Many citizen with second holiday homes obviously think renting them when they are not in use by the owner, family or friends. This way they can cover some of the costs complicated in maintaining the property and make an supplementary income. I plan the information I collected below would be necessary to those considering renting their holiday homes, as it is well worth taking into inventory the experiences of those citizen who have trod this path before.
Equipping Your Property
When you first venture into the holiday property business, it can be tempting to try and limit your introductory set-up costs by providing the bare minimum of furniture and equipment. But the guidance I have collected from seasoned holiday property owners is...don't try and cut corners! furnish and equip your property as well as you can possibly afford.
Obviously you're worried about getting a good return on your investment. The fear that some holidaymakers from hell will wreak havoc with your possessions might deter you from equipping your holiday home to a high standard.
Those who've been in the company for years have found that most holidaymakers take greater care with furniture and other more personal items if they can see these are things which the owner obviously cares about...it's human nature.
Generally speaking citizen prefer - and expect - their holiday chamber to be first-rate to their own homes. They are more likely to look after your property if they feel you have taken a lot of trouble to make them feel welcome and comfortable.
Ensuring all the beds are comfortable is an absolute must. A lack of sleep is sufficient is ruin anyone's holiday. One owner advises: " Sleep in every bed in the place! I had several complaints about a bed during my first year of renting out - and when I next visited my property I realised the complaints were entirely justified."
Bear in mind that many holidaymakers regard clear items - such as a microwave oven, satellite Tv and tumble drier - as necessary in a holiday property, even though they might not have them at home.
If you store personal things in the property which are not for the use of your tenants, it's not a good idea to keep them in a locked cupboard...it just makes citizen interesting and they may try to wrench the door open! Many owners find a gentle notice, asking tenants not to use singular items, works better. Generally, holidaymakers will respect the owner's wishes. A great solution, if possible, is to store personal items with friends during lets.
It's advisable to have removable and washable covers (or throw-overs) on your three-piece suite - especially if your property is one of the hotter areas of Spain.
As one property owner pointed out: "People come in from the beach or terrace and sit down covered in suntan oil. It took me ages to figure out why my suite was filthy every time I visited."
The same owner continued: "You'd be amazed at what tenants can do. I've had pictures stolen, frying pans apparently used as hammers, the kitchen workbench (solid wood) used as a chopping board. One of my friends had her movable barbecue lit inside the lounge, leaving a very black ceiling!"
This owner's motto is: Be ready for the worst...even though it doesn't ordinarily happen. In seven years of holiday letting, the vast majority of her experiences have been positive!
Using Letting Agencies
Weigh up the pros and cons of using a letting group to deal with your bookings. The advantage of handing responsibility over to an group is that they ordinarily deal with all the practicalities for you - from the booking enquiries and money transactions to the cleaning and maintenance of the property.
This is ideal for owners who don't have the time - or inclination - to deal directly with customers themselves.
The main drawback of using agencies is that they charge a vast commission for their services, so reducing your profits - sometimes by as much as 25-50%.
Some agencies will certify a fixed revenue for clear types of property in high season (e.g a villa with secret pool in a Mediterranean coastal resort in July/August).
Make sure you know exactly what price the group plans to charge clients - and what commission they plan to take. Dissatisfied clients who feel they've been overcharged by greedy agents are more likely to cause problems in your property.
Also check exactly what services the group provides. Some supply dissimilar levels of service, depending on how much you're ready to pay and on either you have a local boss handling clear aspects of your property letting for you.
Ask either the group inspects the property before and after each let and does this include a full inventory inspection? Do they check tenants into your property and elaborate how the assorted major appliances work? Will they organise running repairs and maintenance and supply written reports? Are their staff on 24-hour call-out in case of emergencies?
Make sure you know exactly what you're getting for your money - because the cheapest agent isn't always the best or most reliable. Talk to fellow property owners in the area to see if they can advise a good group - or if they can advise you which fellowships to avoid.
Decide either you want the same group to look after your property, swimming pool and garden. Many owners prefer to hire a dissimilar pool maintenance company and/or gardener so there's someone else holding an eye on the place in their absence.
