Payments in Euros can prove Expensive
many owners of self catering holiday rental homes
in Europe, my property in the South of France will attract
visitors from inside and outside the euro zone.
learnt at any stage after the Euro was introduced
that the banks would not suffer financially as a result
of losing business on “exchanging currency”.
experience you can now go from one country to another in
the euro zone withdrawing “cash” from an ATM or using your
credit/debit card without penalty. This rule does not seem
to apply with the bank I bank with in France regarding cheques.
have had to add in my rental terms a statement advising
the renter that he/she will have to reimburse me for any
bank charges as a result of a non French euro cheque. This
means my Belgian and Dutch visitors have to be prepared
to pay the bank commission.
late November 2005,I was sent a payment for €29.58 drawn
on a Spanish bank in euros. I posted off the cheque on the
fits of December. On the 22nd the bank credited my account
with €29.58. On the 23rd December they charged €13.80 administration
charge for transacting it! That is nearly 50% of its
be fair that might be their minimum standard charge and
if that is the case I am pleased the cheque was not for
€10.00 as I would have been paying them and not getting
above situation may not apply to all French banks – I hope
not, however if you are the owner of a self catering vacation
home do include in your terms and conditions that you make
a charge for changing the renters cheque from one currency
or another or even the same currency if it happens to be
the renter can arrange to have the cheque drawn on the currency
of the property owner (as I have done with US $ transferred
into £ sterling for example (at the renters cost) this might
solve this problem although I would not want to guarantee
do not know if other banks in the Euro zone operate in the
same way, but it would be interesting to find out.
Suter is a Director of JML Property Services, a UK based
company offering Insurance Products on line, property rentals
in Berkshire and Buckinghamshire, England and a self catering
vacation home advertising service for the South of France
and internationally www.jmlvillas.com.
He is also involved with management training companies operating
in the UK and Internationally.
is a very experienced property consultant with over 30 years
work in the Residential letting business and served in the
national council of The Association of Residential Letting
Agents (ARLA). He is a Fellow of the National Association
of Estate Agents (NAEA) and a Member of The association
of Residential Letting Agents.
Suter jml Property Services January 2006
a cheque from one Euro zone country to another is frustrating
and very expensive…don't bother