Are Your Villa Rental Rates Too Pricey?
18 January 2011
Many savvy investors are choosing to invest in Spanish rental properties. Renting out your property on your own is a great way to earn an income from your overseas property investment. However, if you are struggling to find renters even though your property is well advertised, it might be because your rental rates are too high.
Those who are new to renting out property often make this mistake. They price their property rental at the highest rate that they can, thinking they will earn a great deal of money from it. If you are lucky enough to find someone willing to pay top dollar, then that is absolutely fine. However, most people are looking for a deal and if your property is at the top of the price scale then they will likely choose something cheaper. You won't make any income from your Spanish property or holiday rental if no one will rent it.
It seems counter-intuitive, but if you price your property at a slightly more competitive rate, then you are more likely to earn more in the long run because you will ensure that it is always occupied. To figure out what is the best price, take a look at similar properties in the same area. There is no point charging the same price as a nearby three bedroom villa when yours only has two. Everyone will be able to see that the other rental is a better deal.
After you have looked at the comparative properties, arrive at a figure that is around the same range while still being competitive. When you hit upon the ideal rate, your tenants will be happy and so will you.
Interested in earning rental income from your La Manga Club property Contact Select Resorts for more information about this opportunity.