Prospective clients may have noticed a drop in the number of holiday rental properties available through the popular lettings sites of HolidayLettings and HolidayRentals.
This is a two fold issue:
- The upsurge in professional complainers who are using the threat of postings on Trip Advisor to scare owners into compensation for “spoilt” holidays
- The Tourist Board in Tenerife have clamped down on what they call “illegal” holiday beds – those renting out their own properties instead of using the authorised agent on their complex
Trip Advisor
The upsurge of complaints to Trip Advisor is the bane of every owner of a Holiday Let property.
Once a bad review is posted, it is there forever – even if it is untrue. It is a sad fact of life that people will very often post a complaint, but would never think about posting for an enjoyable holiday. Perhaps this is true because the client would expect to get an enjoyable holiday, so this is not an exception. On the other hand finding something to complain about is something they don’t expect, so feel the need to post to Trip Advisor.
However, there is an increase in unscrupulous complainers, who are now using the threat of posting a bad review on Trip Advisor to get compensation from the owners. Such is the power of Trip Advisor as the de facto place to look for comments on locations, restaurants, specific complexes, and specific properties etc. “Pay up or we post a bad review” is nothing short of blackmail, and owners are powerless to control this.
TenerifeTourist Board
There has been quite a lot of publicity in the Local Tenerife Press regarding “illegal” holiday beds. The Tenerife Tourist Board employed an additional 17 inspectors for this year, and many owners have been caught in the net. The fines are heavy, so have scared off a large number of owners.
It is not sufficient to be “legal” in terms of declaring your rental income to the Hacidenda, they will happily (and quite rightly) take your money, and many owners think this is all there is to it. But the Tenerife Tourist Board insists on all holiday rentals being controlled. Your complex MUST be designated as a Tourist Complex, and there should only be one designated agent with the authority to rent out properties.
If you do not live inTenerife, it’s a costly business, and you may not be netting much out of each rental, you may not be happy with your agent, you may be fed up with the damage and destruction wreaked by your guests. So what do you do?
Holiday Let versus Long Term Let
It is a certain fact that whatever you can gross in a month for your holiday let property is probably halved for long term let.
That doesn’t sound like a good proposition on the face of it, but if you sit down and break down your costs, you could be presently surprised.
If you employ a holiday letting agent, in addition to paying them a fee for managing the property, you may also have to pay for laundry and cleaning if it is not included in their fee. There will most certainly be maintenance costs, as a succession of guests tends to increase the wear and tear on your fixtures and fittings. You may find that you are not letting as many weeks as you would like to.
Your fixed costs of insurance, IBI, Basura and Community fees will not change, but if you employ a Long Term Letting Agent, their monthly management fee will be smaller, you will not be paying for laundry and cleaning, and depending on the contract, you may no longer be paying for water and electricity.
If you are thinking this may be a better option for you, give us a call or drop us an email and we will work through the figures with you.