Finance and Insurance
Handling Your Finances
A letting agent will take away the headaches of handling booking
deposits, confirmation fees, deductions for breakages and deposit
refunds. You’ll need to think about how you’re going to handle all
this if you’re not using an agent.
Most property owners aren’t in a position to accept card payments.
Many holidaymakers prefer to use cheques rather than electronic bank
transfers but some property owners have found foreign cheques can take
several weeks to clear – then they have to pay hefty bank charges for
currency conversion.
On the subject of finance….it’s unadvisable to try and avoid declaring
your rental income to the tax authorities. If you’re advertising effectively,
and especially if you’re inviting rental enquirers to contact you directly,
that means the taxman could end up on the other end of your phone as well
as potential clients!
Insurance
Tell your insurance company what you’re doing. Many insurers impose
restrictions and increased premiums when properties are let.
Consider taking out extra contents insurance to cover accidental damage
when the amount claimed exceeds your returnable deposit.
Some owners take out legal expense insurance to cover disputes with tenants.
You might also want to consider extra insurance to cover loss of rental
income in the event of damage to your property.
Take the time to compile a really thorough inventory – room by room and
cupboard by cupboard. Take photographs of each room, wall, cupboard etc
so if there’s a fire, theft or some other problem you have an indisputable
record of all your possessions for insurance purposes.
Your property manager should check after each visit that your important
possessions (TV, microwave, pictures etc) are still in place.
The Black Art of Buying Property in Cyprus™ ®
The Cyprus Informer™ ® ©
http://cyprusinformer.eu
