Becoming a property millionaire sounds easy when you conside it is possible to rent out a villa to holidaymakers and to fund the monthly payments on the mortgage out of the rent received. But is it that simple?
The right property in an attractive area, especially if visitors holiday there at all times of the year, should be self-financing, especially if the property is well-managed. However this does not mean you should necessarily use a professional renatl agency. Indeed, if the experience of absentee villa owners in Spain is a good example, you would be well advised to handle the manage yourself.
There are many examples of absentee villa owners not being paid for lettings that the agents 'forgot' to inform the owners about. Jane Moore, a solicitor in Marbella, has heard of many examples of owners being ripped off. "I've heard of rental agency staff using clients' properties for all sorts of things, including family holidays," she says. "If you don't live locally, it's hard to know what is going on in your property."
However, for most problems there is a solution. Finding holidaymakers to rent your property should poise too great a problem. The internet offers many websites that advertise vacation rentals for an annual fee. Most will forward enquiries or bookings directly to you. All it takes is a little time and effort. It is important to remember that if you are advertising your villa you need to be available to respond to enquiries. If someone wishes to discuss a booking they have to be able to contact you either by telephone or email, and you need to respond with little delay. Keep a potential customer waiting too long and he will take his business elsewhere. Most sites will provide you with an availability calendar which, as the name suggests, shows when your villa is available. Keeping your calendar up to date can be a chore, but it is important that you do so. If a potential customer contacts you wishing to book on dates that the calendar shows are available but are already booked, wastes your time and upsets the customer, making it less likely he will accept alternative dates.
The availability calendars on our site are designed to be as user-friendly as possible. The calendar doubles as a booking form and, when you receive an email containing details of the booking, the email includes a link back to your calendar. Merely clicking on the link automatically updates the calendar and marks the weeks in question as 'booked'.
Despite the drawbacks, some villa owners will not be able to spare the time to manage their business and will be forced to use an agency. The challenge then is to find a good one. Ask for recommendations from other clients and make sure you check them. Scrutinize the rental agreement carefully to ensure it is clear what the agents are required to do. Also, demand to see copies of the utility bills, then you can see when the property was occupied and check that information against the periods when rent is paid to you.
If you treat your holiday villa like a business there is no reason why it should not be self-financing, and provide a foundation for a portfolio of holiday rental properties.
The right property in an attractive area, especially if visitors holiday there at all times of the year, should be self-financing, especially if the property is well-managed. However this does not mean you should necessarily use a professional renatl agency. Indeed, if the experience of absentee villa owners in Spain is a good example, you would be well advised to handle the manage yourself.
There are many examples of absentee villa owners not being paid for lettings that the agents 'forgot' to inform the owners about. Jane Moore, a solicitor in Marbella, has heard of many examples of owners being ripped off. "I've heard of rental agency staff using clients' properties for all sorts of things, including family holidays," she says. "If you don't live locally, it's hard to know what is going on in your property."
However, for most problems there is a solution. Finding holidaymakers to rent your property should poise too great a problem. The internet offers many websites that advertise vacation rentals for an annual fee. Most will forward enquiries or bookings directly to you. All it takes is a little time and effort. It is important to remember that if you are advertising your villa you need to be available to respond to enquiries. If someone wishes to discuss a booking they have to be able to contact you either by telephone or email, and you need to respond with little delay. Keep a potential customer waiting too long and he will take his business elsewhere. Most sites will provide you with an availability calendar which, as the name suggests, shows when your villa is available. Keeping your calendar up to date can be a chore, but it is important that you do so. If a potential customer contacts you wishing to book on dates that the calendar shows are available but are already booked, wastes your time and upsets the customer, making it less likely he will accept alternative dates.
The availability calendars on our site are designed to be as user-friendly as possible. The calendar doubles as a booking form and, when you receive an email containing details of the booking, the email includes a link back to your calendar. Merely clicking on the link automatically updates the calendar and marks the weeks in question as 'booked'.
Despite the drawbacks, some villa owners will not be able to spare the time to manage their business and will be forced to use an agency. The challenge then is to find a good one. Ask for recommendations from other clients and make sure you check them. Scrutinize the rental agreement carefully to ensure it is clear what the agents are required to do. Also, demand to see copies of the utility bills, then you can see when the property was occupied and check that information against the periods when rent is paid to you.
If you treat your holiday villa like a business there is no reason why it should not be self-financing, and provide a foundation for a portfolio of holiday rental properties.