Why rent out your new property abroad? Lots of second-home owners decide to rent out their property abroad. In most cases, the rental income helps to cover the costs of buying and maintaining the property and, over a period of time, can start to bring in an additional income for the owners. Renting out your property is a risk though, and you should make sure you've investigated the rental options before you start advertising.
Who will rent your property?
You need to decide who you want to rent your property to. If you haven't yet bought a property abroad, you'll need to decide on a location that will appeal to your target rental market ? so for singles or young couples, you will want something that's close to the nightlife and for families, you want something that has good beaches and shops nearby. Once you have decided on who you're going to market your property to, you can begin to think about how to manage the rental process.
Renting through an agent
If you have a property abroad but are still living in the UK, it may be wise to use a rental agent to manage your property. An agent will take a percentage of the rental as a fee, or negotiate a fixed fee with you for each year, or holiday season. For this fee, they will usually handle the advertising, booking and management of the rentals, including cleaning and maintaining your property. This saves you a great deal of time and potential hassle with difficult renters. On the other hand, the rental agency might limit the periods that you can use the property, in order to fill the property with rental clients at peak times. If you are investigating using an agent, make sure you know exactly what they will charge; what they will do for the fee you're paying; and what restrictions will be placed on you.
Renting by yourself
You can, of course, manage the rental process by yourself. You can set up a good website for a relatively small cost and advertise in your local newspaper or in specialist travel publications. You will need to be organised though, and you will also need to pay someone to prepare your property abroad for guests and to handle any maintenance problems that may arise. You get to keep all the income, but you have to work hard for it.
There are many issues to think about when it comes to renting your property abroad. Make sure that you investigate all your options, and remember that either the UK or the country your property is in will tax you on the income you are making.
If you are thinking of renting out your flat or house there is a long checklist of things you need to be aware of. You are no doubt aware that choosing the right tenant is vital. So is making sure that you have agreed on important things such as how the rent will be paid and a review procedure for the amount of rent. There are other considerations that prospective landlords sometimes fail to take into account. Repairs can be a major bone of contention between tenant and landlord. Before you decide on renting your property it is important you understand what your rights and responsibilities are in this area. On a very basic level it can be said that anything that is damaged in the house due to natural wear and tear is your responsibility as a landlord. So a boiler that has gotten old or plaster coming away from the walls due to damp is your responsibility to fix. On the other hand, a wall that has been drawn on by a child or plaster that has been nibbled by a puppy is down to the people who pay the rent. If the damage is clearly there due to neglect or abuse by the people renting your property then they have to pay to fix it. This seems quite easy but it can become difficult. Some tenants create problems when faced with the prospective of paying out money even if it is clearly their fault. Even though you may be completely within your rights, having to take a tenant to court is still a situation you could do without. It may be better for everyone to call in an expert to help get the tenant to restore your property to its original condition. Through no fault of your tenants, it may become necessary for you to end your agreement with them. It is nice if things can end smoothly. The main thing you need to think about at this stage is the type of rental agreement you have with the tenant. If it is a periodic tenancy then you can bring it to an end by giving the tenant notice, in writing, of 30 to 60 days. This works out well for you, as it frees your property up with the minimum of fuss. If, however, you have a fixed term tenancy you must wait until the period of the term expires. There are exceptions to this but it is often best to consult an expert before you attempt to evict a tenant with a fixed term agreement. There can be quite severe legal consequences if you get this wrong and they are best avoided.
Both Craig Broadbent & Alex Paterson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Craig Broadbent has sinced written about articles on various topics from Property Investment, Computers and The Internet and Real Estate. HolidayHomeNow has been set up to provide useful, practical information for those people researching and looking into buying a second property or holiday home abroad. For more information have a look at their website. Craig Broadbent's top article generates over 22200 views. to your Favourites.
Alex Paterson has sinced written about articles on various topics from Property Guide, Finances and Debts Loans. that suits you the best this is what Alex Paterson has to say in his website Plets.co.uk. Get a fantastic 2-3 or even 5 bed roomed townhouse with beautiful Beach vie. Alex Paterson's top article generates over 49500 views. to your Favourites.