The neighborhoods where development and access logic could support stronger rental demand in Kotor are Kavač, Radanovići, Škaljari, and Dobrota.

KavaÄŤ is strategically useful because it sits between Kotor and Tivat. That matters for tenants who want access to both Kotor Bay and the Tivat employment, airport, and service ecosystem.

The dataset shows that Kavač 2-bedroom apartments are relatively strong, with €221,000 estimated purchase price, €1,050 monthly rent, 5.7% gross yield, and 4.4% net yield.

Radanovići can benefit from its position in the Grbalj corridor. Tenants may trade waterfront prestige for lower rent, easier road access, and more practical living.

Ĺ kaljari benefits from central Kotor proximity without Old Town pricing, while Dobrota benefits from existing daily-life infrastructure and established rental depth.

The caution is supply. New apartment stock can deepen the market, but too many similar 1-bedroom units can create competition if they are not differentiated by parking, view, layout, or building quality.

infographics map property prices Kotor

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Montenegro. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

Which neighborhoods have become less attractive for apartment investors over the last 12 months in Kotor?

The neighborhoods that have become less attractive for rental-income investors in Kotor are Perast, Kotor Old Town, Orahovac, and premium Dobrota waterfront locations where prices have moved faster than rents.

The point is not that these are bad places to own. The problem is that the rent-to-price balance has become less forgiving for income buyers.

Perast shows this clearly. A 1-bedroom apartment is estimated at €215,000 and €900 monthly rent, but the net yield is only 3.5%.

Kotor Old Town also became harder to justify for pure income. Studios still show 4.1% net yield, but 1-bedroom apartments fall to 3.9% and 2-bedroom apartments to 3.7%.

Orahovac looks weak for larger units. A 2-bedroom apartment is estimated at €249,000 and €1,000 monthly rent, but the net yield is only 3.5%.

The practical conclusion is to separate lifestyle value from rental yield. These areas may protect long-term desirability, but they are not the easiest places for a beginner to build stable rental income.

Which apartment types are becoming harder to rent in Kotor, and in which neighborhoods?

The apartment types becoming harder to rent in Kotor are average-quality 1-bedroom apartments in competitive areas and expensive 2-bedroom apartments in seasonal or prestige locations.

One-bedroom apartments are not bad. In Dobrota, Kavač, Radanovići, and Škaljari, they can still work because the monthly rent remains realistic for long-term tenants.

The problem is average stock with no clear advantage. A 1-bedroom apartment with no view, no parking, weak insulation, tired furnishing, or poor access competes against many similar units.

Two-bedroom apartments are harder in Perast, Orahovac, Stoliv, and Kostanjica because the monthly rent becomes high relative to the year-round tenant pool. Perast 2-bedroom apartments show only 3.6% net yield, while Orahovac 2-bedroom apartments show 3.5%.

Studios remain the easiest beginner product when the micro-location is right. Dobrota studios show 4.8% net yield, Muo studios show 4.6%, and Ĺ kaljari studios show 4.5%.

The practical rule is to buy tenant depth, not just apartment size. Compact studios and good 1-bedroom apartments near services, Old Town access, schools, medical facilities, and everyday amenities are usually safer than larger units in seasonal villages.

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INSIGHTS

These insights are drawn from the Kotor apartment rental yield dataset, with a focus on what a foreign individual buyer should understand before buying a residential apartment to rent out.

You’ll find even more insights in our our real estate pack about Kotor.

