Bulgarian Property Management Companies
When it comes to renting out your home, there are many factors to consider. First of all, do you want to use a company that provides a rental management service?
If you do, then you need to start reviewing the available suppliers of these services. Where possible, look for recommendations from people who have bought property in Bulgaria.
A small number of internet-based forums of like-minded individuals have been growing over the past year or so, and allow you to share the experiences of others. You may find this a useful source for recommendations.
Many of the estate agents in Bulgaria provide some form of rental management service. Since the majority of estate agents cater more for medium/long-term rental, this is unlikely to suit you if you are only targeting holidaymakers.
Property Management Costs
You can expect to pay between 8-20 per cent for the rental management service, depending on the service you expect and the company who is providing the service - and 15 per cent would seem to be the average. You can of course negotiate the price - and if that fails, you can always go somewhere else!
Summary of Property Management Services
Having established that you will require your property to be looked after, and a company who can find clients, etc., you also need to consider all the other services that you may require from this company.
Services for Short-term Rental (to holidaymakers)
1. Advertising your property (e.g. on the internet)
2. Taking payments from your tenants
3. Sending the payments to you (or depositing them in a local bank, safety deposit box etc.)
4. Arranging a pickup service from the airport for your guests
5. Organising police registration for foreign guests (a requirement under Bulgarian law)
6. Appointing a local keyholder to let your guests into the property and provide them with keys during their stay
7. Possibly providing welcome drinks, ensuring that your property has drinks available and supplies (coffee, tea, sugar etc.)
8. Providing cleaning services to ensure that the accommodation has been cleaned for your guests and has new bed linen for example
9. Spot checks on the property during the vacant period, to ensure its safety etc.
10. Providing you with monthly accounts that indicate income and expenditure
Services for Medium/ Long-term Rental
1. Appointing a local keyholder
2. Cleaning the property before/after each tenant
3. Taking payments from your tenants
4. Sending the payments to you (or depositing them in a local bank, safety deposit box etc.)
Do You Need a Property Management Service?
However you look at it, if you are not planning to live in Bulgaria permanently, then you will require some local assistance. The real decision is whether to use a professional company to manage it for you, someone local that you either know (and trust), or someone that has been recommended to you.
If you are looking for a property management company, do ask for references. If possible ask the property management company if you can contact both the owners and the tenants of properties that they manage to get a better feel for the way they conduct their business.
At the end of the day, you have to feel comfortable with the people you are dealing with. Trust takes time to develop, wherever you are in the world - so my advice would be to put your trust in someone you know, or someone that comes highly recommended.
Do be wary of any company that claims to guarantee a rental income - as it's virtually impossible to guarantee, unless of course the agency is prepared to fix the payments contractually, and pay you the guaranteed amount directly themselves for a stated period.
Over the next few years, as the Bulgarian real estate market matures, more and more companies will spring up and more comprehensive property management services will be available - competition will increase - just as it's done in Italy and Spain, and inevitably with greater choice comes more competitive pricing.
It doesn't take a rocket scientist to understand that trends in real estate do follow patterns - hence the predictions that Bulgaria will follow the same kind of growth in real estate prices as other parts of Europe have over the last 20 years. So, let's assume that you have found someone you trust (whether it is an individual or a company) - you now need to think about the pricing.
