With over 300 days of sunshine per year and boasting some of the world’s most stunning blue flag beaches, an array of historical and mythological sites and a welcoming and hospitable culture, there is no wonder that Cyprus attracts over three million tourists per annum.
Tourism is the island’s main source of revenue and with arrival figures rising every year, whilst property prices are currently at their lowest in the past 10 years, there is no better time to invest in this stunning Mediterranean island.
Location, Location, Location
Choosing the right location in Cyprus to invest in property for holiday rental purposes is key to the type of revenue you can expect and the number of weeks per year you are likely to have occupancy.
People choose to come on holiday to Cyprus for a variety of reasons and experiences but, statistics show that the majority of tourists come for the beautiful sunshine, sandy beaches, tourist bars and restaurants, and to swim in the clear blue Mediterranean Sea.
Most holiday makers look for a property located in close proximity to the beach and local amenities. As the Cyprus bus service is economical and reliable, a property located on or near a bus route would be highly advantageous.
There are other types of locations that tourists will seek out for a more bespoke holiday experience like, a property in the mountains for easy access to the waterfalls and wineries in the summer months or to the ski slopes of the Troodos in the winter but, as these types of holidays are more bespoke they are less likely to attract as high a level of occupancy as the beach resort areas previously mentioned.
Property Type
Once you have found the perfect location for your property investment in Cyprus you will need to consider the type of property you are looking to purchase. Whilst a villa with a pool will require a larger initial investment and ongoing higher maintenance costs, the revenue generated from renting to holiday makers is likely to be greater than that generated from an apartment on a complex.
Legal Obligations
On purchasing your Cyprus investment property, you will need to ensure that it is fully equipped and furnished to the required standard for a holiday rental. In addition, it must comply with all relevant legislation which includes obtaining a license from the Cyprus Tourism Organisation, this costs between €27 and €51 for a villa with a pool for example. Purchasing appropriate liability insurance is also compulsory as is equipping your property with all required health and safety features including safety measures and signs around your pool area and fire extinguishers and smoke detectors within the property.
Property Maintenance
Unless you live in Cyprus yourself it is advisable to enlist the services of a reputable property maintenance company. Renting out a villa or apartment requires a number of consistencies including but not limited to:
- Pool Cleaning and Maintenance
- Cleaning of the property and laundry services between guests
- Gardening
- Maintenance requirements such as electrics, plumbing and general repairs
- Payment of utilities such as water, electricity, refuse, internet etc
- Meet and greet of guests
- Keyholding and Security
- Management of Bookings and subsequent payments
- Advertising and promotion of property
A reliable and experienced property management company will be able to assist you in any or all of these requirements for a pre-negotiated fee. Some committees that are responsible for communal complexes will have already enlisted a designated management company to clean and maintain communal areas like gardens, pools, hallways and lifts. All property owners on the complex must contribute an agreed sum on a monthly or annual basis the cost of which will become apparent at the point of purchase of your property.
When transferring funds from GBP to Euros for the purchase of your property or for ongoing maintenance requirements and utilities, it is advisable to enlist the services of an experienced currency exchange expert to gain the optimum rate for your required transactions.