RENTING MY HOLIDAY HOME
Thousands of holiday home or second home owners successfully rent their properties to travelers and holiday makers. If you are thinking of the idea of renting your home, we are here to help you and make the most of your investment.
My holiday home is proving to be an expensive investment and or is currently up for sale but due to the bad economic times, it´s not selling! If I rent my home by the week, can I make it pay for itself and at least cover over all running expenses such as local taxes, insurance, mortgage, maintenance etc?
Yes! One of the most common reasons why people choose to rent their holiday home is to cover all expenses. A study indicates that 44% of owners who advertise their properties, do so with the aim of recovering at least some of their expenses. A third of homeowners pay, at least half mortgage with the rent. Above these there is another third of all advertisers to cover the whole mortgage all year if on the other hand you have no mortgage, this will result in extra income!
Some owners may have bought their home as an investment in the real estate boom years, and want to wait until the market picks up again before selling, but do not want to incur any expenditure over until then. Others bought their house or apartment at a good price in which they hope to retire someday, and are covering mortgage and maintenance costs. Whatever the circumstances, there is a very clever idea that unites the majority of owners. They all love to spend summers in their beach villas, rural cottage or apartment in the city and think, “If you can make someone else pay for it, why not?”
CAN I USE MY HOLIDAY HOME TO GENERATE INCOME?
Yes, you can make money with your holiday home but this requires some extra work, and much compromise. Most of our owners have a job and don´t have the time to concentrate on managing their own properties. However, despite this, 13% of owners makes a profit by renting their holiday home. 20% make annual gross revenues of 16,000€ｬ or more. One of the advantages of holiday rentals, rather than the long-term leases, is the ability to put high prices during peak season, in some cases almost double that in low season. Nor will risk if a long term tenant stops paying the monthly fee for having lost their jobs.
TING MY HOLIDAY HOME THROUGH A PROPERTY MANAGER. WHAT IS THE DIFFERENCE BETWEEN DOING THIS AND RENTING IT MYSELF AS THE LANDLORD?
People have very busy life´s, so many owners give up the responsibilities of running a holiday rental business to a property manager like Villa Management. Each method has it´s advantages and disadvantages, in fact, many owners share responsibility with the property manager to have the best of both worlds. Some owners manage the key handover, cleaning and laundry, others prefer that we do it, we advertise your home through our online marketing in different countries and top sites, we find the travelers, take care of the paperwork and contracts, formalize reservations, bookings and will basically do everything that the owner does not want to, does not know how to or does not feel like doing.
For many, a holiday home is both a precious and emotional and an excellent financial investment.
Wait a minute. I don´t even live near my property and certainly do not want to catch a plane every time someone cannot enter the house, or doesn´t know how the remote control works!
Don´t worry. Most home owners don´t live near the properties they are renting. In fact, many of our customers live outside Spain and have properties in our country. The trick is finding a good company like Villa Management who is responsible and trustworthy that provides excellent service and that will deal with all maintenance related matters and unforeseen problems.
Our company will be essential for you to take care of your holiday rental business from afar. In addition to offering a regular maintenance service we will also be your eyes and ears and the help you may need to solve problems that you wouldn´t be able to solve over the phone or by email.
I’M STILL UNDECIDED. CAN YOU ANSWER SOME MORE QUESTIONS?
Yes, of course.
I’m worried about what people will do at my home and how they will treat it.
Many owners are. Renting your home is a very personal decision. Many owners have a strong emotional attachment to their vacation homes, and renting to strangers concerns them. First, this fear rarely materializes. It is important to remember that you will be renting mostly to like-minded people, well educated and solvent families. Vacation home rentals are a sophisticated form of accommodation very different from impersonal hotels. Many travelers choose a holiday home instead of a hotel, because it is a real home and therefore respect the property as it were theirs.
Like all occupants, guests are obliged to act according to certain rules laid down. We write and set these out in the Booking Confirmation agreement we ask guests to sign and ask for a security deposit to protect against any possible damage (although we remind owners not to leave priceless items at hand).
CAN I CONTINUE USING THE PROPERTY FOR MY VACATION?
Yes, of course. You choose the weeks you want for yourself, moreover the fact that you are now making money with your vacation home means you have the perfect excuse to go and visit more often.
ANY OTHER BENEFITS?
How about this? Many owners are now seeing their second property as a business and the perfect excuse to create the home of your dreams. Suddenly, you can justify adding amenities such as a pool or Jacuzzi, or equip your home with the latest technology in television and home entertainment. All these luxuries are no longer to become frivolous to purchase but instead becomes a great business investment that will give your home a competitive advantage by being able to increase the rental rates, or even increase the sale price. It is very common among owners jokingly admitting that the holiday cottage is much nicer than your full time residence. While your main home suffers bustle of everyday life, a holiday home stands apart from it all. What could be better than having a luxury vacation property that you created to the highest standard?
In addition, many owners say repeatedly that renting your vacation home is a rewarding experience. For many, your vacation property is a labor of love of art. If you have a vacation property with the potential to captivate, then you’ll love when you get effusive comments, receive personal thanks and repeat bookings!