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Supporting buyers and sellers through the necessary fees linked to property transactionsAre you a first-time buyer looking to invest in real estate in Cyprus? Rental yields provide landlords with an attractive return on investment, increasing revenue through passive income. However, while buying a property may sound a simple process, it can incur unforeseen costs. Helping our clients to understand and stay ahead of these hidden expenses and unexpected fees is indeed part of what we do here at REInvest. In fact, our team of expert real estate professionals provide a variety of specialist property consultancy services, as well as local know-how and market expertise. Which in turn, stands investors in good stead as they embark on this journey.Our highly experienced consultants advise investors to get a real understanding of all costs involved in purchasing a property before they start house hunting. After all, it is essential to set a realistic budget based on a holistic assessment of all expected costs, prior to committing to a purchase. To begin with, most prospective buyers will be familiar with the big-ticket expenses, such as mortgage payments and property taxes. However, many may not be as aware of some of the smaller, less-known expenses, such as title deed issuance and tax clearance services.Perhaps you are a seller? Similarly, there are a range of different costs, expenses, and VAT obligations to consider before starting the process. For example, many sellers are not aware that under certain circumstances they may be eligible for a waiving of the VAT obligations for their land, plot, field, or property. Thus, to help both buyers and sellers to navigate these unanticipated expenses, your real estate advisors at REInvest have gathered all the necessary cost information, to help you understand all associated cost and prevent any unforeseen surprises that might affect your finances.So, read on to learn about the costs of buying and selling a property:What Fees do Sellers Pay When Selling Real Estate?Pre-acquisition expenses include: Land Registry (LR) search (property encumbrances) Energy Performance Certificate (EPC) issuance - In case of resale an EPC may need to be issued Tax clearance Municipality taxes Sewage feesWhat Fees do Buyers Pay When Investing in Real Estate?Pre-acquisition expenses include: Due diligence fees for the negotiated due diligence time period when the buyer can appraise and inspect the property, carry out property surveys and obtain loan approvals (Due diligence time covers economic, legal and technical facets) Topographical survey (if necessary), to provide the buyer with a valuable 3D depiction of the property or land, which includes data regarding the lot’s physical feature A lawyer (if necessary)Expenses upon acquisition include: VAT is applicable if the planning zone is residential, touristic or commercial (Agricultural zones don’t apply) or for newly built and unused properties. The owner needs to be advised by the VAT authorities regarding whether the property is subject to VAT Stamp duty Issuing of title deeds Transfer fees If the property is subject to VAT, then the transfer fees are zero 50% discount on transfer fees if the property is not subject to VAT Transfer fees are always subject to the valuation of the Land RegistryHow can REInvest Help to Smoothen Transaction Process?Now that you are more aware of the extra costs that apply to property transactions, let’s look at how REInvest’s team of professionals can help to ensure the smooth and successful purchase or sale of your property. As a Leading Real Estate Agency in Cyprus since 1980, REInvest provides expert consultation to guide you through the whole process of buying or selling a property.Our extensive list of services includes Property Management and Project Management, meaning REInvest can check with the authorities regarding whether the property is subject to VAT, as well as inform clients of any incentives and grants currently in force, that buyers and sellers may be eligible for. Furthermore, REInvest, can advise you on ways to minimise your legal and administrative fees, such as reduced VAT, housing schemes, special development lands, local area plans such as the recently issued SBA (Sovereign Bases Area) and transfer fees.Prospective landlords and sellers can also take advantage of the special packages we offer to our clients. To find out more, visit our website reinvest.com.cy/list. Furthermore, for any further inquiries, feel free to call our experts at +357 22 477600 or 77 78 77 71, or email us at info@reinvest.com.cy
