How to manage your rental property investment in Luxembourg?
If you are considering buying a rental property in Luxembourg, you should be aware that you will have to spend time looking for tenants, collecting rent in a timely manner and making the necessary repairs. If the thought of all this makes you anxious, you should consider outsourcing the management to an agency. This option has a number of attractive fundamental aspects that attract many buyers.
The rental management mandate, a regulated and clear approach
A rental management mandate is a legal document signed by the owner or lessor that gives the management company the authorization to manage the property of the tenant or owner. Services such as researching and checking the solvency of tenants, collecting rent, accounting, etc. are essential, as is the monitoring of works, repairs, representation at general meetings, etc.
In the same spirit, this mandate details the agency's responsibilities and the owner's agreement for the expert to exercise them on his behalf. Finally, the duration of the contract and the conditions of its renewal are fixed.
How much does it usually cost to manage a property?
Professional property managers and their clients are free to negotiate the fees for their services. In most cases, the monthly percentage agreed upon by the parties is deducted from the rent paid by the tenant to the agency. On your side, you pay a professional to come and establish an annual inventory of fixtures, which not only saves you a lot of time, but also allows you to better track unpaid rent and monitor the condition of the property. To avoid costly maintenance repairs and rent arrears, hire a competent property manager.
You can contact several different people and offer to manage your property. You should not only evaluate the price, but also the services included, as some bidders may be willing to take on the bulk of the rental management responsibilities. You may want to choose a mandate that gives the agency complete independence, relieving you of any responsibility for the safety of your property.
List of the many rental management services available
Going it alone in a private rental in Luxembourg can be a waste of time, effort and money. If a tenant has regular, one-on-one interactions with the landlord, he or she is less likely to worry about not paying the rent. They are not always reliable in their payments and can cause damage that requires costly repairs.
Your contracted property manager will handle issues such as finding tenants, establishing an inventory of existing property, collecting rent on a regular basis and scheduling maintenance. They can perform all necessary checks to ensure the financial stability of the tenant. Rent reviews to ensure compliance with the law is another service he offers. Last but not least, he will take the necessary steps in case of non-payment of rent, which will save you a ton of time and energy.
Concerning the financial, legal or administrative aspects of the rental management, a real estate agent will also accompany you. Don't hesitate to ask for expert advice if you want to explore your options.