Renting out your house in the Canary Islands - Get the most out of your investment!

Thinking of renting out your own (holiday) home in the Canary Islands? It's a fantastic opportunity with various options and possibilities, but it's also essential to be well-informed about the pros and cons. In this blog, we will guide you through different aspects and provide useful tips to make the most of your rental experience.

Renting out your house in the Canary Islands - General 

First and foremost, it's important to determine the type of property you have: a holiday home or an investment property. The approach and possibilities for both can differ significantly. If your property is an investment property, you might consider renting it out for a longer term. In this case, the tenant will establish their domicile at your property's address. Of course, this isn't possible if you also use the property as a holiday home. Registering a tenant at your address would not be appropriate.

Another crucial consideration is how to securely store your personal belongings while renting out the property. It's essential to have space for your own items without granting easy access to tenants. Fortunately, some practical systems are available, such as storage spaces under sofas or beds, but they might not always be sufficient. Consider an lockable closet or external storage accessible only to you. It's an important aspect to consider when purchasing or furnishing your property. Moreover, traveling with just a small carry-on bag has financial benefits that shouldn't be underestimated!

Let's not forget to set a realistic goal for your rental adventure. It's understandable to wonder whether renting out your holiday home can cover the costs of your mortgage and fixed expenses. Unfortunately, the answer is simply: NO. Although rental returns in the Canary Islands are generally higher than in many other mainland regions, we must remain realistic. Don't expect castles in the air but consider it a valuable addition to your investment.

Renting out your house in the Canary Islands can be an exciting and rewarding experience as long as you are well-informed and have realistic expectations. By understanding your property type and goals, and ensuring secure storage of personal belongings, you can fully enjoy the many advantages this beautiful region has to offer.

Renting out your house in the Canary Islands: Short-term rental, commercial holiday rental

The idea of renting out your property in Fuerteventura to vacationers is undoubtedly appealing. Tourists come to this beautiful island throughout the year, seeking sun and a wonderful holiday. The rental prices are enticing and promise high returns. Moreover, you can easily fit in your own vacation plans. But before you dive into the adventure, there are some important considerations you need to make.

In commercial holiday rentals, real estate sellers sometimes promise a guaranteed 100% occupancy, but in reality, it is not achievable. With visitors arriving on any day of the week, it is difficult to enforce strict check-in and check-out days. Additionally, there is a "low season," though it can be better described as a "quieter season." Tourism is noticeably quieter between mid-April and mid-July.

Sometimes discounts are offered, for example, to fill in empty periods or attract "wintering" guests. During the period from mid-January to early April, older visitors often come to the Canary Islands for longer stays of 4 weeks or more.

In commercial rentals, it is almost necessary to use rental platforms such as Booking.com, Airbnb, and others. However, these platforms do take a percentage of each rental. Additionally, you need to apply for a VV license (Viviendas Vacaciones) if you promote your property online for commercial rental.

Managing commercial rentals is the most intensive. It includes cleaning the property, maintaining the pool and garden, washing bedding, performing repairs, arranging check-ins and check-outs, managing rental platforms, drafting contracts, and answering potential tenants' questions. This requires a lot of time and effort, and if you are not on-site, someone else will have to handle most of the management for you. These managers, of course, do not work for free, and their commissions start from 20% of the rental amount. Additionally, the cleaning costs should also be taken into account.

Renting out your house in the Canary Islands: Short-term rental to family, friends, and acquaintances

If you are looking for an alternative that allows for more self-management, consider short-term rental to family, friends, and acquaintances. While the influx of tenants may be smaller, the management is much easier and more personal. You don't need to advertise on booking sites, and communication with acquaintances is smoother. Moreover, the likelihood of damage and unpleasant surprises during check-out is much smaller. Although you still need external help for organizing check-ins, check-outs, and cleaning, the costs for these services are much lower than with public commercial rentals.

Renting out your house in the Canary Islands: Medium-term rental

Did you know that there is an emerging trend in the rental market on Fuerteventura? Introducing "medium-term rental" - a relatively new rental method that is becoming increasingly popular thanks to a new type of tenant: the digital nomad! These modern adventurers work remotely and travel the world, often staying in one place for just a few months. Long-term winter visitors are also attracted to this flexible and interesting option.

Why is medium-term rental so appealing? For landlords, it offers the opportunity to rent out their properties for longer periods, usually not exceeding 3 months at a time. An alternative is to rent on a monthly basis, possibly with automatic renewals for a predetermined number of times. This way, vacation home owners can benefit from fixed and fully prepaid rental income. Of course, the nightly rates are lower, but the reduced operational costs make it a win-win situation.

To make the most of this rental method, a specific commercial approach is required. Forget the usual rental platforms like Booking or Airbnb - for medium-term rental, traditional real estate websites and specific social media groups are the best options. Real estate agents can provide professional assistance and ensure a broader reach of potential tenants. Commissions for long-term rentals usually amount to about 10%, excluding the costs of listing your property online. And while cleaning may be less frequent, you should still consider maintenance, depending on your property (pool, garden, etc.)

Renting out your house in the Canary Islands: Long-term rental

Then there's the classic option: "Long-term rental." This rental method is only suitable for investment properties. With a growing demand for affordable rental homes in the Canary Islands, long-term rental offers a solid return. It is crucial to choose the right property that caters to your target audience. Location and furnishings differ from tourist rentals. Commercially, the approach is similar to medium-term rental, but there are important contractual aspects and screening of potential tenants.

Summary

Are you interested in rental opportunities in the north of Fuerteventura? Good news! For our clients who have purchased a property through us, we provide all services in every rental form. Feel free to contact us and discover the different possibilities!

Whether you opt for medium-term rental, long-term rental, or short-term rental, Fuerteventura offers countless opportunities for landlords. Choose wisely and maximize your investment!