George Englezos, General Manager of REInvest, explains how the company uses its over four decades of experience and extensive portfolio of properties to provide clients with a wide range of real estate investment options and services | Gold Magazine – June 19th 2022Your company represents properties throughout Cyprus and provides real estate-related services around the island. What are some of Cyprus’ most significant real estate investment advantages?Cyprus is a truly advantageous location when it comes to real estate investment. To begin with, the island itself is geographically positioned in a valuable location: at the crossroads between East and West. As a member of the EU, Cyprus offers investors a secure, stable environment, while simultaneously providing a gateway to the Middle East and beyond. For those looking to increase their passive income through real estate rental, the island has one of the highest and most stable real estate yields in Europe. In fact, rental returns are high for both residential and commercial rental properties. REInvest can assist in maximizing the return on their investments through proper project and property management.As well as high rental returns, Cyprus offers a favourable tax policy for real estate investment, as well as one of the lowest corporate income tax rates in Europe. The island is also a fast-growing hub of commercial, industrial and real estate development. In fact, as we can see from our major urban hubs such as Nicosia and Limassol, international businesses across all key industries are currently choosing Cyprus as their base thanks to its optimum corporate conditions. In turn, this thriving business sector helps further drive real estate opportunities. And then there is Cyprus’ attractive climate and rich diversity of both natural and urban landscapes, with a great variety of things to do for people from all walks of life. All these add up to make this a very attractive place to invest in real estate. Of course, there is also a huge range of choice when it comes to available properties and with REInvest’s extensive portfolio of locations, there is an attractive proposition for any business or individual investor.Are specific areas of Cyprus of particular interest to investors? Do clients prefer certain locations for commercial properties and others for holiday homes?Every district and destination in Cyprus is attractive to investors but each for different reasons. For example, the main urban hubs of Limassol and Nicosia offer advantageous commercial and residential investment opportunities. Another popular investment in Nicosia is in student housing, which offers a high rate of return for landlords looking to earn a passive income. On the other hand, Larnaca, Paphos and Famagusta attract the vast majority of foreign investors linked to the tourism and hospitality sectors. Furthermore, non-EU individuals can always take further advantage of their investment and apply for Permanent Residency.What are some of the ways in which clients can benefit from REInvest’s four decades of experience in the sector and its holistic approach to the services you offer?Well, first of all, our 40+ years of experience are a benefit: with REInvest as their committed real estate partner, our clients benefit from having a team of dedicated real estate experts on their side! The company was founded in 1980, so over the past four decades, we have amassed a vast amount of knowledge in property management and real estate services. However, our clients benefit from more than just our expertise. They also benefit from our unique approach to the market. Not only do we take a friendly, customised approach, tailoring our bespoke services according to each client’s individual assets, projects and portfolio; we also take a holistic 360° approach to our services. So, whether you are a buyer, seller or renter, we can oversee the full process in a bespoke way that meets your needs and requests. Further benefits include our dedicated team of 30 property experts, who are always on hand, going above and beyond to support your every need and share their local know-how and extensive market knowledge. This means that our clients are taken care of every step of the way. Our team will guide them through the complexities of the purchase process and handle the mountain of paperwork, while taking care to spot any hidden costs and potential problems, thereby minimising the client’s exposure to legal property risks. As a proud member of Resolute Group, with an international presence in 10 countries, REInvest can definitely benefit its clients. Committed to staying ahead of market trends and tech advances, REInvest uses the very latest technology to accrue data-driven market research. This, in turn, means that our clients benefit from sustainable value driven results and advantageous deals. At the end of the day, all our clients benefit because we save them time, money and energy, while removing every cause of stress.Tell us more about some of the urban landmarks in your portfolio, such as City Plaza in Nicosia. Today we also have an unrivalled portfolio of diverse locations, which is undoubtedly another key benefit for our clients. Why?Because we offer them the widest choice on the island, as well as exclusive access to off-market property listings, meaning that we’ll always find the ideal property for each and every client. In our diverse portfolio, our clients and investors will find some of the most desirable properties and hidden secrets in all of major hubs across the island. These include some iconic urban landmarks that make for exclusive investment opportunities. One of these is, indeed, the City Plaza building on Makarios Avenue in the heart of Nicosia. An easily recognisable part of the cityscape, City Plaza is a prominent commercial building, exclusively for sale with REInvest. The investment opportunity here lies in the recent major revamp and development