Is Becoming a landlord an option???

ojbarberena says on Feb 16, 2009, 10:09:

we have the same ideals.(for us it's in the Medellin area)
hopefully someone will post their experiences.

not all who wonder are lost

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RealEstateCOL says on Feb 16, 2009, 10:15:

Yes, of course it´s an option.

But then you have to get acquainted with the local regulations and customs.

In general, as many foreigners have experienced while trying to rent a property in Colombia, the local regulations and customs are very strict. The owner or rental agency requires proof of payment capabilities and that means proving that the person who wants to rent either has a good paying job, has enough money in the bank, has a good credit score (verified by a credit score company) and they always ask for a co-signer.

So, you option is either to do the whole process yourself or signing a property management contract with a rental agency (10% commission).

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Bill Turley (Moderator) (Trustee board) (☼Travelguide writer) says on Feb 16, 2009, 10:37:

Mononoke28 says on Feb 16, 2009, 11:20:

That's a very good and doable idea. My cousin who is now in his 50s has been renting all 3 of his apartments through an agency in Medellín since the 1980s and he has no complaints about it. In fact, that's what he plans to live off of when he moves there in a few years. He now lives in Ft. Lauderdale and the money goes to his bank account, then he has one of his brothers take care of the maintenance and there haven't been any issues.

If you decide to go this route, just make sure it's a good agency, they will then make sure to do a background check on the future tenants which is key and take care of all legal matters.

Diana

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Desideria (Moderator) (Trustee board) says on Feb 16, 2009, 12:35:

I'm renting out my house in Cali too, through an agency. Diana made a very important point in her last paragraph: there are lots and lots of rental agencies in Colombia and some of them may not be all that serious and dependable. Look for an agency that has been around for a while, deals with you in a businesslike manner, has nice locations and most important of all: well-referenced by people you trust.

My agency takes 13%off the top, but there are a couple of insurances included there: one for the losses caused by a tenant who vacates premises without paying rent and another one that covers the public utilities in case the tenant vacates without paying water, electricty, garbage collection.

Now, you would need a few properties to rent out in case you a re planning to live off the rental business. Commercial locals and transportation (taxis) are also something you could acquire and then rent out.

A fronte praecipitium a tergo lupi

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drvannostren says on Feb 16, 2009, 19:39:

Wow this sounds way too good and too easy to be true, and yet somehow I know it's not. I'm curious if anyone kinda knows, whats the rental rate in Colombia...like how many people for every 10 "eligible" rent. From what I could see it'd be anyone other than the kind of super rich around. As I don't know the banking and loan structure in Colombia, is it normal for a middle class family to go to the bank, get a mortgage and buy an apartment, or is it a very rental based life as it seems to be. Strikes me that there was lots of property to be had cheaply on just one website I happened to come across, I'm sure there'd be lots more once on the ground. Is there a tonne of overhead when buying a place, or is it just low peso value coupled with the general cost of property. Being in Medellin twice, i could easily find myself living there, it's definitely a dream of mine, and I think selling my apartment here in Canada could actually net me 2 similar ones in Medellin even. Keep posting stuff like this, very informative, thanks to all who contribute.

No matter where you go, the Korean tour bus isn't far behind.

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CelticAce88 says on Feb 18, 2009, 02:47:

Thanks to everybody who contributed to this article. I have found the replies both interesting and informative. I will certainly be looking into this and doing my research.

I was very interested in what johnny said, as in his final paragraph he refers to a sum of money in GBP - this is around what I was thinking about spending on apartments to rent.

I am also interested in what Desideria had to say as I had thought of buying taxis and renting them out. I thought that if you had a few you might do quite well. I wondered about the standards demanded of taxis to get a licence and about servicing them etc. Would prospective drivers rent the vehicle for a week at a time? I wondered about renting the same car to two drivers for 12 hours a day each. What they do with it during their alloted time is their own business. I wondered if this was legally possible as it is in the UK and if so, what kind of rent would a driver pay each week?

Anybody out there got any thoughts or advice about part 2 of my dream - sorry to be so demanding! - and buying a plot of land and building my dream finca. I had thought of the area around Bucaramanga near PANACHE or around Villavicencio and into Los Llanos. Anybody got any idea how much farmland costs and how difficult it is to buid a house on farmland or grassland. I have no idea of the planning or land zoning process in Colombia. Ideally I would like to buy around 50 - 100 hectares (more if I can afford it) and start a cattle ranch. I would be looking to build my house on the land. Any advice or good websites you can recommend would be gratefully received.

Many thanks for everybody's input into the site, it really is a fantstic resource and please keep up the good work.

Martin.

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CelticAce88 says on Feb 18, 2009, 05:58:

Johnny,

sounds good to me. I will certainly ber looking into this. By my calculation $50 Million Col is about £17,000. Therefore if I had 5 apartments bringing in 5 x 750K approx = 1.5Million COL that would be a nice living. Would even leave me with enough money to buy a small place for my wife and I.

Thanks for the info - if you have any more thoughts please let me know,

Martin

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billyb says on Feb 18, 2009, 06:01:

Johnny, does that 720K include assoc fees? A 50 mill apt bringing in 720k clear/month doesn't sound right. If so, more power to her.

"All I want to know is where I'm going to die, so I never go there" Unkown (at least to me) wise man.

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billyb says on Feb 18, 2009, 06:05:

Maybe has was thinking 1500 USD.

"All I want to know is where I'm going to die, so I never go there" Unkown (at least to me) wise man.

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billyb says on Feb 18, 2009, 06:20:

For that return, even subtracting AFs, it is a good deal. Don't suppose you have pics?

"All I want to know is where I'm going to die, so I never go there" Unkown (at least to me) wise man.

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billyb says on Feb 18, 2009, 06:28:

I'd have to sell a few of my goats to get that kind of cash.

"All I want to know is where I'm going to die, so I never go there" Unkown (at least to me) wise man.

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billyb says on Feb 18, 2009, 06:37:

jeje.

"All I want to know is where I'm going to die, so I never go there" Unkown (at least to me) wise man.

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CelticAce88 says on Feb 18, 2009, 06:40:

Johnny,

Sorry for the crap calculations, I'll have to sharpen up if I want to rent out places!!! Anyway, It sounds pretty good to me and even if you can get 10% that is better that the money sitting in the bank - and there is capital appreciation as well...

Cheers mate,

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billyb says on Feb 18, 2009, 06:45:

Also, your rent will increase as time goes by, so your rate of return will increase as well.

"All I want to know is where I'm going to die, so I never go there" Unkown (at least to me) wise man.

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Desideria (Moderator) (Trustee board) says on Mar 10, 2009, 12:26:

???

A fronte praecipitium a tergo lupi

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poco says on Mar 10, 2009, 12:42:

Quote: Wow this sounds way too good and too easy to be true, and yet somehow I know it's
====================
No, it is that easy.

Know the price is OK and there is a possibility of making 10 percent per year,, that means 10%profit for 10 months rent.

NOT 12 !!! Must calculate 2 months vacant. If you get all 12,, every year,, then lucky you.

However, most people will fail because they are lazy, incompetent, poor discipline, don't know how to maintain etc.

That's why 10% of the people have 90% of the wealth and 1 % have more than half the wealth. These numbers apply to almost everything in life.

Colombian Chickens are crowing about the new President of the U.S. who will assure that From each according to their ability to each according to their need.

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