Rental property expenses

General questions & discussions on Cyprus property related matters
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jenson
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Joined: 18 Aug 2018 19:59

Rental property expenses

Post by jenson » 18 Aug 2018 20:04

Hey everyone,

Thanks for creating this forum! It's super useful.

I am looking at the expenses of managing a rental property in Cyprus. I am sure that it varies wildly with the property type etc but I am looking for averages or typical ranges.

In order to make my question more specific please see below a couple of expenses I couldn't find any info about:

1. Property management (do they charge a percentage on the rent? does it change if it is an short-term rental (e.g. airbnb)
2. Insurance

Also, to narrow it down let's say I am interested in villas up to 3 bedrooms or apartments of up to 2 bedrooms.

Thanks in advance.



Nigel Howarth
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Re: Rental property expenses

Post by Nigel Howarth » 19 Aug 2018 10:08

Hi Jenson and welcome to the forum.

If you're renting an apartment or an property in a complex with shared facilities, the property management fees will be paid by your landlord (unless your rental agreement obliges you to pay the management fees.)

These fees are based on the overall size of the property compared to others on the complex. So if an apartment has a total area of 150sqm. the fees would be twice as much as a 75sqm. apartment.

The management fees are for the insurance, maintenance, repair, etc of the common facilities such as swimming pools, foyers, stairwells, roof and the utilities. If the common facilities include heated an indoor pool, lifts, gyms, tennis court then the fees will be significantly higher than a complex with just the basic facilities.

Building insurance is included in the management fees. The only additional insurance is for contents.

The landlord pays the same fees whether they are short or long term rental - and the government is set to introduce tax on Airbnb-type rentals.

It's impossible to give ball-park figures for management fees because of the wide variation of what's provided on the complex.

Personally if I had to rent I'd go for a property that has it's own facilities rather than shared with others.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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jenson
Posts: 5
Joined: 18 Aug 2018 19:59

Re: Rental property expenses

Post by jenson » 19 Aug 2018 14:41

Thanks for the response Nigel.

Interesting note about the tax on Airbnb rentals! Do you have any more info or a link we can read?

Also, do you need any special license to rent on Airbnb (or short-term in general)?



Nigel Howarth
Site Admin
Posts: 2385
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: Rental property expenses

Post by Nigel Howarth » 20 Aug 2018 00:47

jenson wrote:
19 Aug 2018 14:41
Interesting note about the tax on Airbnb rentals! Do you have any more info or a link we can read? Also, do you need any special license to rent on Airbnb (or short-term in general)?
Here are a couple of articles about government plans for Airbnb rentals (includes answers to both questions.)

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news


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