State of the rentals market

I'm cheating a bit here - being fairly new to forums and stuff, I originally posted this on the 'Licence of First Occupation' section because that was what I was looking at when I decided to post my question. As I said, I'm quite new to this! The thread (hey, I'm getting with the terminology) is in totally the wrong place, so apologies Justin, I've repeated it here in the hope of getting a reply.

Anyway, what I posted was...

We are shortly due to complete on a two bed/two bath apartment in Princess Park, Calahonda and yes, we are among the many suckers who thought that investing in an off-plan Spanish property was the answer to the abysmal performance of pension funds. Wait for a couple of years and then turn it for a nice profit. That was three years ago and how things have changed! Having totally depressed myself reading about the sales market, the only option seems to be to rent and hope that the market will sort itself out.

This is an excellent site and I've learned so much, but I haven't found any comments about the state of the rentals market, either short- or long-term. There are a couple of very good articles on short-term and long-term letting, but neither gives any indication of whether business is good or if a zillion owners are chasing a small bucket of tenants. With so many apartments and houses standing empty, surely that must result in many more owners entering the rentals market?

On the same subject, can anyone recommend a good property management company that would also handle the advertising, bookings, etc? My agent is steering me towards Bridge Holmes International - any comments?

Additional question - Is a combined letting/prperty management agent the best solution or do you get better results some other way?

Alan

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HI Alan I posted a reply to you under the other thread.

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Hi Alan, I also hail from Sussex.  Am new to the Spanish thing, better at computers!  Our lovely pension resides in Spain and so far, maybe we have been lucky, but we are pleased with the performance. We never planned to sell before 2010 but that could just be because we purchased around Vera Playa and that is the scheduled year for the completion of the area.

Anyway, we have had promising responses to advertising.  We found posters (with tear off slips) in the local sports centres, shops, big businesses, 'state' services etc encouraged a lot of interest onto our website.  Parish magazines also proved good as well as just talking to everyone we know!   We have also had success with a commercial lettings site (am I allowed to name it?  ownersdirect.com).  It has certainly paid the annual fee.  Thanks to Justin for alerting me to alexa.com just in time as I was about to sign with another company until I discovered this fab site which tracks traffic so you can see how many hits your bucks will buy - and we haven't been disappointed.

There is a lot of competition, but quick response to enquiries and I hope a polite manner coupled with realistic pricing seems, fingers crossed, to be reaping rewards.  Also, I think people like to see an availability calendar so have managed to build one of those on my v basic website.

Good luck!

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Hi Alan, Yes there are seemingly loads of properties for rental and not as many tenants as empty houses. If you work hard at it you can make a go of it, I know quite a few owners who advertise at their place of work and do well out of it. The trick is the price, the comfort factor and as long as you have good facilities close by, the next major asset is a good management company you can trust and who are there 24hrs for tenants!

A good one in your area is Inderix pm - based in Fuengirla but cover your area. I have passed their details to other owners who have been very happy with them. They are legal as well - makes a change! Let me know if you want their info or google them

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hi rixxy ,

            saw your blog about property managment company,
             do you have there address and contact number,
             inderixpm
                                       regards  jim

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Hi Jim.    We used to live around that area so we know a few thats ok as many are no good at renting only taking your money , Casa care/Property Finders. and Cariba sol are both ok, theres lots to rent in that area if you are only short walk to the beach you will get more bookings ( walking) expect about 650- 700 eur. a month long term or winter rental we have no idea where your new apartment is hope this info helps. It would also help if you rented from the uk side as well .   Regards  Rosi n

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    thanks rosi

                              thanks for your reply rosi ,our apartment is in torreblanca,
                          
                             close to los boliches in fuengirola

                                            regards       jim

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Hi Jim.     Its really best to use an agent  in the area of your apartment  the ones I said are in the Calahonda area so not much good for you. Much of Torreblanca  is tucked away up the top .We have walked around the area many times) there is a small agent near the supermarket but dont know how good they are at rentals but they have been there for years and we met them once they seemed ok , just be careful as its a minefield out there with lots of cowboys, best of luck .   Rosi n


This message was last edited by rosi n on 5/26/2007.

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I run a property rental web site and if I am to be honest, the market has been slower this year than previous years. The properties doing most business are those with 4 or more bedrooms that can cater for larger groups. That said, the price still has to be right. This in my mind within the current market with too many proeprties for too few clients is paramount in taking bookings. Too many owners have increased their fees this year not realising that they are pricing themselves out of the market. 

Do not expect to have your property booked for the whole summer, few owners acheive this.  spread your advertising on the internet around. Use three web sites including two that specialise only in Spain.

If it costs you £300 for the 3 sites it will be money well spent and you 'should' recover the costs from just one two week booking.
Advertising in magazines will cost up to 10 times as much for whole year.

Like someone else commented, check emails at least twice a day if you can and reply politly and quickly even if it is booked. They come back for next year.

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I just re-read webster's posting. I think it is fair to point out that going by the Alexa stats is not always sacrosanct. 

Sites like the ownersdirect one are targeting global markets and therefore will have 1000s more visitors to the web site.  Spanish only targeted sites will ONLY attract those persons seeking rental property in Spain. My own site attracts in excess of 12,000 visitors per month. It appears in the first pages of Google for most search strings.

So please do not be too heavily pursuaded by Alexa stats they are only appropriate if you compare like with like. IE Global with Global - Localised with Localised. Phil

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Does anybody have realistic figures for how many weeks per yer/occupancy you can expect in Costa Del Sol - Benalmadena.

I'm trying to do the numbers i.e. income (rental) and costs (mortgage, taxes, fees etc) to see if I can break even or where I will end up. Any sources of this information you can recommend e.g. websites, financial advisors?

Thanks

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In response to your request for information about number weeks expected to book.  Can I point you to an article I wrote recently  ezinearticles.com/
It explains all about what to expect from your rental property. I run a rental web site so have very good knowledge of what owners can expect. The most crucial thing is not to over price.  The is an abundance of property available especially in the Benalmadina area.  Hope the article of of some use to you. Phil

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rhackett - what property do you have and where in Benalmadena is it?

As Chelseaphil points out dont price yourself out - it has been a quiet year and will be a very quiet winter. Im amazed how many long term proeprties there are around and see the prices much lower than only 2 or 3 years back.

Im glad Im out of that business now! Mind you, out of frying pan and into fire meethinks!!

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Hi Rixxy & Phil

Thanks for the feedback. The property is in Arenal Golf  in Benalmadena. It is on its own "mini" golf course but a few km from the beech. It is beside Toreqebrad Golf Course & only 15 minutes from Malaga airport.

There have been major delays & change of developers - supposed to finish last December. I'm trying to work out my chances of getting the rental to cover the mortgage.

 

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I will pm you cos it wouldnt be fair to have my reply for open viewing - unless you are comfortable with it!

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