of downtown Nicosia, which has restored the area to its former glory as a commercial hub. As a result, City Plaza can offer very high yields as an appealing investment opportunity. The building currently features 74 commercial spaces that can be unified to form bigger units and create a desirable business centre in the heart of the capital.You mentioned earlier that, in addition to real estate agency services, REInvest also specializes in Property and Project Management. Tell us more about this.Yes, we deliver a holistic range of services, two of which are Property and Project Management. In terms of Property Management services, we work with tenants, owners and investors, offering an A-Z of premium calibre services. These include a detailed review and remediation of the existing documentation of a property or plot, building administration, title deed and energy certificate issuance. We will also oversee the general management of leased properties, managing rent, maintenance, complaints, contracts and lease enforcement. In addition, we offer risk assessment services, inspecting properties and managing insurance, health and safety and funds. When it comes to Project Management, REInvest’s team is experienced in managing any development, town-planning or real estate project from start to finish. This includes issuing title deeds, managing construction, refurbishment and renovation, creating technical briefs, appointing third party contractors and consultants, and overseeing the relocation of corporate operations from one property to another.Generally speaking, how would you assess the recent development of the real estate sector in Cyprus and what do you anticipate for the years ahead?The termination of the Cyprus Investment Programme (citizenship by investment) has affected the cities that handled the most applicants: Limassol first, followed by Nicosia, Famagusta, Larnaca and Paphos. Today, without the CIP, the market is considered ‘healthier’ and is based purely on the performance of the property and property appreciation. If construction costs are not differentiated, they will definitely affect the market for newly constructed buildings in the near future. We also anticipate increased interest in the resale market, while demand for the rental of commercial land residential properties is also expected to increase in the coming years. Based on Resolute’s data- driven review of Cyprus’ market transaction dynamics in 2021, transaction volumes have now started to increase again following the 2020 slowdown. In 2020, the number of transactions was 15,115, whereas in 2021 this figure rose by 28% YoY to 19,284. Meanwhile, residential and land assets are driving market activity, while activity in the commercial and industrial segment is minimal. INCREASE BY VALUE INCREASE BY VOLUME 67% in residential 54% in residential 23% in land 40% in land 5% in commercial 3% commercial 5% other 3% other
Resolute Asset Management Group launches Agency & Property Services BusinessAthens, Greece – 6-5-2022 - Resolute is excited to announce the launch in Greece of REInvest, its specialised real estate agency and property services business, supporting the Group’s core strategic asset management and advisory services offering.REInvest specialises in providing agency and property services to banks and specialised investors, including sales & leasing, property management, facilities management, technical services and valuations, with a particular focus on granular asset portfolios. “Resolute’s very significant activities in the Greek market have highlighted a critical gap in agency and property services for the provision of consistent high-quality support on a truly national level. This is key to Resolute’s effective delivery of world class strategic advice and asset management, whilst also presenting great potential in its own right. Our successful experience in integrating REInvest across European markets, including the UK, Bulgaria and Cyprus show the invaluable impact of addressing this gap.” said Nicholas Exarchos, RAM’s Regional Partner. “REInvest’s proven approach and systems combined with the Group’s specialised technology offering are of particular value in the Greek reality. The focus on portfolios of granular real estate, rather than large individual assets, magnifies the importance of property services efficiency and national agency distribution structure. The launch of REInvest in Greece allows us to deploy the latest technology intensive property management solutions, and introduce to the Greek market additional bespoke tools and data systems developed by the Group specifically to support REInvest’s activities,” said Christoforos Stratos, Head of RAM Greece. Resolute Greece will continue its current services, providing strategic advice, asset management and real estate structured solutions to clients in the Greek market.ENDSKey contactsNicholas Exarchos, Regional Partner for Greece, Turkey & MEAnicholas.exarchos@res-am.comChristoforos Stratos, Head of Greecechristoforos.stratos@res-am.comNotes to editorsREInvest Greece SMPC is a subsidiary company of Resolute Asset Management SMPC, part of a global real estate asset management firm with over 180 employees in 18 offices across 12 countries. Resolute combines real estate investment, banking, and financing expertise to deliver asset management advisory and portfolio management solutions to the banking and finance and private equity sectors.Websitehttps://www.reinvest.grhttps://resoluteassetmanagement.com
