Property management in Greece
Once you’ve purchased your dream home in Greece, the key to maximising your investment is to ensure that it is well cared for.
This is more difficult if you do not intend to make your Greek property your primary residence. Here, we’ve delved into property management in Greece, even from afar.
There are certain essentials for managing your property in Greece. These include maintenance, insurance, paying all bills and, if relevant, managing rentals. We might add “being a good neighbour” to that list too.
Property management basics in Greece
Insurance
If you’re financing your property with a mortgage, building insurance is a common requirement from lenders. It also can protect your property in the case of natural disasters, although beware exclusions.
Standard home insurance will cover the property, your belongings and liability should someone be injured on your property. If you’re renting the property out, rental insurance should cover your belongings and the tenants staying there, but check if it covers the property itself. The rental agency should be able to help and advise on this.
Maintenance and upkeep
It’s a matter of debate whether hot weather and a seaside location is better or worse than cold and damp, but in any property it is better to have a plan for regular maintenance and upkeep.
For second homers that is especially important, as a property can soon deteriorate without people living there. And of course, it is both a commercial and legal imperative to keep a rental property in good working order. In Greece, to rent out a property, you must obtain an EOT licence. This comes with several requirements on the condition of the property, such as the safety measures for swimming pools. If you do not take care of your home, you could lose the EOT licence.
Ideally, property owners in Greece should set a budget of at least 1% of the property’s value, annually, for maintenance. So that’s €2,500 for a €250,000 property. If not spent it can be kept in an account for a rainy day.
Paying bills
Out of sight can be out of mind and it’s all too easy to forget to pay a bill on a property abroad. Nobody wants to arrive on holiday and find the electricity cut off, or face a fine for unpaid tax, so it’s important to be proactive and organised.
For regular bills, contact Smart Currency Exchange about setting up a Regular Payments Plan (RPP) to have all bills paid automatically. You can even fix the exchange rate for the year ahead and avoid moving exchange rates upsetting your budgeting.
Being a good neighbour
As an overseas owner it should be a matter of pride to make a good impression. That means keeping your property looking good and well maintained. With gardens, for example, avoid them becoming overgrown when away – or dying completely in summer – and spreading into next door.
If renting out a property this is especially important, with some vetting of potential guests, for example, where possible.
Hiring a property manager
If you will not be living in the property or cannot be physically present to oversee and manage your home, hiring a property manager is an option. Indeed, if you intend to rent out your home either long or short term it will be essential.
For second home-owners who do not want to do rentals, a property manager can simply be a local agency, fellow expat or neighbour. They can check up on the place, open a window before your arrival (or switch on the air-con!), keep the pool blue and the garden green.
Nobody wants a long list of maintenance tasks when they arrive on holiday, so doing little jobs around the house may be an additional service.
Rental property managers
For both short- and long-term rentals, a property management firm will be essential. For long-term they may just be responsible for finding tenants, vetting them, collecting rent and being on hand for any problems. For such a service it is normal for a property manager to charge a month’s rent on first acquiring tenants (equal to roughly 8%), then less each year if the tenant stays. So, in year two they may charge 5%, in year three 3%, and so on.
For short-term and tourist rentals such as Airbnb, the charge will be much higher, perhaps more like 40%, given weekly or more frequent turnovers and cleaning. However, they will be able to do the marketing, conduct essential maintenance and ensure legal compliance too.
Plus, they can help with navigating the Greek rental market by advising on setting competitive rental prices, finding and vetting tenants and managing rental agreements. Some will even provide a concierge (or ‘rep’) service to guests, meeting them at the airport and introducing them to the area.
Investing in a reputable property manager can save you time, effort and money in the long run. Often, the property manager will be paid a retainer, plus an additional hourly rate for extra services.
Property management companies typically offer maintenance services. You could also opt for local contractors. If you have a pool cleaner or gardener, you could also create an arrangement for them to check up on your home. You could pay around €10 – €12 for a cleaner to tidy the property for each guest, while some property managers have cleaners offering a comprehensive “full villa” service that will have the home looking sparkling new each time.
Essential property management tips in Greece
For absentee owners, here are some practical pointers for keeping your Greek home in shipshape:
- Establish a reliable network of local contacts. This may include a property manager, lawyer and accountant so that there is someone there should you need immediate assistance.
- Meet your neighbours. By getting to know your neighbours, you could ask them to check up on your house and maybe water a flower or two when you are not around.
- Understand local laws and regulations regarding property ownership and rental. You will need to obtain an EOT licence and pay relevant taxes to legally rent your home.
- Consider the local climate. If your home is by the coast or in an area that has seen extreme temperatures or earthquakes, make sure that it is protected. Ask one of your contacts to check on it after freak weather.
By following these guidelines and leveraging the expertise of property management professionals, international buyers can enjoy the benefits of property ownership in Greece with peace of mind.