I know someone who owned some homes overseas and he was always complaining about being screwed over by someone who was managing his property. He decided to sell the homes but it took quite a well while [to sell them] and even then, he made a loss. Is owning rental houses overseas that bad? Should one never attempt to buy rental homes/apartments, etc overseas?
My nephew is working in Hongkong and he has 3 condo units here being managed by his driver who also drives my nephew's car. Late last year, when we went to Hongkong, my nephew was complaining that he feels he is being cheated by his caretaker. What can I say about it? With the unaccounted money reaching hundreds of thousands of pesos (for one year) he is definitely being cheated. So he wants me to manage his property because I am the only person he could trust now. But I declined because I have no time for that and besides, that would add another stress points to me.
You should have accepted the offer and made a commission from the job. Collecting rent never is an easy thing to do. You'd deserve some of that money since should he hire someone [else] to collect the rent for him, he'll be paying them. There's no way you'll get free services for anything . . . not even from relatives.
You are right about the commission that it's good money. But it's a big responsibility for me and that commission will not make me rich, hahahaaa. I had wanted to protect my nephew of his property but honestly, I cannot handle the administration like the regular checking of the condo and what if there are repairs to be done? My husband said that it may just add stress to me so I refused. By the way, that nephew just got his privilege in Hongkong that now he would not be needing a working visa anymore - immigrant status is given to persons who had stayed for 7 continuous years in Hongkong.
Renting property abroad is not something that I'd ever be interested in, exactly for the same reason mentioned in the original post. Your going to have to get somebody to manage then properties, usually a local from that particular country and you never know exactly what's going on, only whar they choose to tell you. For me it's risky owning properties to rent in the country you live in, doing that abroad is doubling the risk so I'd rather play it safe.
My husband has an uncle who owns a vacation house in Tagaytay City, popular for its cool climate. The uncle is planning to go back to the US and have the house rented out. My husband suggests to get a long term tenant who would agree to a lease contract that would include everything - repairs, taxes, and other things needed by the house. They are still communicating by email but I guess the uncle would agree. At least he wouldn't be needing an administrator.
In our country, there's a saying... "a wooden stick that is far off can't kill a snake"...the further away one is, the longer the mice will dance to their own beat and continue pocketing his money...someone had offered me a job abroad for 5 yrs but I refused, why, I have real estate agents managing my property and I need to be there and oversee the work they are doing and ensure, they are not stealing from me!
I must say @ Corzhens...you are a wonderful aunt, I wish I had an aunt like you, regardless of you refusing to take up the offer...you've just demonstrated...that its the thought that counts
Thank you for the commendation. It has been my policy to be generous with relatives and friends but I also have that policy to avoid something that might compromise my relationship particularly of that involving money. Maybe that was partially brought about by my religiosity. But anyway, as for renting out a property that you cannot handle yourself, I suggest that you create a contract that would stipulate the full control to be granted to the tenant and there is a penalty clause so that when the tenant reneges on his responsibility, he is to pay a price.
Rightly said......where I come from, I've heard of so many painful stories of people leaving properties of huge value to relatives for management services as they pursue greener pastures abroad only to experience pain and anguish upon returning...to find out that the said relatives sold the lands/properties for their own gain...its just sad!
