Purchasing or renting property abroad, especially in your favourite holiday area, may seem like an ideal way to cover costs. However, this isn’t all plain sailing and there are many things you’d need to consider when looking to purchase or rent out property abroad.
Define your objectives for the property abroad
Are you purchasing the property with the intention of renting it out? If so, find out what the restrictions are for renting. Some countries withhold permission for foreigners to rent property, whilst others have restrictions on how long you can rent the unit out for. There are many factors that will determine how successful you are in maximising your rental return. This includes the location and ease-of-access, as well as activities close by.
Insurance and financial matters
Renting out a property can have effects on the amount of insurance you pay. Your insurer should also provide you with legal liability cover against someone suing you for any injuries they received on your property.
As soon as you start earning money from your home abroad, you’ll need to pay tax-both in your home country and the country that the property is situated in. Make sure you keep papers in order.
Choosing a property management company
If you own or are planning to purchase a property abroad, you may plan to be fully in control of the rentals and maintenances yourself from home but this isn’t an easy option. Although informal arrangements with neighbours are an option, it’s not a good long-term solution. The best option is to hire a property management company.
A good property management company should carry out the following tasks and responsibilities:
- Advertising your property, taking enquiries from clients and booking rentals
- Liaising with clients to answer all queries and handing over the keys and instructions for the property
- Handling day-to-day issues
- Keeping records of bookings
- Handling deposits and checking the inventory for any faulty or broken items
- Cleaning the property in-between lets
- Organising any additional services such as collection from airports
If you’re looking for a trustworthy property management company, look no further than Vassallo Property, one of Vassallo Group’s subsidiaries. We specialise in individuals interested in purchasing property abroad with the intention of renting or subletting. For more information, call us at 79432333 or email us at info@vassallogroupmalta.com.
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