Renting out properties in Cyprus: tips and things to know
If you own a property in Cyprus or are thinking of investing in a property to rent out, it’s good to take some time to think through what it takes to be a successful landlord. Of course, the quality and location of the property you wish to rent out are going to be crucial to determining how much income you can generate but there’s much more to it than that.
Is your property impacted by the Rent Control Law?
The first thing to consider is the legal framework which regulates tenancy agreements in Cyprus. Cypriot Law, in fact, has two types of tenancy, ‘contractual’ and ‘statutory’. These different types of tenancies stem for the impact on housing of the Turkish invasion of Cyprus in 1974 and the subsequent Rent Control Law that was brought in to protect both landlords and tenants. The type of agreement you can enter into with tenants could be determined by the type of property you own, its age, and its location. It is a really good idea, therefore, to first check with someone who knows the law and the Cypriot property market well to better understand the conditions under which you would be able to rent out your property. Additionally, property is Cyprus can not be rented out unless it has the proper permits and licenses so make sure these are in place.
Make sure your property is safe
Another requirement for landlords in Cyprus is a series of inspections which will need to be carried out on your property. These will cover energy services and the provision of drinking water, among others. These inspections will grant your property a qualification and certificate which will allow you to rent, or even sell, your property. The property you will rent out could be someone’s home for a number of years so you need to make sure that any risks are minimised. There are lots of things to think about including gas safety, electrical safety, fire safety and the presence of smoke ad carbon monoxide alarms.
Setting the right price?
Having understood what type of tenancy you can agree on your property and secured the required permits, the next step is to think about what price you can charge for rent. It’s important to get this right as you want to make the best possible return on your investment but don’t want to price yourself out of the market. A good place to start is to see at what price other similar properties in your area are being rented out. You could even view a few of them as a prospective tenant to get a better idea of the condition of the properties and the rental terms being offered. This will help you to better judge what price you should be asking for. Of course, you could always save yourself the time and trouble by contacting one of the QuickLets Cyprus letting specialists who will be able to guide you on the current market in your area and provide advice on how much you can charge for your property.
Marketing your property
Engaging a letting specialist is probably the easiest way to go about marketing your property even more so because they will already have a list of prospective tenants to bring round. Whether you do this or opt to go it alone online or by creating and distributing flyers, it’s important to know what type of tenant you want and to clearly communicate this in your marketing material. Whether you are offering a long or short term let and whether your property is suitable for families or young couples will obviously affect who shows up to view the property. Make sure those are the right people.
The importance of communication
Communication between landlord and tenant is always important but never more so than at the very beginning of an agreement. Make sure everyone involved has clearly understood their rights and obligations, as set out in a written contract. Remember that rental agreements in Cyprus must be in writing, signed by the owner and the tenant, and include the names of the people who are party to the agreement, the rental price and form of payment, the deposit amount and how it is protected, the property address, the start and end date of the rental agreement and any other obligations of the parties.
Throughout this process and once the agreement is signed, it is vital that you make the tenant feels welcome and that you recognise that the property is their home now and that you won’t be randomly coming round to check up on them. That said, make it clear that you are available should any problems or questions arise. This is more likely to happen in the first days or weeks as the tenants get to grips with how the washing machine works or finding their way around the neighbourhood. If dealing with tenants is something you would rather avoid, you can always engage a property service manager but it’s important that you make sure they offer the level of service you expect. Either way, communication throughout the tenancy agreement will be one of the most important factors in making you a successful landlord.
Insurance & Taxes
As landlord you need to protect your investment so make sure you have adequate building insurance just in case the worst happens. It’s also important to keep up to date on your taxes. Your end of year tax return must show the profits from your property after deducting allowed expenses such as insurance and costs for repairs and maintenance. It is possible to claim tax relief in some instances but you will need to speak to a specialist to see if you can benefit from this.
Doing things the right way will reap the best rewards
Becoming a landlord in Cyprus is exciting but it can also be challenging. It offers great opportunities to make good returns on your investment but, like any other business venture, it also carries some risk. It’s important that you plan properly, understand what the opportunity is and what your own obligations will be. If you feel you are ready to take the plunge, QuickLets Cyprus is also here to help make your property investment journey a successful one. Our team of highly experienced experts will be more than happy to answer any questions and, most importantly, find you some great new tenants.
You can find out more about us at www.quicklets.com.cy