Wed 13 April 2022
Property News | Investing in property for holiday rental Costa Blanca Spain
5 steps to purchase and establish a holiday rental investment.
Here at Jacaranda Spain, we have an increasing number of people looking for investment property that will be used to generate rental income. The housing market, here in the Marina Alta, is no longer dominated by retirees looking to enjoy a more relaxed way of life. Today´s home owners are also looking at apartments (pisos), townhouses and villas to list as holiday accomodation. If you have some available capital it is a great way to create an investment that will also give you an income.
The coastal and inland areas of the Marina Alta are part of the Valencian community. Located in the region of Alicante, there are many villages and towns. The largest and most densely populated are the coastal resorts of Denia, Javea, Calpe and Moraira. These areas rely heavily on tourism whereas the inland, rural villages, historically, have been more reliant on agriculture. However, today´s holiday makers are looking more for a home from home, rather than a plush hotel. Rural and rustic is an escape from the rat race and, whatsmore, it is more affordable.
For those looking to buy holiday homes, second homes or even relocating to Spain, the stunning, coastal areas are always a draw. However for those buyers looking to get more for their money, the search invariably moves inland. The same rules apply to holiday makers. Many of our summer visitors have been coming to the Costa Blanca for years. They have discovered the inland areas, the close proximity to the coast, and whatsmore, they keep coming back.
The inland areas of the Marina Alta are extremely popular with cyclists and walkers as well as those looking for an authentic experience of Spain in a traditional Spanish pueblo. The younger generation of ex pat residents are now capitalising on this and investing in the area. Apartments are selling faster and, as an agency based in Jalón, we are viewing more townhouses than ever with clients. The old traditional townhouse gives an authentic Spanish experience, in a Spanish pueblo setting, amongst the native residents.
5 steps to establish your holiday rental income.
1. Find the right property.
Decide on your target group. Whether it is families, couples, cyclists or walkers. You need to do your research and discover what your group is looking for when they book their holiday. If It is families you are targeting, you will need to be near amenities like shops, cafes and a swimming pool. Cyclists will need secure storage for their bikes. Walkers more often prefer to be close to walking trails etc.
2. Seek legal advice on licenses and any certificates you need.
A holiday rental license is obligatory for all short term rental properties, those that don´t risk a hefty fine. A gestor (legal advisor) will tell you what to do and help you make sure you have everything in place before your guests arrive.
3. Furnish and equip your accomodation.
Again, research is key. Look at booking sites like Airbnb and Escapada Rural. Look at the descriptions and photos and make lists of the essentials and luxuries. You can keep it basic, but then you must reflect that in the price. If you want to charge top dollar, it is important to surprise your guests with a few complimentary luxuries, like a welcome pack, toiletries and good quality towels and bed linen.
4. List your property on the best web site to attract your target group.
5. Manage your bookings.
Most holiday rentals are listed on booking sites, although some people invest in their own website. It is a personal choice but if you are just starting out, our advice would be to go with the established winning formula.
Once you set up your account, the booking sites do it all for you. However, when it comes to meeting and greeting your guests, as the host, it is vital to be there when they arrive and give them a warm welcome and any advice and help they need. It is much better to be there in person to hand over keys and show them how everything works.
Always remember, each guest will be asked to write a review about their experience. Almost every prospective guest will read the reviews before they book so, you want to make sure to keep your guests happy. Guests will most commonly comment on; how well equipped the accomodation is, how clean and pleasant it is, the location and accessibility and how they found their host.
If you are interested in investing in a property to rent, give us a call for an informal chat and some advice.