Home | Contact | Lanzarote Forum | Lanzarote Events Guide | Photo Gallery | Advertise your Business
It is currently Thu Feb 22, 2018 1:01 pm

All times are UTC


Post new topic Reply to topic  [ 6 posts ] 
Author Message
 Post subject: Advice on holiday letting
PostPosted: Sun Aug 30, 2015 5:38 pm 
Offline

Joined: Sun Aug 30, 2015 5:04 pm
Posts: 17
Hi All,

First time poster on here so please treat me gently.

We're currently purchasing a villa in PB - Las Coleradas area - we hope to complete towards the end of September. Partly a holiday home, and partly an investment to let out on a weekly basis.

We've done a reasonable amount of due diligence, and are aware of the tourist licence situation, the need for a good local property management company etcetera.

We're interested in reaching out on this forum to people who live in the UK and rent out their villas themselves (as weekly lets). Firstly, what is a reasonable number of weeks to expect, if you work reasonably hard at marketing it and are responsive in your replies. We think there are about 13 weeks of "peak" - UK school holidays, which should be relatively straightforward to fill, but how hard is it outside of these periods? Do these non-peak periods get very heavily discounted by James Villas type organisations who have annual contracts with the owners?

Is there a "magic formula" for the rent to ask for off-peak compared to peak?

As to marketing - ownersdirect seem to come out top of most searches and we have rented (rather than rented out) villas through them before. If you advertise with them, are you automatically advertised on homeandaway as well (I think they're the same company)? Are there others that are worth the extra investment to get more footfall? Any tips for getting near the top of ownersdirect default sort order. Any experiences and advice would be much welcomed.

Thanks in advance.


Top
 Profile  
Reply with quote  
 Post subject: Re: Advice on holiday letting
PostPosted: Thu Sep 03, 2015 1:29 pm 
Offline

Joined: Thu Sep 03, 2015 12:47 pm
Posts: 1
Hi, just returned from Lanzarote ourselves, we are embarking on the early stages of purchasing a property with the same thoughts as yourselves will be very interested in the replies.


Top
 Profile  
Reply with quote  
 Post subject: Re: Advice on holiday letting
PostPosted: Thu Sep 03, 2015 6:31 pm 
Offline

Joined: Sun Jan 04, 2015 1:55 pm
Posts: 20
Having recently purchased, my advice would be to get a solicitor first and foremost! The cost is worth it as they will help you with all sorts of unexpected things in the process and you can always sue / claim against the professional body if there are problems later down the line....

Second don't be tempted by some of the "fixer-upper-opportunities" the some agents are fond of showing UK / Irish buyers. Ask yourself? Would I be prepared to take a project like this on at home and do I have the money to pay for it.

Thirdly, when you read that you will need at least 110%of the price you pay to complete the purchase, this is not a fiction, I would say you should err on the side of caution and allow 115% And that's before you have even bought a stick of furniture (for example, the bank will charge you for issuing the cheques to pay the tax and the seller - our bank fees alone were nearly €1000).

We are not proposing to let our property out and therefore not able to suggest a formula, but I think you will probably need to consider what your costs are likely to be (decent furniture! electric, also wifi and Internet, wear and tear on the furniture and the building - no one wants to stay in a shabby property, cost of linen, towels, gardening, pool cleaning, maintenance, cleaning up before and after your guests arrive, washing of towels and linen, cost of electric and water to name a few off the top of my head) as this will have a bearing on what you charge. Clearly, the more people your villa accommodates, the more you can charge, but more people in your property means more wear and tear.

I'm not trying to put anyone off, as each to their own, but I am saying be careful, expect to spend far more than you thought and make sure you try and keep your eyes open as it's easy to get carried away!

Good Luck!


Top
 Profile  
Reply with quote  
 Post subject: Re: Advice on holiday letting
PostPosted: Thu Sep 03, 2015 8:23 pm 
Offline

Joined: Sun Aug 30, 2015 5:04 pm
Posts: 17
Many thanks for the replies (and for the many views).

Parrot - I'm interested to know more about the bank fees you mention. Our mortgage is in the UK, and we're planning to transfer the money (through an FX broker at pretty close to mid-market rate) direct to our Lanza solicitor (who we have already engaged). Please tell me more.

We are at the mercy of exchange rate fluctuation so am watching the £ to € rate with a lot of interest :?

I agree totally with your comment about "fixer-uppers" - we were shown plenty of these.

Running costs - we've done a reasonable amount of research so think I have a reasonable handle on costs of cleaning / linen / pool / electric / water / wifi / TV / community charge / insurance / welcome pack / council charge. What have I missed? Maintenance costs are a little harder to pin down, and will obviously depend on how frequently the villa is let. We're buying the place furnished so don't have that issue in the short term, although we will upgrade over time.

What I'm really keen to learn is how many weeks we can expect to let if out for if we work hard at it. In the quiet periods I'm guessing it's quite hard to compete against the AI hotels as well as the agencies with annual contracts? Appreciate any input from the regular local posters on here or those experienced at weekly letting.

Also interested in feedback on marketing methods - owners direct and/or other sites and their relative successfulness.

Thanks again.


Top
 Profile  
Reply with quote  
 Post subject: Re: Advice on holiday letting
PostPosted: Fri Sep 04, 2015 1:45 pm 
Offline

Joined: Thu Jun 14, 2012 7:30 am
Posts: 541
Hi
You need to definitely ascertain as to whether your proposed purchase can be licenced for a holiday let.......this is not guaranteed just because it is in a ´´touristic area´´ :roll: .....many properties within these areas cannot be let for holiday use...do not just take the estate agents word for it but confirm with the local ayuntamiento that this is possible .....better still buy a property with the licence already in place :( .....many properties within these areas are not being issued licences because the quota is full or the ayuntamiento are not issuing any more licences at the moment :shock:
Also if you do get a licence you will need to factor into the cost of letting the following ......water will be charged at a commercial rate as you are not resident here.so do not qualify for the lower rate of supply...you will be taxed on your potential (not actual) letting fees.... and finally you will have to pay ´´non-residents property owners tax´´yearly on the value of your property. :?


Top
 Profile  
Reply with quote  
 Post subject: Re: Advice on holiday letting
PostPosted: Sun Sep 06, 2015 5:53 pm 
Offline

Joined: Sun Aug 30, 2015 5:04 pm
Posts: 17
Thanks Lanzalocal,

Very useful information - we have a lot to learn!

Do you know how much the "non-residents" property tax is? Also, do you know how the "potential" letting fees are worked out? Is it based on property value, what you advertise it at or something else? We want to do everything above board and will ask our solicitor to check with the local ayuntamiento.

I'm beginning to realise that we may need a local accountant / tax advisor rather than using our UK one.

All advice very gratefully received.

Thanks again.


Top
 Profile  
Reply with quote  
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 6 posts ] 

All times are UTC


Who is online

Users browsing this forum: No registered users and 0 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB