- This topic has 15 replies, 11 voices, and was last updated 18 years, 2 months ago by
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Hello all – my first post!
I’m in the process of buying a holiday home in Arcos de la Frontera – and while I intend to use it as a holiday home (!) I would like to subsidise some of the costs by renting it out for holiday lets (e.g weekly basis) for part s of the year. I’ve made a number of assumptions, but I’d like to tap into this forum’s expertise to make sure my assumptions are realistic.
My questions are:
1) How many weeks per year do other people in a simliar situation rent their holiday homes out for (I have assumed 8 – 12 weeks per year)?
2) What do people think are some of the key factors that make it easier to rent one particular property rather than another (e.g. excellent roads, great views, air con, pool?)If it helps, the propoerty I’m considering is a 3 bed, 3 bathroom townhouse with small pool and views of the lake of Arcos.
Many thanks!
Joe -
Best if you assume you are not going to get any rent and then if you do it will be huge bonus. I have a 4 bedroom detached villa in Villa Blanca near Ayamonte and even though I have advertised it on the net and it is in the hands of an agent it has still been standing empty for 12 months and I am only asking 700 euros a month for it and it sleeps 8. I am now in the process of selling it as I cannot afford to have that much money tied up doing nothing.
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Arcos has easy access to Cadiz, Seville, Ronda and the southern Costa de la Luz coastline. It will never be as popular as coastal locations like Costa del Sol but you have less competition.
With some really nice photos, a personal website and advertising on 2 or 3 major owner direct rental listing sites I would very suprised if you didn’t get at least 6 weeks per year and maybe more in subsequent years plus repeat business if people enjoy their stay. You could do better but depends on your prices.
Be prepared to spend around £250 a year on advertising.
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You don’t need a letting agent if you rent direct but you will obviously need someone local who can change the linen and clean the property between clients and check for any damage when clients leave so you can withhold any security deposit.
Some sites worth looking at are ownersdirect.co.uk, holidaylettings.co.uk, choosespain.com, homelidays.com -
Thanks very much for your opinions!
I have assumed a “worst case” scenario of 0 weeks rental per year and this is affordable to me, but not ideal. My main concern, as someone has pointed out, is to get someone local I can trust to hold the keys and ensure the place is cleaned, linen changed, pool maintained, etc.
I have assumed 20% of the rental costs would cover these types of activities, but I hadn’t allowed enough for advertising costs and weren’t aware of some of the websites quoted – I’ll check them out.
Many thanks
Joe -
@PJA wrote:
You don’t need a letting agent if you rent direct but you will obviously need someone local who can change the linen and clean the property between clients and check for any damage when clients leave so you can withhold any security deposit.
Some sites worth looking at are ownersdirect.co.uk, holidaylettings.co.uk, choosespain.com, homelidays.comIn my book that’s the same as a letting agent the only slight difference is that you are finding them the customers. Which probably means more wear and tear and less rent = less net gain.
Sorry to sound so pessimistic but property letting – I have seen and heard it all.
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Hi joed,
your original post asks about rental yields and by definition, the more you spend on the property, the harder you have to work to acieve a decent yield. Most renters do not want lots of space when they come on holiday, a place to sleep and maybe a communal pool are sufficient. Also, ask yourself what would you want on holiday? Easy access from the airport, close to beach/golf and not in the middle of nowhere cos you can’t buy a pint of milk or a Daily Mail.
Personally, I think your assumptions are about spot on, 8-12 weeks a year is about right but you have to spend out on a bit of advertising.
The only thing I disagree about is buying a 3 bed place, you won’t get 50% more rental income than if you bought a 2 bed place, but it may cost you 50% more to buy. The best yields are achieved in this way.
Good luck
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In addition to having somebody available for changeovers and maintaining the garden you will need to know somebody who can organise solutions for the sudden problems that arise – contacting a locksmith, plumber, electrician, septic tank emptying, etc. The same person will have to pay cash on your behalf.
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Hi Andy
Agree about the 3 bed aspect costing more – but for us we _think_ we need a 3 bed place for size of growing family 😕 and for when friends & relatives stay over with us. You’re right about the price differentials though (it may be better to buy one 2-bed and one 1-bed…spreads the risk out a bit too), but at least for us with a 3-bed it’ll cater for both 2-bed AND 3-bed markets.In fact the property we’re looking at currently is designed with two large bedrooms with their own bathrooms, and a blank canvas of a basement where we could put another bedroom & shower room.
Rawlins
Thanks for the heads up on linign up an “emrgency maintenance man”.Cheers folks – I’m continually impressed by the depth of knowledge & helpful advice from this forum!
Joe
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Here is a link to a website from someone who is currently renting out their property in Arcos de la Frontera.
http://www.holidaylets.net/properties/12299
Have a look at compare the prices with what you had in mind.
Good luck
Sarah
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Hi Joed
one other thign you should consider if you do use a letting agent. Can they be trusted. I kno wof agents locally who will tell you they have no renters and rent your apartment out anyway – pocketing all the money. You really need someone locally you can trust with they keys and ask them to pop in now and again.
I have friends who bought next door to me and one day I called him up to check if he realised he had tenants in. He was oblivious to the fact. I also sent him an email with a list of dates that people had been in his house. He was shocked to find that whereas the agent had told him he had four weeks – these happened to be when he wanted to book the proeprty himself for family and friends – that in fact they had booked 12.
Just be careful.
Apart from the sites that have been mentioned you might want to take a look at villarenters.com or rentalsystes as they are claled. They charge a percentage of the rentals they achieve (about 10% depending on the service yu select) and look after credit card processing etc.
I have used them for 4 years now an dthey have provided me abut 80% of my rentals.
Good luck and best wishes and I hope it works out. ASssume the worst and you will only ever be delighted.
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The ‘clever little letting agents’ cunningly and very carefully and sparing of your water and electricity live in your apartment while they rent their own out. If they should happen to get caught in yours then they’re just checking or cleaning.
😯
Sorry but in 20 years I’ve seen and heard it all.
If you do need to let then use one of the big agents and check first that they have insurance cover.
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If you want to rent your propety out it is very easy to do the research. Google your town, go to the relevant holiday rental websites, check out the calendars and prices of similar properties and draw your conclusions. Work out the return you want and figure out if its possible at the prices being asked.
We went through this process 3 years ago and now get a rental income (after expenses before tax) of about 5% on the money we spent. The property (based on achieved selling price of apartment next door) has increased by 25% to 30% over that period of time. Not megabucks but we’re happy, and we get 4 weeks holiday for free!
I have recently tried to buy a similar property but know, based on this experience, that prices are too high (by my definition rent after expenses and tax would not cover mortgage). I would have to pay no more than the price i paid 3 years ago.
Do the research, buy smart (always offer 20% less than asking price), get an independent lawyer and go through a local estate agent.
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