Thinking of Renting
It sounds simple – you have a property on the beautiful island of Rhodes, people are going to want to come here on holiday, they will be happy to pay to rent your property. What else is there to think about?
Actually there is a great deal that you need to consider before you commit to renting out your property.
RPM are happy to provide owners with help and advice that will enable them to make their own decisions before entering into the rental property market.
The Legalities
Disclaimer - RPM are not tax / financial advisors and any information provided here is for guidance only and you are advised to seek professional advice from your accountant / solicitor / financial advisor.
Firstly – tax issues. If you are going to make an income from renting your property, will you be liable for tax?
There is not a completely straightforward answer to this question – as everyone’s financial situation is unique to them.
However here is our understanding of the rules regards UK citizens.
Basically you have 2 options:
1. You can elect that all your rental income is considered and taxed in UK
When completing your annual tax return you will need to declare any rental income you have received. We will be happy to provide you with a statement at the end of the season that shows your rental income received through RPM and also details of any expenditure you have paid for services received.
2. You can elect that all your rental income is considered and taxed in Greece.
This is slightly more complicated. Strictly speaking you should set yourself up as a business, obtain the relevant tax numbers and documents. You will also will then be liable (as a self – employed business owner) to pay TEVE – the Greek equivalent to UK national Insurance Contributions. You may be allowed to earn around 10,000 euro before being liable for tax. Then, as in the UK, the tax rate increases on a sliding scale for earnings over 10,000 euro. We would recommend that you appoint a Greek accountant to deal with your affairs and give you individual advice on these matters.
To meet the Greek legal requirements you should also be registered with the Tourist Police. (EOT)
This again will mean completing various forms and obtaining a tourist license and will cost around 4500 euro for Five Years.
To find out more about EOT search the internet, as it is quite involved.
Owners must accept that it is their responsibility to inform the relevant bodies of their rental activity. RPM have informed you of what they believe to be required and owners may choose to proceed without meeting the legal requirements – at their own risk.
Insurances
RPM recommends that all properties should have Contents Insurance to cover the cost of any damage etc.
Another priority is Public Liability Insurance to ensure that should any unfortunate accidents occur at your property you will have adequate protection.
RPM will be happy to provide the names and contact details for several insurance companies with offices on Rhodes, or you may obtain insurance through a UK insurance company, for your property in Rhodes.
Furnishings and Equipment
Owners will naturally want their property to be attractive to prospective customers and will want to provide furniture and equipment to enhance their stay. You will also need to consider your target rental market, you will not achieve maximum rental levels if your furnishings and equipment are not top quality.
RPM offer the following general advice to owners who are considering renting out their property:
* Provide good quality, hardwearing furnishings that can be easily cleaned.
* Floors are best tiled so that they can be, swept, vacuumed or mopped as necessary.
* Sofas are best either in a wipe clean finish (leather is perfect) or with detachable washable covers. Alternatively use easily machine washable throws.
* Beds should have god quality mattresses and we recommend the use of mattress covers.
* Also in the bedrooms you will need to provide some hanging space with coat hangers, some drawer space, bedside tables and lamps and a litter bin.
* All rooms should be ‘clutter free’. i.e. remove all personal possessions (or least the vast majority) as this will reduce the chance of anything ‘going missing’ and will also reduce the amount of time, and therefore cost, of cleaning.
* Bathrooms need to be good quality and spotlessly clean with provision of a toilet roll holder, rubbish bin and towel rails, mirror, shaving / make up mirror, toothbrush holder and mug.
* Lounge areas must be comfortable even though people are probably going to be spending most of their time outside during the summer months.
* A television and maybe a DVD player will provide basic entertainment and you may choose to add a Radio / CD player. When providing a television, you need to consider what TV channels are available and the quality of the signal. Even if the television is unlikely to be used, poor quality reception and a lack of English channels will leave your guests feeling disappointed. If you are going to leave DVD’s / CD’s available for your guests, remember that these are items that are easily removed and not readily identifiable that they have been removed i.e. each DVD / CD box will need to be opened to check its contents.
* Consider also providing a computer games console for teenagers. It doesn’t have to be state of the art and most of us have a stack of old (i.e. last year’s!!) games consoles up in the loft
* Coffee and dining tables should have an easily cleaned top and the provision of coasters / place mats may help to stop ‘ring’ marks from cups and glasses.
* Kitchens need to be equipped with a good selection of crockery, glasses and cutlery, sufficient for the number of guests that the property can accommodate, along with a few pans and dishes. Generally provision of a fridge/freezer, kettle, toaster and microwave will be adequate though you may opt to also provide a coffee maker. A basic oven and hob will be adequate as generally holiday tenants will not be wanting to produce “ cordon bleu” meals. A washing machine should be supplied and a dishwasher is an optional extra.
* An iron and ironing board will be expected and also a basic cleaning kit – mop and bucket, broom, dustpan and brush and if you have rugs a vacuum cleaner.
* Outside areas need to be furnished – as this is where a lot of guests will spend their time.
* An outside table and chairs for dining is recommended.
* If you have an outside patio area or your own pool with patio area beside it, at least a couple of sun loungers, preferably one for each guest that the property can accommodate.
* A barbecue will also be welcomed by guests as often, if they choose to stay in for an evening, this is an easy and pleasurable way of providing a meal and enjoying the warm summer evenings.
* If you have your own pool we cannot stress highly enough the need to invest in some ‘plastic’ glassware for use outside (together with clear instructions to your guests that glass items are used outside at their own risk). Should a glass be dropped near the pool area this could lead to problems ensuring that all particles are removed from an area where people are going to be walking barefoot. It may even necessitate the emptying / cleaning / filling of the swimming pool if glass splinters have entered the water!
* A few pictures on the wall and some books / magazines will provide your guests with a ‘homely’ feel to your property.
* In general, RPM advise that you de-personalize your property. Your personal possessions, ornaments, etc. are best locked away in a secure cupboard so that when you return you can unpack them and enjoy them. If left out they may be damaged or broken and cleaning the property will be more costly if there are a number of things that must be moved in order to clean surfaces.
Hopefully these pages have given you a few thoughts about what you may need to do before your property will be ready for rental. At RPM we will be happy to discuss any of the issues raised with you and to answer any further questions you may have.
Once you have decided to go ahead with your rental RPM can offer a range of services to support you……
