Modern Property Management
MODERN MANAGEMENT - REMOTE MANAGEMENT
You can do almost everything remotely now:
Working – easily.
Studying – absolutely.
Shopping – certainly.
Online banking - has been around for a long time.
Making a doctor's appointment - for sure.
Buying real estate - of course.
Renting property - surely, yes.
Managing your rental property - is it possible?
In property management, distance is no obstacle these days. When creating a portfolio of rental properties, keep it diverse regarding location.
What Does This Mean in Practice?
You can invest in Poland, the UK, or perhaps in Spain.
The entire world stands open, waiting for you to benefit from it.
The only limitation is your imagination and the regulations of the country in question.
A few years ago, remote property management in another country would appear impossible to most of us.
Rapid technological and legislative progress works in our favour, especially in the real estate market. Additionally, the Spanish government actively encourages foreign investors to buy property in their country.
Therefore, remote property management in Spain is as timely as possible.
What Does It Mean to Manage Your Property Remotely?
Mieszkasz w jednym mieście (kraju), a Twoja nieruchomość jest zlokalizowana w znacznej odległości od Ciebie i pomimo tego pracuje dla Ciebie.
What are the advantages of such management?
Saving your time.
Diversifying your investment portfolio.
You invest where you want and where it is most profitable for you.
Taking advantage of technological innovations, f.ex. showing a potential tenant your property remotely (virtual tour of the apartment) and even remotely providing him access to the apartment.
It is incredibly convenient for you.
Can You Own a Property in Spain Without Being a Resident?
Yes, and you don't have to limit yourself to just one investment.
How to best prepare for this? What should you know before having your first Spanish investment property in your portfolio?
There are many questions related to this topic. So, what's useful to know from the beginning?
While doing market research on this topic, you will encounter many methods of remote rental management. Before you decide to buy a property, you should already know how YOU are going to manage it.
You have at least two options:
As I mentioned earlier, technology supports remote landlords. You can manage short-term rentals using apps designed to control access to the property remotely. This access will allow you to constantly supervise the property without being there in person.
To search for guests, you can use apps like Airbnb or Booking.com.
When managing tasks – such as arranging cleaning, handing over keys, and overall cooperation with the person on-site – use apps like Asana or Trello.
There are pros and cons to this option. It all depends on your preferences - it's cheaper, and you have more control. However, there can be many personal responsibilities.
If you prefer the traditional method, search for management agencies for tourist rentals in your chosen area. Having a professional company manage the property in your absence is a great solution.
By insuring the property, you can avoid the inconvenience of emergencies such as breakdowns and leaks. The agency will contact your insurer, and you will avoid the stress of organising repairs.
Be sure to work with a reputable agency with remote property management experience.
This way, you'll enjoy a vacation home that diversifies your portfolio and brings you a return on your investment.
Purchasing a Property for Your Portfolio:
The procedure for buying a property in Spain is very similar to the one in Poland.
What documents will you need?
N.I.E. - Spanish tax identification number (numero de identificacion de estranjero). You will need it as soon as you decide to secure a property reservation.
Confirmation of your Spanish bank account (yes, you will need an account with a bank based in Spain).
Passport or ID card + a copy of this document.
Confirmation of funds for the property purchase (I will write about the conditions you need to meet to take a loan another time).
Secondary or Primary Market:
When buying a property on the secondary market - once you have decided on a specific type (apartment, vacation home) - you start the process by signing a preliminary (reservation) contract. You will need an assigned NIE.
Also, be prepared for an initial down payment, usually between €3,000 and €6,000. The reservation contract will indicate the date of signing the notary deed.
Suppose this date is more than a month from signing the notarial deed. In that case, the preliminary agreement typically includes details of an account to pay the deposit (10% of the property's value).
The next step is to sign the notarial deed, which is also the sales contract. At this stage, you pay the remaining balance of the property value. As the notarial deed is written in Spanish, you need an interpreter to act in your interest and translate the document.
If you decide on a new build, the process begins similarly – expect the parties involved in the preliminary agreement are you and the developer. Again, the downpayment is usually between €3,000 and €6,000 and guarantees a property reservation. The contract will indicate the deadline for the downpayment, which is 30-40% of the property's value and is paid into the developer's account. In this case, the deed is signed when the date of receiving the keys is known.
Remember that you will lose the pre-paid deposit if the transaction is not finalised due to your fault. If the fault lies with the other party, you will receive double the deposit amount back (unless contractual provisions state otherwise).
I've already discussed this in the article "Direction – Spain” but remember that you must file a tax return and pay property tax – even if you have no intention of moving there or renting it out.
Expect an article soon where I will answer these questions: Is it worthwhile to outsource rental management to specialist agencies? What are the costs of remote property management in Spain?
Please feel free to contact me!
Edyta
