2 BUYING YOUR PROPERTY
running costs/community charges you will have and also what insurance you will need as a landlord. Have you allowed for ad hoc maintenance costs? Consider what currency you will receive your rental income in, and how you will pay management costs locally. If you’ve purchased with a mortgage, it’s usually more convenient to receive your rental income in the same currency. Then you will have to market your property – essential in today’s competitive marketplace. Use high quality photographs, making the most of the best features, and use clear wording on user-friendly lettings portals. Have you determined who your market is going to be so you can target your advert (and facilities?). Are you going to be aiming for couples or families?
You need to emphasize the location, amenities and relevant features you can provide (high-chairs, bikes, etc). Don’t forget you might need special safety features for pools.
Consider creating your own website, alongside using the popular portals; also consider adverts in local businesses. Clever marketing campaigns using social media and last-minute offers are other options. Of course word-of-mouth recommendation is the most cost-effective source of business, so leaving a lasting impression (providing a welcome hamper, basic store cupboard necessities or other such extras which will be remembered) is savvy marketing. Then ask yourself if you are going to be able to respond to booking enquiries yourself speedily, or is it worth using an agency or portal? Doing this all yourself can be hard work or impractical, and that’s even before day-to-day management of the property. Most people have a local person on hand to deal with key handover and potential problems – so don’t forget to factor in management costs of 10-15 per cent typically.
Buying to let
If you are buying a property expressly to rent, then having access to an established rentals management scheme might be preferable, assuming you are on a development or resort.
Whether on a micro- or macro-level, location is essential. Think about accessibility: most people prefer to be within 90 minutes of an airport, and if it’s a beach location, that the beach is within a 5-10 minute walk.
What type of climate or seasons do you seek? Locations boasting year-round sun or dual-season appeal can be the most lucrative in terms of the level of occupancy you can expect. Weigh up city lets vs. year-round sun (Canaries,
Cape Verde, Caribbean) vs. golfi ng and ski resorts or tourism hubs (Italian lakes). How saturated is the local market with rental
properties, and what will you need to provide to match (or beat) the competition? Are there any gaps in the market? You may need to provide use of a shared pool on a complex, or offer a private one that will enable you to command a premium. The type and size of property is important.
New-build properties are generally easier to maintain, and amenities on communal developments (children’s pools, spa, gyms) can be used as selling points.
The most popular size of property in many
holiday areas are one or two bed apartments – again, do your research – but the provision of a sofa bed in the lounge that turns it into a “sleeps 4-6” adds fl exibility. In central Orlando, for example, four or fi ve bed villas with three bathrooms and their own pool are perfect for an extended family group or two families – the typical Disney holiday set-up (in the short-term rentals zone). When furnishing a property for rentals, many professionals recommend higher quality fi ttings and furniture that will stand the heavy wear and tear better than cheap stuff. This is especially relevant if you are targeting families. Also, don’t over-clutter and think of the type of things holidaying guests will need, from heaters to high-chairs and fi rst-aid kits. What kind of unique selling points will make it stand out against the competition?
TIPS TO.. RENTAL SUCCESS..
Do your research.
Look for gaps in the market/demand when choosing a property. Consider climate, access and amenities when choosing a location. Know your target
market. Buy and kit out to suit the target market in your chosen area. Is it families with young children or couples? Do things by the
book. Are holiday lets authorised? Seek legal advice on local laws, obligations for landlords, tax liabilities and insurance. Make an impression.
Add that little extra something to lead to repeat bookings and recommendations. Invest time and money in marketing. First impressions count. Sell your property at fi rst glance, use different media and innovative offers.
AIPP CONSUMER GUIDE 29
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