Renting accommodation is an essential step when settling abroad. However, understanding local practices is crucial to avoid pitfalls when renting in a foreign country. Whether you are already in the host country or not, what should you consider before signing a rental agreement? What are the differences between short-term and long-term rentals?
Rental contract: Knowing your rights
Typically, foreigners have the same rental rights as residents. The laws of the host country dictate the required documentation for renting. Many countries have laws against discrimination, ensuring that anyone can rent a property, regardless of nationality, provided they have a valid residence permit. For long-term rentals, your residence permit must allow you to stay in the country for an extended period.
In practice, some landlords may be hesitant to rent to foreigners. If you face this issue, don't hesitate to assert your legal rights. However, many expatriates choose to avoid these potentially lengthy and complex disputes by seeking out landlords or rental agencies that specialize in accommodating foreigners.
Other rights of foreign tenants
As a foreign tenant, you are protected against any sudden or unjust eviction. It's essential to be fully informed about all legal aspects of the rental property, which should be provided to you in writing. This includes documents such as an energy performance certificate if mandated by the host country's laws. You should also be familiar with the rights and duties associated with tenancy. Note: these documents are typically provided in the host country's language, unless you are working with an international agency.
What to look out for before signing a rental agreement
As a foreigner, you might be more vulnerable to exploitation. Some unscrupulous landlords may try to take advantage of your unfamiliarity with local laws and customs to deceive you. Here are practical tips to help you avoid such pitfalls.
Visit the property
If you need to rent while still abroad, always opt for a certified agency and steer clear of informal agreements. Insist on written guarantees, especially for long-term rentals. If you are already in the country, never agree to make any payments before you have visited the property. In some locations, like Australia and France, landlords may illegally demand payment just to show you the property, exploiting high rental demand to create paid waiting lists. Always refuse to pay to reserve a property as well.
Careful reading of the lease
Many conflicts between landlords and foreign tenants arise from misunderstandings of the rental agreement. Often drafted in the host country's language, these documents can lead to misinterpretations, even when translated. If you are not fluent in the local language, it is advisable to hire a professional and certified translator to ensure accuracy and clarity.
Understanding the host country's property rental system Â
Since each country has its unique rental system, educating yourself before signing any agreements is crucial. In South Korea, for example, the "jeonse" system is prevalent but currently under scrutiny. This system allows tenants to live rent-free for the duration of the lease in exchange for a substantial security deposit—often up to 100% of the property's value—which is refunded at the end of the lease. Many expatriates find this arrangement appealing.
However, there is a significant risk of scams, with losses averaging over one billion dollars per year, affecting both foreigners and South Koreans alike. Given that tenants often finance these large deposits through loans, the financial repercussions of a scam can be severe. Ensure you fully understand the risks before committing to a jeonse contract.
Alternatively, the "wolse" contract, which requires a security deposit equivalent to 2 or 3 months' rent plus monthly rent payments, is more traditional and favored by students and those with lower incomes. The majority of international students choose the wolse system.
Additional clauses
Be vigilant about abusive clauses in your rental agreement. Before signing, ensure that all clauses are legal. In Germany, for instance, some landlords unlawfully demand a second payment after the lease is signed and the security deposit is paid. Additionally, be cautious of clauses that allow for an annual rent review and restrict lease termination (with a maximum of four years)—these are common in German rental contracts and can be problematic.
Additional fees
When renting a property in Japan, be prepared for potential additional fees. A common requirement is the "reikin" or "key money," a non-refundable payment to the landlord that can amount to one to two months' rent. To avoid this fee, consider working with an agency that does not require it. Many local and expat-focused real estate agencies highlight the absence of key money as a selling point.
However, the overall cost can still be high due to other rental-related expenses, such as property cleaning, replacement of keys, and fees for a guarantor company in case of non-payment. Typically, leases in Japan last for two years, except for those provided by agencies that offer short-term rentals. Be aware that additional fees may also apply when renewing the lease.
Guarantor and security deposit
A guarantor commits to covering your rent in case of non-payment, while the security deposit is an amount paid upfront to mitigate any potential damages or defaults. In France, the terms often overlap, with "guarantor" sometimes referring to both the individual who provides financial backing and the deposit itself. In Germany, the "kaution" is used exclusively to denote the security deposit, clearly differentiating it from the guarantor's responsibilities.
Understanding rental rights as an expat in Morocco
Foreigners typically flock to Morocco's major cities and tourist hubs like Casablanca, Fez, Tangier, Marrakech, and Rabat, where rents are generally higher but still manageable, especially outside the most in-demand areas. When looking for a place to rent, you can explore various options: searching online before arriving in the country, directly contacting landlords in Morocco, utilizing a "samsar" (a local intermediary), or using real estate agencies—local, international, or those specializing in serving foreigners. Knowing your rental rights is essential to avoid pitfalls and ensure a smooth rental experience.
Key considerations when renting in Morocco
Whether you choose an international or local real estate agency, ensure it's legitimate. In Morocco, it's common for multiple agencies to offer the same property. Avoid relying solely on an agency's assurances. If renting from abroad, ask for a video tour where the agent shows you the property live.
Samsars, while not real estate professionals, are typically well-versed in the nuances of local neighborhoods. However, their informal negotiation processes can be challenging if you're not fluent in Arabic or familiar with the local culture. Negotiations often involve haggling over prices for basic services like viewing a property or obtaining specific information. If you decide to work with a samsar, consider having a Moroccan friend accompany you. Similarly, avoid negotiating directly with landlords if you are not knowledgeable about Moroccan rental laws and regulations.
Knowing how to negotiate
Leverage the lease duration to your advantage; longer leases often provide room to negotiate lower rents. Emphasizing a stable and reputable profession can also influence negotiations positively, as landlords appreciate financially secure tenants. Remember, in Morocco, you can negotiate almost everything associated with the rental. Use any imperfections you notice in the property as leverage to lower the rent, and consider offering to undertake minor repairs yourself as a bargaining chip.
Don't overlook the building management fees, which will be added to your rent. Commissions vary: if you use a real estate agency, expect to pay a fee equivalent to one to two months' rent. With a samsar, however, the fee isn't fixed and will depend on how well you negotiate. Finally, familiarize yourself with the utility costs—water, electricity, gas—as knowing these can help you negotiate a lower rent overall.
Mixed rentals
In Morocco, mixed cohabitations are prohibited. Unlike many Western countries, Morocco does not recognize de facto unions. Consequently, rentals may be denied to couples who are not legally married.
Legalizing your rental contract
Once you sign the rental contract, it's essential to legalize it to validate the agreement. Accompany the landlord or real estate agent to a legalization service. Remember, merely signing the contract does not make it legally binding. Ensure you do not pay any rent until the contract has been officially legalized by the appropriate service.
Knowing your rights before renting abroad: Final tips
Avoid making any payments in advance to reserve a property, regardless of whether it's requested by an agency, landlord, or intermediary. Insist on and keep written records of all interactions and documents provided by the landlord. Do not make any payments or rent until the rental agreement is officially signed.
Visit the property both during the day and in the evening to assess the neighborhood's suitability. Confirm that the daytime tranquility persists at night.
For both short and long-term rentals, do not navigate the process alone. Engage with a reputable agency, reach out to local acquaintances, or consult expatriate forums if you are abroad. Never sign a rental contract without securing all necessary guarantees about the property. Always demand authenticated written evidence.
