Thank you for answering several tax and revenue questions when using a property as a rental when it’s vacant! I want to do this as well and I agree that any small amount of net income is still better than no income, as it offsets property cost. Keep up the great work Mike!
This is a no brainer for me! Really like it. And I think the barn does have a view. I tbink this one is worrh looking into. And it seems that the barn could be the best once it's converted.
Hello my dad grew up in Longmont and I currently live in Dallas. I’m an empty nester with a son at Texas A&M and my newest project is to sell everything and buy a home in Italy. At first it was to simply be a nomad. But the more I watch these Italy vids, the more my heart and soul feels like it’s exploding. lol. I’m taking it as a sign. I just found your channel today.
❤Love the property! The barrel ceilings, the well kept flooring, the windows and the Juliet balconies and light coming in…I think the bath needs complete renovation and I would have loved to see inside the barn. 45K EUROS?! 735 ish sq feet plus the barn w/garage!-it’s perfect. Add this one to your fave list. ❤
It's already on the favs list. 😊 I would ultimately redo the bathroom, but it would work for now. If I can negotiate the price down I would definitely consider taking a run at this one.
I think it could work, but I haven't heard back from the realtor. I think sometimes they aren't interested in dealing with foreigners. Or maybe it sold already?
My friend who is also my neighbor in my town will take care of my rental house in Le Marche, arrange the cleaning, gardening etc. This is the best and easy.
I think Airbnb is a good option, I use it a lot my self and I have one to rent out, lot of people want to be able to cook at home and to be independent during an holiday. Big cities struggle with this problem, but small villages not really, it is a good way to show a place which is not too famous and bring some quality tourism there. But I also think that the most nice and memorable places are the ones where a host is caring a lot about them and put some love in it. I rent out an apartment in a city with an agency and it is quite good and the contracts are for a year so you could eventually try one or two years and see.
Expect 35-40% management fees on gross rent net of your taxes and cleaning fees. Altogether it comes to nearly half of your rental revenue. Plus you are paying for utilities. It might still be worth it if your property is going to be sitting vacant for months at a time and you find a good management company. There will be people in there staying and cleaning it, so less chance of leaky pipes etc. offset by the chance of damage or loss to the property. Kind of a tossup. I own a short term rental business in the US and we are hiring our experienced neighbors to manage our house in Italy for us.
Good to know. Thanks for the info. I never heard back from the company I mentioned in my video. I guess they don't want my business. For me it depends on the property I buy. I would not consider renting out my own place, but if a place has 2 units I would consider renting out the unit I'm not in. We'll see what I can find.
Absolutely. We aren’t looking at our property as being a big moneymaker, but I think the benefit is getting some income in and also also just having people in the place. I think it’s worth it. Sorry they didn’t get back to you. That’s not uncommon, as you probably know. Keep up the search!
Thanks! I do too. I need to find out more about it like does it face south? That could be a dark place in the winter months with that hill behind it. I'll keep you posted.
How about creating an off grid heaven somewhere remote with stunning views and a wraparound porch to enjoy every angle? Maybe middle or South America? As I assume the future will be about land and water, that’s on top of my bucket list
@logiman Gross revenue because you're not allowed deductions if you choose the 21% option. If you want to deduct expenses then you have to use the regular method.
Flat rate is the way to go. I was thinking short term rentals too for Italy bc it’s extremely warm during the summers in southern / central areas … prefer staying there after the summer season preferably. I’d employ a local person to run it … someone reputable and trustworthy--hire a good attorney first to administrate over the property personnel and the property. Is the 21% tax break across the board for all municipalities in Italy … this is importantly to know. Look forward to your response. Have a chill weekend, bro. Ciao tutti
Another great video Mike! I have heard of people starting a business, like a LLC, to put properties under so that they aren't in your name. And they also use it to purchase a vehicle in Italy. So, there are legal loop-holes that can allow you to do more. Of course, a business and/or tax professional would be able to help with a clear legal path. Decision, decisions can be stressful but so much fun too. That's funny how your mother played video critic. Moms are the best! Beautiful place in Colorado!
Great idea! That might be perfect down the road if I decide to purchase more properties. My mom has been incredibly supportive. I just wanted to tease her a bit. She got a kick out of it. 😊
That is more your style. The other place is too big imo. That back “barn “ is awesome for a long term rental as a furnished studio. It wouldn’t cost that much to complete/repair
Is the money generated from a rental enough to mess with. As a former B&B owner, I would say no. The damage, theft, liability insurance, maintenance, water usage, and fees are all to be considered. Don't forget, you need to realize the freedom to use it anytime is dictated by renters who book out months in advance. Just some thoughts. Like today's property. Any views?
