Expert discusses functions of property management firms and collecting rent while abroad.
If you have a mortgage on your property and decide to leave the country, you can still lease your property. You will have to appoint a reputed brokerage firm that can market your property at the right price, find you a tenant, and conduct the due diligence.
In the case of a mortgage, usually, the bank opens a loan account where the rent is deposited. Depending on your agreement with the bank you can get the tenant to deposit the rent directly into the loan account or transfer the rent to your home country account and then pay the loan installment.
It would definitely be ideal to hire a property management firm that can manage all this on your behalf. They can collect the post-dated cheques from the tenant and deposit them in your account or set up a direct debit facility with the tenant to transfer the rent to your loan account. Another alternative can be that the property management firm collects the rent in their account and transfers the required loan amount to the bank and the balance to your overseas account.
In case of a returned payment, the property manager can follow up on your behalf and resolve disputes if any. It is important to have someone based locally who is thorough with the laws of the land and can act promptly to protect your interest.
Niral Jhaveri is the Head of Property Management at Betterhomes.
News Source: Khaleej Times