Real Estate for Rental: Tips for Investors

Investing in rental properties in Bulgaria is becoming increasingly popular. The country attracts foreigners with its resorts, affordable real estate prices, and stable demand for rentals. In this article, we’ll discuss how to choose a property that will generate steady income and what to consider when purchasing one.

1. Choosing a Region: Where to Invest?

Every region in Bulgaria has its unique features and advantages for investors.

Resort areas (Sunny Beach, Golden Sands, Sozopol) are popular among tourists during the summer season. Short-term rentals are especially profitable here.

Mountain resorts (Bansko, Pamporovo, Borovets) offer opportunities for year-round rentals thanks to both winter and summer tourism.

Urban properties (Sofia, Plovdiv, Varna, Burgas) are ideal for long-term rentals. In major cities, there’s always high demand from students, expats, and local residents.

When choosing a region, it’s essential to consider your target audience: tourists, students, or locals.

2. Property Type: Apartment or House?

Apartments in residential buildings are easier to manage and rent out. One- and two-bedroom apartments are the most sought after.

Houses and villas are popular among family tourists, especially if located near the sea. However, their maintenance and upkeep require higher costs.

3. Profitability Analysis: How to Calculate Income?

Before buying a property, it’s essential to assess the potential income:

Seasonal rentals. In resort areas, the average daily rate can range from €30 to €150, depending on the class of the property.

Long-term rentals. In major cities, rental prices range from €300 to €800 per month.

Don’t forget to account for additional expenses:

Utilities and maintenance costs.

Management company fees (if you don’t plan to handle the rental yourself).

Taxes on rental income.

4. Legal Aspects: How to Avoid Risks?

In Bulgaria, foreigners have the right to purchase real estate, except for land (purchasing houses with land requires registering a company).
Key recommendations:

Ensure the property has all necessary documents: Act 16 (certificate of occupancy), cadastral number, and no outstanding debts.

Sign a rental agreement to minimize the risk of non-payment.

5. Working with Management Companies

If you don’t reside in Bulgaria, it’s advisable to entrust property management to a professional company. They will handle:

Finding tenants.

Signing contracts.

Monitoring the property’s condition.

Management company fees usually range from 10% to 20% of the income.

6. Tips for Enhancing Your Property

To make your property competitive, focus on its condition:

Equip the property with modern furniture and appliances.

Provide internet access and cable TV.

Create a cozy interior with universal appeal.

7. Rental Market Outlook in Bulgaria

The demand for rentals in Bulgaria remains stable, driven by tourists and the growing interest in the country among expats. Investing in rental properties can become a reliable source of income if you choose the right property and manage it effectively.

It can be summed up that buying a property for rental purposes in Bulgaria is a promising investment opportunity. Consider the region, type of property, and target audience, and your investment will start generating income within the first few years. If you need assistance with selecting and purchasing a property, our experts are ready to provide a full range of services.

If you want to learn more about lucrative real estate opportunities in Bulgaria, contact us today!