How to invest in tourist rentals
Lately there is much talk about tourist rentals, more and more people choose this new way of travel. Not only millennials, but also whole families and business travelers use Airbnb, HomeAway, TripAdvisor or Booking.com to organize their weekend in another city, plan summer vacations or to spend the week or the whole month in another place for work. That is why tourism and tourist rentals have become a great business.
The tourist rental can be a good business opportunity for many since it is very accessible, in fact, it does not take a large capital to be part of this sector. You can start by renting an available room in your apartment, renting an inherited property or thinking about an investment in a property with the aim of obtaining an excellent return on the investment derived from the tourist rental. Beahost had already written in the past giving advice on why to invest in the Spanish real estate market, or how to earn more money with the tourist rental while the property was sold. Today we want to give you advice on how to invest well if your goal is to obtain a high income from the property or a good return on investment, ROI (Return On Investment).
Remembering that the tourist rental compared to a long-term rental has the enormous advantage that you can use the property at any time and that, in general, the income is much higher, let’s see together how to choose a good investment. We must establish what budget we have, taking into account that approximately 10% of the value of the property will be used for various taxes and expenses, this value may vary depending on the location and age of the buyer. We do not necessarily have to have all the money to buy the property, nowadays the banks grant mortgages that cover from 80% to 100% of the value of the property.Once the budget has been established, we must find the right property to Buying, it is essential to conduct a thorough market study. Not necessarily our apartment will have to be in the center of the city, especially if our budget is not very high, sometimes peripheral areas can offer greater performance since the entrance price of the building is much more accessible. Then calculate how much our ROI will be. When we have found the right property, we calculate how much it will cost to repair, furnish it or if the property is supplied to us in excellent condition and ready to be rented.
If we do not have much time for restructuring, the last option is always the most appropriate. By the way, the choice of property is the most difficult part and, in many cases, you must have a high knowledge of both the real estate market and the real estate market. tourist rentals. Beahost Real Estate, with great experience in both sectors, can offer its clients excellent property investments. We are an experienced agency that manages the part of tourist rentals and every day we evaluate investment opportunities.
We have several successful cases to present to you, it will be a pleasure to answer your questions, help you with the choice of the property in which to invest and manage the Tourism rental administration.