We give you 5 tips to sell a holiday home in Fuerteventura achieving maximum profitability.
Having a vacation home is an excellent way to obtain some extra income by renting, while owning a property that is revalued over time. In addition, the tourist rental allows the owner to enjoy his property during certain months of the year, if he so wishes, combining tourist rental and personal use in the most advantageous way.
In spite of its multiple benefits, the tourist entrapment can become something complicated to manage that does not always reach the expected profitability. It is at this point, where many people consider selling their vacation home.
Alternatives for sale
Before deciding to sell a holiday home in Fuerteventura, consider the following options:
- Switching to long-term rentals: it is much easier to manage. In addition, the scarcity of this type of product compared to its high demand, allows owners to select the most solvent tenant profiles while obtaining not inconsiderable economic benefits.
- Delegate responsibilities: in Fuerteventura there are large companies dedicated to the management of holiday rentals, so you can hire one of them to delegate the business and still get great returns without having to worry about anything.
* If you want to know how companies dedicated to long term rental management or vacation rental management work, we encourage you to download the Destiny Home services dossier, a document in which we detail each of the services we offer to our clients.
Tips for selling a holiday home in Fuerteventura
But if you are still determined to sell a holiday home in Fuerteventura, you should keep in mind the peculiarities and, above all, the opportunities presented by this type of property compared to other conventional housing.
Fuerteventura is a paradisiacal destination and one of the most sought after places to invest in holiday properties, so if you own a holiday home on the island and are considering selling it, it is important to know some specific aspects that may influence the process.
Understanding the vacation home market
Fuerteventura stands out for its great tourist attraction. Holiday properties tend to attract both national and international buyers looking for a second home on the island or a holiday rental investment. Before selling a holiday home in Fuerteventura, research current market trends such as demand and prices of similar properties in the area.
So you can make this research, then we leave you with a report on the real estate market in Fuerteventura. A PDF in which you will find information on sale prices of homes, number of transactions made or available accommodation.
REAL ESTATE REPORT IN FUERTEVENTURA
Sale prices, number of transactions, available accommodations, buyer study...
Present your home as an investment opportunity
If your property has been used as a vacation rental property, you should include this information in the property listing. Buyers interested in acquiring a property to be used as a vacation rental will be interested in knowing that the property has already been used for this purpose, as well as having information about its occupancy rate, annual income and valuations issued by tenants on different platforms.
Documentation and permits for tourist rentals
It is important that you have in order all the documentation related to the permits for vacation rentals in the Canary Islands. Potential buyers will want to know if they will be able to continue with this activity and if it complies with the current regulations. Have on hand the registration of the property as a holiday home, licenses and any other required permits. This will provide greater security to the buyer and speed up the selling process.
Home Staging and Professional Photography
Competition in the Fuerteventura vacation property market is fierce. Therefore, it is essential that your property stands out visually from the first moment. Home staging is an effective tool to improve the appearance of properties for sale, making it more attractive and helping buyers to imagine themselves living in or renting the house.
Be sure to do a thorough cleaning, depersonalize the spaces and repair any flaws. Also, invest in professional photography that captures the essence of the home and its surroundings. Images play a crucial role in the first impressions of potential buyers, so it is worth investing in professionals in this area.
Tip: If your property has ocean, garden or pool views, make sure these elements are highlighted in the images and description.
International promotion
As Fuerteventura attracts many foreign buyers, it is crucial that your property has international visibility. When looking for a real estate agency in Fuerteventura, make sure they have a marketing strategy that includes promotion of the property on international portals, translation of advertising materials and the possibility to manage the sale with buyers who speak different languages.
A correct international promotion increases the probabilities of finding a buyer interested in your vacation property in a shorter period of time.
Guide to selling a house in Fuerteventura
At Destiny Home we offer a wide range of real estate services including:
- Purchase and sale of properties
- Tourist rental management
- Long term rental
- Consulting and Investment
- Rehabilitation and Decoration
In this way, we can analyze your particular case and offer you the alternatives that best fit your needs. Whether you are thinking of selling a holiday home in Fuerteventura, or if you want to professionalize the rental management of your property with an experienced company, in Destiny Home you will find the solutions you are looking for.
Below we leave you with the Owner’s Guide in Fuerteventura that in Destiny Home we have prepared specifically for those owners who need to sell a property on the island. In this guide you will find all the information you need about: setting the right price, documentation for the sale, costs of the process…
Download the Fuerteventura Property Owner’s Guide and have at hand all the information about property sales on the island so you can consult whenever you need.
Questions and Answers about Rentals in the Canary Islands
The regular rental consists of renting a dwelling for a long period of time. In this type of rental, tenants use the dwelling as their primary residence for the duration of the lease.
The profitability of the usual rent is calculated using the formula:
PROFITABILITY OF USUAL RENT= (TOTAL CAPITAL INVESTED-INCOME-EXPENSES) ×100
For example, if you rent a property in Fuerteventura for 900 euros per month (10,800 euros per year), with annual expenses of 1,800 euros and an acquisition cost of 140,000 euros, the return would be 6.42%.
Tourist rental is the rental of a dwelling for short periods of time. Guests use the housing on a temporary basis and are considered visitors.
The profitability of the tourist rental is calculated with the formula:
PROFITABILITY OF TOURIST RENTAL = [(DAILY RENTAL PRICE x AVERAGE ANNUAL OCCUPANCY) – EXPENSES / ( TOTAL CAPITAL INVESTMENT) x 100
For example, if you rent a property in Fuerteventura for 55 euros per night with an occupancy of 150 days per year, and the annual expenses are 1,800 euros, the profitability would be 5.89%.