True or false: By using real estate agents to buy your next property, you benefit by gaining access to their expertise, contacts and advice.This is true as long as you first carefully select the right professional, and here at REInvest Real Estate, we feel proud to be the keen experts you are looking for that important decision, at zero extra cost.With more than 40 years of experience, we aim to match your needs, skilfully negotiate the right deal for you, and save you much more than hassle and stress. With REInvest Real Estate, you can gain access to various exclusive listings quickly and discover at the same time off-market property listings and hidden features that don’t show as well on the internet.The REInvest Real Estate team consists of more than 30 full-time professionals, who will work with you to spot hidden costs and potential problems, and to minimise exposure to legal property risks. You can truly rely on our extensive market knowledge and valuable tax guidance and assistance all the way through the complexities of the purchase process, while handling smoothly for you that endless paperwork.REInvest provides you with all the needed services as a trusted holistic Real Estate Office for buying, selling, leasing, and offers as well Property Management and Project Management services with a comprehensive after-sales service. What is also true, is that we can shorten the selling cycle of your property by using the extensive international network, which consists of retail and corporate buyers, investors, funds, real estate professionals, and institutions.You can now trust REInvest as a real estate agent who will guide you effectively with its know-how in the field through your new explorations in life by supporting all your needs and requirements.List your property with REInvest. Contact us at 7778 7771 or +357 22 477 600.Registration Number 1044 | Licence Number 523/E
One of the most well-known commercial buildings in Nicosia, is exclusively for sale with Reinvest Real Estate. Located on Makarios avenue, the most central and commercial area of the capital, the City Plaza can be used as a shopping centre with cafeterias and restaurants or as a business office building. Alternatively, it can be used as a combination of shops and offices. With the revamp of the former high-street shopping centre, the City Plaza can now offer very high yields as an appealing investment opportunity.City Plaza is a 4-floor commercial building in excellent condition with a total of 74 shops and a covered area of 4,669m². The top floor is a united lot without any partitions offering freedom of space and individual utilization with an approximate covered area of 1,232m². The rest 3 floors of the building, comprise 19 shops each, with an internal area for each level ranging from 778m² to 943m², which can be also unified as per the top floor to create a bigger office space with the area of 1, 232m².The subterranean basement can accommodate approximately 75 vehicles as well as storage facilities. The parking lot has access to the main lifts that connect it to the whole building.City Plaza is part of the ''Nicosia Local Plan'' and according to the incentives offered, the building coefficient could increase from the current 250% to 425%, as outlined in the “Nicosia Centre Area Plan 2016” and the “Incentive Plan 2016-2019 (for parking spaces for public use)”.For more information, please click the below link:https://reinvest.com.cy/property/building-commercial-prime-location/12416
Real Estate Funds represent over 10% of all Funds registered in Cyprus, as per the latest statistics provided by Cyprus Securities and Exchange Commission. Indirect investment in Real Estate (hereafter referred to as ‘RE’) through Funds is popular, as it allows investors to access large projects and provides investors with a level of professional management to which they may not have access, should they attempt to replicate the strategy themselves.Management of a Fund’s RE assets occurs on multiple levels and requires a multi-disciplinary team of professionals. In addition to the financial professionals at Fund level, the involvement of real estate professionals such as civil engineers or lease experts is required at Fund, Asset and Tenant levels.To highlight the various professionals involved in the management of a RE Fund, we provide a case study. This case study will focus on a “Turnaround Fund” which will acquire a residential block, with the view of converting it into office space, leasing the units and subsequently exiting the strategy via sale at the end of the Fund’s life.The investment process begins with the Fund Manager who is responsible for setting the investment strategy of the Fund and ensuring that strategy is implemented, to deliver target returns within the relevant risk and time parameters outlined in the Fund’s Prospectus. The investment strategy is set by the Fund Manager’s Investment Committee and is implemented by the Portfolio Managers and overseen by Risk Managers, who will collectively perform what will be referred to in