Everything you need to know about property rentals in Cyprus
Renting out property in Cyprus can be a profitable business as the island nation attracts increasing numbers of expats and continues to enjoy an excellent reputation among tourists from all over the Mediterranean region and beyond. If you are thinking about investing in property to rent, or already own a property they you would like to rent out, here are some tips on things you need to know.
Long-term or short-term
One of the first things you need to decide on when considering becoming a landlord in Cyprus is whether you want to rent out your property on a long-term or short-term basis. The main advantage of short-terms rent is that your return can be as much as double what you would get from a long-term let, at somewhere around 8 per cent. However, short-term lets tend to lead to more expenses for landlords as tenants are less likely to consider the property as their home, and treat it as such. You also have the challenge of needing to continuously market the property to attract new tenants and run the risk of having the property unoccupied for longer periods.
Location, location, location
Deciding on whether you’d prefer long or short-term tenants can have a real impact on where you choose to invest. Location is always important when buying property and, in every village, town or city you will need to think about how close your property is to amenities like schools and shops as well as transport hubs. But, in Cyprus, different areas are more likely to attract a certain type of tenant. For example, the likes of Paphos and Aya Napa which are popular summer destinations, are obviously likely to be more popular among tourists and short-term visitors. On the other hand, a city like Limassol is more favoured by tenants with longer term plans to stay in Cyprus as it increasingly becomes a hub for international businesses setting up in the country. It is worth talking to a letting specialist or someone who knows the rental market well to better understand the best locations to achieve the highest return on investment from the type of tenants that you are looking to rent to.
When considering locations to buy property in Cyprus it is also important to keep in mind whether your investment is covered by the Rent Control Law, designed to protect tenants from eviction in the aftermath of the 1974 conflict. The different types of tenancies that can be in place in Cyprus as a consequence of this law can also impact your ability to increase rents and how any disputes with tenants are treated by the courts.
Getting the right team in place
One of the key factors in becoming a successful landlord is to make sure you treat this venture like a business and run it accordingly. To do that, you need to have the right team in place. This includes all the trades you will need to maintain the property such as plumbers, electricians, decorators, gardeners etc. You may also want to engage a property manager or a letting specialist (such as QuickLets Cyprus) to manage the process of setting the right prices, marketing your property, and taking care of agreements with tenants. A good property manager will also take responsibility for making sure your property conforms to all the relevant safety regulations.
It’s also important to have a good accountant to help you keep on top of your finances and make sure all your tax dues have been settled. A legal professional will also help you ensure you have all the right paperwork. Remember that to rent out a property in Cyprus you will need: the title deeds or sale agreement of the property you wish to rent, proof of your own identity, proof that there are no outstanding utility payments due and a rental agreement that specifies the rent duration, price and payment procedure.
Having a great team of reliable people around you will ensure that your property is occupied for the greatest amount of time possible and therefore increase your revenues.
Additional benefits of property investing in Cyprus
Aside from getting a regular income, investing in property in Cyprus can bring additional benefits. These potentially include a permanent residency status for you and your family and the ability to conduct other commercial activities under preferential tax laws. You can find out more about this and all the opportunities of becoming a landlord in Cyprus has to offer from the QuickLets team of specialist letting agents that can be reach through our website at https://www.quicklets.com.cy