Renting to expats in Valencia with Globexs, how does it work?
This page is written for apartment owners in Valencia and explains how the expat-rental business works. The purpose of this page is to give all necessary information to the owner so that he can decide whether renting his apartment to expats is a good option.
What are expat-rentals?
More and more apartment owners in the larger European cities are moving away from traditional rentals and are opting for renting to expats.
In Valencia, 3 types of rentals coexist Traditional long-term unfurnished rentals, mid-term (1-11 months) furnished rentals, and short-term holiday rentals. The holiday (Airbnb) market is saturated in a lot of cities, causes trouble with the neighbors, and is very labor-intensive.
Traditional rentals scare many apartment owners because of potential payment problems and the risk of a bad tenant (with no way of kicking him out). So that is why expat-rentals are becoming increasingly popular.
Click here to read about the advantages of renting to expats.
Indeed, if properly managed by a professional company like Globexs, expat-rentals offer huge advantages to apartment owners.
The principles of expat rentals
- The tenant stays between 1-11 months
- The tenant cannot use the address as a first residency
- The apartment is fully furnished (including bath and bedlinen)
- All the expenses are included in the price (wifi, water, electricity, etc.)
- The contracts have flexible cancellation terms
The services provides by Globexs
Commercial
Globexs is a company which main activity is the provision of suitable accommodation for expatriates and their families. We publish the owner’s apartment on globexs.com and offer the apartment to our expat-customers. Globexs finds the right expat (tenant) for the right apartment.
Financial
The rental price that the owner wishes to receive is determined in consultation with Globexs, and may vary for each rental, depending on the duration of the rental. The owner bears the costs of the utilities, such as electricity, gas, water, television, property taxes, etc. In the case of energy costs, costs over 100€/month will be deducted from the tenant’s security deposit.
During the rental period Globexs collects the rent on behalf of the owner. The monthly rent is transferred to the owner either on the 5th of on the 20th of the month.
The rental contracts are always accompanied by a deposit, paid by the tenant to Globexs. The amount of the deposit is negotiated between Globexs and owner, but is usually the value of 1 month’s rent. Globexs collects and manages the deposit until the end of the rental. (see Deposit management)
Contracts
Globexs takes care of all the paperwork. With the owner Globexs signs an intermediation contract, and with the expat (tenant) Globexs signs a rental contract on behalf of the owner. The actual rental contract is an agreement between the expat (tenant) and the owner. Ask your Globexs agent for a sample of both contracts.
Property management
Globexs takes care of the check-in and check-out process, the cleaning, linen change, and basic maintenace tasks. (See Globexs Property Management chapter)
Problem solving
Globexs is the contact person during the complete stay of the tenant. In case of problems both the owner and the expat (tenant) contact their Globexs agent who will try to solve the problem by appropriate intermediation.
How does Globexs make money?
The Globexs fees are paid by the tenant
Globexs charges the expat (tenant) a commission, an administration fee, and/or an agency fee for its services. These fees are variable and depends on the duration of the booking. They are charged on top of the rental price that Globexs has agreed with the owner, and will be invoiced to and paid by the tenant.
The obligations of the owner
The owner must ensure that the rented house is sufficiently furnished and equipped with sufficient household goods for the number of people for whom the house is intended. All appliances must be in good condition and work perfectly. There must be a refrigerator with sufficient space for the number of people for whom the house is intended. Beds must be in good condition and clean (including mattresses and bedlinen). The property must be delivered impeccably, completely clean and in good condition as well as free of personal belongings. Cleaning products, shampoo and toilet paper are provided.
The owner must ensure that utilities (electricity and/or gas, water), wifi and television distribution are connected and operational throughout the rental period, and to consider as priority all necessary repairs and improvements, and to replace all furniture or appliances damaged as a result of normal use.
Alternatively, the OWNER can contract the services of GLOBEXS to manage all the preparations for the first rental. GLOBEXS will charge 35€ + VAT per hour for all property management actions. Invoices from professional third parties or purchase of materials, goods or furniture will be charged separately without adding any extra by Globexs. Many items can be purchased in the Globexs webshop.
Globexs property management
Concierge
- Globexs is responsible for check-in and handing over keys.
- Globexs is responsible for the check-out process and the control of the apartment after check-out.
Cleaning
- Globexs is responsible for managing the cleaning after the rental period, as well as the washing of the bedlinen and bath linen.
