If you plan to rent out your apartment, it is important to take several steps to ensure the legality and security of the rental agreement. Here’s what you need to prepare:
1. Property Preparation:
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Ensure the apartment is in good condition– check that all systems (electrical, plumbing, heating) are functioning properly and that the property is clean and well-maintained.
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Furnishing (if necessary)– if you are renting out a furnished apartment, make sure it includes the necessary furniture and appliances. If it is unfurnished, discuss this with the tenant in advance.
2. Required Documents:
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Notary Deed– a document proving your ownership of the property.
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Declaration of No Outstanding Debts– a confirmation that there are no unpaid taxes or utility bills related to the property.
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Act 16– if the building is newly constructed, this document confirms that it has been approved for use.
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Cadastral Plan (property sketch)– issued by the Agency for Geodesy, Cartography, and Cadastre, if the property does not yet have a registered cadastral number.
3. Tenant’s Documents:
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ID card or passport of the tenant – to verify their identity.
4. Signing a Rental Agreement:
The most important document that regulates all terms of the rental arrangement. The contract should include:
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Rent amount and payment method.
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Rental period (long-term or short-term rental).
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Terms for terminating the contract.
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Deposit, repairs, and maintenance obligations.
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Tenant’s responsibility for the condition of the apartment.
5. Contract Registration (if required):
If the rental period exceeds
1 year, the contract must be registered with the
National Revenue Agency (NRA) for tax purposes.
6. Tax Obligations:
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Declaring rental income– rental income must be declared to the NRA. In Bulgaria, the rental income tax is 10% of the annual rental income. Complying with tax regulations will help avoid penalties.
7. Utility Bills:
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Agree on who will cover electricity, water, internet, and other utility costs. These conditions should be clearly stated in the rental contract.
8. Property Maintenance:
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To keep the apartment in good condition, conduct regular inspections and carry out necessary repairs in a timely manner.
9. Property Photos:
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Provide high-quality and up-to-date photos to attract potential tenants.
10. Access to the Apartment:
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Access is provided via a key.
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The key is handed over personally by the owner or an authorized person.
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Self-check-inis possible via a key safe (the code is provided before check-in).
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The apartment has an intercom system with remote access.
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24/7 access without restrictions.
Once you have prepared all the documents and found a tenant, you can proceed with signing the contract and renting out your property. If you need professional assistance in preparing the documents or arranging the rental agreement, you can consult a real estate agent or a lawyer
