Originally Posted by Saucy Sailoress
Anyway - does anyone have first hand experience of cruising on rental income - and if so, where is your home?
How do you receive your income
? How well does it support your cruising (ie, can you cover costs etc)
Maybe I can chip in at this point a bit.
Prior to my "Victoria" getting stolen I made excellent money chartering - downside: Kept you busy with tourist and less time to just cruising; Upside: Cash :-)
Eventually I started to switch to living part time on dirt (Florida, Orlando) great for a change NOt to see the sea....
Had a house there from 1992 through 2003 - while during the last 3 years I tried to rent it (civilized country!) while going back to full time cruising.
I paid for the pool-care company (and they did charge my CC regularly) ... I did pay for the lawn-care company (and they did charge my CC regularly) ... and I did cover the cost for the property manager (broker) as well. Only job of the property manager: Make sure the pool and lawn people do their job, keep an eye on the tenants and if one vacates, find a new one, and, since I had a tiny 30K mortgage left on the house: make sure the cheque goes to the bank every first of the month.... (mind you, all of that was long before web-banking became "normal"):
Result: Pools and lawncare AND property manager defaulted (more or less together with all three tenants we had over time) and it was pure coincidence that we just dropped by without notice twice, just in time to bring the mortgage current
which both times had already started foreclosure!!! (a 300K+ home going into foreclosure over 30K!)
We eventually halted the business / chartering to live in the house (after having it fixed up yet another time!) until it was sold (Thanks God prior to the crisis)
I inherited a cute little house in Kitzbuehel/Austria which is like THE upscale skiing turf in the European Alps, second maybe to only Lech or St.Moritz (meaning: one should think that's a civilized clientele?!)
Mountains not being my thing I again decided to rent to allow us to ease up on the pressure having to make money with charters....
Result: The very first tenant (a local) moved in, payed the security
deposit ... but never a dime after that. Not for power, not for telephone and least of all for rent!
Took me 1.5 years and a lot of money for attorneys to get her out of the property which she left destroyed due to a bunch of large dogs
she kept locked in the house during the day..... (can U imagine?)
Mind you, that was Austria, and I am Austrian ... but from a different state than where the property was in, where the court was at in which jurisdiction the case fell and where also the tenant was from. (Locals just dont hurt each other)
While living in Orlando I made good money buying, fixing and renting
RE. It was fun, no probs, .... but I WAS THERE(!) to keep an eye on things myself.
One thing I never, ever will do again
is to rent property I am not living right next to, at least most of the time!
Evicting tenants at default in the US (at least in Florida) is fairly easy - most other countries I know of have massive "consumer protection laws" which translates into you - ("the moneybag") always are the a*se while the "poor tenant" (aka: consumer) may trash your property, may default on his/her payments, may cause you endless grief but still will be the one protected AGAINST YOU (!) - the rightful owner - for very long stretches of time!
If the rental property would be right next door to my parents or sisters home? If they would be keeping their eyes peeled? Maybe! Maybe I'd do it again ... but anywhere else on the world? N.E.V.E.R!!!
(And mind you: both the above examples are talking about "civilized" countries/regions with a functioning legal
system! I shudder when imagining what your odds would be if you'd not be in the USofA or anywhere in Europe
but in some (as charming and loveable as they may be!) "third world country"!
Even if you'd make sure that your tenant would also be an expat. Expats have the tendency to vanish if things dont work out as they where dreaming (and they never work out that way!) - no way of you preventing that expat turning YOUR property over to some local while you are cruising somewhere else for a little money on the hand ... and upon you returning you again have a Local to battle with and not "just another expat"....
My advice from the bottom of my heart: DO NOT BUY property anywhere where it's nice and where you are not physically present most of the year and where it's "nice" (attracting those low lifes who think that one still can live a life in paradise without having to work harder for it than you would have to at home!)
Everything else would financial suicide! - Especially if you'd have to factor the income from the rental into your own monthly budget!