Economic results of renting selected non-residential premises of the statutory city Zlín and a comparison of the simulation of further renting of these premises with possible sale

The first goal of this bachelor's thesis is a comparison of the advantages of renting and selling selected non-residential premises owned by the statutory city - Zlín. Specifically, buildings at the addresses Broučkova 292, Burešov 4886, Dlouhá 4212-4217 and Vavrečkova 5262. The basis for the calculations was data for the monitored period 2020–2023. These were mainly the values of the buildings, the rental income that the city recorded and the costs that it had to spend on their operation. The second goal is to find out what profit or loss the city would achieve in the following period 2024-2026 based on the initial data. The calculation was always adjusted for inflation, which was estimated for the given year according to CNB forecasts. The most profitable object from the point of view of renting space was and probably in the following period, according to calculations, will be the object at the address Dlouhá 4212–4217. It is a block of buildings that generates a profit of up to a million crowns every year. The thesis documents relatively high differences in average incomes for the monitored period 2020-2023. The situation is influenced by two most fundamental factors. The first of the mentioned is the fact that quite extensive changes have taken place in the rental of premises since 2019. In 2019, a property management department was established in Zlín City Hall, which took care of the purchase of certain buildings, increased rents for current tenants and at the same time started the process of changing tenants in the monitored buildings. In this process occurs thus short term outage of rental income in units of months. The second significant factor was also the Covid-19 pandemic, which negatively affected the income from the premises in 2020. Part of the rents were forgiven in 2020 and these non-systematic changes in rents are now being rectified. Subsequently, the thesis is focused on the financial management tools of the municipality. This tool is the budget with its function, composition of income and expenditure). I used these data for comparison in the practical part. The practical part consists of a short description of the statutory Zlín city. Furthermore, the work contains calculations for the future rental of premises with a comparison of costs and expenses. At the end, recommendations are formulated for the city Zlín for the future use of monitored buildings. It is evaluated here whether the sale of the units or keeping them for future rental should be preferred according to the profitability of the rental. The second area of recommendation is the minimum amount of rent, which would ensure that the city covers costs so that in the following period there is no loss from the rental of premises, but the management is efficient.