When buying real estate in Cyprus, whether for personal use or for rental purposes, you need a careful approach not only to the process of acquiring this property, but also to its subsequent maintenance and management.
This work is best entrusted to specialists in this field. The developer has very limited responsibility for the condition of the property once it is completed. The buyer is given a warranty, usually for 2-3 years for a specific object, but in the case of an apartment not for the entire residential complex or apartment building. Such a warranty does not usually cover cosmetic repairs and is more likely to cover structural damage of a more serious nature. Taking care of the property in the absence of the owner is also not included in the developer's warranty.
Is it worth managing the property yourself?
For various operations with the purchased property, including finding new tenants, issuing and accepting keys, inspecting the apartment or house after the current tenants have vacated it, paperwork and many others, the personal presence of the owner of the property is required. If the owner is not in Cyprus on a permanent basis, buying airline tickets and flying to the island every time when personal presence is required, will be unsustainable both in terms of cost and time. It is much more convenient to find a competent representative who has experience in dealing with tenants and resolving issues that arise during the letting and acceptance process. Tasks related to property maintenance and management are better entrusted to specialized companies. They have the necessary experience and knowledge to manage your property, understanding of legal aspects and specifics of cooperation with various service organizations.
How to organize maintenance and management of real estate?
Maintenance and management of real estate can be undertaken by the developer, real estate agency and specialized management companies. The specifics of cooperation with each of them has its own peculiarities.
Purchasing a primary property from the developer in Cyprus, it is most convenient to transfer management tasks to a specialized department of the same company. Contract for post-sale service can be concluded in parallel with the signing of the contract for the purchase of real estate. This is an ideal option for owners who purchase a home for long-term rental and visit the island several times a year.
Buying a property through an agency, it is most convenient to conclude a service agreement with a real estate agency. Management of the object will be engaged by representatives of the appropriate service agency, or management company, with which the agency cooperates, and the buyer will be spared from further hassle associated with the search and selection of the performer.
Specialized firms, as management companies, provide advice and undertake the maintenance of the property. They can find a contractor, negotiate the most favorable contract, hire the staff needed for specific jobs, and provide all the facilities to keep the property in proper condition. These companies are usually experts in property maintenance and know how to provide quality service. However, management companies usually do not take care of rental issues.
If the owner does not intend to rent the property, but would like to receive maintenance services, then a specialized management company or, in the case of apartment buildings, a Homeowners Committee, may be an option to consider. The committee is usually responsible for paying maintenance bills, including elevator service, pool maintenance, and more. The committee may gather the residents for a vote and, based on the results of the vote, select a Management Company. Sometimes, large real estate developers may offer their own professional Management Company.
What post-sale and management services can I expect?
The services provided often include solving lease issues, finding and selecting tenants, signing lease agreements, receiving payments from tenants, monitoring maintenance costs, paying utilities and taxes related to the property. Additionally, it is possible to organize a service for cleaning of premises, maintenance of the garden and the territory adjacent to the house, as well as, use the services of an authorized person to monitor construction or repair work. It is also possible to use services for collecting and forwarding postal correspondence, purchasing food and much more. More upmarket packages may also offer the services of landscapers and interior designers.
How much does it cost for after-sales services in Cyprus?
Management company services will cost between 10 and 20% of the current monthly rent. A basic package of property management services, including opening a trust account, payment of current expenses and transfer of income received to the owner of the object will cost about 50 euros per month. If you choose additional options, such as payment and connection of utilities, work of rental documents, repairs, selection and registration of insurance package - the monthly cost of management will be about 100 euros. The exact rates for services depend on the individual characteristics of the property, the wishes of the client and the range of services requested.
When choosing a management company for your property, there are several key aspects to consider. It is important to scrutinize the cost of services and commissions, check the reputation of the management company and assess the level of service, including maintenance and technical support. You should also look at the legal aspects, transparency of finances, length of contract, insurance, responsibilities of the parties, control and access to the property. It is important to assess whether the company's services meet your needs and prepare to enter into a contract with legal protection and clear terms of the deal.
Read also:
