Friday, 22 April 2011

The ABC’s for Renting Out Your Property

With the housing market being at all time low many homeowners are deciding to rent out their property instead of putting it up for sale. This change has brought about the growth of property management companies all over.

When considering renting out their properties, homeowners are faced with many questions. Are there laws governing the rental of properties and how does one go about them? Who deals with the repairs? Who is responsible for the payment of services? These are good questions that can be answered by high quality property management companies.

When considering hiring a property management company, here are a few things you should consider:

Ask - When looking for a property management company be sure to ask questions on anything you do not understand or have doubts about. This will clear up any confusion you may have about the process.

·             How will the market your property in order to achieve the best rental prices?
·             Are they current on all the property rental codes and laws?
·             What are their procedures for the collection and disbursement of monies owed?

Benefits - Consider the benefits to determine if hiring a property management company is the right choice for you in your situation.

·             High quality companies like to offer ‘peace of mind’ to homeowners while they protect their investment.
·             Property management companies serve as intermediaries between owners and tenants for all rental issues.
·             They can provide credible resources for maintenance of the home, for example cleaners, gardeners, pool men, professional repairmen, etc.

Cost – It is preferential to review your finances to see if the cost of hiring a property management company fits into your budget.

·             For long-term rentals, property management companies often charge between 8-10% of the monthly rent. For holiday rentals, companies often charge between 10-20% of the rental charge. Often a further service charge is added depending on the level of involvement with your property.
·             Marketing of your property is usually covered by this fee (this can include, newspaper ads, Internet etc.).
·             Costs of repairs need to be discussed to determine whether the homeowner of tenant is responsible for covering the cost of such repairs.

Joana Passos owns and operates 3 Passos Property Management in the Algarve, Portugal. 
Of Dutch/Portuguese nationality she was born and raised in Portugal before studying in the 
Netherlands and the UK and is fluent in all 3 languages. 

3 Passos pride themselves on meeting the growing needs of foreign property owners within the Algarve and offer a wide range of services from Holiday rentals, property management to rental licence applications.