I agree. It's a fine line. If I were to do it I would only rent a separate unit, like the one with beautiful floor tiles that had two complete apartments. I didn't see any views on the photos included in today's listing. Maybe from the upper floor of the barn? I'll see if I can get more details.
It depends, if a agency is good you wont't have these problems. I am a former owner too, in a city, and had no big issues. And the time you would spend there needs to be cleared with the agency too. So I guess it depends a lot if you have trusted people. I would also say you won`t have a overbooking of tourists in a village in Piemonte, definitely not in winter. Of course all of this needs a little energy and time, so it is not working for everyone, and it won't makes you rich, but could be worth a try to get a little extra income. Also leaving a place empty for 7 or 8 months is not so good too.
@fulvias All great points. I'll see how things work out. If the income offsets taxes and utilities, I think it would probably be worth it, but I'll see.
Thank you for answering several tax and revenue questions when using a property as a rental when it’s vacant! I want to do this as well and I agree that any small amount of net income is still better than no income, as it offsets property cost. Keep up the great work Mike!
Thanks! There are downsides to short term rentals, but it can work for some people and some situations.
I agree with you on this one. Has a great exterior look. The barn is a plus and the simple layout of the interior is perfect. This one is a keeper!
Not bad huh? So I've got this more simple place and the more extravagant one. Tough choices but fun. 😊
This is a no brainer for me! Really like it. And I think the barn does have a view. I tbink this one is worrh looking into. And it seems that the barn could be the best once it's converted.
Hello my dad grew up in Longmont and I currently live in Dallas. I’m an empty nester with a son at Texas A&M and my newest project is to sell everything and buy a home in Italy. At first it was to simply be a nomad. But the more I watch these Italy vids, the more my heart and soul feels like it’s exploding. lol. I’m taking it as a sign.
I just found your channel today.
You have to follow the signs. Good luck to you. I hope our paths cross one day.
@@aroundtheworldwithmike Ty. Have a good week.
I am thankful for your rental information.
You are welcome!
Great info. Interesting to see how things work.
Glad it was helpful!
I love that property! The barn looks like a fun project, especially to create a place for your motorcycle(s) and then something above it.
That's what I was thinking. And it wouldn't be something I would have to do right away.
Love your videos. Keep them coming. Short term rental info is great.
Thanks! Glad you like them.
❤Love the property! The barrel ceilings, the well kept flooring, the windows and the Juliet balconies and light coming in…I think the bath needs complete renovation and I would have loved to see inside the barn. 45K EUROS?! 735 ish sq feet plus the barn w/garage!-it’s perfect. Add this one to your fave list. ❤
It's already on the favs list. 😊 I would ultimately redo the bathroom, but it would work for now. If I can negotiate the price down I would definitely consider taking a run at this one.
This house seems to be perfect for your needs. I can understand your thoughts about renting it out although I wouldn’t rent out my home where I stay.
I agree. I would only rent out a separate unit, like if I could make something in the barn.
@@aroundtheworldwithmike maybe you should check this one the next time
Looks good-price seems reasonable.
I think it could work, but I haven't heard back from the realtor. I think sometimes they aren't interested in dealing with foreigners. Or maybe it sold already?
Love your house in Colorado! That wildlife is amazing!
Thanks! As you can tell, I love the wildlife too.
My friend who is also my neighbor in my town will take care of my rental house in Le Marche, arrange the cleaning, gardening etc. This is the best and easy.
I think Airbnb is a good option, I use it a lot my self and I have one to rent out, lot of people want to be able to cook at home and to be independent during an holiday. Big cities struggle with this problem, but small villages not really, it is a good way to show a place which is not too famous and bring some quality tourism there. But I also think that the most nice and memorable places are the ones where a host is caring a lot about them and put some love in it. I rent out an apartment in a city with an agency and it is quite good and the contracts are for a year so you could eventually try one or two years and see.
Trying it for a year is a great idea. I'll look into it more. Thanks!
