If you own a villa in a holiday resort area, easy access to the beach can be a key selling point, but bear in mind that your rental periods are likely to be restricted to the summer season, unless it gets year-round sun. Research the rental market and check out the competition: are there any gaps in the market for types of property, or, equally, areas that are saturated by supply? What kinds of rates are being charged for properties like yours? Can you give it some kind of USP to make it stand out against the competition? The standards of rental properties are now much higher than they used to be – it’s no good fi lling it with granny’s cast-off furniture, you need to keep it neutral, simple and uncluttered. Offering child-friendly extras, bikes to borrow, or discounts at local businesses can all help. Why not compile a welcome pack for your guests including local attractions and restaurants as well as practical information like taxis and medical services. Word of mouth recommendations create repeat bookings, and the offer of last-minute discounts can help if you’re struggling to fi ll a gap. Marketing and managing your property yourself can be hard work – and impossible at times if you don’t have a local person on hand to deal with key handover and potential problems – so factor in management costs which can be up to 30%. Marketing your property is equally crucial, using good quality photographs, user-friendly website(s), adverts in local businesses and word-of-mouth. Using some of the largest property-rental portals is hard to beat as the internet is most people’s fi rst choice when seeking a property. Setting up your own website too, can be relatively cheap. However you could also use a good agent – try to fi nd one through personal recommendation – if you are dealing in long-term lets. Finally, don’t neglect the legal/fi nancial side too. Have you got relevant insurance for the type of letting
you are offering? Are there any safety precautions you need to abide by (pool safety, for example)? Think about which currency you want to receive rental income in, and use a local bank account to pay local staff. Find out about the local tax rules, and always keep on top of changing leglislation. How will your property and income affect your UK tax position? Most EU countries have double taxation agreements set up with the UK and you can deduct certain expenses and tax allowances from your rental income. Take professional tax advice to avoid any problems.
Top Tips
• If you’re counting on rental income to help pay your mortgage, do thorough research of the rental market in advance
• Budget conservatively, remembering that the property may be vacant for long periods
• Remember that it’s very difficult to manage the property yourself from the UK, so factor in management costs
• Seek tax advice regarding the rental income generated
AIPP CONSUMER GUIDE 27
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60