Is it a balmy beach with a clear blue ocean rolling back and forth at your feet? Or a ski slope? Or a penthouse apartment with a bustling city humming downstairs? Purchasing a holiday home is a major investment but if the location is a dream, it’s instantly valuable. More importantly (from a financial point of view) if you love the place, chances are that others will too, which means you can generate great returns by renting a holiday home out when you’re not using it. Of course, the decision to rent it out or not to rent it out is a big one. For some people opening up their home to potentially reckless strangers is a daunting prospect. So, what’s to do?
We weigh up the pros and cons of renting a holiday home out:
Pros
-
Generate great returns, especially if your home is in an in-demand tourist area.
-
Smart investors use rental income to pay off the property mortgage so it seems like the property is paying for itself. Long lets are ideal as after a few years of renting the property out you’ve bagged a highly valuable asset for yourself. At this point some might choose to continue renting out the property for extra money, or sell the property at a premium or start enjoying the property for themselves.
-
If you choose to let out the property only occasionally, you can mark out weekends or months of the year when you want your family to enjoy the seaside spot. You have first choice to prime holiday time.
-
Design lovers get the opportunity to furnish a new home. If you are buying the property predominantly for rental, remember to furnish the apartment based on your target market.
-
There’s a sense of achievement in offering a welcoming home to lovely holiday-makers. Make your property as hospitable as possible. Create a folder of restaurants you’d recommend, a cleaning service guests can call, tips on where the best beaches and hiking paths are, list the kids activities available nearby. Ideally you want your guests to have such a good experience that they boast to their friends about the experience of the “amazing villas in Calpe near beach, bars and hiking trails, ” and so they return year after year.
-
A recce trip to choose the holiday home is a mighty fine excuse for a holiday. While house hunting in a place like Calpe you could soak up sun on the top-rated blue-flag beaches, enjoy world class spas and stroll happily through the charming old town before settling down to a Valencian cocktail.
-
For those interested in marketing the apartment themselves (as opposed to working through an agent) there are so many platforms to market to targeted audiences. Facebook, Twitter and Instagram give you direct access to a pool of potential renters who will be easily lured by the gorgeous pics of your dazzling seaside property. You could even set up a website for your site, encouraging guests to leave comments that will encourage more guests to come your way.
Cons
-
Taking care of the general wear and tear can be a struggle. However the necessary maintenance on a property diminishes dramatically when investing in an apartment as opposed to huge old house in the middle of nowhere.
-
There’s the risk of reckless tenants staying in your property. To avoid this it’s vital to carefully vet your potential guests or (preferably) get a letting agent to do it for you.
-
You’re not too keen on the hassle of the admin: sifting through licensing laws, making sense of the procedures in a foreign country, dissecting the legalities, drawing up contracts, or dealing with the strain of constantly getting tenants. Fortunately all this dirty work can be taken care of by professional rental agencies who manage your property so you can simply earn the returns and enjoy the property when you desire.
When it comes to renting a holiday home out, your concerns can be taken care of by dealing with quality real estate agents. Benefit from investing with top local agents that come complete with rental agencies to manage your property should you choose to rent it out. For more information contact Grupo Esmeralda about villas in Calpe near beach and other quality investment opportunities in Costa Blanca.