Renting to expats with Globexs, how does it work?
This page is written for apartment owners and explains how the expat-rental business works. The purpose of this page is to give all necessary information for apartment owners so that they can decide whether renting their apartment to expats is a good option for them.
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. Here you can find information for apartment owners.
In Europe 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.
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 usually stays between 1-11 months
- The tenant cannot use the address as a first residency, unless the owner agrees to this
- 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
- Often we work with extendable monthly contracts
The services provided 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. On this page you can find all information for apartment owners.
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 exceed 100€/month (apartment) or 250€/month (house) the difference 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 or on the 20th of each month. In case the tenant is late with the payment there can be a delay of aprox 1 extra week.
The rental contracts are always accompanied by a deposit, paid by the tenant to Globexs. The amount of the deposit is usually the value of 1 month’s rent. Globexs collects and keeps the deposit until the end of the rental. (see Deposit management)
Under certain circumstances the owner can enjoy a 1-time linen fee (between 75-150€) on check-out.
Contracts
Globexs takes care of all the paperwork. With the owner Globexs signs an (non-exclusivity) 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. There is no exclusivity between Globexs and the owner, so the owner has the right to use other channels to promote his apartment.
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 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.
Publication fee
The publication of the property on globexs.com is subject to a 1-time administration fee of €150, to be paid by the owner.
The obligations of the owner
Renting your apartments to expats comes with a serie of obligations:
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:
- The apartment is left behind dirty
- There are damages to the property
- The tenant did not respect the house rules
- The energy consumption is over the limit
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 our average occupancy rate is 10,5 months / year.
- The average stay of a tenant is between 5-6 months.
- 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.
- 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.
- 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 contact your local agent, or you fill out the form, or you send an email to info@globexs.com.
- You will be contacted within 48 hours by the Globexs headoffice, or by the Globexs agent in your area.
- We schedule a meeting with you at the apartment.
- We take pictures and a video.
- We publish your apartment on globexs.com.
- As soon as we have an expat (tenant) interested in your apartment we call you and discuss the conditions.
