Guide to Letting Property in Cyprus

For many people, owning a home in Cyprus is a reality that was only once a dream. Whether for permanent living, use as a holiday home or a buy-to-let business opportunity, property on the island now forms an increasingly significant part of their personal assets.

Although the benefits of visiting or living in Cyprus are in many ways priceless, getting a financial return on your investment can also make very good business sense.

So, if you own a villa, apartment or townhouse with unused capacity you can potentially develop a reliable revenue stream from long-term rentals. Short term and holiday lets can be uncertain in a shifting economic climate and require a great deal of 'hands on' local management.

In Cyprus, long-term rentals are typically for a 12 month term, although different lengths of tenancy with furnished or unfurnished options can be arranged by mutual agreement between the landlord and the tenant.

There are common issues that need to be dealt with when renting property in Cyprus. To aid the smooth commencement and termination of a property rental and maintain a good landlord/tenant relationship, it is important for both parties to have read, understood and agreed to any clauses in the tenancy agreement.

Listed below is a brief insight into the important practicalities of transforming your property into an investment designed to give you a stress-free return.

 

 

Useful Information, Definitions or Recommendations;

Inventory


You should make a full inventory of the contents of the property and its fixtures, fittings, furniture and effects, both inside and outside of the property, noting any obvious dents, scratches and marks. This document should be signed with the tenancy agreement, or on the commencement date of the rental. Each party retains a copy of this written evidence as to the contents and condition of the property at the start of the rental.

We even recommend using an inventory for un-furnished property! Your property may have white goods, air conditioning units with remote controls, fitted blinds, bathroom fittings, etc. A schedule of dilapidations is a statement as to the condition at the start of your rental.


Insurance


You must maintain, at all times and be responsible for insuring the property against fire, earthquake and such other risks deemed necessary. You should make your insurance company aware that your property is rented and arrange suitable public liability cover.

Tenants are responsible for the insurance of their own personal effects and belongings (contents insurance) and must NOT assume or rely on your insurance on the property.


Meter Readings / Utilities


You, or your managing agent, must note the meter readings on the commencement date of the rental term. All utility bills (electricity, water, municipality taxes / refuse collection) and the liability for their payment should be transferred into the name of the tenant.

Most municipalities in Cyprus charge a deposit against the property's water consumption, and again this must be paid by the tenant for the duration of their occupation.

In our experience we have seen numerous landlords rent their property, but they themselves are in arrears on water or municipality charges. It is essential these accounts are settled in full upon commencement of the tenancy.


Deposits


Upon commencement of the tenancy, you would normally expect a deposit equal to at least one month's rent as a security deposit to cover possible damages or breakages.

The deposit should not be used as rent for the property and should be returned swiftly upon the tenant's vacation of the property.


Access and Notice


The tenancy agreement will be made for a fixed term, typically one year. Unless different terms are agreed, you or the tenants should serve the other party with 2 (two) months notice (on the anniversary date) of the termination of the tenancy if they do not wish to extend it.

During any tenancy, we recommend you carry out periodic inspections of the property. This also gives the tenants the opportunity to make you, or your managing agent aware of any defects or issues with the property. However, you MUST give the tenant(s) sufficient notice (a minimum of 24 hours) of your intention to enter and inspect the property, and if at all possible try to arrange a mutually convenient time for the inspection.


Swimming Pools and Gardens


In many cases, rental rates can be inclusive of swimming pool cleaning and garden maintenance. This should be clearly specified in the tenancy agreement and agreed by both parties prior to commencement of the tenancy.


Commencement of the Rental Term


Ensure your property is clean, secure and that any fixtures, fittings and contents are in good working order. You should look after and maintain your investment, as in this way most problems will be avoided and a good relationship will be experienced with your tenants.

 

 

Disclaimer: Whereas these pages have been read and approved by independent lawyers in Cyprus, we cannot accept any responsibility for the accuracy. The details are provided for guidance purposes only. Any decision to sell or purchase a property should be based on advice and verification from your lawyer.