the context of this article as ‘Fund Management.’The term ‘Asset Management’ will be used to describe the efforts made to maximise a property’s value and returns, and are performed by RE professionals at Fund, Asset and Tennant levels. RE Asset Managers are responsible for various tasks including assistance in the due diligence stage (acquisition and disposal), and oversight of assets during the Fund’s lifecycle. RE Asset Managers and the professionals who support them, may be employed by the Fund Manager or its affiliates (collectively the ‘in-house team’) or outsourced to third parties. RE Asset Managers will take instructions from, and report to, the Fund Manager’s Portfolio Management Function on a regular basis.Once suitable candidate assets have been identified by the Fund Manager, the RE Asset Manager will perform the necessary due diligence. It is important that the RE Asset Manager is involved early on, to identify any property related shortfalls or risks that might come about, such as inherent (e.g., structural issues) or extraneous (e.g., tenants under rent control legislation).Upon completion of initial due diligence stage, the Fund Manager and RE Asset Managers will discuss property specifics to ensure that characteristics are reflected in the forecast performance. As the Fund in our example has a turnaround strategy (i.e., the conversion of residential to offices), key metrics would be the Estimated Rental Value (ERV) to be generated by the conversion, and the Captial Expenditure (‘CAPEX’) required for the conversion to offices of the required calibre as per Fund objectives.Once the property has been deemed as suitable by the Fund Manager and acquisition is complete, the RE Asset Manager will ensure that the execution of the property conversion in line with the architectural plans, CAPEX and timeframes agreed, to ensure returns are maximised.Amongst the RE Asset Manager’s first direct actions will be the appointment of a Property Manager, who may be part of the in-house team or a third party, to undertake the day to day functioning of the asset. The Property Manager must be involved from the start of the project, ahead of any construction works to ensure procedures are put in place and agreed internally before any actions are taken by leasing agents to attract prospective tenants.Furthermore, the Property Manager will identify any pre-existing problems (e.g., undocumented consumption of utilities due to absence of utility meters) and act to resolve them well in advance. The Property Manager may also weigh in on the construction works in terms of phasing and developing handover protocols to enable partial occupancy where applicable (i.e., if a multi storey conversion from residential to a commercial building).The RE Asset Manager will also appoint and oversee the involvement of a Project Manager, who again may be part of the in-house team or a third party, to deliver the refurbished works on time and inform the RE Asset Manager of any potential delays which may impact the investment returns, requiring adjustments to the leasing strategy.The Fund Manager will actively monitor developments once the building works have been agreed and commenced on site through reports prepared by the RE Asset Manager, concentrating on attracting leasing agents to market the property and securing tenancy contracts. Property Managers will again be involved, dealing with queries from prospective tenants.Amongst the key objectives given by the Fund Manager to the RE Asset Manager is the maximisation of rent and return of properties owned by the Fund. Therefore, negotiating contracts with estate agents, and implementing a strategy to both attract and retain tenants is crucial. To do so, the RE Asset Manager needs to assess external factors in the wider real estate market to assess competition and trends in the office space sector, and determine the approach in terms of tenancy length, renewal periods and other relevant commercial terms. These are then reported to, and discussed with the Fund Manager, who will in turn factor in micro/macro-economic factors before taking any necessary decisions. The results of insights provided may also be incorporated into the periodic reporting to investors.Upon completion of building works, Property Managers will shift focus to the needs of committed tenants by assisting them to move into the building, following up on communal areas, implementing preventive maintenance and any ad-hoc requests. In doing so, the Property Manager maintains close rapport with the RE Asset Manager, as the latter will be responsible for communicating the operating expenses (OPEX) for this workstream to the Fund Manager. Such provisions are important, especially where unforeseen expenses might come about as in an extreme weather event, in providing justification should additional funds be required.The ongoing responsibilities of a Fund Manager will be then diverted to mitigating liabilities and risk, where applicable, and ensuring availability of necessary liquidity to cover both expected or unexpected expenses or Fund level liquidity requirements such as redemptions, distributions, or expenses.Real Estate Funds require a great deal of work on the development and subsequent management of properties, however the benefits