Discover the pulse of Athens’ rental market (up to €600/month). From a solid 8% growth on rents in 2023 to the impact of property conditions on leasing speed. Learn how to mitigate risks, from thorough tenant screening to engaging with rental agencies for a glimpse into tenants’ financial reliability. Stay ahead with our expert insights for successful property management in Athens.
As our property management service for long and short-term rentals continues to develop, we’ve decided to share some valuable insights gleaned from our experience in 2023.
Key Observations:
- Steady Growth: In 2023, we observed an average 8% growth in long-term rentals.
- Demand Outstrips Supply: The demand for rental properties continues to surpass the available supply.
- Impact of Property Condition: Properties with superior renovations are leased out 4-5 times faster compared to those with older or lower-quality renovations.
- Low Seasonality: The low season for long-term rentals typically falls in December, June, and the second half of August.
Risk Factors:
- Rent Non-Payment: Non-payment of rent poses a significant risk.
- Increased Depreciation or Damage to Property: Excessive wear and tear can devalue the property.
- Premature Tenant Departure: Early termination of the lease by the tenant can disrupt rental income.
Recommendations:
- Thorough Tenant Screening: Conduct meticulous background checks on prospective tenants, including employment verification and previous landlord references.
- Customized Lease Agreements: Avoid standard lease agreements available through government portals, as they often favour tenants. Craft detailed contracts that cover all aspects of the tenancy.
- Higher Security Deposits: Require a deposit of at least 6 weeks’ rent to mitigate potential damages or non-payment.
- Assess Tenant’s Financial Commitment through Rental Agencies: Partnering with rental agencies serves as an effective method to gauge a tenant’s financial commitment. When tenants engage with rental agencies, they are typically required to pay fees, which indirectly verifies their reliability and ability to meet financial obligations. This vetting process can provide landlords with valuable insight into the tenant’s financial stability and willingness to fulfill lease obligations.
In conclusion, navigating the long-term rental market in Athens’ budget segment requires a proactive approach, thorough risk management, and a commitment to maintaining property standards. By implementing these recommendations, landlords can mitigate risks and optimize rental returns in this competitive market.
Stay tuned for more insights and tips on property management and rental trends.
