Thinking about buying or selling your property in Portugal for rental investments? One of the reasons to buy real estate in the Algarve, Portugal is because it can double up as a holiday home. Renting out your holiday home in the Algarve can be a great way to earn a consistent passive income, as long as you do it the right way. Let’s discuss how to do that.
Tip #1: Hire a local as a contact for the property – If you don’t stay in Portugal, then you should hire someone who lives there to look after the property. That person can help you out with any questions or enquiries that someone may have about it. Your guests will expect to have someone close by that they can talk to about their issues related to the rental villa.
Tip #2: Make sure your descriptions are accurate – It is very important that your adverts about the property should be accurate. Never exaggerate any of the features of your rental home. Yes, it is important to present the holiday home in the best manner possible, but never exaggerate at any stage.
Tip #3: Set the right price – Setting the rent is the same as setting the price for a property for sale in the Algarve, Portugal. You must be realistic about it and set a price based on what other homes in the neighbourhood are being rented out for. Do your research and arrive at a competitive rent for the property.
Tip #4: Encourage people to give great reviews – Reviews and testimonials make all the difference in the rental market. Getting a great feedback from your renters builds confidence in what’s being offered. Build excellent relationships with all renters and ask them for a review when they are finished with their stay. Be sure to respond to the reviews politely, regardless of whether they are positive or negative.
Tip #5: Make sure your property is adequately covered by insurance – It’s very important that your rental home should be protected from the financial consequences of an accident. It should be adequately covered by rental insurance or homeowner’s insurance. There are many insurance companies in the UK that offer coverage for holiday homes abroad. This is something you should have a look at.
Tip #6: Presentation makes all the difference – Presentation of the property is the key. Make sure your property stands out using high quality pictures taken by a professional photographer. Your property should look special, so make sure the video shoots or photographs of the property are of HD quality. Take a picture of the bedrooms, garden, kitchen and the living room in a way that the home looks cosy and appealing.
Tip #7: Prepare for unforeseen circumstances – Often, when you rent out a holiday home to tourists, there are so many things happening that you cannot control, such as damage to the property from a heavy overnight rain, a leaking pipe, etc. You should be prepared for such occurrences and make arrangements so that action can be taken immediately. You should always have a local plumber, electrician and building contractor on the call.