How to manage your Overseas Real Estate
KARACHI: Do you own property abroad? Are you considering purchasing property in another country? If so, you may be struggling with the concept of managing your house or apartment while you are gone. Whether you own a condo unit in the Philippines or are considering a beachside property in Indonesia or Sri Lanka, you’re likely to be asking the same questions. Many property owners who live abroad choose to rent out their vacation property while they are not there. Others see property abroad as a buy to let investment. How can you make the most out of your overseas real estate?
Trustworthy Legal Advice
When beginning your journey into the overseas property market, you will need a trustworthy lawyer to research laws and regulations in your country of choice. A legal representative is essential when acquiring such a large asset. It’s often best to hire a local lawyer who is familiar with the local regulations on overseas property investors. In many countries, e.g. the Philippines, foreign nationals are subject to specific rules regarding home ownership. If you don’t speak the language, it is especially important to find a bilingual advisor to help you on your journey. A lot of information on the rules and regulations for foreign investors is available to read online.
Research Before Purchasing
When it comes to a holiday home or a rental property, location is almost everything. Ensure that you visit properties in person before purchasing and that you get to know the neighborhood. In terms of renting, carry out some market research to find out what sort of tenants you are looking to attract. Once you have determined this, decorate and furnish the property according to the function your property will perform. A space that is easy to keep clean and tidy is always the best bet.
Medium and Long TermRentals: Property Manager vs. Rental Agent
Renting out your overseas property can be a great way of building cash flow. However, in order for the experience of medium/long term letting to work, you will probably need some outside help. Consider hiring both a property manager for maintenance and a rental agent to ensure that the property is constantly occupied. If you can find a reliable professional who will take care of both marketing and maintaining your property, your life as a landlord is likely to be less costly and less of a headache. Shop around for experts in both domains and you are sure to find a price that works for you and your profit margin. By searching on an online property portal such as Lamudi, you can find examples of rental properties in holiday destinations including Sri Lanka, Indonesia, and the Philippines. Consulting a property portal can also help you to find reliable agencies in your country of choice.
Short Term Rentals and Holiday Lets
Holiday lets are another great way of generating income from overseas property. Online platforms such as Airbnb can assist you in your management of the coming and going of guests. Other short-term rental platforms are also available and you can even advertise short term lets in local magazines. Bear in mind that it is vitally important for you to hire a team of cleaners. Line up a meet and greet person and ensure that they are contactable should there be any issues with the property during the guests stay. By ensuring that your guests are well looked after, you will accumulate glowing reviews on your profile. As a result, you may be able to increase the rate per night and thus make a better profit. Always check your insurance policy to ensure that you are covered for short term holiday lets. If your home insurance does not allow for this, it is wise to purchase the appropriate insurance for your purposes.
Line up an Emergency Contact
Whether you are renting out your property or not, it is always wise to ensure that someone is keeping an eye on it when you are out of the country. From preventing emergencies to ensuring that emergencies are dealt with should they occur, consider asking a friendly neighbor to pop in and check on the property whenever it is vacant. If you don’t have a neighbor who could fulfill this role, consider employing an agency to check on your home. It is also essential to install a fully functional security system to prevent any burglaries or other forms of crime from occurring in or around your home. Of course, if you have guests, you must respect their privacy. However, it is important to survey your home when it is empty. Property owners who are reassured that their property is safe and retaining or growing in value will be the most satisfied by this fantastic experience.