If the group isn't doing its job, the gardener might be able to tip you off...and vice versa!
Appointing a property Manager
If you decree against using an legal group - and you don't live locally - it's vital to appoint a property manager. You need a responsible and dependable someone who lives within easy length of your holiday home. You can ordinarily find someone willing to do this for a fraction of a high street agent's fees.
Their duties should include a weekly check of the property, arranging for a appropriate clean before and after each group of visitors, handing over and collecting keys and ordinarily sorting out problems.
Consider paying your local boss to do extra duties, such as shopping, gardening, writing welcome cards etc. Many property owners find this worthwhile because it enables them to check up on the visitors - both to see that all is well from their point of view (and that all's well with your property!)
Keep in close taste with your boss who must never hand over your house keys until given the go-ahead by you.
Many owners have run into difficulties after appointing friends as caretakers...complaints from dissatisfied tenants can lead to friction between owner and erstwhile friend! Keep your property letting as businesslike as possible.
Cleaning
Never under-estimate the importance of this vital aspect of holiday letting. Wastepaper bins that haven't been emptied, sweet wrappers lurking in a far projection under the kids' bunk beds and greasy cookers all add up to an odious start to anyone's holiday.
It's necessary to have good, dependable cleaners going into the property between lets - many owners send them in for a mid-week clean as well. Besides going down well with your visitors, it gives you an excuse to keep an eye on things.
Don't expect your property to be in pristine condition after the letting period. There'll always be visitors who leave a mess behind them, break things, trample your plants etc. It's all part and parcel of the business.
If you keep a report of names, addresses and phone numbers, you can turn down any "undesirables" if they ever reapply. Gradually you should be able to build up a loyal band of good customers who come back to you year after year
Handling Enquiries
If you're not using an agent, make the most of the fact that you're dealing directly with potential clients and use their letters and/or phone calls as a means of identifying any potential "bad apples". A phone conversation will tell you a lot about a someone if you deal with it well...you may decree this is not the kind of someone you want in your property!
Don't ignore any rental enquiries - even if your property is fully booked.
Thank the enquirer for showing an interest. Use the chance to get them even more interested in your property and advise they book well in expand next year.
It's a good idea to jot down their name and taste details in a "potential and actual clients book" and supervene up with a Christmas card reminder - ideally enclosing a good colour photo of your property.
Spam and Scamming Enquiries
As the Internet as grown so has it attracted the bad elements in life, with criminals seeing to exploit people. Many scammers and crooks have entered the arena. Beware particularly if you receive your enquiries by email because they can often be sophisticated scams. There has been a spate of these scams in modern years and those originating from Nigeria have been very prominent. If you are in any doubt about enquiries like this then report them to the company you may be using to advertise your property with, who may well be aware of these scams from other users experience.
Also you may think contacting the police to seek advice. ordinarily these scammers make seemingly unreal propositions like sending you a cheque in expand for a necessary sum and asking you to pay them the balance. Of course the cheque will not clear. Do not take any chances, always consult if you are in any doubt and make sure your ageement terms are complied with and you have received all the monies due to you before you think handing over the keys! You may also think asking for proof of Identity before you commit to any financial negotiation if you are unsure of the motives of your enquirer. Do not under any circumstances supply details of the location of your property, address etc. Until you are perfectly sure who you are dealing with.
Booking Deposit
Insist on a booking deposit - ordinarily of 20-25% of the full rental fee. The remainder should be payable six to eight weeks prior to the date of the holiday. If whatever backs out, this gives you time to try to gain a replacement booking. For bookings made less than two months before the date of occupancy, ask for full payment immediately. If a potential client objects - treat that as a warning bell. This is probably Not the kind of someone you want anyway.
Never confirm a booking until the deposit is in the bank....however genuine the prospective buyer seems to be. You may lose the chance of a back-up booking. Make sure cheques have cleared before sending out the keys, exact address etc.