  • Dobrota is the best balanced Kotor apartment market in the dataset. Its studio net yield of 4.8% is high for Kotor, but the more important signal is that the area also has stronger year-round livability.
  • Kotor studios usually outperform larger apartments because small units keep the purchase price low while still renting efficiently. For a beginner buyer, this makes a compact apartment easier to finance, furnish, rent, and resell.
  • Radanovići has strong yields, but the reason matters. The yield comes from low entry prices, not from a premium lifestyle rent, so buyers should treat it as a practical income play rather than an emotional coastal purchase.
  • Muo is one of the cleanest value locations near Old Town demand. Its studio net yield of 4.6% is strong because the rent remains close to central Kotor levels while the purchase price is lower than Old Town.
  • Ĺ kaljari deserves more attention from income buyers than from lifestyle buyers. It is practical, central, and less prestigious, which can be exactly why the price-to-rent relationship works.
  • Perast is attractive, but it is not the best pure yield market. Net yields of 3.5% to 3.7% show that buyers are paying heavily for beauty, scarcity, and heritage value.
  • Kotor Old Town rents are high, but the income case is weakened by operating friction. Stairs, maintenance, parking, noise, heritage constraints, and seasonality can make the net result less attractive than the rent headline.
  • PrÄŤanj can work when the unit has view, parking, and access. Without those features, winter tenant depth can be thinner than the yield table first suggests.
  • KavaÄŤ is useful for buyers who think beyond postcard Kotor. Its location between Kotor and Tivat can support practical tenants, especially for larger apartments with parking and good access.
  • Orahovac and Stoliv are more seasonal than the strongest income areas. They can work as lifestyle-rental hybrids, but they need a better purchase price or a stronger unit to justify the risk.
  • Risan is cheaper, but cheaper does not automatically mean better. The dataset shows lower prices, but 1-bedroom and 2-bedroom net yields stay below 4.0%.
  • Sea views lift rent, but buyers often overpay more than tenants do. In Kotor, the best rental yield is often found where the view premium is controlled, not where the scenery is most dramatic.
  • Gross yield is only the first filter. Net yield matters more because vacancy, repairs, building fees, tax friction, furnishing, and letting costs can materially change the result.
  • For foreign individual buyers, the safest apartment profile is usually a furnished studio or 1-bedroom apartment in Dobrota, Muo, or Ĺ kaljari. These areas give better balance between rent, liquidity, services, and tenant depth.
  • The weakest beginner mistake is buying a beautiful apartment with no clear tenant plan. In Kotor, beauty can protect emotional demand, but it does not automatically create stable annual rent.

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OUR METHODOLOGY TO BUILD THIS TRACKER

To estimate purchase price, monthly rent, and rental yield in different Kotor neighborhoods, we build the analysis manually from the ground up by neighborhood and apartment type. We do not reuse a third-party yield dataset.

For each area, we research residential apartment sale listings and rental listings separately, then match the cleaned sale and rent evidence by neighborhood and apartment type. The tracker focuses on studios, 1-bedroom apartments, and 2-bedroom apartments because these are the core formats used by individual apartment investors in Kotor.

For the sales side, we manually review current residential apartment listings across major platforms relevant to Kotor, including Estitor, Realitica, and Realting. We collect comparable sale listings for each neighborhood and apartment type before cleaning the sample.

We remove duplicate listings, incomplete listings, unrealistic asking prices, luxury outliers, distressed assets, serviced-style offers, villas, houses, mixed-use properties, and other non-comparable properties that would distort the apartment estimate.

We then keep only reasonably comparable properties based on location, apartment type, size, condition, listing quality, and micro-location. We use the median price as the main reference where possible, or the average only when the sample is clean enough to make the average meaningful.

The rental side is built separately. For the same neighborhood and apartment type, we manually collect long-term rental listings, remove outliers and non-comparable offers, and estimate a realistic monthly rent using the median rent where possible.

Gross rental yield is calculated as annual rent divided by estimated purchase price. This gives a simple income benchmark before ownership costs.

Net rental yield is then estimated by adjusting for the costs and risks that matter in each neighborhood and apartment type, including vacancy risk, maintenance, building fees, small repairs, letting and management friction, agent fees, tax friction, utilities when relevant, service charges, pool or garden costs where relevant, and other operating costs.

We do not apply one flat cost deduction to every property. A small central apartment, a sea-view unit in a managed building, an older Old Town apartment, and a larger bay-village apartment can have very different cost structures, so the net-yield deduction is adjusted by segment.

Each estimate is assigned a confidence level based on the quality and size of the comparable sample. A sample of 30 to 40 comparable listings means higher confidence, 20 to 30 comparable listings means usable but less robust, and fewer than 20 comparable listings means directional only unless the comparable area is widened.

These estimates are updated regularly and should be read as structured market estimates, not guarantees of future rental income. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Kotor.