Renting out your holiday home: five golden rules
There are two reasons for buying a holiday home or apartment on the Spanish Costa: to lie in the sun whenever you want, and to save up for a rainy day. Not only by selling it later, but also by renting it out. If you do so, keep these five basic rules in mind. This way, you’ll rent out your holiday home with success!
1. “Look at what your neighbours are doing”
The location of your apartment is of course important. Are you close to an airport, do you have a view on the beach and the sea, are you somewhere in the countryside in Andalusia? If you are planning to rent out your holiday home, all these factors will play a role in pricing. A good tip is to go around and ask the neighbours. You’ll know right away what the common prices are near your holiday home.
2. “Sweet summer, harsh autumn: a world of difference”
There are always price differences between the high and low seasons in warm and touristic countries. Especially if you’re on a really prime location, near a beach, for example. The difference between high and low season in Spain can easily amount to about 30 to 35 percent. Do the calculation not when the sun draws to Spain, but rather during the low season so as to get more from renting your holiday home in the summer and in the winter.
3. “Write it all down”
Renting out your holiday home? Avoid surprises and discussions by putting everything clearly on paper. Describe clearly what the responsibilities of the tenant are and list the house rules. It’s also important to draw a list stating what is in the apartment. Discuss it beforehand and have the document signed by the tenant.
4. “Opt for on-the-spot help”
Maintaining the swimming pool, cleaning the apartment, washing the sheets: of course, you cannot come and do this yourself every week. There are plenty of Spanish companies that can receive the guests and maintain the apartment for you for a limited contribution. Of course, this comes at a price, but you’ll definitely get the double back. Your tenants will be satisfied and your Spanish “partner” can help you if you have any questions about the Spanish rental legislation, which you must of course also take into account.
5. “Calculate your return on investment realistically”
They are all over on the internet: the urban myths promising you huge gains by renting out your holiday home. The truth is that just about everyone is too optimistic about the possible return on investment. Remember that you are the one who has to pay for the repairs, who must take care of the cleaning, and who pays the taxes. Only by keeping this in mind can you realistically estimate how much renting out your holiday home can bring you.