HOW
MUCH TO CHARGE
You
can research the rental potential of property in your area.
Browse
web sites and brochures which include properties to rent in your area.
Make lists of the price charged for
those as similar to yoursas you can find.
Write down the different amounts charged
for each season.
Don't
be fooled that your 3 bed villa 35mins drive from the sea
is comparable to one a 10 minute walk
from the sea.
It will need some extra 'pulling power'
to give it the 'wow factor'.
A
villa without a pool will usually command much less rent than one with
a private pool.
These
details each make a difference- you must really try to compare like
for like.
If
you over price, you may struggle to get bookings, particularly outside
the 6 weeks in high summer.
Eventually,
you can hope to achieve around 15-16 weeks of lets
once you build up a database of happy
previous tenants,
and are benefiting from recommendations.
In
certain all year round destinations, such as the Canary Islands,Florida
and with well placed golf proerties , you could expect
a few extra weeks.
MAINTENANCE
AND CHANGEOVER
If
you do not live in the area,
you need a very reliable person or management
company to look after your property.
Essentials
include:
- very
reliable and thorough cleaning between lets
- key
holding and letting the tenants in
- a
reliable local person to be be a contact point for your clients
and to handle their needs and queries?
- an
odd job person for small emergencies
The local
key holder will need phone numbers for
plumbers, electricians and builders
who you can trust to help quickly when
a larger problem occurs.
HANDLING
YOUR GUESTS ARRIVAL
First
impressions are important.
Do you
want someone to welcome the guests in person when they arrive?
Or will you send out maps and tell guests
where to find the keys?
In this case, always make sure you or
your agent contact them next day
to make sure everything is working O.K-
don't make them get in touch with you.
An unanswered
question soon turns into a complaint!
You
will always need an arrangement in case guests are unexpectedly delayed
en route-
they cannot be made to sit in their
car all night if they arrive at four in the morning!
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Leaving
tea, coffee, milk, bread and a carton of juice
can make a big difference to a family
after a long journey.
And a surprise bottle of wine and a
vase of flowers never go amiss!
THE
GUEST MANUAL
This
contains all the information you think may be of use to your guests.
If you
give your clients keys, your Guest Manual will be of special importance-
it must answer all their initial questions.
Points
it must cover include:
- Instructions
for all the appliances in the property
- how
to work the heating and hot water
- rubbish
disposal arrangements
- pool
instructions
- community
restrictions if applicable
- where
are the nearest shops and supermarkets- with opening times
- nearest
doctor and pharmacy
- contact
numbers in case of emergency- particularly that of your local contact.
A few brochures of restaurants and
attractions in the surrounding area often prove useful
Do
check it whenever you visit-
it is important to keep the information
up to date.
A
Guest Book is often provided.
Holiday makers give their comments
on your home and the surrounding area,
and mention local features they feel
may be off interest to future holiday makers.
RENTAL
AGENCIES
To
use or not to use
That is the question.
You
have to decide how involved you want to be in the rental and management
process.
You
can do everything yourself-
- produce
a brochure and web site
- advertise
for bookings in newspapers and the specialist magazines
- deal
with all the bookings and enquiries-
- and
anguished, angry phone calls, day or night, when something goes
wrong!
You will
save on commission to an agency- but renters will usually expect to
save 10-15%
if they book direct, rather than using
an agency,
so you have to take this drop into account
when weighing up your savings.
If
you want to use an agency, there are various levels of service you
can pay them to provide.
You
can simply take advantage of their advertising and booking services
,
while remaining responsible for cleaning,
key holding, gardening, laundry etc.
Or
you can use an agency which not only achieves bookings,
but offers a complete management service.
Similarly,
you can use two different agencies- a rental agency to handle the
lettings,
and a management agency to look after
the cleaning and upkeep.
This
choice will obviously determine how much you pay out in commission,
but also how much hassle the lets
will be for you.
Booking
agencies tend to charge 15-25% commission on a let.
You
can expect to pay between £25-50 for a between-lets clean and
linen change.
CHOOSING
AN AGENCY
Other
home owners in your area may be able to recommend an agency-
or almost as usefully, tell you a
few horror stories about which to avoid!
Some
points to check out when comparing what different agencies have to
include:
- How
good is their brochure and web site?
- Does
it make you want to book a holiday?
- Do
they have representatives in your area?
- Will
they give you references on request?
- What
commission are they charging?
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You will make more money by getting
lots of lets, even at a higher commission.
- What
exclusivity of rental periods do they demand?
- When
can you use the property?
- How
often can you use it without having to pay the rental to the agency
yourself?!
Check that the contract (including
the small print) is suitable for your needs before you sign.
TAKING
BOOKINGS
If
you do not use a booking agency, you will have to set up a system
to handle them yourself.
- You
will need to choose a changeover day.
- You
must also prepare an availability calendar, on which you can mark
booked dates.
- alongside
your brochure when you receive an enquiry about the property
- confirming
a booking and the receipt of the deposit
- as
a reminder if guests forget their balance payment
- and
details of the route and entry arrangements -
- this
to be sent when the rental has been paid in full.
For e-mail enquiries you can keep
a standard e-mail reply
giving a few brief details, and say
that the full brochure is on its way.
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Respond
quickly to an enquiry- you have paid to generate this response.
Do not waste it!
PREPARING
A BROCHURE
Think
carefully about the best features of your property- what attracted
you when you first saw it?
Emphasize
any positive features-
- the
pool
- the
views
- that
it has a dishwasher / washing machine
- lovely
gardens
- its
privacy
- how
near are shops and restaurants- if you can walk to any, make a feature
of this.
Mention
sunny evening strolls, or walking for fresh bread in the morning
Take photos on a sunny
day-
and an empty pool, terrace or garden
always looks bigger and more restful.
Give a list of the
rooms, mention any doors to terraces,
and of course, any en-suite bathrooms.
A photo can say a
thousand words- as long as it is a good photo!
Expect to use a whole
film-or digital memory card
to get 2-3 good shots.
Don't take just one and hope for the
best.
Don't skimp on printing
or copying quality.
Bleached out of fuzzy copies will
not win you bookings.
FURNISHING
FOR RENTAL
Leave the delicate
antiques out!
But also, don't cobble together all
the odd bits of spare furniture you have been longing to get rid of.
Good quality, strong
furniture and equipment is essential.
As you shop, consider
the continual use it will face-
and that not all holiday makers will
be as careful as you would like.
Folding plastic dining
chairs will last about a month-
a solid simple wood chair could last
years.
Things will get broken-
this is always a cost of letting.
But careful choices of furniture and
other equipment will help minimize the damage.
Tiled and wood floors
are super throughout.
Carpets are likely to become stained-
it is easier to clean or replace a rug.
Washable covers on
soft furnishings are another good idea-
and a spare set of covers will help
when they do need removing for washing.
Don't clutter the
rooms with dodgy ornaments you have been meaning to throw away for
years-
think of the local area- try to achieve
an appropriate feel.
You are likely to
have personal items that you do not want to share with your clients.
Have a lockable cupboard into which
you pack them every time you leave the property.
Twin beds are more
versatile for families with children,
while couples like double beds and
the larger the better.
King size beds can be mentioned as
a selling point in your brochure!
Try to get the right
balance of beds for your target market.
Also provide:
- bedside
tables
- bedside
lights
- wardrobe
and cupboard space- with good quality coat hangers
Provide waterproof matress protectors
for young children-
it will stop parents having to worry
every time their little darlings hit the sack.
If
you will be providing linen- essential if guests will be flying to
their holiday-
allowing two full sets for every bed
will allow for same day changeovers.
Provide a good supply of tea towels,
tablecloths, kitchen cloths.
Guests usually provide their own hand
and bath towels if they are likely to be driving to their holiday.
If
they will be flying, you may wish to provide them.
The
kitchen is of prime importance- just as at home.
People place great store on dishwashers
and washing machines and microwaves-
they are on holiday after all!
It
is essential that work tops, unit fronts and flooring are easy to
keep spotless-
and important that your cleaner knows
how vital this is.
Even
a few crumbs or specks of grease can turn people off your home completely-
and if those same crumbs have attracted
ants or mice........
Crockery,
cutlery, pans and other utensils should match.
And make sure there are plenty for
the maximum number your home can accommodate.
Provide
an electric kettle, toaster and a coffee maker of some kind.
Keep
a good supply of loo rolls and kitchen towels so there is always
a roll for new guests.
Leave a bottle of washing liquid and
a few dishwasher tablets for before the guests get to the supermarket.
And
don't forget outside furniture-
enough
chairs and table for the whole party
and a lounger for at least every adult
the property sleeps.
The
ubiquitous white plastic is fine!
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TIP
Incoming
guests will appreciate a supply of basic foods like
salt , pepper , sugar , tea , coffee , flour and olive oil.
You could go further and provide fresh
bread and milk.
Mention these essentials in your brochure-
their greatest advantage to guests
is that they will not need to pack and carry them.
A
surprise bottle of wine and a vase of flowers will help
to make your guests feel especially welcome after a long journey.
LEGAL
RESPONSIBILITIES
You
obviously want your guests to be safe, and to have a fantastic time
while in your home.
Take
out good insurance-
Make sure it covers rentals- you may
need a specialist policy-
and read the small print about what
risks are covered.
There
are sensible steps you need to take to reduce your guests risk of
injury,
and the world is becoming increasingly
litigious.
You need to minimize the risk of becoming
embroiled in a court battle!
- Get
electrical and gas appliances checked regularly.
- Replace
any rickety furniture.
- Keep
paved and stone surfaces well secure- no loose slabs.
- Leave
clear, typed instructions for using electrical equipment.
- Keep
any potentially dangerous tools like axes, lawn mowers etc. locked
in a shed.
- Have
a torch handy, and a notice about where to find it.
Think
carefully about letting clients use any bikes or boats at the property-
a disclaimer that they are 'used at
own risk'
may not be enough to cover you in case
of an accident.
TAX
ON RENTAL INCOME
You
are liable to pay tax on any foreign income, in the country where it
is earned.
If you are a resident, it is declared
as part of your earnings, at your normal tax rate.
If
you are non-resident , a flat rate of 25% in Spain
will apply, with similar amounts in
France.
Keep
copies of everything you spend on the property.
These can the be offset against your
tax liability.
It
does have to be said, that many owners seem to declare very little income
from their property-
they must be kindly letting people 'borrow'
it for free.
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