Renting with Globexs, how does it work?
Globexs is a company specialized in expat-rentals: Flexible, temporary rentals for expats, companies, remote workers and digital nomads for periods between 1-11 months. This page is written for apartment owners on the Canary Islands and explains the advantages of renting with Globexs, and how it works.
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 and remote workers.
In Spain 3 types of rentals coexist: Traditional long term unfurnished rentals, mid-term (3-11 months) furnished rentals and short term holiday rentals. The holiday (airbnb) market is clearly saturated in a lot of cities, causes troubles with the neighbours 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
Why expat rentals are so interesting in Canary Islands
Since the start of the pandemia more and more employers are allowing their staff to work online from home, or from… wherever. The lead to the creation of a new profile of young professionals: Remote workers, also called digital nomads, or professional expats.
The Canary Islands are strongly positioning themselves as one of the preferred destinations for remote workers and expats. Especially on Tenerife, Gran Canaria and Fuerteventura the community of remote workers is growing. Las Palmas de Gran Canaria is actually the most popular destination in the Canary Islands for remote workers, but also the expat communities in the beach villages of El Cotillo, Lajares and Corralejo in Northern Fuerteventura are growing fastly. Most remote workers on the Canary Islands come from the UK, Germany and Scandinavia.
Renting your apartment to remote workers is a good idea, because they usually value local businesses and professionals, and will treat your apartment respectfully. In general, remote workers are highly qualified young professionals, usually without family obligations, and with an entrepreneurial spirit and an open mind.
The services provides by Globexs
Commercial
Globexs is a company which main activity is the provision of suitable accommodation for expats, companies and remote workers. 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 (may vary depending on the destination) 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.
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 Canary Islands make money?
The Globexs fees are paid by the tenant
For its services Globexs charges to the expat (tenant) a commission, an administration fee, and/or an agency fee. 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
Equipment of the property
- 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.
- Indispensable: Fast wifi, a good-size TV, oven/microwave, toaster, kettle and washing machine.
- Optional but highly recommended: Dishwasher, dryer, coffee machine.
- Beds must be in good condition and clean (including mattresses and bedlinen). These items can be purchased in the Globexs webshop.
- Cleaning products, shampoo and toilet paper are provided.
- The property must be delivered impeccably, completely clean and in good condition as well as free of personal belongings.
Obligations during the rental
- The owner is responsible for check-in and handing over keys
- The owner must ensure that utilities (electricity and/or gas, water), wifi and television distribution are connected and operational throughout the rental period.
- The owner is obliged to consider as priority all necessary repairs and improvements, and to replace all furniture or appliances damaged as a result of normal use.
- The owner is responsible for managing the cleaning after the rental period, as well as the washing of the bedlinen and bath linen.
- The owner is responsible for the check-out process and the control of the apartment after check-out (see Deposit management).
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.
Partner properties
Apartment owners in Canary Islands can also choose to collaborate with Globexs as a partner. Globexs partners manage their own bookings. Globexs is not involved in the contract and the payments. The role of Globexs is limited to generating leads in exchange for a commission. Becoming a Globexs partner might be a good option for:
- Professional holiday makers that want to diversify and start selling to expats, companies and remote workers.
- Managers of coliving communities.
- B&B's and aparthotel managers.
- Owners of shared apartments.
Holiday makers, B&B's, aparthotels and owners of shared apartments / colivings can choose to become a Globexs partner.
What is the difference between a Globexs property and a partner property?
Globexs properties are housing facilities of which the booking process is managed by Globexs. Partner properties are housing facilities that are fully managed by a third party, a Globexs partner. In other words: A booking in a Globexs property is managed by Globexs. A booking in a partner apartment is managed by the Globexs partner.
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 general 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 to expats and remote workers?
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 we call you.
