The costs of renting out your property in Cyprus
Renting a property is always a profitable option on the Cyprus marketplace. Many own a house or an apartment and want to rent it as an investment opportunity. However, before renting your home, there is a wide range of things to do, including money, time, and organization.
It is always important to ask ourselves some questions: why do we want to rent our house? For how long do we want to rent it? Perhaps it is our family home, and we are moving temporarily. The important thing is to have an answer to these questions.
Before renting the house, we must know what expenses we have to face. If we are about to rent our house and then rent another in another place (for whatever reason), it is essential to foresee that the income from the rent received allows us to pay the other rent. Perhaps we find the advantage of not paying it, but it is always important to anticipate this situation.
In addition, consider a series of issues that have to do with habitual expenses, the payment of a mortgage, maintenance expenses, and cost of fees. In this instance, it is advantageous to have a real estate agent's advice. They are professionals who precisely know these types of expenses if we do not know them all.
The same goes for insurance: when renting our house, we must bear in mind that the owner's insurance in the Cyprus real estate market is higher than the policy paid by a conventional tenant. As we have already explained, in other towns where we deal with this issue in detail, having insurance is essential.
Another critical factor to consider must be if we rent the house furnished. If so, we must take an inventory of all furniture and appliances. Even take out insurance for some of them in case they are valuable. Also, take into account if we rent our property unfurnished. If so, we must anticipate the removal of our furniture and the possible cost of storing it.
Meet future tenants
In the real estate industry, there is a wide variety of actors. It is imperative to know in advance who will be our future residents. For this, the assistance of licensed estate agents is suggested, who will guide us in obtaining information about our clients. This requires getting credit reports from the banking system, certificates of good conduct, and even a criminal record. There are many cases of long-term rentals that have been involved in scandals for not knowing the tenants better. Prevention is always better than cure.
Property managers are the ideal people to carry out various supervisions and corresponding administration. A licensed real estate agent usually has a list of high-quality administrators who can take us multiple controls in exchange for a monthly percentage or a fixed fee. This includes collecting rent, general maintenance, and, if necessary, evicting the tenants. It is good to know that many management consortiums offer comprehensive services, including 24-hour service.
Although it may seem like a detective thing, there is the possibility of hiring people to monitor our home care in the property market. There are even offices in Nicosia and in other cities in Cyprus where they can be employed. Basically, its function is to check the care of the property, that the house looks good. Even if the grass is cut. All of this becomes more relevant when it comes to luxurious properties, which can often suffer irreversible damage if not well cared for.
These monitors can also be used as tenant assistants, regularly checking the boiler operation, plumbing, electrical system operation, and other vital issues. With a simple call, irreversible situations can be anticipated.
It seems simple, but it is not. We always suggest that you keep an orderly record of all documentation related to our property. This includes the property title, payment of taxes and expenses, electricity, water, gas, and cable television services, and receipts and invoices for all work performed.
Finally, it is always good to have the assistance of a lawyer and an accountant on hand. For sure, they will be extremely helpful. They will know how to advise us on specific issues that have to do with the rental of our property. Owning a home is, in many cases, a significant investment. So, we must have all the precautions to be protected against any inconvenience that may arise.