The old adage of ‘making money whilst you sleep’ is almost true at Royal Westmoreland. More and more people, including some of the more famous owners, are renting out their villas to guests and making a healthy return. Greg Schofield, CEO of Royal Westmoreland, offers some advice on the level of rental revenue owners can achieve from their villa at Royal Westmoreland and how best to go about it.
Greg says: "An owner can typically rent out their property for 10 to 12 weeks per year. To give you some examples - a 3 bed townhouse with pool, a ‘Royal Villa’, had rental revenue last year of £73,000, representing a return of 7%. A four bedroom villa with pool achieved rental revenue over a similar period of £104,000 representing a 5 to 6 % return.
However, generating rental income from a holiday home doesn’t just happen unless the owner gets involved himself. To simply sit back and leave it to an agent is a recipe for failure. The homeowners that have been successful work at selling and marketing their property themselves.
I tend to tell owners not to look at the occupancy percentage but to set a revenue target figure that’s balanced and takes into account their desire to use the property themselves.”
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