2014 was another challenging year for all. However, many property owners choosing to rent their place in the sun have reportedly had a great year. How did yours measure up? Did you under- or over-achieve? Is there room for improvement? And, has your property survived in good order?
Although we are not yet at the end of the 2014 calendar year, the holiday rental season is drawing to a close. As a result, it’s time to begin to reflect on the performance of your property.
Whether you under- or over-achieved, it’s worth looking at four key areas: Price, Product, Place and Promotion – more commonly known as the Four P’s.
When considering Price and Product; how does your property compare to other similar properties in your area? Are you more expensive? Do you have all the mod cons, for example, air conditioning, wi-fi, pool, etc? Is your property beginning to look tired?
As these tough economic times persist, an increasing number of second homeowners in the Algarve are choosing to make the most of their idle asset, and benefit from some short-term holiday rental income. Consequently, the market is experiencing an increased number of properties available for short-term holiday rental, which translates into a much more competitive market.
Therefore, never has there been a more important time to look around and see what your neighbours and competitors further afield are offering the discerning holidaymaker.
Also, with an increase in rental occupancy comes an increase in wear and tear. If your property is beginning to look tired it could be time to consider a bit of a freshen-up. It’s amazing how a new paint job can transform the look and feel of your property.
As a result, this will place you ahead of your competition, providing you with the potential to over-achieve in your rental aspirations for 2015.
Once you’ve addressed the areas of Price and Product, it’s time to consider Place and Promotion.
On the topic of short-term holiday rentals, Place and Promotion are all about where you advertise your property and how you advertise your property.
Whether you put your property in the hands of a managing agent or whether you do it yourself, the same rules apply. Ninety per cent of all holidays are booked online these days, so ensure that your property appears in at least two or three of the successful online holiday rental and online travel agency websites.
With regards to Promotion, it’s a good idea to look at how your competitors present their properties on these websites, and try to put your own property in the spotlight with good current photos, detailed information about the local area, what’s on, places of interest, things to do, good restaurants and bars nearby, etc. But, all this must be truthful, honest and current. Showcasing photos of your property that are five years old will be self-defeating if they don’t reflect the current condition. The holidaymaker will see for their own eyes when they get there, and the repercussions can be damaging, the internet is a very public place.
Finally, as this rental season comes to an end, and before the onset of next year, it’s a good idea to have your property thoroughly checked. Think of it as an MOT that you would normally have done on the car. Again, this will prepare your property to beat the competition and over achieve in 2015.
By Brett Hawkins
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Brett Hawkins is the managing director of GMT 24:7, a local expert in all areas of general building and property maintenance, with offices in Lagos and Almancil. | www.gmt247.eu
