SURPRISINGLY, NOT ALL COUNTRIES ALLOW FOREIGNERS to earn rental income and some countries set a limit on the amount of time in a year that you can let your property. Locally, you also have to declare any income that you earned to the tax man. Find out which of the ser- vices you pay for are tax deductible and be sure to have your paperwork in order for claims. It’s worth taking a very close look at the tax implications of your investment before taking the leap.
Of course, being a landlord is not always sunshine and roses, so you might have to resort to legal action if your tenant r ef uses t o pay r e nt . Immelman says legal disputes depend very much on the rental agreement drawn up by the agent.
“If the managing agent is unable to resolve the dispute further legal action may be required,” he says. Keeping a little rent income aside every month in case of a legal dispute might be a good idea.