- The owner authorizes Globexs to buy cleaning products, shampoo and toilet paper when necessary. The cost of these items will be deducted from the monthly rent, and will be justified by receipts.
- The owner authorizes Globexs to buy new bath linen and bedlinen when necessary. The cost of these items will be deducted from the monthly rent, and will be justified by receipts.
- Globexs will charge 35€ + VAT per hour for all property management actions.
Maintenance
- The owner authorizes Globexs to amend as priority all necessary repairs and improvements performed without making any inconvenience to the lessee. The owner is obliged to replace the damaged appliances caused by loss or wear and tear as a result of normal use.
- In case of urgent repairs, Globexs will try to reach the owner first, and in case this is not possible Globexs will take care of the cost temporarily deducting it directly from the rent, always showing the receipt of this repair and its cost. It is meant as urgent repair the one which limits or varies the conditions of the apartment services offered and existing upon agreement. Globexs agrees with the owner to perform such repairs in a diligent way and asking for the most reasonable quotation.
- Globexs will charge 35€ + VAT per hour for all property management actions.
Deposit management
Globexs collects the deposit and keeps it until the departure of the expat (tenant). The owner checks the apartment and communicates damages to Globexs within 5 working days after checkout. If the owner considers that (part of) the deposit should be retained Globexs opens a deposit report.
Reasons for non-refund of the deposit
The owner can decide to retain the deposit (partly of completely) in the following cases:
- If the tenant does not leave the apartment surface clean on check-out. The tenant is not obliged to wash the bedsheets and the towels, but he is obliged to leave the apartment surface clean before he leaves: The dishes need to be washed. It is not allowed to leave the dishwasher with dirty dishes. The trash needs to be removed from the apartment. The fridge needs to be emptied. In case the apartment is left behind dirty a cleaning fee can be charged. The cleaning fee amount will be decided by the owner in collaboration with Globexs (minimum 75€ and maximum 1 month’s rent), and communicated to the tenant by Globexs.
- If the tenant causes damages to the property. Accidents can happen, but the tenant is obliged to cover the damages that he causes. (unremovable stains on bedlinen and furniture, broken furniture of kitchen equipment, etc….). The value of the damage will be decided by the owner in collaboration with Globexs and communicated to the tenant by Globexs. The owner needs to justify the cost of the damage with invoices or receipts.
- If the tenant has consumed more energy than included in the rental price. Energy costs over 100€/month will be deducted from the tenant's security deposit. The owner needs to justify the energy costs within 2 weeks after checkout.
The liability of Globexs
- Globexs is not responsible for the safety of the property, nor for damages suffered by tenant when using the property and everything in it. It is the sole responsibility of the owner to hold insurance that covers at least the damage caused by fire or theft, as well as civil liability arising from the acts or omissions of users of the home.
- Globexs during the rental period will collect the rent in name and on behalf of the owner to the tenant, but Globexs cannot be held liable in any way if the tenant has not paid the rent - temporarily or permanently.
Other things to know
- Globexs does not require exclusivity. The owner has the right to publish the property through other sources.
- Globexs does not guarantee a minimum occupancy rate, but in Belgium our average occupancy rate is 10,5 months / year.
- The rental price for an expat-rental is ususally 30-40% higher than the rental price for a traditional rental. However owners need to keep in mind that the occupancy is not a 100%, and that the owner is likely to having to bear some maintenance / cleaning costs in between 2 rentals. In the long run, expat rentals are only slightly more profitable than traditional rentals, but owners choose expat-rentals for the other advantages: Control over the apartment, minimum financial risk, etc.
- Sometimes the rent is paid by a company. If this is the case the owner has to pay more taxes than with a traditional rental. Globexs recommends the owner to consult a financial advisor.
- Every trimester Globexs provides an income statement to the owner on request.
- Click here to read about the advantages of renting to expats.
Do you want to rent your apartment to expats?
Have you decided that expat-rental is a suitable option for your apartment?
The next steps
- You fill out the form, or send an email to info@globexs.com.
- You will be contacted within 48 hours by the Globexs headoffice, of by the Globexs agent in your area.
- We schedule a meeting with you at the apartment.
- We take pictures and a video.
- We sign the intermediation contract.
- We publish your apartment on globexs.com.
- As soon as we have an expat (tenant) interested in your apartment we call you.
Do not hesitate to contact us if you need further information,
