For South African real estate investors considering property overseas or foreign investors considering property here in South Africa, property management is essential to ensure smooth operations without any potential hitches or problems. As the global village becomes easier to navigate, and economies fluctuate, purchasing real estate overseas has become a highly worthwhile investment for many wanting to take advantage of favourable conditions in the world’s real estate markets. In South Africa, this is especially the case, with celebrities and many other dignitaries and elite members of foreign society flocking to top cities such as Cape Town to invest in property in South Africa. Many choose to spend a small part of the year in their properties, before heading back to their homeland – making a huge profit by renting out the property for the rest of the year.Potentially, renting real estate in another country when you are not there to oversee operations could be a nightmare, but by outsourcing to a company dealing with the management of properties, foreign investors are able to ensure that day to day management such as rent collection, maintenance, repairs, renovations, tenant management and every other aspect that goes into the management of real estate is handled efficiently.To ensure that your investment has the best returns, consider these tips for managing an overseas property:* Consider short-term rentals versus long-term rentals to work out which would give the best return on your investment. Short-term often has a higher cost, which means rentals would be charged at a higher rate.
* Determine the best rental price for your property, considering the value of the property, the level of maintenance and the area that the property is located in.
* Bear in mind that the type of occupants for your property is likely to be in the tourism groups rather than resident groups – especially if your property is situated in a popular tourist destination. This means that you need to consider how you will find occupants.
* Choose a reliable property management company to help you manage your property. They should be able to handle all aspects of managing the property, at reasonable rates.
* Check the overseas rental laws and regulations to make sure that you are legally permitted to rent out property in the country your property is in – some countries may have laws against foreign property owners renting out property.
* Research the tax regulations and costs thoroughly to ensure that you understand the exact taxes that are required in the country your property is situated in.Remember that as much as your rental income may make you profit, you should never see this income as a way to pay for your property’s mortgage. Instead, see the income that you make from your property rentals as a bonus income to bring in additional funds.
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