For those investing in property in Cyprus for rental purposes and planning to live on the island permanently, real estate experts recommend entrusting the management and maintenance of the property to specialized companies. These companies ensure that your interests as a landlord are protected, that the property is kept safe, and that it receives ongoing care.
The most important aspect of working with such specialized organizations is drafting a well-structured contract that includes penalty clauses. This way, while you are abroad, you can rest assured that your property is well-maintained and that you receive a steady income from renting it out.
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Why You Shouldn’t Manage the Property Yourself
If you only visit Cyprus occasionally and plan to handle rental issues remotely, you should consider that you’ll need to manage tasks such as finding tenants, handing over keys, exchanging documents, and inspecting the property after tenants leave. These tasks require your physical presence and cannot be managed from afar. Therefore, it’s essential to have a competent representative who has experience dealing with tenants and resolving issues that arise during the rental process.
By hiring a management company, you save time and avoid problems with tenants. This is currently the most suitable method of property management for investors who live in Russia and rent out property abroad.
Who Manages Real Estate Abroad?
You can entrust the care of your property to a real estate agency, a developer, or a property management company. Here’s how each of these organizations operates:
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Real Estate Agencies: These agencies offer management services to clients who have purchased property through them. For example, an investor buys a rental property and immediately signs a management contract with their realtor. From that point on, all matters related to renting and maintaining the property are handled by professionals at the real estate agency. This option is convenient because the investor receives a full range of necessary services from one organization—from property acquisition to ongoing management.
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Developers: Developers manage the properties they have built (usually apartments in resort complexes), and this management option is ideal for those purchasing new-build homes. The management contract with the property owner is signed simultaneously with the purchase agreement. This practice is widely used by investors in Cyprus, who live in their purchased property for one or two months a year and rent it out for the rest of the time.
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Property Management Companies: If the owner does not plan to rent out the property but needs maintenance services, they can turn to a specialized property management company. These companies offer consulting services and carry out maintenance tasks. They find contractors, sign contracts with them, hire staff to perform the work, and ensure that the property is kept in good condition. The advantage of these companies is that they are specialized in property maintenance services and provide high-quality service. However, they generally do not handle rental management.
What Does Property Management Include?
Organizations that manage and maintain real estate properties offer the following services:
- Handling rental issues: Publishing property listings and finding tenants, drafting and signing rental agreements, and ensuring that rent payments are made on time and in full.
- Controlling property maintenance expenses: Paying utility bills and taxes, arranging property insurance, documenting damages in case of insurance claims, and providing regular expense reports to the property owner.
- Ensuring cleaning and maintenance of the property: Organizing cleaning before tenant move-ins and after move-outs, as well as maintaining the surrounding area and garden.
- Overseeing repair and construction work: Monitoring construction deadlines, handling design and modernization tasks for the property.
- Providing additional services: Receiving and forwarding mail, purchasing groceries before the arrival of tenants or property owners, etc.
The management contract specifies the full range of services provided and the conditions for receiving them. With a property management company, you can handle all real estate-related issues even when you are in another country.
Cost of Property Management
On average, the cost of a property manager’s services is 10–20% of the monthly rental income. A standard property management package, which includes opening a trust account, paying ongoing expenses, and disbursing income to the owner, costs around €50 per month. If additional options are included (paying and setting up utilities, handling tenant documentation, repairs, insurance arrangements), the total management cost will be around €100 per month.
