Cyprus Long Term Rentals: Hidden Budgets and Costs
Cyprus Long Term Rentals: Why hidden costs matter
When it comes to long term rental properties in Cyprus, consideration of the monthly rent, while a huge aspect, is not the whole picture. Often, especially in the case of private rentals from individual landlords, Cyprus long term rentals come with setup fees, seasonal utilities costs, and occasionally charges relating to the local municipality. These additional cost considerations can sometimes throw users off. By planning for these extra costs, you’ll be able to avoid any nasty surprises.
One time cost considerations
While not all of the below may apply, depending on your agreement, you should take special care to ensure that if the following do not apply, that this is resolved prior to signing an agreement.
Security deposit and first month rent
In Cyprus, the majority of landlords will stipulate that they require a deposit (normally the equal of the first month’s rent and either one or two months rent upfront. The deposit is refundable at the end of tenancy, subject to the condition of the property being in the same condition as it was prior to signing the lease.
Agency fee where applicable
Arrangements involve a tenant fee, or a landlord only free. It is best to clarify early on whether this fee applies and does VAT apply. It is important to establish in writing before you commit to a lease in order to have clarity.
Stamp duty on the tenancy agreement
It is very important to ascertain whether your tenancy agreement in Cyprus will or will not require stamp duty, which will be based on the value of rent payable under the contract. If stamp duty is a feature, it is historically a moderate amount but it is always best to ask your agent or landlord to confirm the current rules and where to pay.
Utility deposits and connection fees
Deposits are often required for electricity, water and gas services where accounts are placed from the landlord to the tenant’s name. Internet providers will also charge installation and router fees where the internet has not already been established and is requested by the tenant.
Initial purchases
A key consideration that is often overlooked until close to relocation day is the small product purchases that will be needed to turn your rental into a home. Examples of items that are commonly needed include kitchen basics like small appliances and utensils, bedding, garden items like hoses or umbrella bases (especially for villa properties). We highly encourage budgeting for these essentials.
Recurring monthly or quarterly costs
Electricity
In Cyprus, air conditioning is going to be the primary cause of your electric bill. Older AC units will likely incur more cost than a modern AC unit so pay close attention to this during inspection. Villas with pools and older appliances can also add to the cost. It is advisable to ask your landlord for previous bills across various periods so that you can set a budget expectation.
Water
While charges vary by municipality and usage, generally water costs are not excessive. The exception being that homes with gardens requiring watering and pools will use a lot more.
Communal fees
If you rent in a building or complex there may be communal charges for lifts, lighting, shared pools, and gardens. Clarify whether the landlord includes these in the rent or passes them to you.
Rubbish and municipal fees
Local authorities may levy annual or semi annual charges for waste collection or local services. Amounts vary by area, so ask at the viewing stage.
Internet and TV
Packages range from basic broadband to fibre with TV add ons. Contract lengths can be 12 or 24 months. Check coverage at the exact address.
Pool and garden maintenance
Villas often require weekly or fortnightly pool service and regular gardening. Some landlords include this in the rent. If not, ask for recommended providers and typical costs.
Insurance
The building is usually insured by the owner, but tenants should arrange contents insurance for personal belongings and liability.
How to avoid Rental surprises
Request 12 months of recent utility bills if the owner has them.
Confirm what is included in the rent in writing.
Add a 10 to 15 percent buffer to your monthly plan for seasonal spikes.
Choose homes with shade, insulation, and modern appliances to keep bills manageable.
Keep an emergency fund for minor repairs that are tenant responsibility under your contract.
Final word and next steps
Cyprus long term rentals reward careful budgeting. Once you know your one time and recurring costs you can choose the right home with full confidence. Some Cyprus rental businesses, such as Luxel Villas will assist in understanding the costs involved and provide honest running cost guidance so you can plan with clarity of mind. Enquire with us today.