Rental income and profitability of real estate


Over time and the evolution of recent trends in real estate,considering the increasing number of tourists and buyers on Bulgarian seaside (Black sea coast), most of the major builders-owners of closed-type complexes with managing company, begin to offer properties with guaranteed rental income and a high rate of return.

The trends facts that during season 2016, the offered guaranteed return amounted to 3-5 % , but  in 2017 it reaches 7 %, and even in some places – up to 8,5 % .

One of the greatest advantages here is that the owner still has the right to use his own property. The period of use is determined according to the terms of the management company. Normally, the owner has the possibility to use the property in low season or after the end of the season.

Ensuring this type of return is done by a contract, which has different period of validity,depending on the management company`s conditions.The contract can be signed for a period of 1,3,5  or even more years with right of countersigning.

Expenses for municipal services (real estate taxes, maintenance fee and refuse collection taxes,ext.) are for the account of the owner. Expenses for energy and water supply are individually negotiating between company and client.

A significant part of the real estate for rent provide an option for discretionary participation feature.

In most cases, the return could reach 10 % and even more. Of course, attention has to be payed on the company reputation and history,as well as its rating and reviews on Internet web-sites.

Another shade of these type of investment is the additional services which the complex offers, such as SPA and fitness centers, playgrounds, pool and reception desk areas. Great importance have also construction quality,location, view, territory,access to infrastructure of any kind.

Priority in real estate property is given to those, located in bigger and famous  resort places – Sunny Beach, Saint Vlas, Sozopol, ext.

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