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Brazilian rental agencies - fees, charges, VAT etc

Discussion in 'Brazil Property' started by ExpatNick, Aug 28, 2008.

  1. ExpatNick

    ExpatNick New Member

    An easy question for this morning - what can I expect to pay a rental agency for a full property management service? And what taxes (at what rate) are also due?

    The property is likely to be a two bedroom apartment, and the intention is for long-term leases (i.e. not a holiday let property).

    Thanks in advance to all who contribute.
     
  2. Dotty

    Dotty Banned

    Hi Expat Nick

    On the first rental you will need to pay 50% of the first rent to the agent.

    Then the agents charge 15% monthly from the whole rent.

    They will collect and deposit your rent on a montly basis.

    If the tents are late 3 days paying your rent you are intitled to juros(a few extra pennies) being added onto that particular mth.

    They willl deduct money for any repairs needed and will need to show proof of payments made to the registered companies.

    You will have to make a declaration of earnings ,with receipts and bank statements as proof of evidence anually to the Receita Federal as the person you will be renting to on a longterm basis will be doing the same.

    I would like to add that this is different from a pool system.

    Extra-I use a very good small agency(for private rents)and they are very reliable.I prefer them to the big agencies as I get more personal care .They deal in the local market,but not in the tourist market ,so if you are planning on renting to Brasilians on longterm contracts they could be ideal.There actually is shortage of properties to rent out to Brasilians so you are on the right track.

    Hava a nice day:)




     
  3. ExpatNick

    ExpatNick New Member

    Any difference in rental?

    Dotty,

    Many thanks for the (very swiftly sent) info. Would I be wrong in assuming that there's nornally very little difference in rent between furnished and unfurnished?

    Thanks again,

    Nick.
     
  4. Dotty

    Dotty Banned

    ExpatNick,

    Save yourself the money as it is not necessary.You will receive the same rent unfurnished and it will rent quickly(all depending on the area it is in) and only on a holiday let would it need to be furnished.

     
  5. Coxy

    Coxy New Member

    I manage rental properties in Jericoacoara, and I find it easier to rent furnished. We charge 15 to 20% as a rental agreement, we provide cleaning, gardening, maintenance and 24 hr security to ensure all the owners sleep peacefully back home in their country. All our lets are holiday lets and not long term (less than 3 months).
    That's my bit. Cheers.
     
  6. debzor

    debzor New Member


    This must obviously depend on location. Where I live agents charge between 10 & 15% of the initial rent for medium term - 3 months plus, and the tenant pays all the bills including maintenance and repairs apart from IPTU - annual property tax.

    But this will be cash terms...
     
  7. Dotty

    Dotty Banned

    Hi Coxy,

    Holiday lets definately need to be furnished.

    Do you do rentals and sales for personal property and other clients properties also,or just rentals?

    Regards.
    D :)
     
  8. Coxy

    Coxy New Member

    Hi Dotty, I'm building apartments in Jericoacoara. This is my second project. The first one is being managed and serviced by myself, I also administer the rental side of the business too.
    You should come and see it, or take a look at my website.
    Where are you based?
    Regards
    John
     
  9. Dotty

    Dotty Banned

    We'll be in paradise over the holidays and pay a visit,ok?!
     
  10. Coxy

    Coxy New Member

    Come on down. My contact details are on my website. When are the holidays? We have holidays every month in paradise!!!
     
  11. Dotty

    Dotty Banned

    Hi Coxy,

    What lovely apartments,no wonder they have all gone and you are right the B&B is a saturated market so it is ideal what you have built ,self catering apts.I am very interested in renting one out in the holiday period.Our property is on a long term contract,so we never stay there anyway and always use the local pousadas.

    The holidays are from Dec-Jan ,but generally we stay 10 days there.I mean it is a hike,but well worth it .It really is paradise.

    Speak soon when I have a clearer picture of dates.
    D:)

    I 'll
     
  12. Diceman

    Diceman New Member

    rental agencies

    Hi Dotty i have a 1 bed apt to be completed very soon in Taiba and am looking to rent out to local Brasilians on longterm contracts.The apt is a block of24 each apt being 55m2 in total, with balcony, gymnasium,pool,hammock area,barbecue area,sauna,storage area ,and 1 car parking space.I notice you use a good small agency any feedback or contacts or pointers in the right direction would be appreciated
     
  13. Coxy

    Coxy New Member

    Have you tried FlatShop? They handle many rentals in Fortaleza and Cumbuco, and maybe Tiaba too.
    Flatshop
    Ask to speak to Carmen, she speaks some English or Adriana she speaks many languages.
     
  14. debzor

    debzor New Member

    With regard to costs on long term lets, I believe most Creci licensed brokers work as follows:

    12 month lets - 1st month plus 10% of subsequent months.

    6 month lets - 10% agents fee + 10% administraion as follows: for ease say your rental income is R$500 per month: x 6 months = R$3000, 10% payable in first month, ie R$300 plus 10% per month as above.
     
  15. Dotty

    Dotty Banned

    Hi there Diceman,

    Taiba is in Ceara . I use a (small ) agent in Natal for properties in Natal because that's where I live and for property in Ceara we use a dear friend who collects the rent for us on a monthly basis ,but that's in Jeri.

    Coxy who lives in Ceara,would be the person to speak to with regards Taiba as he is most likely to know the good agents in Forteleza who will be dealing with Taiba and he also has experience with lets in Ceara.

    Is it a longterm holiday let or a longterm summer let?

    You can p.m me after 5 posts .:)QUOTE=Diceman;74222]Hi Dotty i have a 1 bed apt to be completed very soon in Taiba and am looking to rent out to local Brasilians on longterm contracts.The apt is a block of24 each apt being 55m2 in total, with balcony, gymnasium,pool,hammock area,barbecue area,sauna,storage area ,and 1 car parking space.I notice you use a good small agency any feedback or contacts or pointers in the right direction would be appreciated[/QUOTE]
     
  16. Dotty

    Dotty Banned

    Hi Debzor,

    That is not full management.Only collect and deposit.:)QUOTE=debzor;74252]With regard to costs on long term lets, I believe most Creci licensed brokers work as follows:

    12 month lets - 1st month plus 10% of subsequent months.

    6 month lets - 10% agents fee + 10% administraion as follows: for ease say your rental income is R$500 per month: x 6 months = R$3000, 10% payable in first month, ie R$300 plus 10% per month as above.[/QUOTE]
     
  17. robh

    robh Administrator Staff Member Premium Member

    I know the Flatshop owner's brother and have heard good things about his sister's company from other sources.

    Rob
     
  18. Dotty

    Dotty Banned

    The website offers only a small selection of properties,yet the company says they are 15 yrs old!
     
  19. Diceman

    Diceman New Member

    rental agents

    [/QUOTE]



    Hi Dotty i am looking to rent out apt on a long term summer let to local brasilians.hope you can point me in the right direction
     
  20. Dotty

    Dotty Banned

    Hi Diceman,

    I will email you with details as I don't want to be called an agent anymore(I'm not)and will pass on some emails to you of good agents here in Natal and will research agents in Forteleza for you.Give me a couple of days.

    Regards:) QUOTE=Diceman;74626][/QUOTE]



    Hi Dotty i am looking to rent out apt on a long term summer let to local brasilians.hope you can point me in the right direction[/QUOTE]
     
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