Wed09192018

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Back You are here: Home Property Buying, Selling, Renting A Gap in the Rental Market

A Gap in the Rental Market - Rental Income

 

Within the contract you can include clauses which state that all utility bills are the responsibility of the renter, periods when you need to reclaim the house for your own with the clause to re-let the house after this period and a rule or fee for replacing breakages and damages to the property.

You must also stipulate what the rent is and how it should be paid – some people even ask for several months in advance.

Most long-term agreements cover a six month period and automatically renew providing both parties are happy to continue. Squatters in Bulgaria do not have any rights and it is very easy to evict someone from your property should you need to. The police are happy to help providing you have a legal tenancy agreement and can prove your ownership through your Notary Act.

 

Insuring Your Property

If you are renting out your home then it is well worth taking out building and contents insurance to cover you against the unforeseen. You can get good insurance from a wide range of companies here, but you must state that you will be renting out your home and in most cases it is worth going armed with an inventory of any valuable or high-cost possessions.

 

Rental Income

The issue with this long let market is that they are not willing and cannot afford to pay holiday villa prices and for that reason they seek out village properties with lower rents.

Most village properties are rented out at between 300 to 400 lv. per month with utility bills on top.

Some people are prepared to take in lodgers to their own home and this type of accommodation generally costs around 100 lv. per month with an agreement on splitting bills.

Whilst this is not a massive amount of income, if your property is standing vacant for most of the year there are many benefits to letting it out. Many landlords use the money to pay for further renovations or for a gardener to keep on top of the massive expanse of land they purchased; others store up the money in a Bulgarian bank account to use for their holiday here, which means that in effect they get their vacations in Bulgaria free of charge.

 

What Have You Got to Lose?

Unless you have furnished your village property to palatial standards and are extremely possessive about whom you invite into your home, then you have absolutely nothing to lose and an awful lot to gain from renting out your property long term.

What is the worst case scenario? If your tenant steals property from you you will be covered by your insurance policy and the police will pursue the perpetrator. Accidental damage to a property can also be covered by your insurance company and, let’s face it – you may have caused some damage yourself if you were living in the house – we all burn pans and break glasses from time to time! The most important issue is not to get sentimental, if there is anything in the property you could not bear to see broken then remove it.

Wear and tear in a home is not such a bad thing when offset against the dangers of leaving a property vacant for eleven months of the year.