An average apartment or townhouse sleeping four to six in an average area can be let for between €300 and €600 per week, depending on the season, location and quality. At the other extreme, a luxury villa in a popular area with a pool and accommodation for 8 to 12 can be let for €1,000 to €3,000 per week in the high season. The high season includes the months of July and August and possibly the first two weeks of September.
The mid-season usually comprises June, late September and October (and sometimes also the Easter and Christmas periods), when rents are around 25 per cent lower than in high season; the rest of the year is usually the low season, which may extend from October to May, when rates are usually up to 50 per cent lower than in the high season. In winter, rents may drop as low as €75 to €150 per week for a two-bedroom apartment, although there may be a minimum let of around two months.
Note that rates usually include linen, gas and electricity, although electricity and heating (e.g. gas bottles) are usually charged separately for long winter lets.
Increasing Rental Income
Rental income can be increased outside the high season by offering special interest or package holidays – which can be organised in conjunction with local businesses or tour operators – to broaden a property’s appeal and cater for larger parties. These may include:
- Activity holidays, such as golf, tennis, cycling, hiking or yoga;
- Cooking, gastronomy and wine tours/tasting;
- Arts and crafts such as painting, sculpture, photography and writing courses.
You don’t need to be an expert or conduct courses yourself, but can employ someone to do it for you.
Costs & Expenses
When letting your property, make sure you allow for the numerous costs and expenses that inevitably reduce the amount of profit you can expect to make. These may include: a letting agent's commission; cleaning between and during lets; laundry of household linen; garden and pool maintenance; maintenance of appliances; replacement of damaged or soiled items; and insurance and utility bills (note that electricity bills can be high if your property has air-conditioning or electric heating). Some property owners find that the costs and expenses account for as much as half of their rental income.