Expect 35-40% management fees on gross rent net of your taxes and cleaning fees. Altogether it comes to nearly half of your rental revenue. Plus you are paying for utilities. It might still be worth it if your property is going to be sitting vacant for months at a time and you find a good management company. There will be people in there staying and cleaning it, so less chance of leaky pipes etc. offset by the chance of damage or loss to the property. Kind of a tossup. I own a short term rental business in the US and we are hiring our experienced neighbors to manage our house in Italy for us.
Good to know. Thanks for the info. I never heard back from the company I mentioned in my video. I guess they don't want my business. For me it depends on the property I buy. I would not consider renting out my own place, but if a place has 2 units I would consider renting out the unit I'm not in. We'll see what I can find.
Absolutely. We aren’t looking at our property as being a big moneymaker, but I think the benefit is getting some income in and also also just having people in the place. I think it’s worth it. Sorry they didn’t get back to you. That’s not uncommon, as you probably know. Keep up the search!
They finally did get back to me and do offer their services in my town. Their fee is 30% for everything. Seems like a reasonable price to me.
I really like this one!
Thanks! I do too. I need to find out more about it like does it face south? That could be a dark place in the winter months with that hill behind it. I'll keep you posted.
How about creating an off grid heaven somewhere remote with stunning views and a wraparound porch to enjoy every angle? Maybe middle or South America? As I assume the future will be about land and water, that’s on top of my bucket list
I thought about South America, but I explained my thought process against it in a few early episodes. For right now Italy is the place for me.
Hi Mike. Another great video. Is the 21% tax on net income or revenue?
Revenue
@@laurihines300 Thanks, Lauri.
@logiman Gross revenue because you're not allowed deductions if you choose the 21% option. If you want to deduct expenses then you have to use the regular method.
@@aroundtheworldwithmike That makes sense. Thanks.
Flat rate is the way to go.
I was thinking short term rentals too for Italy bc it’s extremely warm during the summers in southern / central areas … prefer staying there after the summer season preferably. I’d employ a local person to run it … someone reputable and trustworthy--hire a good attorney first to administrate over the property personnel and the property. Is the 21% tax break across the board for all municipalities in Italy … this is importantly to know. Look forward to your response. Have a chill weekend, bro. Ciao tutti
As far as I know the "Dry Coupon/Rent" 21% Flat Tax is a national program so works across the board in all municipalities. Good luck and Ciao.
Another great video Mike! I have heard of people starting a business, like a LLC, to put properties under so that they aren't in your name. And they also use it to purchase a vehicle in Italy. So, there are legal loop-holes that can allow you to do more. Of course, a business and/or tax professional would be able to help with a clear legal path. Decision, decisions can be stressful but so much fun too. That's funny how your mother played video critic. Moms are the best! Beautiful place in Colorado!
Great idea! That might be perfect down the road if I decide to purchase more properties. My mom has been incredibly supportive. I just wanted to tease her a bit. She got a kick out of it. 😊
That is more your style. The other place is too big imo. That back “barn “ is awesome for a long term rental as a furnished studio. It wouldn’t cost that much to complete/repair
I agree. That barn could be really cool.
S that 21% after expenses?
Is the money generated from a rental enough to mess with. As a former B&B owner, I would say no. The damage, theft, liability insurance, maintenance, water usage, and fees are all to be considered. Don't forget, you need to realize the freedom to use it anytime is dictated by renters who book out months in advance. Just some thoughts. Like today's property. Any views?
I agree. It's a fine line. If I were to do it I would only rent a separate unit, like the one with beautiful floor tiles that had two complete apartments.
I didn't see any views on the photos included in today's listing. Maybe from the upper floor of the barn? I'll see if I can get more details.
@@aroundtheworldwithmike views are a must requirement. Else stay and enjoy yours in Colorado.
It depends, if a agency is good you wont't have these problems. I am a former owner too, in a city, and had no big issues. And the time you would spend there needs to be cleared with the agency too. So I guess it depends a lot if you have trusted people. I would also say you won`t have a overbooking of tourists in a village in Piemonte, definitely not in winter. Of course all of this needs a little energy and time, so it is not working for everyone, and it won't makes you rich, but could be worth a try to get a little extra income. Also leaving a place empty for 7 or 8 months is not so good too.
@fulvias All great points. I'll see how things work out. If the income offsets taxes and utilities, I think it would probably be worth it, but I'll see.
Airbnb is not good anymore, no bookings at all. Booking or Holidu.
If you offer breakfast or anything you are in the hotel business