How to properly rent a property in Bulgaria: tips for owners

How to properly rent a property in Bulgaria: tips for owners

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Many buyers of real estate on the coast of Bulgaria consider it not only as a place for vacation, but also as a source of additional income. Renting an apartment or house in resort towns is a real opportunity to make a stable profit, especially in the summer season. In this article we will tell you how to organize the rent, what formats of renting exist and what to pay attention to in order to avoid risks.
Short-term or long-term rent?

Short-term rental - renting out accommodation for a few days or weeks to tourists, especially in the high season (May through September). This is the most profitable format, especially in popular locations such as Sunny Beach, Sveti Vlas, Nessebar and Pomorie. The rates during this period are much higher, and even in a couple of months you can recoup a significant part of the annual costs.

Long-term rental is stability. This format is suitable for the winter season or if you don't want to deal with changing tenants often. Usually the tenants are seasonal workers, students, foreigners living in Bulgaria on a residence permit.

Tip: if you plan to rent the property all year round, choose cities with developed infrastructure and active life out of season - Nessebar, Pomorie, Sveti Vlas.

Rent registration: legality first

When renting out a property, you must comply with the requirements of Bulgarian law. If you are a foreign owner who rents an apartment to tourists, you must:
Register as a natural or legal person providing short-term accommodation services.
Get categorization of accommodation - a special document confirming that the object meets the standards of tourist accommodation.
Maintain guest records and report data to the National Tourism System (reservations, number of nights, tourists' country of origin, etc.).
Pay appropriate taxes.

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In the case of long-term rentals, a standard rental agreement is concluded and the income is subject to declaration to the tax authorities. 

How to find tenants?

If you do not live permanently in Bulgaria, it is wise to put the management of the property in the hands of a property management company or agency. They will take care of:
Posting ads on travel platforms
Reception and check-in of guests
Cleaning and maintenance
Communication with tenants
Reporting and financial issues
If you plan to do it yourself, use proven sites: Booking, Airbnb, OLX, local platforms. In the description be sure to indicate the distance to the beach, the availability of furniture and appliances, infrastructure nearby, photos of the interior.

What do renters prefer?

The most demanded:
Apartments near the sea (up to 500 m from the beach)
Availability of air conditioning, Wi-Fi, kitchen, balcony
Pool and guarded territory
Sea or mountain view is an advantage
Good condition of repair and furniture

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The most requests are for one-bedroom apartments - they are versatile and suitable for couples and families with a child.

How to avoid common mistakes?

Don't overprice.It's important to consider the competition: tourists compare hundreds of offers.

Don't skimp on photos.Quality photos are the key to a successful submission.

Don't ignore reviews.It's important for guests to read honest comments.

Don't forget about service.It's important to be responsive to tenant requests, especially for short-term rentals.

Revenue and expenses

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In popular resort areas, if properly organized, short-term rentals can bring up to 5-7% per annum of the value of the object. At the same time, the cost of maintenance, cleaning, taxes and advertising can be 20-30% of income, which should be taken into account in advance.

Tip: make a simple financial plan - how much you want to earn, what expenses are possible, and choose the optimal rental format.

Closing

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Renting property in Bulgaria is a real and profitable way to use your property, especially in popular coastal towns. With proper organization, compliance with the law and the right choice of location, your apartment can not only pay off, but also bring a stable profit.
If you are just planning to buy a property for rent - contact Just Balkan Property. We will help you to choose an apartment with a high investment potential, offer properties in reliable residential complexes and advise you how to start renting out your apartment with maximum profit.