Satisfied homeowners renting their homes to tourists?
Can Alonso by Alquilair
There are many second homeowners who make the move to vacation rentals for extra income, a long-term investment. A 2016 HomeAway survey said that 41% of owners originally started renting out their second property to cover all or part of their expenses, while 26% of owners say they started renting out their second home because they wanted to generate a profit. In the same survey, it talks about 7 out of 10 owners being satisfied with vacation rentals.
Tolo Riutord, a 32-year-old Mallorcan businessman, is one of those self-satisfied homeowners who saw vacation rentals as an opportunity to strengthen and maintain the family's assets. "The properties were used very occasionally, so we decided to rent them out. I tried to have regular tenants, but you find that they don't pay, you are left out in the cold, and it's very complicated".
Owners from traditional rentals to vacation rentals
It was not an easy task for Tolo to try to manage five properties for one simple and easy reason: Time. Studying the property, finding the right price to rent it, registering it, managing the reservations, equipping and decorating. Attending to the arrival and departure of guests, cleaning, active and efficient communication. Tolo decided almost two years ago that this job would be done by Alquilair. "I tried another company, but now that I'm with you, I realize that it has nothing to do with me. Now I am informed of anything at all times, everything very well, very good communication, I would not have been able to do it, it was impossible to do it because I had no time".
The report, which aimed to know the profile of vacation rental owners, also highlights that 35% of the Spaniards surveyed use the income for daily living expenses, and 29% for mortgage payments. Another of the conclusions of the study regarding the prices of vacation homes, tells that most of the owners (83%) have maintained the prices in summer compared to the previous year and only 13% planned to increase their rates. In the event that the stay coincides with major events (festivals, concerts, conferences...), 81% of the owners do not usually increase the prices of their accommodation either.
On the other hand, Carlos Ruiz, from the Association for the Promotion of Renting and Access to Housing, recently acknowledged that the returns on tourist rentals are much higher, since they currently range between 14-15% and reach 16% in cities like Madrid and Barcelona, nothing to do with those offered by traditional rentals, which move between 5 and 6%. A figure that Tolo confirms, since his income increased when he switched from traditional rentals to vacation rentals.
If you want to be a satisfied owner or have any doubts about the management process of your property, please contact us, we are experts in the management of vacation homes.
