Letting your Croatia Property
A Croatia property can be a great Buy to Let investment option, and is particular popular with the British and Germans, who commonly rent them out for a return.
Generally investors that purchase Buy to Let property in Croatia will fall into two categories.
The first category is made up of investors who see Croatia property primarily, or even exclusively as an investment proposition and wish to let them out regularly. These people want to make money by letting out a Croatia property, and try to find a steady stream of guests/tenants to fill the accommodation all year round.
The second category consists of people where their key priority is in buying a holiday home. These types of buyers are not really interested in making a profit by letting their Croatia property out, but may look at covering some of their purchase costs through a rental income.
There are however fundamental differences between the two groups and their approach to the Croatia property buying process.
For example with the first group, this predominately would be a business investment purchase. And just as with any business decision, these are made and based on how to cover expenses and maximise profit. Where and what to buy, how to renovate or refurbish the Croatian property, together with what facilities to offer, will be governed by the wish to drive profit.
For these types of Croatia Property investors, they would naturally look at their target market and put themselves in the position of the people to whom they wish to rent their property out to. It might be couples looking to enjoy Adriatic culture and cuisine, or families looking for cheap beach holidays. As investors, they would tend to revolve their Croatia property decisions around what these types of guests would expect from this type of accommodation. They would choose the right location, and buy the Croatian property, refurbishing and equipping it solely with these potential tenants in mind.
The second group also have to bear in mind some of, if not most of, the same considerations but would overall make far fewer concessions to their prospective tenants. For them the Croatia property would be first and foremost a holiday home to enjoy, and as such they can afford to compromise on the more businesslike rental aspects of their Croatia property.
If or when they decide to accommodate visitors for rental, they may have to consider a few changes. Things like – extra bedding, wardrobe space and a place to lock away their personal possessions during rental periods will be important. But this would ultimately all come down to just how much (if any) rental income they would like to achieve from the Croatia property.
Whichever group you may fall into, these are all good points to reflect on. Irrespectively, in either case if you are looking to rent a Croatia property you may have a challenging time covering all of your expenses and capital/interest payments if you have a large mortgage. So it’s important to ensure your investment decisions are based on having a long-term vision and plan in mind.
Questions to ask before letting your Croatia Property
Before you rent the Croatia property out, take time to sit down and establish your financial objectives.
Your financial aim will have a knock on effect with your other Croatia Property investments decisions – i.e. what kind of tenants to aim for, whether to use a management company, and so on. Take time to also work out what your outgoings are likely to be as these may all take a chunk out of your rental income. These would include refurbishment costs; general property and garden maintenance, together with the cost of cleaners to clean, meet and greet tenants on arrival. When considering the implications involved, it may make sense to employ a Croatia property management company to manage the lettings for you, but this will also cut into your Croatia property rental income.
– What are my financial objectives?
– Do I plan just to cover costs or do I want to maximise the income from my Croatian property?
– Do I want to use the Croatia property myself – if so, when? (If you’d like to use it during holiday periods like, Easter and in the summer this may be exactly the same time when other people will want to book your property also).
– Do I want to be there on set dates, or can I be flexible and go during the weeks where there are no bookings?
– What kind of people do I want to have in my Croatia property – are children OK? What about young groups or amateur sailors?
– What advantage does my property have – is there anything that makes it stand out? What amenities is it close to?
– Will I have the time (of inclination) to manage the booking/lettings myself?
(This can involve a significant amount of work).
We hope that this guide helps to start you off, but for more advice and further assistance in finding the right type of Croatia property for your needs, please don’t hesitate to get in touch and view our property listings – we’d love to help.