Renting out a luxury property is about solid commercials and knowing how to appeal to the market. As an owner, your goal should be to achieve a good rental yield and protect your investment with as little hassle as possible. If you are new to rentals, it can be hard to let go and all too easy to make a wrong move.
Read our starter’s guide to renting out your luxury home and remember, we are here to help. Speak to the team for an informal discussion about renting your property with Swish.
Guide to Renting-Out Your Luxury Home:
- Do your Numbers
- Understand the Market
- Detach Yourself from your Emotions
- Prepare your Property for the Season
- Create a Stylish interior
- Get insured
- Play by the Rules
- Don’t be Too Strict
- Get an Experienced Agent
This may be your second home and you may still intend to visit for two weeks in the summer, but renting out any property is a business. As such, you need to forecast your rental income carefully. Look at market pricing, seasonality and occupancy rates. Don’t assume there will be no empty weeks or that you can charge full price on every night. Don’t forget to allow for contingency expenses like maintenance too. Swish can offer advice with this if needed, just give us a call.
To achieve a rental yield of a certain percentage, you have to fully understand the market. There will be peak and low times, and you need to be filling peak at full rate and then looking at ways to maximise the less popular booking periods. If you understand where your target guest comes from, you can plan your pricing around the most popular times. For example if you want to appeal to a UK customer, understand when UK half term school holidays are.
We understand it’s your home and you just want to make sure people are using coasters! You may feel emotional about leaving aunt Emily’s vintage chest of drawers behind or having other people in your kitchen. It’s time to let go. You have still got those wonderful memories made here, but now your home is all grown up and is earning its own money.
Do the work in the downtime. Make sure the property is fully maintained, the paintwork is kept up to date and the overall impression is a well -kept, high spec home.
Interior design is a must. There is no stipulation that you have to use an interior designer, but luxury guests have discerning taste. Don’t try to go too avante garde or choose something that will date. Stuck for inspiration? Browse some of our villas here, you will get the idea of what a luxury property should look like.
If your “stylish, minimalist property” is littered with personal items such as clothes, books and DVDs, it loses appeal. No tenant wants to feel like an intruder, and those children’s drawings pinned to the fridge may be cute, but could just cost you the rental.
While you’re trying to avoid further costs, remember insurance is essential. You must protect your property fully.
It’s important to comply with local legislations. In Spain this means applying for a tourist licence to register your property and putting in place measures to make the home fit to rent. Speak to the Swish team for advice.
We are in all in favour of well put-together house rules. But if your list of rules makes your holiday property sound more like a correctional facility you will alienate your guests and achieve both a poor review score and rental yield. We have the expertise to help you create a happy medium.
Working with an experienced agent is a must (hint hint!) Not only do agents find the right calibre clients but they help with all the guest enquiries, preparative measures and administration related to your stay.
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