Property management in Cyprus
Property management in Cyprus is the care and supervision of a property by a third party, carried out on the owner’s behalf by real estate agents who provide such services or specialised property management companies.
The property can be residential, commercial, or industrial.
DevelopersCyprus has been offering high-quality professional real estate management services for decades, primarily working with its own projects and developments.
Property management is more than just a list of tasks. It's about responsibility for the property's repairs, security, and operation. It's about overseeing every aspect to ensure the property is in its best condition.
Trusted property management saves you time and removes responsibility for the day-to-day operation, maintenance, and other issues concerning your property.
Takeaways
- Professional property management is the administration of residential and commercial properties so that they remain well-maintained and profitable.
- In Cyprus, this service is provided by real estate agencies or specialised companies.
- The property manager acts as the owner’s or landlord’s representative and in their place. They must act efficiently and reliably to handle tenants, repairs, common expenses, and financial and compliance matters.
- Asset management saves you time and money. You need it if you live far from the property or lack the time or expertise to manage yourself.
- DevelopersCyprus offers specialised and reliable property management in Limassol and other districts of Cyprus.
- The management cost is usually 10% of the rental amount plus VAT.
Our property management services
We usually work only with the projects we build and sell and act on the owner's or landlord's behalf. The services fall into two categories: operational, which refers to the property's functioning, and finance, which refers to money matters.
In detail, the duties of a complete management team at DevelopersCyprus are:
- Taking care of the daily operations of the property.
- Maintain the property’s value and generate income.
- Marketing the property, finding and screening potential tenants.
- Collecting rent and other dues from tenants.
- Processing rent and other money received (e.g. by carrying out bank deposits) and financial reporting (recording expenditures, balances, etc).
- Keeping accounting records.
- Handling tenant complaints and relations between tenants (or other occupants).
- Documentation.
- Repairs and renovations.
- Responding to emergencies.
- Inspections.
- Hiring staff for the property, like cleaners and a maintenance team.
- Compliance with applicable laws, taxes, local authority and municipality regulations and safety standards.
- Report to the owner of their activities.
- Evictions.
Interested in real estate management?
Our expert, Antonis Michael, is here to assist you.
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Property management prices
The property management fee in Cyprus is usually 10% of the rental amount plus VAT and is charged annually.
If your case does not involve rent, for instance, if you own individual property, you will discuss the fee with the management company. It will depend on the property size, type, and required services.
A two-bedroom apartment without a swimming pool costs 60 euros per month, and a three-bedroom apartment costs around 75 euros per month.
If the complex has facilities such as swimming pools, etc., a two-bedroom apartment can cost 100 euros, and a three-bedroom apartment can cost around 150 euros.
Types of property management
Residential
Residential property management is the supervision of properties where people reside, such as apartments, houses, condos, and single—and multi-family homes. The property manager acts in the landlord’s place and controls everything a landlord normally does.
They will take care of the property’s maintenance and compliance, deal with tenants, and ensure the property is in good condition and profitable.
Commercial
Commercial property management involves commercial-use properties, such as offices, retail, and other businesses. Their duties resemble those of residential management.
However, commercial property administration involves dealing with different clientele and ensuring compliance with laws and regulations applicable to commercial buildings and sites.
In Cyprus and other tourism-oriented countries, commercial property management also includes managing property to rent to tourists, like villas, country homes and hotel apartments.
In such a case, the manager will handle the meet & greet, cleaning, laundry, familiarising the guests with the property, giving tourist information, making repairs and other services, and arranging airport transfers and inspections of the property after the guests depart.
Property & Rental management
This type of management focuses on maintaining the property and collecting and processing rent. The property manager will perform the property's maintenance, repairs, insurance, and monitoring.
They will also manage tenant occupancy, maintain tenant relations, collect rent, and report to and confer with the owner on rents and accounts.
Common expenses management
Common expenses management centres on collecting the common expenses from the occupants or tenants. Under Cyprus law, occupants or tenants must pay a monthly common expenses sum to the management committee or management company (which is acting on behalf of the management committee).
The Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224 of the Laws is the applicable legislation. Table B(b) defines common expenses as the cleaners’ or cleaning services charge, cleaning materials and elevator maintenance and repair, communal electricity and water bills, common areas decoration and any expenses not included in Table B(a) for central heating and Table B(c) for insurance and overall repairs.
Common areas management for buildings
Cyprus legislation contains rules on managing common areas in apartments, offices and other multi-occupant buildings. This management is undertaken by a committee of occupants who may, in turn, hire property management professionals.
The common areas belong to all the owners or tenants equally and cannot be divided between them. This division ensures a fair and equal distribution of property rights. Parts of the common areas, such as parking spaces or storage rooms, can be assigned to specific owners or tenants.
However, assigning particular common areas to specific individuals is impossible for entrances, exits, stairwells, corridors, elevators, roofs, fire escapes, foundations, the main walls and service units meant for common use.
Depending on the size of their property, the owners, tenants, or occupants must contribute a sum of money for the maintenance and upkeep expenses of the common areas.
The management committee or property management company controls, operates, and manages the common areas. Moreover, they are responsible for:
- Maintaining the common areas in good condition.
- Insuring the common areas and using any insurance compensation for the benefit of the common areas (e.g. carrying out repairs or replacing materials and equipment).
- Following the law and any notice or order from the municipality or other authority.
The management company can create a set of common area rules and take them to the management committee for approval (these rules must comply with existing laws). If no such rules are set, legislation has its own model rules. These are contained in the Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224 of the Laws.
Who needs a professional property manager?
Generally, proper property management is desirable because it takes a lot of responsibility off the shoulders of the owner. Nevertheless, you will need a property management agency if you:
- Are a real estate entrepreneur but live far from your property or properties.
- Own residential property abroad or in a different part of the country. You may wish to rent out or maintain your property in good condition for you to visit. In either case, you will need property management services.
- Are too busy looking after or expanding your business.
- Do not have the necessary market knowledge and expertise to carry out landlord duties.
The benefits of estate management in Cyprus
The main benefits of professional estate management in Cyprus are that the property remains in good condition and continues to generate income. In detail, those benefits include:
- Tailored solutions. The property manager will respond to your exact requirements and needs.
- Saving time and often money.
- The property is marketed well, and its appeal is boosted.
- Finding tenants fast and rent is collected on time (tenant management).
- Efficient communication with tenants.
- Renting short-term is carried out safely and according to the law.
- Expertise in bookkeeping and financial matters.
- Effective repair, cleaning, gardening and maintenance. Property management companies are networked with technicians, service providers and other contractors so that maintenance and repairs are carried out smoothly, efficiently and professionally.
- Compliance with laws and regulations.
FAQs
- Takeaways
- Our property management services
- Property management prices
- Types of property management
- Who needs a professional property manager?
- The benefits of estate management in Cyprus
- FAQs