What are the most common mistakes made when renting out an apartment or house in Cyprus? Let's take a look together!
We guess you know that the conclusion of the contract is the most important part at the beginning of the "relationship" between the tenant and the landlord. If you don't have a contract, you are making the biggest mistake ever. But it seems so obvious so we should not even include this in the TOP list.
This article is a warning against not so obvious, but common mistakes. Even experienced landlords make them...
1. Absence of an agreement with relatives or friends
The main mistake of those who decided to rent their property to close friends or relatives. They usually don't sign a contract. There are so many cases in history when colleagues, friends or relatives behaved much worse than unfamiliar tenants! Therefore, draw up an agreement!
Good friends gladly agree to confirm 'business relationships' on paper. If somebody feels offended, you need to consider them an unreliable person.
2. Renting out without a deposit
A deposit is the most important part when making an agreement. The deposit, like the contract, should be in any situation without exception, even if you rent out to your close friends.
But even if the landlord took a deposit, this does not mean that he saved himself financially.
NB! The amount of deposit must be indicated in the agreement. As well as some details:
- in which cases the deposit are not returned to the tenant (the amount of damage when the landlord can take the part or full amount of the deposit)
- when the deposit should be returned to tenants
- if it's possible to use a deposit for payment of the last month in advance.
The last one is the subject of agreement of both parties. You must first discuss it, and then put it in the contract.
3. Renting out Cyprus houses without an inventory list
Both for long-term and short-term renting out, it is necessary to have an inventory list of all expensive items in an apartment or house. The inventory is compiled by the owner of the property and can include any items at his discretion. What if there is a terribly expensive parquet floor in the living room? Or there are antique chairs in the dining room. Yep, all this should be in a list. Also, all household appliances are to be included as well as their condition.
It is advisable that the tenant and the landlord walk through the real estate in Cyprus together and check, if everything is here, if everything operates. The landlord is also advised to take photographs of the most valuable pieces of furniture and interior design and attach photos to the contract.
You can even add the amount that the tenant should pay in case of damage, to each thing on the list. In this case, both parties solve a lot of problems at once.
4. The contract does not indicate who is responsible for repairs
During long rentals, something is bound to break down, and the tenant is not always to blame for it. Plumbing, stove and refrigerator, washing machine, all this can stop working. Who should pay for the repairs? You need to decide in advance.
If the tenant's fault is obvious, then they compensate for all the losses, it is difficult to argue with that. And if the old toaster "died it's natural death"? Or the tiles become damp and fall off during the rainy season? In such cases, the homeowner covers the losses, or the parties indicate in the contract that the tenant makes repairs at his own expense, but then they pay less for rent.
5. Tenants are not specified in the contract
The contract is drawn up for one tenant. But it must be indicated who also plans to live here. Often the landlord simply writes the following words into the contract: "no more than _ person, including the Tenant."
But it makes more sense to make a list of permanent residents.
It is also worth clarifying how often guests should arrive. Cyprus is a tourist country, it is possible that the renter's friends and relatives will spend their holidays here. So, in addition to the list of permanent residents, you can write the phrase "no more than _ people of guests for a period of 3 days or more."
Children are a separate issue.
If the landlord does not want to rent out for families with children, this must be clearly indicated. It happens that two people move into an apartment, and then start a family. This also should be mentioned in the contract in advance, just in case.
6. Tenants with pets
You can add the phrase "No pets", and this will make life much easier. But if the landlord is not against pets, it is worth considering this point more carefully.
Perhaps it makes sense to mention which pets can live in the property. So, not everyone likes rodents as they have a specific smell. Someone does not like dogs, someone is allergic to cats. It is also worthwhile to clearly in the contract what if the pet damages the property.
7. Renting out without insurance
Renting out housing for a short-term (or even long-term) without insurance is not the most reliable thing. Quite often there can happen cases when neither the tenant nor the landlord is to blame for what happened. Insurance will solve many problems and allow the owner of the apartment / house to sleep peacefully.
8. There is no prohibition on sublease
The tenant may well rent an apartment for a long time and at the same time rent it out for a short time. Why not, especially in a tourist town?
Under such a scheme, the landlord does not lose anything, but at the same time has a lot of risks.
To avoid such actions, the contract must clearly state: "no sublease or transfer to third parties."
Looking for accommodation in Paphos or Limassol - apartment, house, villa for rent or property? Contact the DOM real estate agency in Cyprus. The company's specialists will help you find the perfect home for free. Follow the link.
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