Property Management
Our agency for vacation homes in Europe has over 10 years experience in letting to vacation guests. We can achieve good occupancy levels for your property, and at the same time relieve you of many of the chores concerned with the letting.
Would you like:
- your property to have a high level of occupancy and rental income?
- to avoid the hassle of a constant search for suitable tenants?
- to have no need to bother about constantly monitoring the rental payments?
- to spend your time on other worthwhile aspects of your life?
We can take all these worries off your shoulders, and market your accommodation with use of various “media” – such as the internet, direct marketing, and via travel agencies. You will be kept constantly informed about the current occupancy.
We will contact you as soon as possible after we have received your details, so that we can agree a mutually convenient inspection date. We will then be able to discuss all the details with you on the spot, and follow up with a provisional contract. Below we give more detailed information about the management and co-operation services our company can offer.
We can provide our services in several alternative ways:
Option 1: Conventional property management agreement
Terms: The owner pays a 300 EUR deposit when signing the management contract. This covers urgent repairs which may need immediate attention. Also, while the apartment is tenanted, the property management fee and maintenance costs are covered by this deposit.
The monthly management fee is 10% + VAT of the rent. While the apartment is empty, the management fee is 25 EUR + VAT per month. We will find a tenant for your flat, at a charge of 1 month’s rent + VAT. A one-time fee of 100 EUR is charged for the registration of public utility meters to the owner, and their settlement with the tenant and public utility service providers
Services included: Providing a template tenancy agreement - Changing locks with each new tenancy - Contacting public utility providers - Checking utility providers’ balances - Paying utility providers’ bills - Taking out property/contents insurance - Liaising with the Proprietors' Representative of the building - Executing rental agreements - Making sure that rental fees are paid - Communicating with tenants - Providing solutions to any property management problems that may arise – (if applicable) Corresponding with your accountant.
Option 2: Guaranteed fixed monthly payment to the owner
BudaspestInvest establishes a contract with the owner covering a period of 3 – 12 months, and agrees to pay the owner a fixed monthly amount. This amount is guaranteed and cannot be changed during the contract period. This applies whether the apartment remains tenanted, or even if it is empty for some of the time. The exact monthly amount paid to the owner depends on the characteristics of the apartment, its location, and the season of the year, and is fixed by the parties at the time of signing the agreement. All utilities charges are paid by BudaspestInvest or by the tenant, but not by the owner. This option is the most convenient and risk-free for the owner, although it is less profitable than option 1 or option 3.
Option 3: 50-50 partnership
BudaspestInvest uses the apartment for short-term letting (periods of a few days up to several months). All revenues accumulated during the agreed period (3 - 12 months) are declared as partnership revenue. All utilities payments and other expenses are subtracted from the total revenue, and the remaining amount is divided between the parties on a 50-50 basis. This option can potentially bring the owner a higher income, as compared to option 1 or option 2; but at the same time it is more risky since, for example in the extreme case where no tourists rent the apartment, there would be expenses to share but no profit for either party.
Extra services: Interior furnishing
We can also help you to furnish your property. Usually we recommend that you choose a supplier such as the popular IKEA, who are well-represented locally . However if you wish, we can furnish your apartment to a higher level of sophistication. For connoisseurs, we may mention that Budapest is a noted centre for antiques and fine-art dealers.
The charge for this service is 10% + VAT of the total cost of the furniture excluding delivery charges.
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