Our top tips for renters

So you have purchased a lovely property and you would like to offer it for rent. We have years of experience, and here we highlight some common mistakes - and, more importantly, how to avoid them.

Your own oasis, or a rental palace?

This may seem obvious but it is most common mistake people make. When it comes to furnishing this is absolutely vital; are you furnishing your own home, or are you furnishing a place to rent out? You might not be able to live without purple leather wall coverings or avocado bathroom fittings, but of course what might be exquisite taste to you might not appeal to a wider market. That is not to say you have to stick to a bland look, of course not, but beware of letting your own style get in the way of something that will appeal to your market.

If your place is going to be used as a rental do remember that your guests will be arriving with luggage. Do you have somewhere for their cases or bags to go? Luggage tends to scuff walls if you don't allow much space - a case rack is always a good idea.

Be careful you don't 'goldpate'

It is a fact that however much you spend on fifty thousand thread count wild-Egyptian organic cotton sheets, although your renters might enjoy a lovely sleep, you are highly unlikely to recover the outlay in a higher rental. The same is true when it comes to kitchen appliances and the tech that you decide to install. When most people start their search they are guided by price. Sometimes two near identical properties might stand out if one seems to offer better amenities, but only so long as the price differential is fairly marginal.  Another way of looking at it is like this, you can pay over fifty times the price of an economy seat to fly across the Atlantic, but if the flight is delayed, you suffer the same delay as the person in the cheap seat.

Be realistic when it comes to rental income

Everyone dreams they will make a fortune renting. It is not true. The ease of putting together your own holiday, together with the proliferation of on-line rental sites means that there is a great deal of competition. Prices can change hourly to remain competitive. Take advice from people who understand the market - do you own research, and don't forget that rental income is taxed.

I will be choosy about who I let stay

You might feel that way, but laws and regulations forbid any type of discrimination. That doesn't mean to say it is a free for all, of course you can stipulate certain house rules that can form part of the conditions relating to the holiday contract. Reputable rental management agencies will also sometimes advise that a property is not suitable for young children or people with access issues, but you cannot say who can and cannot stay.

Guests will pay for any damage so I am OK..

In theory, yes, your guests will have to pay for any damage that they cause during their stay, However you cannot charge for wear and tear, so do bear that in mind, If you are offering your property for rent it will take - to use a specialised technical term - a bashing. Domestic quality bedsheets will seldom survive a commercial laundry for more than a few washes, as an example. Cream coloured soft furnishings are a magnet to red wine and sun tan oil, the rule when it comes to damage is that it generally has to be deliberate. Accidents happen and that is what insurance is for.

I am fully insured

Make sure you are. Normal household insurance policies will NOT cover the use of the property as a rental. Also make sure that you have adequate public liability insurance in place. If a guests slips over on a wet bathroom floor and is unable to work due to incapacity they might (or their insurance company might) claim against you. The same applies to 'unsafe' stairs, balconies etc. You have to adopt a hotel approach when it comes to your property and any obvious hazards.

 

So how should you go about avoiding these common mistakes?

Offering a property for rent in a highly regulated market requires in depth knowledge of the various rules and regulations as well as experience of the market. Unless you have this knowledge you really are best consulting with a reputable rental agency, such as BonaSOL. But do your research, make sure whoever you choose really does have the detailed knowledge to help you.

Take their advice. This is vital, otherwise you are wasting your time and money. Remember that reputable rental agencies all operate on a commission based on rental, so it is in their interest to secure as many rentals, and at the best rate possible. If they say furnish your property for four people instead of, say six, there will be a business reason. As it happens, six person units are not as easy to rent as units for four people.

Make sure you have prepared your own business plan. Most properties will have associated charges such as community fees, have you factored these in? Also remember that you cannot charge for electricity, and so if your guests leave the air-conditioning on all day that will soon eat into your earnings. Reputable rental agencies will advise you on energy saving measures.

.

la cala 2