Kibkom North Cyprus Forum

Hi We're considering renting out our 3 bedroom bungalow in Lapta for 6 months to a friend's friend who are looking to rent first before buying. Anyone got any advice on charging and what to include, pool, utilities etc. In addition we have a car that they can use and we haven't a clue on what to charge for using the car. I think that £450 pcm seems to be reasonable for the bungalow plus utilities. Many thanks for your help

George

Sounds fair, you'll want 2 months rent up front as a security deposit, in addition to the first month's rent of course. If the renters do default, it will cost you a lot more than that to get 'em out!

Think carefully about who will be paying the Electricity and water bills, and how you will check that they've been paid.

You will need a contract, and use the contract to declare your rental tax liability (10%) at the tax office - it's due by the 14th of the month following the month when the rental took place - each month, that is.

You may be able to get good advice from one of the local property agents, and it might be better to let them handle things for you, at least for the first 6 months or so, if you have no experience of renting, because it can be a minefield!

The stuff that you learn will more than repay the fees that they charge...

Chrys at Alsancak Business Centre is a lovely person to deal with - next to the exchange shop, on the same block as the DVD shop in Alsancak, can highly recommend.

The tenants would definitely be responsible for the electricity & water bills & if you are happy with your pool company it may be preferable to keep paying for this yourself so you know it is being paid. It is better to show this as a separate charge later on in the contract so you do not have to pay tax on it. The tenant should pay for topping up water for the pool. Do you have a garden/gardener as this needs to be clearly stated who is responsible.
You also have to consider how the tenant will pay you, if you want this paid into a bank account here you may have to give them authorisation to do so.
It is entirely your decision as to whether you use an agent or not they would charge probably 10% commission but would prepare the contract, receive the money & pay the monthly rent tax. If these people are friends of friends you may be comfortable with either your friends undertaking this role or the tenants themselves.
Sorry have no idea about how much to charge for the car, maybe find out how much a hire company would cost for a 6 month rent & base it on that?

Hi Keith and Ozankoys

Great advice especially using local agents. Thank you for you help, much appreciated. "Long live Kibkom"
George

You will need to decide/agree who will pay the "10% rent tax". I rent and pay it at the Tax office in Girne and recoup it from my Landlord. To reduce your liability you can offset some of the rent as "repairs and upkeep". I.e. Rent = £450.00 therefore tax = £45.00. To reduce this on your rental agreement charge £250 rent and £200 for repairs and upkeep. Your liability then becomes 10% of £250.00 = £25.00

This can be added to the rental agreement:

• The Tenant is responsible for the maintenance of the swimming pool and provision of water for the pool, and for the general upkeep and maintenance of the property including the garden, at a cost of £200 per month.

If you are planning to rent out your ​car check the terms and conditions of your insurance policy, most don't allow this. You may have to get special insurance, if available. If it's the same here as UK then your renter will not be able to insure a car that he/she doesn't own.