Buyers of holiday villas hope to fund the purchase of their property out of the rent received from renting, but is this dream feasible?

Properly managed property in a popular area, especially if it attracts bookings throughout the year, should be self-financing. However, ‘properly managed’ does not necessarily mean that you should trust a rentals agency to handle bookings and generally manage your villa. Indeed, if the recent experience of many villa owners in Spain suggests that you should be very wary of using an agency and you would be better advised to handle everything yourself.

There are many examples of absentee villa owners not being paid for lettings that the agents ‘forgot’ to inform the owners about. Jane Moore, a solicitor in Marbella, has heard of many examples of owners being ripped off. “I’ve heard of rental agency staff using clients’ properties for all sorts of things, including family holidays,” she says. “If you don’t live locally, it’s hard to know what is going on in your property.”

There is a way around the problem. The internet offers many sites where you can advertise your villa and most provide an availability calendar and a booking form. By advertising online you can take control of bookings and handle your business yourself, saving the 20% of rental income charged by most rental agencies along the way. All it takes is a little time and effort. The secret of success is to make yourself available at all times. If someone wishes to discuss a booking they have to be able to contact you either by telephone or email, and you need to respond with little delay. Keep a potential customer waiting too long and he will take his business elsewhere. It will also save you time if you keep your availability calendar updated. If a customer contacts you wishing to book dates that the calendar shows are available but that are already booked, your time is wasted and, more importantly, the customer is annoyed and probably less likely to accept alternative dates.

The availability calendars on our sites are designed to be as user-friendly as possible. The calendar doubles as a booking form and, when you receive an email containing details of the booking, the email includes a link back to your calendar. Merely clicking on the link automatically updates the calendar and marks the weeks in question as ‘booked’.

Despite the drawbacks, some villa owners will not be able to spare the time to mange their business and will be forced to use an agency. The challenge then is to find a good one. Ask for recommendations from other clients and make sure you check them. Scrutinize the rental agreement carefully to ensure it is clear what the agents are required to do. Also, demand to see copies of the utility bills, then you can see when the property was occupied and check that information against the periods when rent is paid to you.

If you treat your holiday villa like a business there is no reason why it should not be self-financing, and provide a foundation for a portfolio of holiday rental properties.

Tony Luck manages a website advertising vacation rentals. More articles of interest to villa owners can be found at his website.