Letting Property in Cyprus

Cyprus stands at the crossroads of three continents – Europe, Asia and Africa and therefore is blessed with a strategic location. Combine this with excellent weather around the year and you get a great holiday home ensconced within a glorious heritage.
This is a country small but wealthy and well advanced. In terms of its forests, mineral deposits, skilled workers, road and telecommunications network and general development it has lots to offer. Cyprus is indeed a great place to rent residential properties due to its low cost of living. You can afford a complete lifestyle that’s not too heavy on your pocket either. For someone looking to rent on a short term or long term basis, the choice is vast with several villas and apartments that are available.

In addition to this, the low crime rate is another crowd-puller. Studies show the crime rate to be only 1/6th of the average of the European countries. That’s a very good incentive for those wanting to visit the island.

In an independent sovereign republic like Cyprus an individual’s rights are protected and initiatives are given support and encouragement.

It is therefore not surprising that a good number of Cypriots and foreign investors look at acquiring immovable property. With a very live and burgeoning tourist industry this is a wise and profitable investment. There are of course several important rules and regulations that have to be addressed before you begin. Some of which are ensuring that the necessary paper work is completed and government approvals sought. This would include obtaining the title deed, clearing taxes and duties and acquiring residential permits. This is more important of course for non-nationals.

Once the legalities are sorted out you would need to keep in mind a few important points before you decide to let your property.

1) Market Study

You would have to personally research the market and do a feasibility study in order to pit your product with the available competition. You can either work on this yourself or hire agencies for the job. The end result should be that you have a real and clear picture of the market conditions in relation with what you have to offer.
The entire study will of course focus on the type of property you have. Is it a stand-alone villa with a private / communal pool? How many bedrooms does it have? Is there a garden as well?
If you have an apartment you would need to match it with a similar offering available in the area.
Once you have done the study, you will know what facilities are generally offered and the corresponding rents that can be charged. The location of your property is another important factor to consider. You can look at making any where between £250-£800 per week depending on the peak / non-peak season.

2) Advertising

Once you know what you have and what you want, you have to go about advertising the same professionally. One of the cost-effective ways is to use the Internet from the comfort of your home. If you are not involved directly, you can also register the property with real estate agencies who will charge commissions from the business they generate for you.

3) Rental Agreements

It goes without saying that when you open the door of your home to strangers you ought to secure yourself. A proper and well-documented rental agreement drawn up by a solicitor is an absolute must-have for any landlord. No verbal commitments or unclear negotiations should be entertained. Arrange to hire a good solicitor who can draw up the legal document. The agreement should clearly state among other clauses the property name, lesse and lessor’s name and address, rent, period of tenancy, deposits paid and medium of payment. Important clauses like the early termination of contract clause should also be stated.
Your signature along with that of the guest will serve to clearly outline the rights and responsibilities of both parties. Should there by any damage or disagreement to the property or on payment schedules etc, the rental agreement will prevail.

Do not forget to document the permanent contact information of your guests at the time of signing the agreement. This is vital and helpful in case of any emergency or payment issues.

4) Payments and receipts

You may receive a refundable security deposit (of at least one month’s rent) and the first month’s advance rent from the tenant. If the tenant is renting the property on a weekly basis then alternate payment modes can be worked out.
In case you are offering an unfurnished property to let then the payments can be amended accordingly.
You can determine the mode of payment – local cheque, bank transfer or cash. Initial deposits and rent should ideally be in cash to safeguard yourself.

All payments should be accorded receipts for the record. Keys to the property can then be handed over.
Also to be noted is that all refundable deposits should be handed over, preferably in cash, to the tenant on vacating after any deductions for damage to property if applicable. This should be clearly outlined in the agreement to avoid any confusion at a later date.

5) Safety Precautions

The onus of providing a safe and secure environment for the guests is on the Landlord. The entire property should be fire-proofed i.e ensure that the fire escapes/ emergency exits always remain uncluttered and free, fire extinguishers are kept at prominent locations and within reach, smoke detectors are active and instructions like ‘What to do in an emergency’ are put up in at least 3-4 main languages.
Emergency telephone numbers, including your day and night numbers and those like the hospital, police, fire station etc are to be handed over to the guests. It would also be a good idea to have a first aid box ready.
As most of your short-term guest would be holidaymakers and tourists this is an absolute necessity.

6) Maintenance and Cleaning

As a landlord you have to ensure that the utility services like cleaning, cooking, maintenance are provided to the guests. You may hire professionals for the job. This would mean entering into contracts with individuals or Companies for the same. The worst thing to happen to your reputation as a landlord is to have guests complain about leaking pipes, clogged drains and dirty floors. This will seriously affect your reputation and business.

Remember more than half of your business will come through references of happy ex-tenants.
As a landlord you have an option to use the services of a Property Management company to do the above.
Letting a property in Cyprus is not a very difficult affair. However, it does call for a good amount of clarity and awareness of the property and property market.