Category: real estate
When buying a secondary residence in Morocco for rental investment, the nature of the property acquisition is different from that of a lifestyle investment choice – the focus should remain strictly on anticipated rental return (immediate revenue) and return on invested capital (upon sale). Depending on the nature and location of your Moroccan property for rental and what your usage requirements are, there are a number of possible rental opportunities, as in the table below:
A) Long term letting (6 months +): 5% – 10% per annum (gross).
1 month’s rent (agency commission) or 20% for management services.
B) Short term letting (1-5 months) 5% – 15% per annum (gross).
20% agency commission for management services.
C) Managed rental/holiday letting: (3 nights +): 10% – 20% per annum (gross).
20% agency commission for management services.
A) Long term letting in Morocco.
This is the most typical rental option. The rental agency will advertise your property and search their network / database to find a tenant. Once a tenant has been found, the agency will prepare the tenancy agreement (contrat de bail), which must be signed and legalised. The agency should conduct an inspection before the tenants move in and once s/he moves out, as well as creating an inventory of furniture etc. The tenant pays the owner directly at predetermined intervals and Immobilier maroc. Note: It is standard practice to mandate multiple estate agents to rent your property on your behalf in Morocco. The mandate between property owner and estate agent is deemed non-exclusive.
B) Short term letting in Morocco.
A short term let is identical in nature to long-term let but may be preferable if, as the owner, you have fixed periods during the year when you wish to occupy your Moroccan property, e.g. during the winter months.
C) Managed rental / holiday letting in Morocco (La gestion locative).
This service is offered by a small number of agencies as well as some professional individuals in Marrakech. Management services come at a cost – generally 20%, yet managed rental does provide many organisational benefits – the agency comprehensively manages the rental and maintenance of your property for you and provides valuable customer service for your rental clients. Combine this to the potential to generate up to 25% gross return on investment whilst retaining the liberty to make use of your property personally if and when you wish,
Short term letting is certainly Immobilier maroc worth considering
In principle, a managed rental service is based on a contract where the property owner mandates the rental management agency to rent and administrate the property. This involves the agency executing the owner’s wishes (within reason), managing the personal obligations of the owner with regard to the property as well as those towards fellow residents/neighbours and finally; – providing civil and legal representation on the owner’s behalf.
The service typically involves:
* Collecting rental monies from the clients who rent the property; these can be deposited directly to the owner’s Moroccan bank account (less the fees & expenses)
* Rendez-vous with the client in Marrakech to introduce him/her to the apartment
* Payment of utility bills
* Undertaking any necessary repairs (building, electrical, plumbing etc.)
* Insurance – Taking out a contents and damages policy and reporting any damage or loss
* General administration of bills and paperwork
Other than the great investment return, the main advantage of opting for this form of rental is the freedom it allows you as the owner to make use of your property as much or as little as you like. The agency will not enforce a minimum rental quota per year. This rental method can prove quite lucrative for properties which are in demand with holiday and weekend visitors, i.e. luxury apartments in central Marrakech. See the rental indicators section below for more details.
Note: Beware of “Rental Guarantees”. A managed rental service is not to be confused with a guaranteed rental return scheme. Although very rare, some agencies may offer you a guaranteed rental return scheme – alluring you with a guaranteed return of X% per annum from the rental of your property, at a cost of next to nothing to you. Such schemes are to be avoided since they are conducive to filling the property with clients 365 days a year, whether said clients are desirable or undesirable.
In order to choose the rental strategy most suited to you, it is useful to estimate the potential rental return your property will generate. The following indicators relate only to apartments since villas vary greatly in nature and importance, thus, their rental value cannot be accurately estimated through the use of these indicators).