If you already own or are planning to buy a property overseas, you may be wondering how to protect and maintain your investment, especially during these uncertain times.
Erin Harding at Property Guides shares six tips on how to manage your property investments abroad.
Keeping your property maintenance up
If you’re unable to visit your property for long periods of time, it may be worth ensuring that everything stays in working order. This could be as simple as a neighbour checking in from time to time to look over things or employing a trusted handyman to assess whether everything is in working order.
If you can, plan ahead to prevent maintenance issues. You may wish, for example, to ensure that everything is well insulated, your plumbing is in order and anything containing stagnant water is emptied.
Keeping on top of alternative investments to diversify your portfolio
If you’re looking to expand your property portfolio, you may wish to consider diversifying it. Buying two properties in the same area, for example, could leave you severely affected if that area becomes less desirable. However, if you choose a different kind of property in a new place, this spreads out your risk.
You may even wish to tap into a different market – why not invest in a property on the Spanish coast and another in the French alps?
Protecting your rental income
When renting out your ski home, you may be expecting to receive a fixed amount of money each month from your tenants. However, if they pay in euros and you receive the money in pounds, for example, then your income is exposed to currency fluctuations.
The currency markets fluctuate frequently and can be unpredictable, meaning that the value of your income will fluctuate. It is, therefore, wise to seek the services of a currency exchange specialist, who can put measures in place to protect your money and stop this from happening.
Insuring yourself and your property
Many uncertainties come with letting out a property, which is why covering yourself is a must. You may need landlord insurance and adequate cover, especially if your home is going to be left unattended for a long period of time. Ensure that the insurance covers you for the correct period of time, as some policies cut off after thirty or sixty days of absence.
Find an overseas property management company you can trust
To avoid the stress and headache of managing your overseas property, why not find a property management company to do it for you? They can cover everything from collecting rent to attracting the right tenants to your property. You’ll place a lot of the responsibility in their hands, so make sure to find a company that you trust.
Although travel is difficult at the moment and restrictions abroad may mean that demand for your property is low, take comfort from the fact that this is a long-term investment. As we’ve seen already, there is sure to be a lot of pent up demand that you will hopefully benefit from in the near future. Looking for long-term tenants who don’t move around much is likely to work in your favour and provide you with some security.