Property Management in Bulgaria

The property management business in Bulgaria is just starting to evolve and to respond to the needs of all overseas property investors and homebuyers. As we all are familiar with the rising number of coastal and mountain properties, it is not surprising that there is now an equally high demand for professional property managers.

If you are one of these investors or homebuyers, then you will probably agree that the role of a property management company is to act as a caretaker for your home in your absence, making sure it is well maintained and kept in perfect working order when you are not in residence, whilst also ensuring that it is thoroughly cleaned and prepared to meet your needs when you (or your guests) are due to arrive at your property. Even if you only plan to use your Bulgarian property on an occasional basis, it is absolutely essential as well that you have a reliable property management company on site to help you maintain your villa or apartment.

These needs determined the foundation of several types of management companies. Many of the major real estate companies operating in Bulgaria faced the needs of their clients to provide after sale services and founded their own sister companies taking care of the management and maintenance of the properties, sold by the agent. On the other hand there are developers and building companies providing management services at the complexes built by them. There are also other type of property managers, operating in different complexes and serving independently several real estate agents or developers, or contracting directly with owners. No matter the type of company, the expectations from owners remains the same and are focused towards not only taking the hassle out of maintaining, inspecting and paying local bills whilst away, but also to build and develop a rental strategy offering their homes the best possible way for letting.

Here starts the competition – which company will provide best rental income and longest rental season?

The statistics shows that the best results in that direction indicate the rental management companies operating in the coastal areas – Sunny Beach, Varna, Golden sands and Albena. Since 2001 they accommodate clients of major tour operators in the serviced apartments managed by them and some of them achieve rental season up to 5 months with quite high rates. The owners reach sometimes 5-6% return of the investment per year.

The advice from seasoned holiday property owners is to go as upmarket as you can possibly afford without breaking the bank. The most "lettable" properties are those with a private swimming pool, near the sea (ideally with a sea view) and within easy reach of shops, bars, restaurants and local nightlife. The property should be reasonably close to an international airport with daily charter flights to the major European capitals. Good air links to the UK and Germany are vital because these two countries provide the lion's share of visiting tourists.

Many owners on the Black Sea Coast have found they have been able to purchase a second holiday home with the proceeds of their first year of letting. Even at the lower end of the market, as long as you pick the right location and meet the above criteria your rental income should more than cover your mortgage repayments and running costs.

Why Using a Professional Property Management Company?
Owning a holiday or second home in Bulgaria should be a dream come true, but in some circumstances, the dream can quickly become a nightmare - crooked developers & sales agents and illegally built properties are a few of the problems that can arise with the purchase and ownership of your Bulgarian property.

Once the purchase has been made, other problems can arise. If you do not intend to stay there long term - water damage, electrical problems and insect infestations are common problems in Bulgaria and can de-value your property.

Most owners substantial sums for their properties, then comes extra charges – municipal taxes, annual maintenance fees etc. That is why (in some cases) they are not ready to spend extra money for a property management company. In some cases they “save” by hiring local people taking care of plants, cleaning and visiting the properties from time to time. But here come the question – how reliable can these “managers” be – can you trust them by leaving the keys to your apartment or villa without even having a contract with them? How responsible can they be when you only have an oral agreement with them to keep an eye on your high valued investment? Can they ensure you that after tenant’s visit the property it will be in the same condition as on their arrival? What happens if the toilet doesn't flush, a window gets broken, or the swimming pool pump breaks down?

To guarantee that your investment receives the best possible care and attention and to be assured that your home is secure and in safe hands you need more than just a neighbour “keeping an eye” on it. Only a professional company will be able to manage with the various kinds of issues that may arise, for example to keep the property free from the ‘element problems’ - mainly damp and mould growth which are unfortunately a significant problem with apartments on the Black Sea coast.

Last, but not least is the professional manner of the management crew of the company – its experience and established relationships with tour operators, letting agents, tourist companies and local attractions for providing also best guidance for the guests accommodated in your apartment or villa.

When you visit your Bulgarian home, it is unlikely that you wish to spend time cleaning, mending and finding local contractors instead of relaxing and enjoying yourself, and it is under circumstances like these that employing a management company can truly be of benefit. Whether the service is let-only or full property management, the lettings agent will provide professional help for both tenant and landlord with regards to the legal details of agreements, rent, possession, presentation and marketing the property.