If you are buying to let in Crete or Greece ensure that you research the local market before you buy. Oversupply and competition in some areas means that there are no guarantees that holiday rental will be profitable.
Holiday Rentals Achieving high occupancy rates will depend on many different factors including the property's location and facilities, how well you, or an agent, market your holiday property and current holiday trends.
Don't forget to factor in running costs such as property & pool maintenance, cleaning, bills, insurance as well as taxes and licence costs.
One of the positive aspects of renting out your holiday home is that your property and pool will be maintained by the property management company rather than standing empty for the majority of the year, and even a small rental income should cover this cost so it is a good way of protecting your investment.
Earning some extra income from your holiday home is a plus, however do not rely on renting to pay for your investment i.e. to pay a mortgage. Even if it seems like a profitable venture at the time remember that the short or long term market may easily change.
In order to legally rent your Greek or Crete property on a short term basis to holiday makers you must obtain a licence from the Greek National Tourist Organisation (EOT in Greek).
Check list for holiday rental:
Consult a Greek accountant regarding tax liabilities
Market your property. Approach local tour operators and travel agents or sign up to Internet holiday letting websites such as holidayrentals.co.uk and villarenters.com.
Long Term rentals Long term lets - usually 3 months or more - do NOT require an EOT licence. They attract a lower (monthly) income and officially a contract should be drawn up with the tenant, deposited with the tax authorities and declared on your Greek tax return.
The Hellenic Property Federation (POMIDA) offers advice to landlords here in English.
Copyright 2004-2012 Carol Palioudaki. Property in Crete Buy to Let Living in Crete www.livingincrete.net