Bulgaria Property Rental Know-How

Having invested in a property in Bulgaria, it is more than likely that you will want to look at the most efficient way to rent the property. Property rental in Bulgaria, as with any other country, is generally organised so that the owner can, at the very least, cover the costs of any loans that have been taken to finance the purchase initially.

There are many different ways to go about renting property in Bulgaria, all of which should be considered, depending on what you as an investor want to achieve.

How you intend to let your property should be something that you are reasonably clear about, even before you purchase the property. Some of the companies that currently offer off-plan investment properties also offer a rental package, often with a guaranteed rental yield. This option can be an excellent choice for an investor who wants an initial degree of security. However, potential investors in these schemes should be wary, as the company may be guaranteeing a rental yield to encourage the sale, this rental yield may be entirely unachievable, in future years, and investors may find that their ongoing situation is not as healthy as they thought.

Before deciding on the type of agency that you should employ, you will need to decide on the type of letting facility that you will be offering. For example, are you going to be offering holidays lets on a week-by-week basis, or are you looking at letting for six months on a short-hold tenancy to a local resident? As a general rule, week-by-week rentals will return a higher profit (certainly in the weeks that the property is let). However, there are the additional costs of managing the letting and changeover process and, of course, it is important to factor in the down time or ‘off season’ that the holiday let is likely to see. 

If you are planning on targeting the local market and therefore offering a longer term tenancy, it may be possible to use a less comprehensive management service that offers emergency coverage only. When renting to locals, an investor will inevitability achieve less income, on a monthly basis, but the management cut will almost certainly be lower and the income more consistent.

In reality, the choice of market that you are targeting will depend on the property that you have purchased. A city apartment is more likely to be suitable for the local market and a coastal or mountain resort is more likely to be tourist based.

There is certainly more to renting in Bulgaria than meets the eye. Consider the issues BEFORE you buy and make sure that your investment works for you and not the other way round!

About The Author
Providing essential information on buying Bulgarian property, Tem Pearson is dedicated to offering all the necessary information for people looking to buy property in Bulgaria. Visit www.buying-property-abroad.info/Bulgaria for full details. ©2006.

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Buying Property in Bulgaria