Urban Lease Management - "Hybrid" Property Subleasing

Hybrid Property Subleasing – The New Management Solution from Maryland Property Services

The category of Hybrid subleasing serves as an intermediary solution between tourist exploitation and classic property management. In this case, Maryland Property Services fully takes over the management of your property, without any involvement or financial burden from the owner. This means the owner enjoys a guaranteed, stable income while our company handles all processes, from renovation to management.

What is the difference?

Unlike classic leasing or tourist exploitation, the owner has no managerial role and does not participate in any decisions or expenses. This solution is ideal for properties in poor condition or in difficult-to-exploit areas, where owners lack the ability or willingness to undertake upgrades and management.

How the Hybrid Subleasing Process Works:

We conduct an inspection and assessment of the property’s condition.
We secure a rental appraisal from a civil engineer.
We present a subleasing offer to the owner.
If required, we proceed with renovating the property to increase its value.
We complete the furnishing and equipping of the property according to tenant requirements and rental value.

Benefits for the Owner:

Guaranteed and stable income, with no risk.

Upgrading of the property, whether it involves small-scale urban leases or higher-value tourist properties.

No participation in management expenses or decisions, as Maryland Property Services takes care of everything.

This innovative approach allows owners to maximize the potential of their property without bearing the responsibility of management and expenses. Maryland Property Services guarantees long-term contracts and comprehensive management, ensuring both optimal performance and the preservation of your property’s value.

FAQ

1. Why should I rent my house in Maryland for €450 per month, when I can rent it directly to an individual for €600 per month?

Let’s assume you have a property of about 60 square meters, which rents for €600 per month on the market. We offer you €450 per month for 5 years.

You might not realize that with the €150 difference, you are purchasing stability, guaranteed income, and zero risk of losing more money. If you rent it to an individual for €600 per month, potential damages, depending on the type of tenant, could cost you much more.

2. What expenses are there if I rent my house to a zero-risk tenant?

A zero-risk tenant leaves without unpaid rent or damages, and even pays for the repairs they left behind, amounting to €1,000. However, even in this case, there are expenses:

2 months of vacancy until the house is ready (painting, finding a new tenant) = €1,200
Real estate agent fee for finding a new tenant = €600
House painting = €1,200
Total expenses: €3,000
Monthly burden: €250 (€3,000 ÷ 12 months)

So instead of collecting €600 per month, you would actually collect only €350, meaning your loss is €100 per month more than the €150 you would lose with our offer. The total annual loss compared to our offer: €1,200.

3. What happens if the tenant is of medium risk?

The medium-risk tenant does not leave unpaid rent but leaves unpaid bills for water and common expenses, and offsets the deposit with the last month’s rent, leaving the repairs unpaid. The additional expenses are:

Repairs: €1,000
Water bills: €140
Common expenses: €350
Total expenses: €4,490
Monthly burden: €374.17 (€4,490 ÷ 12 months)

So instead of collecting €600, you collect only €225.83, meaning you lose €224.17 per month in addition to the €150 from our offer. Total annual loss: €2,690.04.

4. What happens if the tenant is high-risk?

A high-risk tenant does not pay rent, leaves unpaid bills, and causes damage to the property. Additionally, they offset the deposit with the last month’s rent. The additional expenses are:

4 months of unpaid rent: €2,400
Lawyer fees: €600
Damage to the parquet: €400
Total expenses: €7,890
Monthly burden: €657.50 (€7,890 ÷ 12 months)

So instead of collecting €600, you lose €57.50 per month, meaning your loss is €507.50 more than the €150 from our offer. Total annual loss: €6,090.