As Real estate has become the greatest investment vehicle over the last 50 years, you are probably considering investing in the rental market in order to expand your income.
Being a landlord of a rental property is one of the key ways that real estate investors can make money, and Greece has long been a very popular travel destination for visitors from all over the world, in part because of its ancient cultural history and many archaeological sites, such as those in the capital city of Athens.
So, here is a guide for you to help you understand and know more about investments in Greece before getting into it:
- Deciding between a residential and commercial property:
Before you buy a property, you need to decide whether you’re looking to purchase residential or commercial property. Both types can help you reach your end goal of passive income. However, they have some important distinctions.
- Residential real estate: Residential real estate is property you rent to someone looking for living space or a principal home. Your tenant(s) could be a family, a student, a young professional or someone else. Residential properties typically have lower starting costs, there is also a higher demand for residential properties.
- Commercial real estate: Commercial real estate is property you rent to a business. The business could use the property for retail, office or industrial purposes. Commercial properties require commercial mortgages, which are slightly more complex than their residential counterparts.
- Understand the legalities:
Make sure you are aware of all the legal prerequisites for property ownership and rental in Greece. This entails obtaining the appropriate permissions and abiding by all rental-related laws. Working with a local attorney may help you through the procedure and ensure that everything is done correctly.
- Dependence on tourism and focus on short-term rentals:
Tourism is one of the leading industries In Greece, involving 10% of the population. Tourism revenues account for 20% of the country’s GDP. The tourist season in most Greece last seven months: from April to October. Some regions receive tourists all year round such as Athens. To meet the demand, most of the real estate in Greece is rented out to tourists.
- Consider the location:
When it comes to rental properties, location is crucial because it can affect the type of tenants you will draw in and even the turnover rate. For instance, if your rental property is close to a university campus, you might find that the majority of the potential tenants are students, frequently international ones. Look for a location that is convenient for tourists, with easy access to amenities and attractions. It is also a good idea to consider the overall quality of life in the area, as this can affect demand for rentals.
- Set the right price:
Pricing your rental property correctly is key to attracting tenants and maximizing your return on investment. research comparable properties in your area and set your rent price at or below the average. This is a good starting point, but keep in mind that you may need to adjust your price up or down depending on what amenities your property offers (or doesn’t) compared to others and consider offering discounts for longer stays or off-peak seasons.
- Consider property management:
Many property owners are afraid to hire a property manager because of the cost involved, not realizing they will actually make more money in the long term due to the increased care of the property. You will get better tenants that stay longer and have less damage and repairs to deal with. Your property remains in great shape.
Thus, if you are not planning to be on the ground in Greece to manage your rental property, you may have to consider hiring a good property management company, as they can handle tasks like advertising the property, screening tenants, and handling maintenance and repairs. It is also important that you take the time to set the right price. Keep the following key factors in mind when setting the price for your home: the local market, the condition and size of your property, and any special features or amenities it offers.
With a little research and effort, you can make sure you’re getting the best price for your rental property.
Visit Yazbek Real Estate offices in Greece for better assistance.
We can help you make your dreams come true!
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LB: +961 9 93 35 39 – GR: +30 2103616884
Address: Achilleos 106, Paleo Faliro 175 63, Greece