Posts

How to Make a Lucrative and Legal Income From Your Spanish Villa

So you own a Spanish villa that spends a large part of its life sitting empty? I’m sure you don’t need us to tell you how lucrative it could be for you to rent it to holiday makers while you are not using it, or even while you wait for a suitable buyer.

We’ve seen some amazing good news stories from owners who have turned around their fortunes by embracing holiday rentals as a source of income. For example, one of our owners was on the verge of losing his townhouse to the bank, but with a clever niche-marketing strategy he now consistently gets 30+ bookings each year, bringing in an important income of £25,000 to £30,000 every season. Not only did he save his house from being repossessed, he also paid off his debts, and is now looking for another rental property to buy.

Another of our clients who owns a luxury villa in Spain was struggling to find a buyer when the market crashed, but rather than reducing the sales price and selling for less than it cost him to build the villa, he instead decided to rent it out. He managed to achieve £140,000 worth of bookings after commission in his first year which has seriously helped towards his initial building costs and tax bills. That’s not a figure to be sniffed at!

Obviously any income you make from your holiday rental is taxable, just as your earnings from employment would be. And since 2013 the 17 autonomous regions of Spain have been introducing a licence procedure for holiday rentals, which works to ensure the industry is well-run, professional, and offers quality accommodation for tourists, which can only be a good thing!

Registering your holiday rental in AndalucíaAndalucia is the latest region to approve a very simple and free registration system, so that you can get your all-important licence number, which will allow you to use all of the online marketing channels available to you.

The law was approved on 2nd February and the law will come into effect on 12th May 2016, giving owners time to register.

Registering your Spanish villa for holiday rentals is a no-brainer, especially if you advertise your villa online to attract bookings (who doesn’t?). Many owners are too busy to set up and manage their own website and marketing strategies, so just like our clients we mentioned before they work predominantly with specialist rental agencies and listing sites to bring in bookings. But increasingly, these listing sites will only be able to advertise properties that hold a licence number, as we have seen with Airbnb and HomeAway in Catalonia, who faced big fines themselves from the Spanish authorities for continuing to advertise holiday rentals that were not registered.

If you own a holiday rental in another region of Spain, we recommend you read our article, which gives a quick run through of the latest requirements for registering a holiday rental in each region, so you can be sure that you are doing things the right way.

As sure as Benjamin Franklin was about the certainty of death and taxes, we are even more certain that villas with a licence number are going to have a massively out-perform those properties that are unregistered.

Think about it, you will have a massive advantage over clandestine rentals in terms of customer confidence, quality and legality, so you can easily take a lion’s share of the market from guests who will book your place over the unregulated villa next door – he may be trying to avoid the taxman, but that’s a false economy if he doesn’t have any income anyway!

As we mentioned before, there is no need to panic at all about the new Andalusian decree, unlike some tabloid reports it’s there to protect owners and guests alike and it’s free and simple to register.

We are going to be helping a couple of our villa owners through the paperwork as soon as the register opens to see how it all works, then we will report back with as much help and advice as we can offer to smooth the process for you.

Read our complete guide to registering your holiday rental in Andalucía.

choosing where to advertise marketing holiday rental

What are your biggest holiday rental challenges?

I was contacted a couple of weeks ago by a lovely lady asking for some feedback on the website for her property in the South of France. As we got into a deeper discussion about all the challenges she is having to overcome with marketing her holiday let, it got me thinking about the many ways in which Rental Tonic could really help owners with similar problems. Read more

Self Catering Web Awards 2013 Image

The Self Catering Web Awards 2013

I am honoured to have been invited to be a judge for the 2013 Self Catering Web Awards on behalf of Rental Tonic. I would encourage all UK holiday rental owners and agents to get involved when it next opens for entries. Read more

Holidaymakers questions booking self catering accommodation

Revealed: The Extras Your Holidaymakers Want

Self-catering holidays used to be simple affairs: rudimentary facilities and little opportunity for holidaymakers to find out much about where they were staying before they arrived. That’s all changed with the rise of the internet and social media. Read more

Should You Advertise Your Holiday Property Address?

Disclosing the exact address of your holiday property is something that causes great debate among the holiday lettings community, and with good reason. Read more

where to advertise a holiday home

Case Study Part 4: Where to Advertise our Holiday Home

In this holiday rentals case study series we have been talking about how we turned a neglected long-term rental property into a home with good holiday rental potential for families.

If you follow the previous post, you can see how Rental Tonic created an action plan for the Owner to target a specific niche market,  and how we took some time over the photography to present the house in the best way online. Once we had enough images it was time to make a start on some advertising… Read more