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Villa to let and legal obligations
31 August 2017
We have reported in this paper that one of the best investment returns are the villas to let and Airbnb, especially for such popular localities such as the Famagusta region and to a lesser extent Pafos.
Due to the increase of tourist numbers and the lack of beds, this “new” method of leasing which is most occasions is tax free (not declared – quite illegal) encouraged investors and villa owners to opt for this type of investment, which is quite lucrative we must say and which show a net return of around 8%-10% p.a. based on value of the property.
The prevailing minor problems under this new method of let have not surfaced as yet and it will not be too long that it will become a big problem.
The agents are very happy to let out a villa/house, with no questions asked as long as the tenants pay (in advance) the required rent. End result is that the let property is occupied by numerous people (the more people the less the cost for the tenants) no restrictions placed (family etc) causing all sorts of problems to the neighbors.
In a recent case where a neighbour with loud tenants could not have his peace, called the police on several occasions (which they attended mind you – strange!). The neighbour could not put up with the next door villa to let due to the noise, fowl language etc and having no response even after the police came at 3.0 in the morning, left for his Nicosia house!!
So that we can provide some tools of protecting oneself from the neighbours tenants we could suggest the following:
Of course this type of lets is not unique for Cyprus, but it is worldwide causing reactions e.g. from Barcelona and Venice, having declared “no more tourists”. We get, as an Office on board apartment lets in Nicosia for lets with ½ of the price in the tourist areas, plus a car hire (this is an alternative), but again the problem will remain be it not to the same extent. This state of affairs will not end but it will be increased mind you based on the international market trends (as long as we have a shortage of tourist beds).
Notwithstanding our numerous reports on the subject going back 2-3 years ago and more recently, the Pafos Chamber has recently discovered the problem, claiming that the Pafian Hotels suffer as a result of the villas to let, especially during the off season period.
In order to address the problem this state of affairs must be examined both by the C.T.O./Income Tax/Hotels Association and others.