So, you want to wrap yourself up, you intend to travel the world, you intend to take a year off, you intend to relax, you intend to find yourself? Great! But what will happen at home? Let’s talk about what to do with your apartment or house when you are ready to travel.
Renting the house while abroad is an affordable way to make sure your home taken care of, as well as an affordable way to generate additional income and capital. Many expatriates use rental income to reinvest in property after returning home, or use cash to purchase a new home in their host country. However, being both an immigrant and a homeowner can be challenging, and renting property while living abroad requires knowledge.
Here are a few steps you can take to begin the process of preparing
Do research and communicate with relevant parties
When renting your home for the first time, be sure to consider current rental rates, future market trends, and rental rules for your property. Before renting a property, make sure your mortgage lender and insurance company understand your intentions.
Contact all relevant parties to make sure your home is available for rent, as some lenders or homeowners associations may have specific rules regarding property rent. Depending on your current mortgage or lease agreement, renting out your property may be illegal.
Contact your lender and get prior approval for your intention to rent your property while you are abroad. If they agree, moving forward will not be a problem, but make sure everything written down!
When doing your research, you should check the insurance coverage of your homeowners. Keep in mind that coverage may change with a new tenant, so it’s important to understand what has changed and what protection you provide. It can be expensive, but it is also a must-have.
How to choose the best property manager – Even if you live in another part of the world, you are still responsible for managing your tenants and property. If you decide to rent your home while moving abroad, regular travel from another country can be expensive and stressful. So, a competent and efficient property manager can be a worthwhile investment.
Your property manager will help you find tenants, inspect your property, coordinate property renovations, take care of billing and contract requirements, and keep you updated on current news and events with tenants. They will also help you with a secure lease, which can reduce the cost of hiring a writing lawyer.
Most importantly, your property manager will give you the peace of mind to live abroad and work comfortably.
Many large property management companies operate in multi-home communities and do not hire anyone who rents their home, which limits the pool of potential managers you can hire.
By following all these appropriately you can be abroad, enjoying your days. No stress about your property you left behind and there will be an income too.