Lately, there is much talk about tourist rentals as more and more people choose this new form of travel to organize their weekend in another city, to plan the summer holidays or to spend the entire week or month in another place for work. Not only the millennials but also whole families and business travellers are using Airbnb, HomeAway, TripAdvisor or Booking.com nowadays. That is why tourist rentals could be a great opportunity for many people, in fact, it is not necessary a lot of capital to become part of this sector. You can start by renting a spare room in your apartment, inherited property or thinking of a real estate investment aimed at the excellent return derived from tourist rent.
We wrote on our latest blog post about investing in the Spanish real estate market and how to make more money with the tourist rent while selling the property. Today we want to give you advice on how to invest well if your goal is to get a high income from the property, so a good ROI (Return On Investment). Keep in mind that the tourist rent compared to a long term rent has the enormous advantage that, generally, the income is much higher and also that you can use the property at any time you want. Let’s see together how to choose a good investment.
First of all, we must establish what budget we have, bearing in mind that about 10% of the value of the property will go into various taxes and expenses, depending on many factors such as location and age of the buyer. You do not necessarily need to have all the money to buy the property, nowadays banks grant mortgages that cover from 80% up to 100% of the price.
Once the budget has been established, we need to find the right property to buy and at that point, it is essential to carry out a thorough market study. Not necessarily your apartment needs to be in the city centre, especially if the budget is not very high, sometimes suburbs areas can offer a higher return given the entry price is much more accessible. When we have found the right property it is important to calculate how much your ROI will be and this will depend on: how much you can earn from the tourist rental and how much it will cost us to fix and furnish it. If you do not have much time for restructuring it is probably best to look for something that is already in excellent condition and ready to be rented.
Certainly, choosing the property is the most difficult part and, in many cases, you need to have high knowledge of both the real estate and tourist rentals markets. Beahost Real Estate, with high experience in those sectors, is able to offer you excellent property investment advice. We are an experienced company who does the management of the tourist rental and we deal every day with investment opportunities.
We have several successful cases to present you, it will be a pleasure to answer your questions, help you with the choice of the property on which to invest and take care of the management of tourist rent. For more information contact us at email@example.com or call us/WhatsApp on +34 611019480.