You need to beware of that rare but dangerous breed of holidaymaker who pays his deposit but not the remainder of the booking fee.
Insist on receiving the full estimate before keys are handed over...after all, citizen expect to pay the full estimate up front when they book a holiday through a trip agent.
Breakages Deposit
Holidaymakers expect to be expensed a refundable deposit - often someone else 25% - to cover breakages and damage. Some property owners don't charge a deposit - preferring to trust their guests to report any breakages and to pay for replacements.
This can be risky - but it goes down well with clients and avoids the administrative problem of refunding deposits.
One owner told us: "I've got the oddest range of mugs because citizen have broken things and bought replacements."
A good letting group will ensure that whatever broken is replaced - with matching items! - between lets. If you're using your own property boss make sure he/she does the same.
Handling Your Finances
A letting agent will take away the headaches of handling booking deposits, confirmation fees, deductions for breakages and deposit refunds. You'll need to think about how you're going to deal with all this if you're not using an agent.
Most property owners aren't in a position to accept credit card payments. Many holidaymakers prefer to use cheques rather than electronic bank transfers but some property owners have found foreign cheques can take several weeks to clear - then they have to pay hefty bank charges for currency conversion.
On the subject of finance....it's unadvisable to try and avoid declaring your rental revenue to the tax authorities. If you're advertising effectively, and especially if you're interesting rental enquirers to taste you directly, that means the taxman could end up on the other end of your phone as well as potential clients!
Insurance
Tell your assurance company what you're doing. Many insurers enforce restrictions and increased premiums when properties are let. think taking out extra contents assurance to cover accidental damage when the estimate claimed exceeds your returnable deposit.
Some owners take out legal expense assurance to cover disputes with tenants. You might also want to think extra assurance to cover loss of rental revenue in the event of damage to your property.
Take the time to compile a for real appropriate inventory - room by room and cupboard by cupboard. Take photographs of each room, wall, cupboard etc so if there's a fire, theft or some other problem you have an indisputable report of all your possessions for assurance purposes.
Your property boss should check after each visit that your important possessions (Tv, microwave, pictures etc) are still in place.
Keeping the buyer Satisfied
Send your guests some beneficial information - e.g maps, car hire phone numbers etc - a week or so before they arrive. All this shows you care about them - it makes them feel good, puts them in the mood to like and enjoy the property and hopefully will entice them back next year. Victorious owners find a few small personal "touches" - a chilled bottle of white wine in the fridge, a fruit bowl and a welcome card with the guests' names - can make all the difference.
Many owners supply a "welcome pack" of groceries - particularly appreciated by holidaymakers arriving after the shops have closed. Obviously this goes down well with your clients. But, as one owner discovered, some citizen are never happy. "I got complaints from citizen who wanted butter when I'd provided margarine - or they wanted brown bread when I'd left white. One woman even sent me a list of what she wanted in expand - it was sufficient to feed a family for a week.
I gave up my welcome pack after that!" Don't forget to supervene up your guests after their holiday. Send them a letter expressing your hope that they enjoyed their stay and ask for suggestions for improvements. Make sure you keep all addresses and phone numbers for future reference.
Send your guests - and those who've made booking enquiries - an occasional email newsletter. Give them some interesting snippets about local fiestas, the astonishing restaurants you've visited, the wines you've sampled, the local haunts you've discovered. Entice them with some "tasters" and local colour which will draw them to visit - and revisit - your holiday home. Don't ever treat potential or actual clients solely as a source of income. To win them over - and win them back - you have to show an interest in them, make them feel extra and pamper them.
Keeping a House Book
Compile a house book with practical information and instructions e.g how to work the heaters or fans, where to turn water on, where to put rubbish etc. Your guests will also appreciate information about good local restaurants and places to visit, phone numbers and addresses of local doctors, dentists, hospitals, police and fire etc.
Some faithful owners even go so far as to leave details of the kind of birds and other wildlife which can be seen in the garden and surrounding area.
