If you own Real Estate in Malta and are thinking about how to get the maximum for your Malta property. You have two potential revenue streams either you can cash in on your property and list it for sale thereby generating a large amount of cash in this booming economy. Generally some people use this lump sum to add to their home to improve their main residence or choose to upgrade their main residence to a higher value property. In this case refer to our Selling page on the website for an in depth explanation how to get the maximum price for your property.
Alternatively you can decide to create a longer term new source of annual revenue by renting in Malta. By opting to become a landlord generally your annual revenue should be about 4/5 % of the market value for a residential property or 7/10 % for a commercial property in Malta. This means that if your property is worth 100,000 euros and you choose to rent out your property you should rent it for about 400 euros monthly to obtain 4800 euros annually which is 4.8 % of 100,000 euros. On lifestyle properties in Malta which are properties over 600,000 euros generally the rental rate reduces further to about 2.5/3 % due to the current market structure. On the one hand you have a lower rent percentage however normally these properties have a higher stronger capital appreciation compared to lower value properties. That is another reason why many people decide to sell larger properties and purchase 2,3 or 4 smaller ones.
Once you have decided to rent it you should contact one of Simon Mamo's Malta letting agents to view the property and offer you expertise on what to do to get the maximum for your property without spending too much money. Ideas include changing the curtains, bed linen, carpets, prints of modern art, etc.. that can go along way to maximizing your revenue stream. The estate agent will carry out an inspection, take photos, a detailed description and take your particulars. Your property will be listed on the website www.simonmamo.com and all our estate agents will be informed that it is available and will begin to market it to their current clients. They will get potential lessee's to view the property and make offers regarding the monthly rental amount and payment terms - this is normally 1 month deposit and 1 month rent payable monthly in advance. We also recommend an amount should be taken in advance for water and electricity with the rent so that this is prepaid. Estate agents fees are standard in Malta and this is a one-off fee equivalent to half the first months rent payable only once a contract is concluded and the lessor is paid.
Once all terms are agreed upon you take the one month deposit as a gesture of goodwill that you will be signing a contract with the lessee at the agreed rate and also the same applies for the lessee. This deposit is non-refundable. The contract is signed generally at the residence itself which takes about 1 hour to complete which is done by the estate agent. The balance of the money is paid on contract and you can hand over the keys and you are good to go !