How to rent out a property: tips for owners in Paphos

Paphos is a popular tourist destination, which is included in the UNESCO World Heritage List. The city attracts tens of thousands of tourists every year, which makes renting real estate here especially profitable. Owners of apartments, houses or villas properly organized rental can bring a stable passive income in Cyprus. It is only important to take into account the type of housing, seasonality and competent property management.

What are the different rental formats in Paphos?

Real estate can be rented for different periods of time. Based on this characteristic, the lease is divided into:

• short-term;

  long-term.

Short-term or tourist rentals are usually designed for daily rentals. For this purpose, various online platforms are used. In this case, there is a high yield, but requires active management of the property. Popular is the rental of a villa in Paphos or an apartment near the sea.

Long-term rentals, for 6-12 months, are intended for locals, expats, freelancers and winterers. In this case, the income will be lower, but the property management is simpler.

Cases with profitability calculations

Yield and net profit depends on many parameters. Let's consider several rental options.

Short-term rental of a villa in Paphos

The object is a three-bedroom villa with a swimming pool, located by the sea. The area of the property is 150 sq.m., the plot is 600 sq.m.. Purchase price - 550000 euros, decoration and furnishing costs - 30000 euros.

Utilities and taxes for the year are 5000 euros. Rental price depends on the time of year, in season - 250 euros per night, out of season - 120 euros per night. Maximum occupancy, 70%, is from April to October.

If you perform calculations based on the data obtained, the yield for the year will be 42150 euros. Since the expenses are 5000 euros, the net profit will be 37150 euros. The annual yield is 6.4%. This kind of option is a great option for passive income in Cyprus.

Long-term rental apartment in Kato Paphos

The object is a one-bedroom apartment located in a tourist area. The purchase price amounted to 180000 euros. For utilities and amortization the owner spends 1000 euros per year. At the same time, the amount of long-term rent is 900 euros per month. Net profit is 9800 euros per year, which is equal to 5.4% yield. This option is suitable for investors who do not want to engage in active management. Demand for such properties - stable throughout the year.

You can also get passive income in Cyprus, cooperating with management companies. In this case, the owner does not participate in the process. However, part of the income goes to the manager. This option is suitable for foreign owners or non-residents of Cyprus.

Property Management Tips

Those who want to earn passive income in Cyprus should consider various features:

• availability of a license for short-term rentals - from 2024 it is necessary to register the object in the register of tourist accommodation;

  contract with the management company - you should carefully read the terms and conditions, specify who pays for repairs, laundry, cleaning;

  tax accounting - Cypriot residents must pay income tax on rent, for non-residents the scheme is simplified, but it is important to consult a tax advisor;

  property insurance - especially important for short term rentals as damage happens.

In order to manage the property competently, you should contact Holy Island. The staff will help with any questions regarding real estate.