How to Buy Overseas Property Safely - Turkish Connextions

MAKE THE MOST OF
OVERSEAS RENTALS
Many second home owners plan to rent out their
property to help cover its costs. How to do this best?
etting your holiday home has become
a sophisticated business these days,
with growing competition between
L home owners who need to earn an
income from their overseas property.
Some people may decide they need to rent a
property out due to rising mortgage payments
(if exchange rates are working against them),
escalating upkeep costs, or perhaps because
they can’t sell it in a slow market.
These “accidental landlords” may not have bought
their property to let, yet can still maximise their
property’s plus points, even if it might not tick every
single box of the perfect rental property.
But keeping a property in use does have
advantages – a property lying empty for half the year
is no use to anyone –and the ever-growing popularity
of self-catering villa holidays (over hotels) means the
sector is still expanding.
So fi rst of all check that you are permitted to rent
out your property for short term (holiday) lets. If it is
on a development in Spain (especially the Canaries)
or the States there may be restrictions within that
specifi c urbanisation or community.
In Florida, for example, areas close to the
beaches or theme parks are often zoned for
short-term rentals, whilst others are designated
“residential” and only allow long-term lets
(over three or six months).
20 AIPP CONSUMER GUIDE
Don’t just ask the selling agent, get independent
advice too, and fi nd out if you need any kind of
licence as an overseas owner. A recent clampdown
in the Canaries has led to many owners being hit
with fi nes, even though they bought on developments
where they were told holiday lets
were authorised.
Of course, if you have the choice, you will need to
consider whether you are targeting long- or short-term
letting (or both), bearing in mind the lower weekly
income offered by long-term might be balanced out
by lower management and marketing costs plus also
the security of a season-long booking. In France,
long-term rental laws heavily weighted towards the
tenant can cause problems for landlords, especially
when tenants refuse to leave (eg families cannot
be evicted during winter).
Some owners fi nd short-term lets in the
summer and long-term off-season lets work the
best fi nancially.
You will need to pay income tax on lets so
investigate the tax situation (which can be constantly
changing, so best to seek professional advice), what
Some owners fi nd short-term lets
in the summer and long-term off -season
lets work the best.