1) Buying a Property
If you already own a property you may
skip this section and go to part 2)
Buying a holiday property is probably
one of the largest expenses you will enter into and it is important that
you ensure your property has the best chance of being seen and subsequently
bring in an income.
As you might expect, location, location,
location are the three most important factors to consider when making
your purchase!
Whenever possible try to buy on the
front line of a coastal resort or adjacent to a golf course, ski location
or any other specific holiday type activity. If buying inland always consider
how the property can be presented to attract clients to your site. You
should also consider how easily you will be able to sell the property
should the need arise. Front line properties are generally easier to sell.
Before buying, you can look at the
rental rates of similar properties on PlacesAway to compare rates and
to estimate your likely income. Work out your return on the capital invested.
You may have purchased a very nice property but the return on your investment
may not be as good for any number of reasons.
Once again, you can visit other properties
on the PlacesAway website to see which areas and types of properties rent
best and this will give an idea of the likely return.
If you intend to take out a mortgage,
bear in mind that exchange rate movements affect overseas mortgages and
it may sometimes make sense to consider increasing your current mortgage
rather than be involved in overseas fund transfers etc. An interest only
mortgage is well worth consideration and is not generally available outside
the UK. Of course, for the specifics, it is recommended that you speak
to an Independent Financial Adviser.
2) Renting the Property
Owning a holiday property, if handled
well, can be a satisfying and rewarding project. If you use a third party
to look after your property, be very selective. It may be false economy
to take the cheapest option.
Very often companies will ask for an
annual charge for which they will monitor your property all year round.
General deterioration takes place out of season and you need to be certain
your property is aired and acceptable to receive clients for the new season.
Consider making a visit before the
season starts.
Ensure your property is properly furnished
and that sufficient bed linen is supplied. It makes sense to include an
iron and a hair drier. Hand and bath towels are usually included but not
beach towels. Make all this clear in your advert.
White linen is best for the beds and
use dark towels, which will not show marks.
Nametags on all items for laundry will
assist the cleaners and ensure you do not lose your items.
Your local agents should preferably
have telephone, fax and Email and should be prepared not only to carry
out the cleaning and laundry but be your contact for clients if problems
arise. They should also be able to speak your language reasonably well.
It is not good using yet another party to liase with your agents.
Ask you clients for constructive feedback
and how the property was on arrival. It’s always best to know what
they are really thinking so you can decide if you want or need to take
action that may improve the whole rental experience for future clients.
A non-returnable deposit should be
requested to secure the booking at which time you can remove the relevant
dates from the website. Don’t forget to keep the departure date
on the availability chart vacant, you may have clients looking to start
their holiday on the previous clients’ departure date.
You may wish to consider a damage deposit,
which would be returned following a satisfactory inspection following
departure.
3) Marketing and Managing your Property
Marketing your property is an essential
part of the rental process (not many owners can fill their properties
by reputation alone).
We have designed the PlacesAway website
to specifically cater for your needs.
Don’t forget you can add your
PlacesAway direct address to any other advertising you may be doing.
The site allows you to modify your
advert at any time and to replace pictures on line without the PlacesAway
team involvement. All we do is vet the changes and re-release the advert
so you can be as up to date with modification to all areas or your property.
The site will also show you how much
activity your advert is receiving in terms of how many times it has been
“searched” and then “viewed” and allows you to
maintain an availability chart for your clients to avoid unnecessary enquiries.
Enquiries are made online and whilst
the whole process can be carried out by Email it is better to have some
direct contact with your prospective client. It will give them some assurance
and enable you to get a feel for the client.
Ensure your website advises what time
the property must be vacated and what time it is available. Allow plenty
of time for your agent to get in and out. Find out the flight details
of your clients to help your agent to plan the changeover, you will not
be the only property they are handling.
If you receive a cancellation and manage
to re book the dates cancelled it is good practice to return the deposit
and will do your business more good than harm.
Request full payment at least one month
prior to the commencement of the holiday. This will give enough time for
payments to clear and for you to send detailed directions and information
about your agent to enable the client to find the property and to contact
the agent if necessary. Have these documents prepared well before you
start to take bookings.
You must make arrangements for access
and may send keys yourself or have your agent hand them over on arrival.
The former is preferable as arrival times can be delayed or late and this
will add to your agent's cost to you. The more you are in control, the
better.
When sending the keys etc. provide
a stamped and addressed envelope for the return of the keys. Ensure you
have enough keys to cater for your bookings. A minimum of six sets is
essential. You also need to retain a master set for yourself and one for
your agent.
4) Security and Safety
Make your clients aware of the good
and the bad points of the location of your property. Include a reference
in your paperwork advising care in local countries and to pay attention
at all times. Regrettably we do not live in a perfect world and you may
be in a location where tourists are the target of crime.
If necessary, make your property as
safe as is sensible with burglar bars or alarms if the location demands.
Your client's holiday can be spoiled
even over minor theft and the inconvenience of police reports etc. can
only add to their disappointment.
Finally, ensure your clients are advised
to take out insurance for their personal belongings for the duration of
their stay. Your insurance company is unlikely to entertain claims from
people staying at your property on holiday.
Make sure you have insured the property
for damage. If you have a water leak or in the unlikely event of a break
in, it is essential that for the well being of both parties, any damage
is repaired immediately. Your local agent should have your insurance details
to handle this for you.
Of course, you must manage your
rental property in the way that you see fit, but we hope some of the above
suggestions are an aid to you in this complex, but rewarding type of business.
Good luck and please don’t hesitate to contact
us if you require any further hints or
tips.
