Cyprus is a highly attractive location for individuals and businesses to invest in property, either as a main residence or to let as rental accommodation. Property prices are now extremely competitive, while demand and rental yields remain high.
If you are looking to buy a house or apartment in Cyprus to let, here are a few points to consider, plus some ideas of what your obligations as a landlord are and what you can expect in return:
Marketing Your Property
Once you have found your ideal property to let, you will need to decide on how to advertise it. The most cost-effective ways is to advertise online through one of the many property listing sites both in Cyprus and abroad. You can also register the property with real estate agencies that will work on your behalf and charge a commission for their services. Only use a licenced and registered real estate agent.
Protect Your Rights
The rental agreement is an absolute necessity when you rent out your property. Arrange to hire a good solicitor who can draw up the legal document which should clearly state among its clauses the name of the property, the lessee and lessor’s names and address, monthly rental value, period of tenancy and amount of deposit paid. It should also include important clauses such as the early termination of contract. In signing this document you clearly outline and protect the rights and responsibilities of both parties in the event of any damage or disagreement.
The standard practice is to receive a refundable security deposit equivalent to one month’s rent and the first month’s rental payment in advance. The refundable deposit is to cover the event of any breakages or damage to the property and is to be returned when the tenant vacates the property.
Be sure to keep records and issue receipts for all payments made – this will avoid any disagreements and can be useful for tax purposes.
The onus is on the landlord to provide a safe and secure environment. The property should conform to local fire regulations..
The property should also be secure with the proper locks installed, while the fabric and structure of the building must be safe and sound.
It is advisable to arrange for all gas and electrical appliances to be checked every 12 months.
A landlord must ensure that the property is clean and properly maintained. There are many reputable individuals and companies in Cyprus that can be contacted to carry out these services. Basic faults such as leaking pipes or blocked drains and will seriously affect your reputation and business.
As a landlord you also have various rights when it comes to your property. A landlord has the right to enter the property with appropriate notification, collect all rental payments when due and take action to recover overdue or unpaid rents. In the unfortunate circumstance that the property has sustained any damage, the landlord can seek to take possession with the full backing of the .
Depending on what level of involvement you wish to have as a landlord you can manage the letting yourself but it can be time consuming and is more difficult if you live abroad. The alternative is to use the services of a property management company who will make all the necessary arrangements to ensure you conform to the laws and requirements as a landlord and ensure that your investment is looked after in the best way possible.