managing a rented property in Potsdam

[markj]

I am currently looking to buy a property in Potsdam, not strictly speaking a financial investment but rather somewhere that I can let for 5yrs or so before living there myself. I am intending to finance the property through re-mortgaging my UK house. I am waiting a for a financial breakdown of potential rentable value, etc from the German estate agent before progressing with an offer. My concern at the moment is the practicalities of making the transaction - do I need to set up a german bank account to conduct the finances (rent receipt, payment to the letting agent and german tax etc) or is there a simpler alternative. I realise that there are companies that provide this service in a package but I would prefer to do it myself if it just means extra time and effort on my part.
I would be grateful for the benefit of anybodys experience.
thanks

 

[mart123]

Hi Markj,
I don't see how you'll avoid a German bank account and I suspect it's the cheapest option. I believe it still costs money to transfer between Europe countries plus you'll lose on the exchange rate (buy sell spread alone).

Mart

 

[Lewis]

I am currently looking to buy a property in Potsdam, not strictly speaking a financial investment but rather somewhere that I can let for 5yrs or so before living there myself. I am intending to finance the property through re-mortgaging my UK house. I am waiting a for a financial breakdown of potential rentable value, etc from the German estate agent before progressing with an offer. My concern at the moment is the practicalities of making the transaction - do I need to set up a german bank account to conduct the finances (rent receipt, payment to the letting agent and german tax etc) or is there a simpler alternative. I realise that there are companies that provide this service in a package but I would prefer to do it myself if it just means extra time and effort on my part.
I would be grateful for the benefit of anybodys experience.
thanks

I use a company called Property Source in Berlin (Spandau) to manage most of my N.E. Germany properties, they've been reliable and diligent. They are an Anglo-German outfit so the language is not a problem.
You can do the whole kit and kaboodle yourself if you have the time and energy to wade through the quagmire. I prefer to leave it at all times to the experts - far less chance of an expensive or legal cock-up - your choice, good luck.

 

[eddie 55]

I am currently looking to buy a property in Potsdam, not strictly speaking a financial investment but rather somewhere that I can let for 5yrs or so before living there myself. I am intending to finance the property through re-mortgaging my UK house. I am waiting a for a financial breakdown of potential rentable value, etc from the German estate agent before progressing with an offer. My concern at the moment is the practicalities of making the transaction - do I need to set up a german bank account to conduct the finances (rent receipt, payment to the letting agent and german tax etc) or is there a simpler alternative. I realise that there are companies that provide this service in a package but I would prefer to do it myself if it just means extra time and effort on my part.
I would be grateful for the benefit of anybodys experience.
thanks

Hi I brought in April...only a small apartment in Berlin City Centre, I did everything through the management company....opened up a bank account
in Berlin.
To be honest with you...I would not be able to sort out any of the problems without the help of my property manager, I have received letters which I do not understand because of the translating barrier, so I faxed the letters to the
property manager...and he his happy to sort any worries or problems I might have.
There is an awful lot of Rights for tennants,so again if you do not have the right contacts or information this could be a problem in finding a new tennant
and dealing with a new contract between you and the tennant....this is bit of
a task master when you don't live in Berlin.
Yes this service does cost ( I pay 34 euros a month) but I am paying for peace of mind.
Just my opinion...I wish you the very Best in your investment.
Regards Eddie 55