There aren’t many people who haven’t dreamed of a property abroad at some point, but there also aren’t many people who are willing to part with their cash and take an investment; the costs, the time and the effort put plenty of people off. But, because of this, the world is full of great opportunities for landlords looking to let to holidaymakers and the reality might not be as difficult as you think.
Property Management Companies
It’s possible to let a property ‘hands free’ overseas and to allow a property management company (PMC) to do the day to day running. You can expect a property management company to keep track of bookings, inventories, queries and repairs and they might even offer additional services like airport transfers and excursions for your tenants. All you have to do find a property you like, stump up the mortgage and let your
PMC do the work.
If that sounds too good to be true then, well, you’re right – it isn’t. Property management companies will take a slice of your income that usually amounts to between 20% and 50% which could make your investment seem distinctly less attractive. You will need to shop around seriously and make sure that the company you choose offers you the best value.
One thing to be sure of is that you take out overseas property insurance for any rental property outside the UK. Don’t assume your PMC will sort this out for you. Equally, it’s worth enquiring about the reputation of your PMC, it is not unheard of that companies will go bust and leave serious debts to property owners unpaid. Choose someone who is reputable, trustworthy and preferably covered by an insurance scheme.
Letting abroad might be easier than you think when it comes to the reality, but do weigh up the options very carefully – 50% of your income is a lot to give up, but if this allows you a solid and reliable investment then it might just be the right price.