Legal Issues
If you plan to let your holiday property through an agency, make sure you have a legal ageement in place which clearly spells out the exact responsibilities of both parties. Any reputable agent should already have a appropriate ageement exterior issues such as:
* Method/timing of payments to you as the owner * Commission rates expensed by the agent * responsibility for maintenance/repairs * responsibility for accidental damage * buyer maintain - before, during and sometimes after the letting duration * Handling of late cancellations
If you're in any doubt whatsoever about the contents of an agency's proforma contract, pay a lawyer to cast a expert eye over it for you before you sign - yes, it's more expense but it could save you a fortune in the long term! If you plan to deal with bookings yourself, it's just as important to have a legal ageement in place between you and each visiting party. The ageement should set out the terms and conditions upon which you are letting the property. An private member of the visiting party should sign the ageement which should state that he/she is signing on behalf of all fellow guests. The ageement should cover issues such as:
* Method/timing of payments * Booking and damage deposits * Late cancellation payments (as percentage of the total rental fee) * Detailed itemisation of services/facilities included in the cost. For example: * Pool/garden maintenance * Heating/lighting/water costs * Local taxes * Bed linen/towels * Maid service * Cots/high chairs * Welcome pack of necessary items * 24-hour access to a local property agent * Party size - maintain the right to restrict visitor numbers * turn over day times - when visitors are improbable to arrive and leave
Don't forget to attach an inventory of your property's contents to the contract. The ageement should state that the visiting party accepts responsibility for ensuring that all items remain in place and in tact. Your guests ahould accept responsibility for replacing missing or damaged items.
Whatever the terms of your contract, be ready to refund a percentage of the rental fee without examine if you receive justified complaints from your guests. Besides being an ethical issue, this makes sound company sense if you want repeat bookings and an untarnished reputation!
Setting a Rental Tariff
You want to make money out of your holiday property but at the same time you obviously want to set a reasonable rental tariff which will attract those all important booking enquiries.
Getting the Price Right!
A petite bit of store study will go a long way here. It won't take you much time and effort and it'll be worth it in terms of the estimate of bookings you'll gain if you get the price right.
Look in local agents' windows to check out the rental prices of comparable properties in your area. Scan the classified ads in newspapers and magazines and look at holiday properties on-line to see how they're presented and what prices they're fetching. Collate the prices of our wide range of properties before production your decision on price.
Bear in mind that Internet holiday hunters expect to pay less when they book a holiday property direct from the owner than they would if booking through a holiday agent. So you need to have an idea of what the agents are charging and what level of commission is built into their prices.
Some high street agents have been known to charge more than 50% commission on each booking - so that leaves you with abundance of scope to under cut them when you advertise on the Internet.
The prices you decree to charge will need to reflect a range of factors including:
* location - coastal/inland/top traveler spot
* size of the property/number of beds
* presence to local beaches
* availability of a swimming pool (private or communal)
* vehicle links - presence to an airport with rent flights
* general appropriate of the property and its facilities
* availability of a garden
* local attractions
Vary your rental prices agreeing to high, low and mid-season. You'll be able to charge a higher price over Christmas, New Year and Easter.
"Test the water" at one price level then, if you feel you've pitched your prices either too high or too low you naturally turn them.
Of course not everyone has the time to carry on their own rentals - there is a necessary estimate of work complicated - the best explication here is to hire property administration company that would take care of all the finer points of the business. Advertising, dealing with buyer enquiries and bookings, and managing the rentals and changeover cleans, giving you peace of mind that your property is well cared for. All you have to do then is sit back and receive the revenue from your rentals!
Many of the most Victorious property administration fellowships can take bookings for most months of the year, not just in high season. If they find themselves with a last-minute gap in their rental season, for example, they make use of a late availability service.
Conclusion
I trust the information provided here for real helps you to make informed decisions and to avoid potential pitfalls in the process of renting your holiday home.
Advertising Your property on the Internet
Many citizen have turned to the Internet to promote their properties, get enquiries and bookings. This is a very affordable marketing choice and provides a large marketplace to attract clients.
Hot Tips For Renting Your Holiday Home
No comments:
Post a Comment