compareTheHearth
Property investor
A management charge of about 9% of rent is the number driving this decision. Letting costs and fees for coordinating maintenance would be additional, and I may soon be managing the Cairo property from a distance.
Professional management sounds like the practical answer until I include vacancy, repairs, insurance, property tax, financing and tenant turnover. On that basis, the monthly surplus may be negligible. I am trying to compare the value of keeping the property with the simpler option of selling, using annual net income rather than headline rent.
For those who own remotely, which costs and maintenance reserve would you put into that calculation, and how would you test it against changes in financing or vacancy? It would also help to separate any actual requirements in Egypt from individual preferences about risk and acceptable near-zero or negative cash flow.
Professional management sounds like the practical answer until I include vacancy, repairs, insurance, property tax, financing and tenant turnover. On that basis, the monthly surplus may be negligible. I am trying to compare the value of keeping the property with the simpler option of selling, using annual net income rather than headline rent.
For those who own remotely, which costs and maintenance reserve would you put into that calculation, and how would you test it against changes in financing or vacancy? It would also help to separate any actual requirements in Egypt from individual preferences about risk and acceptable near-zero or negative cash flow.