The rental market for Bulgarian property - making the most of your villa or apartment in Bulgaria
Buying Bulgarian property to rent out is the sole intention of many buyers. Others, however, want to retain the use of their rural Bulgarian villa or their apartment on Bulgaria´s coast as a holiday home for a few weeks each year and let it out the rest of the time so it generates income as well as equity.
Buy to let Bulgarian property has two distinct types of buyers
Those looking to buy a Bulgarian villa or an apartment in a Bulgarian resort as an investment typically fall into one of two categories.
Pure investors will normally be more experienced in dealing with Bulgarian property. However, a growing number of people are entering the overseas market with unrealistic dreams of making millions in a short space of time from a sector they know little about. They should exercise caution and realise Bulgarian property is a long-term investment and not a get-rich-quick scheme.
Those seeking to maximise income from their holiday home tend to be newcomers to Bulgarian property. They are also more likely to make decisions they will later regret. To avoid making costly errors when entering the buy to let market in Bulgaria you should:
- Find out what is the up-and-coming location are for a Bulgarian villa. What is the latest hotspot for an apartment in Bulgaria?
- See what the rental incomes are like for different property types and how this compares to the costs of purchasing a Bulgarian villa or apartment.
- Investigate which types of Bulgarian property are in most demand as holiday rentals and why.
Bulgarian property for golf and activity holidays
Many foreign purchasers think the rental potential of Bulgarian property is limited to either summer rental of an apartment on Bulgaria´s overlooking sandy beaches or winter rental of a chalet or apartment in Bulgaria´s skiing regions. However, the rental market has broadened recently, and buyers are beginning to diversify.
A villa or apartment on Bulgaria´s Black Sea coast will have low occupancy rates in the winter. But it is now possible to buy a Bulgarian villa or apartment in two new golf course developments in the northern half of the Black Sea region. If golf in Bulgaria takes off (it is a new market), Bulgarian property in the towns and villages closest to these courses may have better occupancy rates throughout the year. A new golf course close to Bankso may have a similar impact on off-season rental income from Bulgarian property in the mountains.
Meanwhile, a Government-backed advertising campaign has been promoting the ski resorts as summer activity holiday centres. This should extend occupancy rates for up to nine months of each year, making an apartment in Bulgaria´s mountains a contender for good rental yields.
Looking to lease your Bulgarian property on long-term contracts?
The Bulgarian property rental market is largely aimed at short-term lets to holidaymakers. However, there is a growing market for long-term lets in Sofia to foreign executives and diplomats. Bulgarian villas with gardens on the slopes of Mount Vitosha area are much sought after by expatriate families while the best areas for renting out a one or two bedroomed apartment in Bulgaria´s capital are those closest to the centre and the Sofia Business Park.
Many investors in Bulgarian property are now moving towards this long-term rental market. It offers more peace of mind knowing your villa or apartment in Bulgaria is in the hands of just a few people who have an interest in its maintenance. A guaranteed rental income over a long period of time also helps!
What you need to know about rentals in the Bulgarian property market
The maximum length of a rental contract for Bulgarian property is usually twelve months although a renewal cause is likely to be included in the contract.
It is also possible to rent out an apartment in one of Bulgaria´s cities on a nightly basis. Management fees for such very short-term lets are usually about 50%. Losing this much income from your Bulgarian property has to be balanced against the higher short-term rate.
Rental income from rural Bulgarian villas tends to be low. However, a well-maintained Bulgarian villa located in a city, especially in Sofia, can achieve long-term occupancy at reasonable rents.
Buy to let mortgages on Bulgarian property
The concept of Buy to let mortgages on Bulgarian property has not yet arrived in the country. A Bulgarian mortgage does not make any distinction between your intention to live or rent out your villa or apartment in Bulgaria.
Managing your Bulgarian villa or apartment for holiday rentals
Our property management service will help to take the hassle out of managing bookings for your villa or apartment in Bulgaria. Your guests can check availability, book and pay online and we will notify you each time your Bulgarian property receives a new booking. If you choose to accept the booking, our virtual secretary will take care of the rest.
