HOLIDAY PROPERTY MANAGEMENT

Mr. Yanev has a Master’s Degree in International Business Affairs, two years’ experience as a Customer Service Expert in the respective department at BNP – Dresdner Bank AD, Burgas, another three years as Chief Expert in the Loan Servicing Dept. at BNP Paribas AD, Sofia., and, in 2003, he was appointed to the position of Risk Manager in the Corporate Loans Dept. of HVB Bank Biohim AD, Burgas.

“Over the past couple of years the Bulgarian real estate market has been developing in a very dynamic way, and prices, especially those related to exclusive property and its high-quality management, have the potential to show a certain rise in the future. The Bulgarian real estate market has, so far, been classified as a “price-driven market”. Foreigners invest in Bulgaria with the purpose of selling their property at a later date, and getting a good return on their investment.

‘Another major factor which influences the real estate market (especially holiday village properties) is the revenue generated by rentals which potential owners can achieve. At an average price of EUR 1,000/1,200 per sq.m., the rates of return on investment in holiday village property vary from 4% to 6%, after all expenses have been deducted.

‘A great number of foreigners who decide to purchase Bulgarian property have in mind the prospect of letting it out afterwards. Property management is a service that includes every action related to its management: the accounting of the property, such as advertising, promoting and taking care of the property, the interior and exterior maintenance, and accounting for the rental revenue and related expenses, making the due tax payments to various authorities, as well as dealing with electricity, water, telephone bills, repairs, etc.

'The management of apartments in a holiday village is closely related to the management of any ordinary hotel. The common integration of a great number of apartments within a complex gives the opportunity for a single property management company to contract for group bookings with major tour operators, thus ensuring a long tourist season and, consequently, greater income for the owners. It is a matter of major importance that the apartment-based holiday village itself offers a sufficient selection of services, and is provided with the necessary reception desk, local shops, hairdresser’s and cosmetic parlour, swimming pools, and other relevant facilities for active recreation.

'One of the chief factors that influence the architectural project of such a complex is its ability to meet the health and safety requirements of major tour operators, particularly those from the UK and Scandinavia. The management of apartments in a holiday village has a very specific nature, however, which distinguishes it totally from ordinary hotel management. There is special reservations software and additional management software for accounting for the income and expenditure of each of the apartments, a separate contract signed with every owner, as well as specialised know-how. Guaranteed rental of a property can be offered only if the property management firm has that know-how at its disposal, and manages to contract and let out the whole of its accommodation capacity. Laguna Tours Ltd. is one of the largest property management companies in Bulgaria, and manages a portfolio of more than 1,000 apartments in 20 holiday complexes located in the vicinity of Sunny Beach, St. Vlas, Pamporovo, Bansko, and Sofia.

'We expect a great deal of tourist attention towards this type of apartments. Taking into consideration the fact that, in France and Switzerland, the greater part of accommodation capacity is taken up by apartment-based complexes (self-catering apartments and houses,) we can say most definitely that, within the territory of Bulgaria, this fairly new product on the tourist market has great potential for the future."

Information courtesy of "Tourism & Property" magazine, Plovdiv - November 2005.

Details about price madness in Bansko, golf developments in Bulgaria, and new apartments in Bansko and Borovets can be seen at the Bulgaria Properties Ltd web site www.BulgariaProperties.net. You can e-mail questions to advice@BulgariaProperties.net, or, if you have no Internet connection, call the company (in UK) at 0871 226 2296 to order a free 30-page hand-out, or just for a chat, if you prefer. They always have time for you.

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