Apartments & Villas
What rental income can I expect if I buy a Costa Blanca villa?
By Ann Knight
Sep 3, 2003, 05:24
A Costa Blanca villa will generate a good rental income for you for several months of the year as long as you get the location right and buy the kind of property that can be easily let. As a very rough guide, holiday homes on Spain's "White Coast" are being let for an average of 220 euros per person per week but of course that varies considerably according to several factors - size and standard of the property, facilities, ease of access and most of all location.
The most successful owners who run holiday letting businesses on the Costa Blanca have a fully booked rental season between June and September and also manage to let their properties, at a reduced rate, for several months in low and mid season. Top of the range holiday villas in parts of the Costa Blanca can be let for 2900 euros a week or more in the peak season months of July and August. During the Christmas and Easter holidays, demand soars again and rental prices are almost equivalent to those of high summer.
Many owners secure a decent income out of season by negotiating six-month winter lets at a discount price.
The highest rental prices are in the most upmarket resorts of the northern Costa Blanca - Javea, Denia, Moraira and Altea. Of course property prices are also considerably higher in these resorts, generally speaking, than further south. House prices in Torrevieja, for example, are low compared with equivalent properties in somewhere like Javea. But the area is nowhere near as attractive as the lush, mountainous northern Costa Blanca and you won't be able to set such a high rental tariff.
The advice from seasoned holiday property owners is to go as upmarket as you can possibly afford without breaking the bank. The most "lettable" properties are those with a private swimming pool, near the sea (ideally with a sea view) and within easy reach of shops, bars, restaurants and local nightlife. The property should be reasonably close to an international airport with daily charter flights to the major European capitals. Good air links to the UK and Germany are vital because these two countries provide the lion's share of visiting tourists.
An apartment on or near the beach with access to a communal pool will generally command higher rental charges than a villa with a private pool a few miles drive inland. Facilities are another important factor - the more money you spend equipping and furnishing the property, the higher you can set your rental tariff. The most luxurious villas have daily maid service, heated pools for out of season use, jacuzzis, exquisite furniture etc. But even if your budget won't stretch to that level of luxury it's important to remember that many visitors regard certain items as essential - satellite TV, video, air conditioning, a microwave.
It's extraordinary how many owners skimp on fixtures and fittings then wonder why they never secure any repeat bookings. It's a known fact in the industry that dissatisfied visitors who feel a holiday property doesn't represent good value for money are much more likely to break, damage or even steal items in order to get their own back!
Many owners on the Costa Blanca have found they have been able to purchase a second holiday home with the proceeds of their first year of letting. Even at the lower end of the market, as long as you pick the right location and meet the above criteria your rental income should more than cover your mortgage repayments and running costs.
If you use a high street agent to handle your holiday lets, it's important to know that many of them charge 25% or more per booking. It's worth considering employing a local person on the spot to handle changeovers, pool cleaning etc while you handle the marketing and bookings. There are plenty of good web sites advertising Spanish villas for a small annual fee which means more money in your pocket from each booking.
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