Over the last few years many UK citizens have opted to buy property abroad with the intention of selling up or moving there when they retire. In most cases rental properties abroad are bought with the sole intention of making some quick money from a lucrative sale to have a good pension. As there are many places such as Spain, Cyprus and even Bulgaria that are benefiting from an increase in visitors yearly the value of the property will only go up over the coming years as opposed to crashing like here in the UK.
When you buy a property abroad you may be tempted to manage lettings yourself but unless you already live in the country this may prove may difficult than you think. Places such as Spain and Cyprus can be busy all year but slower in the winter months so are you prepared to fly back and forth whenever you have a potential client. This can be costly if you need to fly out at the last minute and what happens if there is bad weather but no-one to check on the property can you afford to sit and wait until the weather clears up for you to travel.
Unfortunately the only other option is to carefully choose a letting agent to manage the property for you. For a monthly fee the agent will advertise the property, deal with queries and bookings, take payment and make arrangements for cleaning the property after the rental period. You will have to be prepared for breakages and damage to the property as there will be people who do not care about the loss of a deposit. For this reason you will also need to have insurance in place that will cover the house when it is being rented, as a result of this insurance may be slightly higher than standard home insurance.
There may also be tax implications such as double tax; you may have to pay in the country your property is rented out in and also in your country of residence. Some countries do not allow tourists to rent out properties that they have bought so make sure you can before you even take matters further. Services for property management abroad can range in price from as little as 20% – 50% so work out the figures before buying a property.
There is a lot of money to make in property and in certain countries abroad so do your research thoroughly before taking the plunge. Some places offer newly built apartments with the guarantee of at least 4 months of rental potential a year but in most cases they cannot guarantee that and you may only have 4 weeks of rental potential meaning a hefty loss.
Overall the choices for property management abroad is not great you should shop around to get the best quote possible also go with a well established company. If you feel it’s not working out for you cut your losses and find another letting agent. You will need to find someone trustworthy as this could be your pension you are investing in.