3. Finding tenants
The last, and perhaps most important, step for the owner in acquiring an investment property abroad is securing income, i.e. finding reliable tenants. In this respect, the services of short-term accommodation agencies such as Booking and Airbnb can be used. However, in Spain, for example, these agencies charge a standard annual fee of around 25,000 CZK (€1,000) and 15% of each rental. If they also arrange a full-service villa or apartment rental, that’s already 20%. This includes communication with guests, handing over the keys, pricing, photography and all the service around. In addition, cleaning is also included. In Croatia it is different, here agencies charge only 15% of the revenue.
“Property owners abroad have to work actively with agencies at the beginning. Once they get the rentals off the ground, it’s important to take advantage of the higher prices in the high seasons. And if they want to increase their income and have the opportunity to manage the holiday property themselves, it is important to build their own clientele. Then they can get rid of agency fees over time, which is a huge saving,” comments Jesika Schopper, adding about the investment income opportunities. In this situation, a long-term rental is more profitable.”
Although it is possible to buy a property abroad on your own, according to Luxent – Exclusive Properties, it is worth using the services of a real estate agent given the complexity of the process. “A huge benefit is a thorough inspection of the property, which is often very difficult for buyers abroad. In addition, thanks to professional brokers, it will be easier to arrange an inspection of the property and, in the case of a decision to buy, the entire administrative and legal system of such a transaction. Experts from our real estate agency will acquaint the interested party with the local rules and requirements for the purchase of the property, including the calculation of all related costs. At the same time, we work closely with partners in the respective areas who can advise on securing the subsequent lease. Clients do not have to worry about being left alone,” concludes Jiří Kučera, director of Luxent – Exclusive Properties.
