Commissions paid in Cyprus

Commissions paid…

A lot of landlords come up and ask me questions regarding the charges of an agent when renting a property in Cyprus.

I will expand a bit on the Cyprus law that exists regarding the fee a Real Estate Agent should charge. Nevertheless, this is not what always is happening. This is because we still have to do with a two party informal (usually) agreement. Any landlord just wants to get the job done and agents want to get paid. So if an agent is faster and more results oriented than others then I say..pay him that extra “mile he travelled”. I know agents that never pay a single cent in advertising but know so many people and get referrals on a 24 hour basis that their closing rate is just amazing!

Here is what is in paper as far as Cyprus is concerned.

Selling a property:

The agent will charge the landlord a 3% fixed rate on the selling price (VAT excluded), unless otherwise agreed between the two parties.

Rentals in Cyprus:

Regarding renting a property for periods less than 6 months, any agent may charge up to 10% on the agreed rent for the whole period. For rentals over six months, the agent may charge a 6% on the total agreed rent. So for ex. If an agent rents out your flat for a period of 12 months for 1000 Euro per month, then the fee you (the Landlord) will have to pay will have to be 720 Euro (12×1000x6%). If the contract continues for over a year, then the agent may charge 6% for the first year, 3% for the second and up to 1% for any additional years.

But, as a rule, most of the agents in Cyprus charge a fixed one month’s rent as their fee. This is usually accepted by the landlords and we can understand why. The landlord may be paying a bit more for the first year but if the Tenant stays for many years to follow then the Landlord will avoid any other agency fees.

You may comment on the above or feel free to send me any questions you have regarding how things work (or should work) in Cyprus Real Estate market.

Andreas

gm@onlineproperties.eu