of having an integrated team across the various workstreams cannot be underestimated. Asset, Property and Project Managers provide the Fund Manager with the necessary expertise on demand to ensure all relevant factors are presented for consideration.An integrated team allows for quick responses where conditions dictate, be that on account of external factors such as market factors or asset related ones. An end-to-end real estate solution improves the likelihood of return maximisation by the Fund Manager and of course investors, through smoother communication channels, established relationships, common internal procedures and reporting, and reduced expenses.By Alkis Hajittofis FCA, CFA, Executive Director, Resolute Investment ManagementMelios Price, Supervisor of Property Management, REInvestPanos Hadjichristofis, Director, Resolute Asset Management
Real Estate properties are an asset class that could potentially (while real estate does tend to appreciate, there are no guarantees) provide, to individuals, a high return of investment.One way of securing a good return is by using the property to collect rent as a landlord. The other primary way that landlords earn money is through appreciation. If your property appreciates in value (we will be looking at how, further on), you may be able to sell at a profit or equally important, to borrow against the equity to make your next investment.In real estate, property appreciation refers to the change of value of a property over time. There are several factors affecting the margin and time frame of property appreciation, the most important of which are discussed below.Property Improvements through property’s features, amenities, and upgrades influence its value. By features we refer to characteristics or fittings that set the property apart and by amenities facilities to provide comfort and convenience to occupiers.For Commercial Real Estate (CRE) this would refer to a few conveniences such as the energy efficiency of the building, the presence of conference facilities, reliable and fast internet connection facilities to enable remoting working across different jurisdictions. Access and ease of parking for clients as well as security and concierge services are often deciding factors in sourcing an office space and as such provides an owner a competitive advantage. Auxiliary facilities to the main function say for an office would be an outdoor/break out space as well as the provision of a cafeteria for the staff. Furthermore, the design of an architecture and the interior of the property can also play their part in price appreciation.In residential properties the improvements would have a range across all the property rooms, such as the example of the dining room where the relationship to other rooms (Dining/family and Dining/living combination) could prove to be deciding factors in renting such a property. Other notable features would be outdoor features such as, swimming pool, barbeque area, garden, an outdoor kitchen etc. Renovating a home’s kitchen could potentially add to its value upon completion. Completing a basement construction, adding a guest bathroom, or upgrading heating/cooling infrastructure for private residences are all valid value-adding improvements.Asset Location, location, location. If the neighbourhood surrounding your property is growing, say in residential area where a high street is being created, adding new local businesses, and opening up more jobs while also offering facilities for homeowners, local house prices tend to increase. If the community is struggling, i.e. crime rates are on the rise, businesses are closing or relocating to other more affluent districts, it usually results in depreciation of the specific property.Infrastructure development and new road transport networks improving connectivity are also a significant factor. As these are often changes taking place across longer periods, monitoring of how the location inherent value is modified is always crucial. Potential homebuyers cite local schools, job opportunities in close vicinity, shops and entertainment choices as the most important factors.Market conditions play an important role in property appreciation as well as the wider area of real estate market dynamic. As a rule of thumb, if properties of a similar size and condition to your own, are in high demand in your area, value will go up. On the other hand, if availability of similar homes rises in the market, value will go down.Lending rates and current interest rates and future trends play a crucial part for real estate appreciation. By providing low borrowing cost to investors and buyers, such as current local government initiatives, will encourage more potential buyers to enter the market. Consequently, generating more demand will create property appreciation. On the other hand, higher rates will reduce the pool of buyers, stifle demand and result in property depreciation.The overall economy (including macro indicators such as employment, population growth etc.) has an effect to a more global scale. When the economy performance is weak and consumers are under pressure, real estate tends to be less in demand. Oppositely, when the economy is strong and employment is up, you often see appreciation rates rising. What is being witnessed