Property managers abroad: fees, contracts, choice

For an owner abroad, the property manager is often the only person who sees the apartment. That makes the choice, and the contract, one of the most important decisions after the purchase. This guide explains what managers do, how they are paid, what the contract should say and how to check a company before you hand over the keys. The basics of remote ownership are in property management for remote owners; here we go deeper on the company and the paperwork. The text is informational, not legal or tax advice.

What a manager actually does

Services differ widely, so list what you need and compare like with like. Typical items:

• Finding tenants or guests: listings, photos, pricing, viewings, check-in.
• Tenancy administration: screening, contract, deposit, rent collection, reminders.
• Day-to-day care: cleaning, laundry, small repairs, utilities and service-charge payments.
• Inspections and key custody: periodic visits, condition reports, handling of keys and access codes.
• Regulatory tasks: tourist-rental registration, tenant or guest registration, local tax filings, where the company offers them.
• Reporting: statements of income and costs, usually monthly.

Some firms do only letting, some only maintenance, and some everything. A long-term rental and a short-term holiday rental are different businesses; make sure the company works in the segment you need.

How fees are structured

Managers are usually paid in one or more of these ways:

• A percentage of rent or of booking revenue. Check whether it is calculated on gross revenue or net of platform fees and cleaning, and whether it also applies to the deposit or to cleaning charges.
• A flat monthly fee, sometimes for a minimum package.
• A fee per night or per stay, or a fee for each check-in.
• A letting fee when a new tenant is found, and sometimes a renewal fee.
• Charges for extras: repairs, supervision of larger works, an emergency call-out, inspections, administration, or a mark-up on contractors.

We do not give typical percentages here, because levels vary by country, city, segment and service level and we could not verify current figures to an official source. Ask for the full fee schedule in writing and calculate what you would pay in a quiet month and in a busy one. A low headline percentage with many extras can cost more than a higher all-inclusive one. For the wider cost picture see total cost of ownership abroad.

Contract terms to read

• Scope. A clear list of what is included and what is billed separately.
• Term and termination. Minimum term, notice period, penalties, and what happens to existing bookings and tenants if you leave.
• Authority limits. The sum the manager may spend on repairs without asking you, and who approves contractors.
• Exclusivity. Whether you can still let to people you find yourself.
• Liability and insurance. Whether the company carries professional liability cover, and who pays for damage caused by guests or by the company's staff.
• Data and handover. Your right to get tenant files, booking history, accounts and listing access if you end the contract.
• Governing law and language. Make sure you have a version you can read, and know which law and which court apply.

Have a local lawyer read the contract. A fair contract is one that you can end without a penalty that traps you.

Trust accounts and money flows

Find out exactly where the rent goes. Some jurisdictions require agents to keep client money in a separate client or trust account; others do not, or the rules vary by type of agent. Ask: Is tenant money held in an account separate from the company's own funds? Who can withdraw from it? When is it paid to you and with what deductions? Is the deposit held by the manager, by a deposit scheme or by you? Prefer an arrangement in which rent is paid first to an account in a separate client-money structure, or directly to you, and the manager invoices fees afterwards. Never pay large sums for "management" in advance without a written scope. This is a compliance matter: use only lawful, transparent accounts in your own name.

Reports, access and oversight

Ask for a standard monthly statement with income, itemised costs, invoices and bank statements on request. Look for read-only access to the booking calendar or the tenancy file. Agree on a cost limit for repairs and require photos before and after. Once or twice a year have an independent person, or yourself, visit and compare the real condition with the reports.

Inspections and key custody

Ask who holds the keys, how many sets exist, where they are kept and who is allowed to enter. Prefer a numbered key log, a lockbox or smart lock that records entries, and a policy that codes are changed after each departing guest or tenant and at the end of the contract. Inspection reports should include photos, meter readings and a note of what was checked, not just "all ok".

Conflicts of interest

A manager can earn from several places: your fee, the cleaning company, the repairer, the furniture supplier, the booking platform. This is not wrong in itself, but it must be disclosed. Ask whether the company receives commission from contractors, whether it is linked to the developer that sold you the unit, and whether it manages competing units in the same building and how it allocates guests between them. Be careful with managers recommended by a developer who also offers a guaranteed return; see guaranteed rental schemes: the catch.

How to vet a company

• Registration. Check that the company exists in the official business register and, where the country requires it, that it holds the agent or manager licence.
• References. Ask for owners you can contact, preferably of a similar property and nationality, and compare what they say with the online reviews.
• Track record. How long has it operated, how many units does it manage and how is staff turnover?
• Insurance and bank. Ask for proof of professional liability insurance and the details of the client account.
• A test period. Start with a short contract or a trial period, and read the first statements closely.
• Language. A manager who communicates in a language you read well removes a large source of errors.

FAQ

Is a percentage fee better than a flat fee? It depends. A percentage aligns the manager with higher income but can reward overbooking or discounting; a flat fee is predictable but gives less incentive. Compare both on your expected income.

Can I manage the property myself from abroad? Sometimes, with a local helper for keys and cleaning. Compare the cost of your time and risk against the fee.

Should the deposit be held by the manager? Rules differ by country. Ask what the law requires and where the money will be held.

What if the manager stops paying me? Keep the contract, statements and bank records, notify the company in writing and consult a local lawyer quickly. Do not wait for several months of arrears.

How do I end a contract? Follow the notice period and form in the contract, and ask for the handover of keys, files and accounts in writing.

How we help

D.H. Realting is a trilingual platform (Russian, Polish, English) that finds properties and coordinates independent local lawyers and tax advisers. We can help you prepare questions for managers and have a lawyer read the contract. This text is informational and is not legal, tax or investment advice; verify current rules and fees with local professionals.