One of the most profitable types of property to invest in is a holiday rental. These types of properties can generate a large amount of regular income, as well as provide a foreign getaway for you to enjoy from time to time.
Having a portfolio of holiday rental properties can even create enough passive income for people to leave their current employment and become a rental property manager full-time. In this quick guide, we are going to look at some of the different ways to build a holiday rental portfolio and what you should be aware of as you look for properties to let to holiday-makers.
Location, Location, Location
This is the most important factor when looking for property to build your portfolio. You need to identify popular holiday destinations in order to guarantee clients that will want to rent your homes to use while they enjoy the sun, sea, and sand of their holiday.
Spain is a massively popular holiday destination and has a thriving holiday property market, making it a great place to get started. Look for areas near to popular beaches that are serviced by airports that have flights coming in from all over Europe. Buying property in Spain is relatively straightforward but it is a good idea to find someone local to the area that can assist you. Get yourself an English lawyer in Spain to help you with the process and act as your representative when you are not in Spain so you don’t have to hop on a flight to dot all the i’s and cross all the t’s.
If you want to make the most profit possible from your holiday rental property portfolio then you should consider managing the rentals yourself, though this may take up a lot of your time and could require you to live in the area around your holiday homes.
Using a holiday property rental agency will eat into your profits a little, but will make the rentals much easier and give you more free time. Many people who begin to build a holiday rental portfolio will do this at first, and then slowly take more control over the renting of their properties as time goes on and learn more about what is needed to rent holiday homes successfully.
Liabilities, Insurance, and Taxes
These types of costs must be taken into account when you are budgeting. Failing to insure your properties in the event of accidental damage, for instance, can be very costly if something goes wrong.
Taxes will vary from area to area, and there are many local municipalities that offer incentives for holiday rentals, so investigate these costs before you commit to a property or an area. This is another area of property ownership where a rental management company can help you. They will be well versed in all the local property taxes and professional liabilities and can help you navigate through all the paperwork associated with owning a holiday rental property in a foreign country.
Renting a holiday home abroad can be a great way to generate income, and could be the first part of a thriving business that you build for yourself. Hopefully, this quick guide will have helped you along the way.
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