locally at the moment is an investment in real estate as a way of maintaining the purchasing power of capital by depositors who have not had good returns from depository products combined with increased inflationary pressure. The inflation hedging capability of real estate stems from the positive relationship between gross domestic product (GDP) growth and demand for real estate.Why choose REInvest as your Consultant?Advice how to showcase the property strong pointsAssist in assessing what are key improvements that could be value addUndertake improvements related to Energy Performance and issue of the adequate Energy CertificateProvide insights through its reports (on website) of the outlook of the marketExecution of remediation works in accordance with terms and conditions of the planning and building permitsGeorge EnglezosGeneral ManagerREInvest AGY Ltd
By Spyroulla Odysseos, Supervisor Project Management REINVESTManaging a project without the relevant knowledge and expertise can be a stressful and time-consuming task. This, most of the times, leads to overspending, out of time deliverables, unprofessional work, and litigations. Hiring a qualified project manager moves theresponsibility, stress, and complexity of a project to an expert that can minimise the delays in construction and the cost overrun... Please click below to read the full article.Why hire a Project Manager.pdf
Please click below to read the relevant article.Luxury_Villa_Moniatis_Village.pdf
By Maria Evangelou, Senior Analyst of REInvest’s affiliated companyPlease click below to read the relevant article.Residential_Market_2020_REInvest.pdf
By Melios Price, Supervisor Property Management REINVESTManaging properties, whether for an institutional investor or for an individual with a single asset, requires time, effort, and knowledge. Failure to dedicate the required resources can lead to potential loss of revenue, property damage, and unnecessary time delays, turning a potentially profitable asset into a bad investment.The fundamental role of a Property Manager is to provide an end-to-end solution for their clients, ensuring that all day-to-day operations are carried out in a professional and timely manner. Clients ranging from individual owners, building tenants, Developers, lawyers, receivers, and institutional investors will see tangible benefits in hiring a Property Manager. Such benefits include:Property Health & Safety. A Property Manager can carry out inspections to ensure the property is in good working condition and any potential problems are resolved promptly.Management of 3rd party associates. Property Management companies have established relationships with contractors, tradesmen, maintenance workers, etc. which will ensure the client is receiving a competitive price with good quality. Additionally, oversight of any works carried out by associates and facilities management companies can be carried out.Document remediation and storage. A Property Manager will ensure that up-to-date asset-related documents are collected, stored and available for marketing or other purposes.Market Knowledge and suitable tenants. Through established relationships and associates, a client can be brought in contact with licensed agents in order to ensure suitable tenants are selected based on the requirements of the client and to market assets at the right price resulting in maximum income whilst maintaining a low vacancy rate.Management of tenants. A Property Manager will act on behalf of the client ensuring that all aspects of the owner-tenant relationship are managed. Emergency works, routine inspections, and tenant requests will be dealt with.Collection of rents and payments. Ensure rents are collected on time, and outgoing payments (utilities, taxes, communal expenses, etc.) are handled promptly.Reporting and portfolio oversight. Through intelligent business solutions a Property Manager will be able to provide the client with a concise and targeted overview of their portfolio ensuring their requirements and targets are satisfied.Owner representation in Committees. Represent and act in the client’s best interests during building committee formations, annual general meetings, or any other time required.At REINVEST, we aim to provide our clients with the best services possible in Property Management, Project Management, and Rentals/Sales. If you require any further information or clarifications, please feel free to contact us by telephone: 7778 7771 or by email: info@reinvest.com.cy
