Managing your property in Cyprus: essential tips

Managing a property in Cyprus can come with some challenges, especially if it won’t be your primary residence.

So it’s important both for your enjoyment of the property and your legal and financial responsibilities to plan properly.

Insurance requirements for Cyprus homeowners 

If you’re financing your Cypriot property with a mortgage, building insurance is a common requirement for most Cypriot lenders. It also can protect your property in the case of natural disasters. Cyprus does experience floods, earthquakes and storms, so a robust policy can protect you from financial losses.

Thirdly, insurance protects you from any theft or vandalism to your property.

There are three types of home insurance policies available. They are:

Standard home insurance: Covers the property, your belongings and liability should someone be injured on your property.

Renter’s insurance: If you’re renting, this covers your belongings, but not the property itself.

Condo insurance: This covers your belongings and certain parts of your condo.

There are varying coverage options available, which are worth considering. ‘Comprehensive’ is by far the highest coverage and usually includes building, contents and liability insurance.

Logistical challenges for non-resident owners

If you’re buying a property in Cyprus, it’s important to consider how the property differs from that in your home country. For example, Cyprus is relatively warm all year round, and seriously hot in summer. This poses higher risk for forest fires if you own land. We recommend you follow local guidelines to keep your land and property safe.

Non-resident owners of a holiday home that is left empty for long periods may be surprised at how much a property deteriorates through lack of regular maintenance. Setting up a regular maintenance programme – and budgeting for it – is essential.

Hiring a property management company

For holiday home owners in Cyprus, no-one wants to arrive to a musty house and green pool. A property manager can prepare the property for your arrival – be it changing the linens, cleaning the pool or keeping the garden green.

Alternatively, there may be someone local you can employ to act as a key holder and property manager. Keep an eye out in the newspaper or local shop window as these are usually advertised close to home. It’s also a handy job for retirees looking to bring in a little more cash.

Property management for investors or rentals

If you’re letting out your property long-term (usually the only buy-to-let option for non-residents in Cyprus) and won’t be around to manage the property yourself, you will need to employ a property management company. They will take care of the residents, maintenance and any upkeep required to keep the property in tip-top condition.

They can also vet potential renters, co-ordinate with maintenance when needed and look after the property while it’s empty.

For such a service you will normally pay an amount equivalent to a month’s rent per year, at least.

Short-term and tourist rentals require considerably more work for property managers as they often require weekly handovers, cleaning, keyholders, and someone to be available should anything go wrong or require immediate intervention. Obviously, fees are typically higher for short-term rental management firms (15-30% of the income), however the return is often higher.

What else can property managers do? 

Legal licensing 

In Cyprus, property owners must obtain a special license to let out their properties and register the property with the Ministry of Tourism. A property manager can help with this and ensure you have the right licencing for your rental property. There are also additional requirements for rental homes in Cyprus. The number of bathrooms must be proportionate to the number of bedrooms. Your property manager will be able to advise on this.

Marketing

Property management companies will often advertise your property on their own site or portal, where it will be advertised with similar homes available to rent. They’ll respond to enquiries and vet any potential rental applications, before giving applicants a tour of the property (for long-term stays) and manage the key handover for short-term lets.

Utilities 

Property managers can often assist with bill paying, rent collection, managing tax and insurance obligations.

Maintenance and upkeep

For those who are absent from Cyprus, property managers will be able to arrange contractors and services to keep your property in good condition. Since they usually manage a portfolio of properties, they will have established relationships with local services and contacts that you may not be privy to as an individual.