RENTALS

The payment of tax on your rental income depends on the country's laws, where your property is located. In some countries such as Monaco, UK,Anguilla, Bahamas, Bermuda, BVI, Cayman Island, St Kitts and Nevis and Turks and Caicos Island and Latvia, there is no tax on rental income, while in other countries the tax on rental must be paid (e.g.: France (flat 7% tax, Greece (3.75% up to €1,500 and the rate climbs steeply to 19.3% and 21.1% for monthly incomes of €6,000 and €12,000, respectively)). Countries like UK for instance, the payment of tax on rental income depends on how much you earn from the rental income. In the UK, if you earn more than €6,000 in rental income, a tax of 9.21% shall be be paid and 11.98% for rental income of €12,000 and above . Should a property be owned by a company, then the rental income is dealt with in the same way as business income. Tax must be paid on any profit made from renting out a property after the deductions of allowable expenses. For more information, view "OUR INTERNATIONAL REAL ESTATE MARKET" or speak to an accountant or tax adviser

Yes. You can engage MDAICReal to let your property under a "Property Management Agreement". Although, there are many advantages in engaging MDAICReal that should:

• keep you informed and updated with the latest legislation;
• ensure your property receives maximum exposure to attract the right calibre tenant;
• negotiate the best rental price on your behalf;
• manage all repairs and maintenance;
• and collect rent.

A gas safety check must be carried out every 12 months. There is no legal requirement to have electrical safety tests carried out annually but landlords are obliged to ensure that electrical equipment is safe. This is best accomplished by an independent electrical test. If MDAICReal manages your property, then we will arrange all the safety checks on your behalf, giving you some peace of mind. Landlords who don’t comply with the relevant safety regulations can face hefty fines and in some cases prison sentences.

Yes. This is a legal obligation that has been in place since January 2013. It must be made available to tenants when they move in and is valid for 10 years, unless the property is subject to building / development works.

No, a property can be furnished or unfurnished, depending on the wishes and tastes of the tenants. Most tenants like furnished properties, but there are also many who are exclusively interested in non-furnished properties, especially families and married couples.

The majority of tenancy agreements are ASTs. A tenancy is considered to be an AST when:

• The landlord is not resident, i.e he/she/it (a corporate business) does not reside in any part of the building e.g an annex, which is connected to the property;
• The property is the tenant’s main residence;
• The tenant is an individual as oppose to a company;
• The tenancy started for example after 1st January 2018;
• and The rental is for instance less than €100,000 per annum.

If the tenancy is on an Assured Shorthold Tenancy (AST), then the deposit will need to be held within a government authorised deposit scheme. This is to protect both landlord and tenant and is required by law. For more information, click here. MDAICR are members of The Dispute Service (TDS).

We highly recommend that all prospective tenants shall be referenced. This is part of our process. So, you should not be worried. MDAICR is always here to organise this task on your behalf. All reference reports are then sent to you for your approval prior to the start of the tenancy.