By Richard Way, editor at the Overseas Guides Company
For many people moving abroad, renting their first home is often the best option, especially if they’re relocating to a long-haul destination which they may have visited only a few times.
The appeal is obvious: renting is a good way to get to know an area without committing to purchase property there, leaving flexibility to move on if it doesn’t match your wish list.
Paul Winfield and wife Lynne, both retired, moved into a rented villa in Paphos, Cyprus, at the end of April, after deciding to defer buying there after the banking crisis hit the island. They researched rental properties on the internet before visiting the island for three days in March, and choosing one of the six they had shortlisted.
“Our villa is in Peyia and has three bedrooms, two bathrooms, a pool, gardens and a lovely upstairs balcony, which overlooks the pool and the wrecked cargo ship at Sea Caves,” said Paul.
“Our front patio overlooks the pool. Living here is totally different to the UK, both the weather and the natural pace of life. I’m aiming to join a golf club in the next few weeks, once I have tried out a few courses, but Lynne aims to just enjoy retirement, and who can blame her?”
Thanks to the internet, these days your search for a rental home really can begin in the UK, otherwise local rental agencies and newspapers are obvious starting points.
Typically, properties are let on either a short or long-term contract. The former is geared towards the holiday home market, the latter for residents. Make sure you understand the local tenancy laws in your new country – often they are friendlier to the tenant than the landlord. You’ll need to check what your rights are, how notice periods work for both parties and what deposit you’ll need to provide.
In Spain, for example, deposits are placed with a state-run body, where it is held until the tenant leaves, at which time the landlord has 30 days to check that everything is in order before receiving it and passing it back to the tenant.
Meanwhile, in Italy typical long-term contracts, called ‘Quattor per quattro’, have a minimum duration of four years. And if renting through an Italian rental agency, you will almost certainly be required to provide one of the following: an Italian employment contract stating that you are currently earning at least three times your rent, a home-owning guarantor in Italy, or payment of up to a year’s rent in advance. You will also be required to pay a deposit of up to three months’ rent at the point of signing the rental contract.
You should always view a property before you sign any contract and if you don’t speak the local language, try to take an independent speaker with you. If it is advertised as furnished, check what is actually included and look carefully at the condition both inside and outside. Ask to see an official gas safety check certificate.
In order to rent a property, the least you’re likely to need are a local bank account, your passport, plus if you are working, some kind of tax identification number. Note, in these times of economic difficulty, many landlords will require some sort of proof that you have the funds to pay the rent and may ask for references.
Be warned. In some countries, high taxes and the cost and effort of obtaining the necessary rental licences mean some property-owners will offer to rent you their properties with the minimum of formality and documentation. They’ll probably want the rent in cash too.
Assuming you wish to do things properly, you should avoid deals like this. Why? You are more likely to be able to depend on maintenance and help in the event of problems if you stick to a reputable and locally recommended lettings agency. And in some countries if you’re renting your principal home, the rent is tax deductible, but only if you have proper invoices, which you won’t get from a landlord trying to ‘stay below the radar’.
You can see the Overseas Guides Company’s Spain Buying Guide here, or their Italy Buying Guide here.