| This page is intended to inform property owners what is involved in the
renting of their property. Villas & Vacations have been renting and
managing properties in the Quinta do Lago and Vale do Lobo areas for over
a decade and have great experience in this field.
If you do not intend to live
in your property on a permanent basis then renting your property is an
excellent way to cover the running expenses of your property and generate
a return on your investment. To give a general guide to the expected
level of income, if the property was available for rental from
May to October the projected income could be anywhere between 3-6% of
the value of the property.
Worried about damages to
Of course nothing in life
is risk free - but we believe it can be minimised. Here is a discussion
of how we deal with potential damage to properties at Villas & Vacations.
With our marketing strategy
and co-operation with other agents around the world we attract over 1500
groups per year. Our marketing includes advertising in national newspapers,
up to date web sites and our very successful colour brochure which is
printed annually and is sent to over 15,000 people. We are more than just
an accommodation agency. We also organise and book other activities to
"add value" to holidays. This includes car hire, golf, tennis
etc. and we even have our own Tennis Centre and Kids Club. We refer
clients to airline charter and scheduled flight agencies in their own
country to book their own flights. Our rentals team consists of five professionals
backed up by our own in-house computerised reservations system. Our rental
personnel will inspect your property and depending on the size, number
of bedrooms, location, features and the area, we are able to provide you
with a marketing plan customised to your requirements.
Our pricing policy is based
on categorising properties into a price band, however other features and
the standard of the accommodations can also affect the price range. Once
we have agreed the price band with yourselves this becomes the public
price which we will market it at, and for ease of calculation we categorise
the price band with a letter (see the price list in our brochure). The
price band has five different prices depending on the time of year. The
most expensive range being middle of July to end of August which we classify
01/11 - 20/12
02/04 - 01/05
01/10 - 31/10
17/09 - 0/09
03/09 - 16/09
13/08 - 02/09
We can further increase your
bookings by promoting your villa through other tour operators and agents
and, in addition, offer last minute discounts to fill as unoccupied weeks.
Both these will involve offering incentive discounting from our public
prices but we can discuss this with you on an individual basis or part
of your marketing plan.
We have two main types of
rental contracts and these are as follows:
- Our standard "Rental
Contract". This is where Villas & Vacations control the
availability and properties under this contract are generally offered
first. It is of course advantageous to both parties if we can offer
the property to clients without the delays involved in checking availability.
- A "Request Rental
Contract" is where the availability of the property is controlled
by the owner or some other agent. It is more difficult for us to work
this way as our clients usually want to know what is available straight
away and do not wish to wait until we have contacted owners or other
Our rental commission is 20%.
This figure is taken from the gross figure of the rental income and IVA
is charged at 5%. For example, a property at price band J is £ 1520 per
week in Peak. If this week was sold through one of our agents with a 10%
discount the gross price would be £ 1368 less our 20% commission and,
if required, 5% IVA leaving you the owner £ 1026.
From this figure we would
also deduct the cleaning charges, if Villas and Vacations carried out
the cleaning. Our cleaning charges include the maids labour and
travelling expenses, all laundry and cleaning products. To simplify these
charges we make a charge per bedroom per day occupied (see our Management
contract for current prices). In general terms for the above a typical
example of a 3 bedroom property would cost around £ 85 per week. Therefore
nett to the owner would be £ 1026 less £ 85 which is £ 941.
If we had the property from
1st April to end of October we should rent anything from 20
to 32 weeks and the percentage of direct and agent weeks is normally about
60/40 and our direct clients are increasing every year.
If you wish to rent your property
we would first view the property with the intention of giving you a written
confirmation of which price band we would offer the property at, with
any recommendation of improvements or safety features, e.g. gas certificates,
pool depth markers, glass door stickers etc. If you agree and contracts
are signed we will appoint one of our rental team to your property, who
will keep you informed on how your rentals are progressing and be your
main point of contact.
Before we can do any rentals
for your property you must ensure that you have someone responsible for
the property management, either this can be done by Villas and Vacations
or a third party who can respond 24 hours, 7 days a week.