Management of you property Contracts

 

Renting your property

Renting out the property you own in Tenerife can be a useful way to finance the purchase and ongoing costs of owning a property.

As people grow more disillusioned with the performance of pension schemes, it is also an attractive alternative investment opportunity. Demand for Tenerife holiday rental is increasing.

There are a number of things to consider before buying a property for letting:

• Location, Location, Location: holiday homes bought in the best area are likely to attract the most clients.

• Even in a good location, if the property is not attractive and comfortable or does not meet the clients demands it is unlikely to get many lets

• Clients will always opt for properties with good nearby facilities such as shops, restaurants and sports clubs.

• Remember, people looking for their perfect two weeks in the sun can be discerning customers.

The Perfect Rental Property
Popular tourist locations are the most desirable places to own a 'buy-to-let' property.
When you view your potential property, bear in mind some other important features of the perfect holiday rental:

• Proximity to the sea, restaurants and bars.

• Proximity to supermarkets and other shops.

• A swimming pool, either exclusive to the property or a shared pool.

• Safety when walking in the area in the day and at night.

• A barbecue (especially gas which is easier for the client to keep clean).

• A plentiful supply of fresh linen and towels.

• A washing machine and an area where clothes can be dried.

• Satellite/cable T.V.

 

Management of you property

Using 'word of mouth' is the simplest and easiest way to rent out your property. Let friends know that you have a property abroad that you would like to rent and ask them to tell their friends about it. Having people you know in your holiday home may make you feel more comfortable about others staying there.

You may consider handing your property over to a holiday company. This may make you good money but be careful to check out their fees before you sign any contracts. And remember, you can't build a clientele if you have no details of who is staying there.

There are numerous companies in Tenerife including ourselves who will manage your property for you. The service provided by these agencies varies enormously, so make sure you have thoroughly checked what their service includes. For a small established company, expect to pay between 25 - 40% of your letting for their services and £300 per annum for additional maintenance. Many estate agents offer a property management service, but always deal with people you can trust.

 

Contracts

Ensure that the terms of your contract and the quality of your tenants meet your requirements. If you deal with a holiday rental company, read the contract very carefully before you sign. Make sure that any damage to your property is made good and the cost does not fall upon you. If you are supplying the tenants then any damage will be down to you, so make sure you receive a deposit

Ensure any rental business is legally registered and that you pay the appropriate taxes and insurance. When you provide linens and other services you qualify as a business and should legally declare a property as tourist letting accommodation. This may seem an unnecessary hassle, but remember that if anything goes wrong you will have a legal footing.