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Buy to let property

Hi
first post here. I love Montenegro and wonder if it'd be a good idea to buy an apartment (or house) just to rent it out. As for location, I was thinking about the Bay of Kotor but I'm open to other suggestions.

My top priority is achieving a good yield, but I understand there are other factors, e.g. some places can be rented out only in the summer months. Is it true though that only Podgorica is good for all-season / long term rentals?

Of course I'd travel to Montenegro to find the right property  BUT
I'm not normally physically present in Montenegro so I'd need an agency to manage the renting out.
Is it possible? Can the paperwork be done via e-mail or post, or I'd need to travel when there is a change of tenant for example?
Does anyone have expereince with this?

Thanks!

I am in the budva area for many years have not yes found a property management agency for this area but I do know of one in tivat area and boka  bay area.

Hi Qwentin,

I think the best option for this is Budva. There a re a lot of construction happening over there, so it lowers the selling price of apartments, but during summer rent is pretty high, plus outside of summer you can rent it long therm.
Bar for example is quite good for out of summer, probably the best at the coast, but during summer is not so good as Budva or Boka bay.
Considering Boka bay I think Tivat is with very good perspective  and I know very good property manager over there.
I am doing property management for two apartments in Bar and I can give you some info about how much money it can make, if you are interested send me a message.

Hi Namenja,
I am interrsted to know about the 2 apartments in Bar that you are managing to see how much r the net returns.

Thanks

Qwentin,
I specialize in buy-to-let properties in Montenegro (from the construction of the properties to the management / long-term rentals) with very good yields, so feel free to contact me.
Feel free to check my profile also for more information.
http://www.expat.com/forum/profile.php? … mp;lang=en
Cheers,
Carine

Hi there,
calculation for this year (from september last year until september this year):
1350 for long term
1860e for short term
10 more days are not reserved jet at the end of august so we can make 400 more so it is all together: 3600e
long term was with no expences, for this 3 months short term there are 250e of expenses
also for some small repairs and supplies 100e
so it means that income was 3250 euro
for 40m2 apartment, 8 years old, 6th floor, mountain view in downtown Bar, estimated value maximum 60 000 euro (more likely 50 000 euro)
http://stanubaru.blogspot.com/

we could do even better, since this year we rented it to a lot if friends, so we had to make some discounts, my opinion is that this kind of apartment in bar can make 3500 even 4000 euro which is great

Our properties in Tivat offer annual yields from 6% to 10% OR a guaranteed 4% rental income with our "leaseback" program.
We only deal with long-term rentals which is easier to manage (less charges, no changeover fees...) and usually ensures your property stays in a better condition overtime.
Get in touch with me if you are interested to hear more!
Carine

Nemanja,
Thanks for the rental returns infor. Can i check with you if you are managing this property yourself?. How do you advertise for tenant?. Do you use some airbnb site?
Does your  6th floor apartment have sea view?
Thanks

Just mountain view, no sea view. I use airbnb, booking, and other free sites for clients from region (Montenegro, Serbia, Bosnia and Macedonia), and I have my blog, link is in previous post. I am doing my self, actually my wife is doing more job.
June-September is for short term, then we rent for long term.
You can contact me if you need more info.

Nemanja,
Thanks for the info.
Will you be interested to do prooerty management for me if i do get a property in montenegro.

Only in Bar area :)

Does anyone know if montenegro property purchase contract can be send oversea to buyer for signing.?

Hi mymontechat,

Yes, it is possible, but quite expensive and time consuming.  Many real estate contracts have time limits for responding - which could time out if one is awaiting receipt of couriered documents.

I purchased my apartment in Budva by giving a trusted person a special power of attorney.  It worked well, and the whole process went very smoothly.  I highly recommend it if you can't be in Montenegro to respond to the process in person.   

Best of luck to you!

Hi LCWinsor,
Thanks for your reply, when did u buy the property in montenegro?. I just spoke to the lawyer and was told it is not legal to send contract for signing by buyer oversea. The contract signing must be done in front of notary so if you are not present you have to give Power of attorney to someone u trust to sign on your behalf. Anyone can confirm that this is now the ruling? Thanks in advance.

I bought my apartment in November 2015.   My Special Power of Attorney was notarized in another country and was valid;  I wouldn't think signing overseas would matter so long as all signatures were witnessed in front of a notary, but then again, I am not an attorney and Montenegro may have some strange laws internal and peculiar to them about normal practices valid just about every where else in the world.

Keep in mind some unprofessional attorneys in Montenegro will tell you things that are incorrect if they don't know the specific law about which you are inquiring - it's just easier for them and if the attorney tells you they don't know the answer to your question, how likely is it you might want to find another attorney? 

Last year an attorney told me things that were incorrect - but he and his team did not know the law and told me what I wanted to accomplish couldn't be done - it was not true. My best advice: find an attorney that specializes in real estate law.

LCwinsor,

Thanks for your input. I got a lawyer from the UK real estate recommended ist of approved lawyers so he must be well versed with local law changes here in montenegro. He did tell me they accept notarised power of attoney done oversea to represent you in the signing of contract ceremony in montemegro.

Hi there.
I fully agree with LCWinsor. Giving the power of attorney oversees is the best option. You should do it at Notary over there and here this person will just need translation of it (15e per page) and that it is, he would be legal to sign up the document. Later on you will send money at seller's account and after money arrives Notary will b e noticed about this and he will proceed to finish all other paperwork (registering property at your name...) after this you will just need to pay property transfer tax which is 3% of estimated value.

Thanks Nemanja for your response. So u only pay property tax 3% after the name transfer is done. Can this be done via online access ie transfer online from montenegro bank direct to taxation office account with reference that you paying the 3% tax.  As the person who is paying the money for the property has left montenegro and does not want to give POA to anyone in montenegro to do it. Alternately can this 3%  fund be held in trust by notary n she will pay it once the name transfer is completed?

Hi,
it can be done by Notary, they usually offer this, according to price from contract, you pay immediately, and also usually in taxation office they accept this, but also it can be payed from abroad, they give instructions for that, you just need somebody to receive this letter from municipality and that is it.

Ok thank  you for all your input.

For your information, the 3% tax does not apply to newly built properties, since these are sold with VAT included in the price. The 3% tax is only charged to the buyer from the 2nd transfer of ownership.

Thanks Tsarine for the information.
Does anyone know of any good property management company whose charges are reasonable?

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