The
growth of the property rental market in Spain is
having a negative effect on the previously thriving
hotel industry on the Costa Blanca. The visitors to
the region are growing every year but many of the
tourists are now staying in property owned wither by
family, friends or friends of friends. It seems
everyone knows somebody who is a property owner in
Spain.
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With cheap
flights to Alicante available with many
no-frills airlines it makes economic sense
for many families to choose property rental
ahead of the pricier hotel option.
Around a third
o all visitors to the region now choose to
stay in rental accommodation and this number
is predicted to rise significantly in the
near future.
All of this
is going to put increasing pressure on the
hotel industry to look for ways to entice
back the holidaymakers. Many have started
already by offering all -inclusive packages
that target families. |
For the
property owner this is all good news and
reflects the number of home owners who
purchased with a view to renting out to
cover the mortgage expenses.
There are no
shortage of property management Companies
that will take care of all the rental needs
of your clients. This includes cleaning,
advertising, airport transfers etc.
Commissions vary from Company to Company so
you will need to ensure that they have the
client base and advertising in place to
satisfy your needs. If they have similar
properties for rent ask them for their
booking percentage. Don't sign with the
Company until you are sure that they can
deliver on their promises.
You need to first take a look at the
potential income your property can generate.
First calculate the overheads of your property
such as water, electric, administration
payments, property management commissions
and taxes if you registered your property
for rental.
Most of you
income will be produced in the June -
September peak months so you need to somehow
target clients outside of this period. Many
try for the long lease clients between
October - May. If there are new properties
being built in your area you may be able to
target the new owners who like to live close
to where their property is being built so
they can monitor the progress.
