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Buying for rental income

Buying for rental income

Carvoeiro is traditionally a villa holiday destination and buying a property here, if well managed and marketed, can bring an excellent return on your investment.

Many potential holiday home buyers are put off by the cost of maintaining their Carvoeiro property year round, but with careful planning, a property in the right location can become a profitable business in its own right, irrespective of any ups and downs of the property market.

“The secret to securing a good rental return is finding the right location and getting the quality right” says Zoie Hawker of Fine & Country in Carvoeiro. “Walking distance to the village is a big bonus and something many potential villa rental clients look for when surfing the net looking for their holiday villa, but today’s modern customer also expects the comforts of home”.

The fact is that the villas in the best locations were mostly built more than 20 to 30 years ago and many have yet to be refurbished. Old kitchens with outdated appliances and poor plumbing are common problems, unfortunately these are problems that will not generally be apparent when the property is viewed online. But when buying these older properties, a little work such as replacing old window frames with double glazing, installing air conditioning and ideally replacing old floors when attending to old plumbing and electrics, it is not too difficult or expensive to bring an old property up to modern standards.

A high proportion of Carvoeiro holidaymakers who are impressed with their accommodation return year after year to the village.

“Its really quite simple” says Zoie, “We should think of our rental properties just as a good hotelier thinks of their hotel as that is how our customers will view us. Something as minor as a poor internet connection could be enough deter a guest from returning. So get the quality right, find the best location and you can be sure of a good rental income”.

It should be noted that the days of illegal rentals, without giving the taxman his share, are numbered, read here about the latest changes in a recent edition of the Algarve Resident newspaper:

www.algarveresident.com/50399-0/algarve/stamping-down

To get an idea of villa rental prices in Carvoeiro check out:

www.ownersdirect.co.uk/carvoeiro-area.htm