Why do I get less money than mentioned on the rental contract?

(Relevant for owners on a Premium or Superior plan)

When it comes to temporary rentals, Globexs invoices both the tenants and the owners. This leads to 3 reasons why the owner gets less money per month than what is mentioned on the rental contract. This consequently means that for tax purposes the owner cannot rely on the rental contract. That is why an owner can always ask Globexs for an income statement, or income receipt. This income statement gives an overview of the rental income versus expenses, and shows what an owner actually makes from the rental.

Reason 1 – The Globexs commission is embedded in the rental amount

To tenants who book a Globexs apartment housing, we charge an agency fee, a commission or a combination of both, depending on the location, the duration, and the type of rental.

An agency fee is a 1-time fee that our tenants pay to Globexs to confirm a booking, but a commission is a monthly amount that we charge on top of the rent. This can be anywhere between 50€ and 20% of the total invoice amount. On the invoice that we send to the tenants, the commission appears as a separate concept, described as “Globexs commission and expenses”. However, on the rental contract this amount is embedded in the rental amount (as opposed to agency fee which is mentioned in a separately).

In other words, in the contract there is no distinction between the neto rent that is being transferred to the owner, and the commission that Globexs calculates on top of the neto rent. This is the first reason why the monthly rent that is mentioned on the contract, is higher than what the owner receives.

Reason 2 – We charge a 2-10% service fee to owners

With an owner we agree a monthly rental price for his apartment. This amount can be negotiated depending on the duration and type of tenant. The owner receives the rental price he agreed to, minus 2 (premium) or 10 (superior) % service fee. Globexs deducts the service fee automatically for each payment, and invoices the owner quarterly for this amount.

Reason 3 – We charge a yearly 99€ publication fee to owners

Owners on a Premium plan or Superior plan are subject to a yearly 99€ publication fee. This publication fee is billed yearly in January. If at the moment of billing the owner has a tenant, the administration fee will be deducted from the rental income.

Reason 4 – You have contracted Nestor Property Management SL or Sukasa for maintenance

Even though Nestor Property Management SL and Sukasa are separate, independent companies from Globexs, their invoices are deducted from the rent. Globexs transfers the deducted amount to the bank account of Nestor Property Management SL or Sukasa.

Reason 5 – Calculation of rental price for last month with incomplete calendar month coverage

The client is entering his last month, and the last period does not cover a full calendar month. If the last month is less than 1 calendar month, the rental price is calculated in proportion.