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Rentals Reality - Top Tips

 

Top Tips for Rentals

In essence you’ll be looking at one of two types of rentals: either self catering or serviced accommodation.

If self catering is your thing, then it’s worth seeing if you can get more than one unit up and running as this will lower the cost per unit for you and cut down the cost of installing electrics, septic tank, pool, etc. For those looking at bed and breakfast, or even a hotel, then you’ll need to be able to speak Bulgarian, so that you can register your guests as well as, possibly, employ local staff.

The Property

Location and rental rates are the two key issues. Think about who your clients are that you are targeting. What will they want? Access from the airport and local attractions will be important. The amount of money you will be able to charge will depend upon many factors. The location, size and quality of your property, plus what other similar properties are achieving in the same area.

Always remember to factor in all the costs and decide if you want to offer an “all in” rate (to include bed linen, electricity, logs, etc) or whether you prefer the customer to pay for electricity used separately.

Don’t forget that you’ll have to pay income tax on the rental money you make.

With the market being still in its infancy, it is difficult to determine true rates, with most people putting on whatever figure they think they can get away with: so, ignore the highest rates when you are doing your research.

 

Self Catering v Serviced

Regulations cover both types of accommodation.

Self catering - the property should be registered with the Ministry of Economy and Energy to be rated. The local council will come and inspect the property. This can be a lengthy process but they will usually give you a temporary licence whilst this happens. The rating is based on facilities.

Serviced accommodation - Get a good translator! You’ll need to visit the municipality offices to register your property with them and the fire brigade and tourist board. Get an accountant as you’ll need to buy a cash register and understand how this system operates. The tourist board will give you a registration book so that you log your guests. The property will then be inspected by both the tourist board and the fire brigade. Check you comply with fire regs beforehand. After the checks, you’ll receive your licence.

Agents

Many buyers who live outside the country will use a letting agent to handle bookings and turn-rounds at self catering accommodation. Remember to have a written agreement with them, which you should ask your lawyer to check before you sign.

Insurance

It is critical that you have public liability insurance. If something happens to one of your guests at your property, you could be in for a very large claim against you.