January 2017

What To Do With Your House When Travelling Long Term

There are many options you could take if you’re leaving your house and travelling for a long time. Here are some of the options

Selling the house

Selling the house is best if you are not planning on coming back. If you are planning on leaving soon this would be a problem. It may take time to list your house and the actual sale to happen. It could take months unless you are willing to drop the price considerably for a quick sale, which in turn means you are losing potential income.

On the other hand if you’re planning your trip to happen after the sale of the house, there won’t be any issues. There are risks in selling the house as well. If you do not have any other house it may be quite risky because if you have to come back from your trip due to an emergency, you may not have a place to stay. You could always buy another house but similar to selling even buying takes time and won’t be helpful in an emergency.

Renting the house

The other option is to rent the house. This method is usually easier than selling. Rather than receiving one large off payment, you would be paid with smaller monthly or yearly payments. The small payments can supplement you in your travels.

The disadvantage of renting is you are unsure if the tenants will maintain your house. In this case you may need to hire a building maintenance company to maintain your house. This is not required if the tenants maintain and keep the house in good condition. Renting the house in profitable in the long term because you receive a steady income.

Handing over the house to a property management company

There are many companies that manage and take care of your house for you. They usually charge a management fee for their work. Similarly to facility management companies in Dubai, property management companies work with houses and estates. Usual duties includes giving the house for rent, collecting rent, informing the owner regarding maintenance work and maintaining records for tax and legal purposes. The management company is given limited power of attorney to handle the management of the house instead of you.

Some management companies can even start a bed and breakfast. Income from bed and breakfasts is higher than renting the property because people only stay for short term. The demands for bed and breakfasts are increasing because it is much more economical than staying in a hotel. Since the company is handling the management for you, you don’t have to worry about matter. You will get a detailed report on progress from the company. Many other arrangements can be made and you will have to sign a management agreement when handing over the house.