What are the advantages of handing over a property to short-term rentals?
- It becomes a revenue generating asset
- It is occupied and managed on a regular basis, providing the owner with peace of mind
- It can be made available to the owner for his personal use
- No taxation on property ownership or residency (property and land taxes)
- No taxation on rental income
- Higher flexibility for future plans with the property
What are the most important things to remember when looking for a short-term rental company?
- Always choose a reputable management company. Ask your friends or family to recommend one.
- Check the fee structure of the company. What are the management fees and what do they include? Are there any additional charges for individual services?
- Enquire about other fees and charges you will be responsible for. As an owner, you will be liable for a number of fees including: utility bills, connections charges, service fees, maintenance contract, and insurance.
- Find out how the company operates: Will the company only rent out your property or do they also manage it? What are the standards for inspections, cleaning, and arranging maintenance? What is the reporting structure? What kind of clients rent the property? How realistic are the estimates of the company? Is the company aware of rental restrictions within a development?
- Determine your own expectations. Will you use your property during the year? Do you have financial obligations to cover, such as, a mortgage? Do you intend to sell your property within a short period?
- Assure that your property is furnished to high standards. Good quality furniture and equipment will ensure that your property has a longer life cycle. Do not choose fragile material to furnish your property.
- Assure that the property is viewed prior to signing the purchase document. A professional company provides you complete feedback on rental revenues, realistic occupancy levels, and other requirements related to furniture and equipment.
- Carefully read and understand the terms of the contract before you sign.
- Find out what documents are required to contract your property with a short-term rental operator. The minimum requirement will be the proof of ownership and passport copies. However, do check with your consultant on other mandatory documents. Always keep the original documents with yourself. Only submit copies to the agency.
- Confirm when you will be able to handover the property. Assure that all assets that are handed over, including all keys, will be accounted for. This should be done with an inventory list signed by both parties.