Rental in Overseas Property can be a great way of ensuring the property you have purchased is not only giving you a great capital appreciation, but also giving you a rental return.

The Rental Market
If you have bought your property as an investment, you will need a rental programme for either long or short term rental and the management company will tailor the package to your apartment or villa for example, if it is close to the beach and Golf for golfing holidays or inland close to amenities for long term rentals.

Golf Rental Package
Many rental agencies offer a Golf rental package for the serious golfers for the season October to June each year. Many of the rental agencies can be seen advertising and marketing throughout golf clubs and magazines in England. This is a superb way to rent apartments all season, as golfers generally go in groups and rental agents can often rent 2-3 apartments at a time.

Holiday Rental Package
With many very cheap airlines flying to overseas destinations, travelling to warmer sunnier climates has never been more accessible. Some 20-30 million tourists travel overseas and with flights costing from only £19, there is an enormous demand for rental accommodation on their arrival. This demand is looking to grow further as more and more people leave the UK looking for a more relaxing lifestyle and a warmer climate.

Once you have had a selection of clients renting your property, if you have furnished your property to a high standard, it is highly likely you will attain repeat business, referrals and recommendations from those clients that have stayed previously and could eventually end up a high percentage of your annual rental bookings.

Please remember,
a) If the development you purchase has just been built, it may take time to finish the infrastructure of the development and therefore obtain maximum bookings.
b) If you purchase in the 1st phase of a development, you may save considerable money on subsequent phase price increases, however holiday makers do prefer the whole development to be finished and it may take a short while longer to obtain your maximum potential bookings.

Which Properties to purchase for ‘Buy to Let’
The best properties to purchase for ‘Buy to Let’ / Renting are apartments and villas in good locations for example:

Short term and Long term rentals:

• Close to beach
• Close to Golf
• Close to Skiing

Long term rentals:

• Close to local towns
• Close to amenities e.g. hospitals and schools etc.

Click here for our top ‘Buy to Let’ / rental properties

Estimated Rental Income
Purchasing Overseas and then renting your property out, should give you returns in 3 ways.

1. Capital Appreciation on your property (last year capital growth on property was in excess of 15%)
2. Rental Profit on your property each time it is let out.
3. Capital mortgage repayments off your property.
   Below are typical examples of rental income that can be achieved; however you can do your own research by simply looking through rental companies’ websites for their charges on rental properties.

A typical 1 bedroom apartment renting out:

The above figures are only a guideline and you would need to do your own research to attain a more accurate figure. Rental figures on properties can vary to the above.

A typical 2 bedroom apartment:

The above figures are only a guideline and you would need to do your own research to attain a more accurate figure. Rental figures on properties can vary to the above.

Please remember you will have, in effect, FREE use of the apartment for the remaining times, not to forget the friends and family that you will sure to rent this out to, in addition to the above income.

There is presently a shortage of rental properties in many locations and such a shortage of supply should help rental returns.

If a good rental income is realised, a good net return on your capital invested can be achieved. This is generally better than bank interest and managed stock in a low no risk field market.

Rental Management Companies

If you are considering buying a property in Spain or in fact already own a property, you should be aware of the importance of a professional management company.

The Benefits
Owners have bought for many reasons, such as main residence, second home, holiday home and investment, or investment for rental purposes. Whatever reason you have bought or are buying, a management company will offer a full independent management service to your property.

If you are not able to be there for the completion of your property, some management companies can control everything for you for example, furnishing the apartment and industrial cleaning in preparation for receiving the furnishings. The company may also offer you assistance in furnishing your apartment or villa and offer a complete furniture pack that includes everything for the apartment or villa including the terrace and kitchen.

Typical Charges
Most management companies will provide the following services for you:

• Use of their office for attention to all of your requirements including telephone calls and fax service (charges may apply for time used), advice, problem solving, messages and some offer their address as a postal service address.
• If you require urgent bills to be paid or paperwork dealt with they will provide you with a quote on request.
• Property / Rental management
• Property furnishing packages
• Car hire – they will organise car hire for you, friends & family or rental clients.
• Airport Collection or drop off service
• Excursions
• Key holding – keys can be left with the company to be given upon your request to specified people or rental clients.
• Property checks – your property can be checked periodically or after storms if and where necessary or upon request.
• Laundry and cleaning services – prices available upon request.
• Gardening and pool services – quotations available upon request.
• Maintenance and building works – quotations available upon request.

Typically, a rental agency will charge around 15% of the rental income. This covers their costs etc. in advertising your property and ongoing rental of the property.

There is no charge for you to let your own apartment, to say, family or friends. The rental agency will simply organise the cleaning and managing of the apartment. This is a great incentive for owners to let it through their own network of family and friends.

Cleaning is done very similar to a hotel service, with beds changed and bath and hand towels left on each bed ready for the next occupant. The typical charge for a 2 bedroom apartment is €36 euros plus laundry costs, which averages about €15 euros.