The situation regarding estate agents is not healthy and it is a cause of constant differences between the vendors of real estate and that of the estate agents.Most of the wrongs were corrected in the past by the Estate Agents Law, but there are still evident problems in the relationship of the two parties, which need corrections.As not all estate agents are angels, similarly not all vendors are angels either and we have a personal knowledge on this. There are scams on either party and this article, will address some of the problems that the estate agents are subject to.Unlike in most of other countries, for someone to exercise the job of an estate agent, he must be so registered with the Registrar of the Estate Agents (Governmental Body) who in turn requires that any registered agent must have a basic knowledge of the market and basic educational requirements and to be submitted to a written test prior to registration. Registered agents must keep a proper office, have a professional indemnity insurance, and follow the rules/regulations of the Registrar.Having said that, there are all sorts of people (professional or not) embarking on the estate agency operation, ranging from taxi drivers and bar attendants, to advocates, accountants and others, who by one way or another manage to by-pass the law, claiming that any receipts that they get for a sale, is not an agency commission, but disguised under “promotional fee”, introduction fee etc. Then we have the tax authorities who will not accept such payments, to non-registered agents as being tax deductible with the vendor being in the middle (with the vendor not being able to discount such payments from his sales income).Regarding now the sales commission, the average charge is 3%-5% based on the sales price, if the agent “introduces” a willing and able buyer to a vendor (the word “introducing” is in itself one which is open to various interpretations). As you can appreciate the commission/money is a lot, especially for the upper scale of the market. You must bear in mind that the law stipulates only a 3% commission (if no written agreement), but the parties (agent/vendor) can agree to any commission, provided that is so done in writing (tax authorities will not accept more than 3% if no such agreement). For those who claim a commission under the disguise of promotion, the tax authorities will require details on what promotion has been undertaken at the expense of the claimant, whereas the “introduction fee” which is worldwide acceptable, is also questioned by the Cyprus tax authorities.In more “organized” countries, vendors/agents have an exclusivity agreement for an x period of time (usually 6 months), but, in general locals, including foreign investors/funds who operate in Cyprus, do not accept this, hence we have agents promoting a property at their own expense, but being in a small country where everybody knows everybody, other agents/interested buyers by-pass the agent and express their interest to the vendors directly in an effort to get a reduced price. So, at the end, the non-exclusive agents restrict their promotion, other provide basic information on their website, whereas others just do not bother.Trying to avoid the agent’s commission is quite common and this includes even the large multi (national) investment funds, who, if one does not follow strict procedures of their own, they refuse their obligation e.g. by not filling a certain form (they may be right but at the end of day, what is fair?).Especially during these difficult times of sales, buying directly (buyers/vendors) is to the benefit of both (doing without the commission payment by the vendor and they get a reduced price).In this scam, against the agents, we provide for your consideration the following recent examples. The agent promoted a property and a Chinese client through his advocate expressed interest. A lot of to and from followed through emails with the vendor being duly aware with copies etc. The buyer approached the vendor directly and through his advocate and both claimed that the agent had nothing to do with the deal and with the vendor saying that the agent did not have the buyer signing a certain declaration. End result is that other than the agent, the vendor and buyer are happy for saving the 5% commission reduction. Is this correct mind you? The matter now will follow the legal route with the agent placing a memo on the sale. God knows who will lose at the end.In another example in Paphos, the vendor and buyer tried to by-pass the agent who having found out he placed a restrictive order for transfer (memo), so the whole thing is stagnant. The buyer paid the amount, the vendor cannot transfer and of course the agent was not paid (standstill for the last 8 years – so all lose). A messy situation.On another occasion a Russian buyer demanded that the agent should not be present during the negotiations with the owner. The buyer sued the agent for wrong doings and his witness said that everything was in order by the agent and finally he told his witness that he was trying to get a discount through no commission payment. He even sued the agent for €70.000 in damages notwithstanding that the sale was for €140.000. End result the buyer lost his case in court; a memo was duly placed on the property and everybody is at a standstill.Part of other problems is caused by the agents themselves, trying to “steal” properties registered as such by other agents by trying to by-pass their colleague. There are numerous examples of bad behavior between agents, so the scam is not restricted between vendor and buyers, but also between agents.In ending and unless there is an otherwise agreement, it is the vendor who has the responsibility to pay the commission. So be aware vendors, that any “monkey” business on your side it is most likely that you will pay at the end. Bear in mind that only registered estate agents are entitled to a commission, so any demand by third parties have no right to claim neither their payment is tax deductible).
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