Vacation rentals are becoming increasingly popular, especially during the COVID-19 pandemic, as they offer more privacy, a sense of security and more favourable regulations compared to hotels.
As a result, these holiday rentals will be more likely to recover quickly from the negative effects created by the pandemic. Perhaps you have already found the perfect property to rent, but you don't know what steps to take because there are so many things to take care of.
This can seem overwhelming and daunting, and that is why in Southern we have put together a 5-step guide to successfully start renting out your holiday home.
1. Register your holiday home for a tourist licence.
To start running a holiday rental business in Andalucía, you must first meet some legal requirements.
A lease of this type is defined as a property that is rented to a third party for a fee and, to fall into this category, the property must be rented for a maximum period of 31 days, two or more times a year.
The requirements for renting out your property are regulated at regional level (Autonomous Community Legislation). Each region has different legislation, so it is important that you check with the local authorities about the legal requirements of the place where your property is located.
Although there are some local specificities, in general, the process for registering a holiday rental is similar throughout the country. The first and most important step is to obtain a tourist licence.
Below, we leave you the Decree 28/2016, of the Junta de Andalucía. Here you can find all the necessary and detailed information on tourist accommodation.
What is a tourist licence?
It is a legal requirement that allows your property to become a tourist or holiday property. This licence has been required since January 2016 for holiday rentals on the websites advertising these properties, with the possibility of deleting your advert if you do not have one.
How to obtain a tourist licence
The steps are as follows:
The holiday rental owner declares to the local authorities that he wants to rent out his property by submitting a DRIAT (Declaración Responsable de Inicio de Actividad Turística). Once he has submitted his declaration, he will receive a temporary registration number and can start renting out his property.
2.- When submitting this declaration, landlords are generally required to submit the following:
- Identification data of the property and the owner
- Proof of possession of a certificate of habitability
- Compliance with the requirements established in the applicable regulations.
In most regions, this declaration can be submitted online.
- The authorities will check the documentation submitted by the owner. If the holiday rental meets all the requirements, it will receive its permanent registration number (which will be the licence number) after about 3-4 months. The property will also be registered in the regional register. If the holiday rental does not meet the necessary requirements, the owner will have to stop renting out the property until the requirements are met.
- It is important to mention that the municipal regulations of the sector in which the property is located may limit or condition the use of the property. In this case, you can read the decree of the Junta de Andalucía inserted above and check its limitations.
2. Minimum requirements for a holiday rental
Once you have applied for a licence, you must ensure that your holiday home meets a number of requirements in order to be rented out.
Liability insurance
No matter how careful your guests are while staying in your home, accidents can happen and they can be very expensive.
Liability insurance insures you against third party claims for personal injury or property damage to your property.
Complaints and information book
In Spain, all businesses must have an official 'complaints book' on display (at least in Spanish and English). It is also recommended to post the house rules, as well as local rest periods if your property is located within a community of neighbours. On the other hand, in case of negative experiences, guests can also leave their comments.
Identify travellers and register them with the police.
As the owner of a holiday rental, you must identify all travellers over the age of 16 by filling in the form "Parte de Entrada de Viajeros". You will also need to create a Travellers' Log Book and register all guests with the National Police (usually in larger towns and cities) or the Guardia Civil (usually in villages and rural areas) within 24 hours of their arrival.
All travellers aged 16 and over must sign the Travellers' Register. Failure to do so may result in fines.
Features required to rent your holiday home
Your holiday rental must also meet specific requirements in terms of interior layout and amenities. These are:
- Direct ventilation to the outside.
- The possibility of preventing light from entering from outside, i.e. blinds, curtains or similar.
- Security devices on doors to protect privacy.
- Fire extinguisher and fire blanket fully accessible. The number of fire extinguishers and fire blankets shall be in accordance with the number of rooms.
- First aid kit according to EU standard (CE marked).
- Visible information on the emergency number (112).
- At least one bathroom for every three bedrooms, with a lock to protect privacy.
- Written information for guests on the rules and use of the house (e.g. for swimming pools, lifts, public areas, quiet hours, working hours of reception, waste disposal, services provided, etc.) and on the operation of electrical appliances.
- As requirements may vary from region to region, be sure to check the specifications of your municipality.
Declaring your holiday rental income
As the owner of a holiday rental anywhere in Spain, you are obliged to declare your income and pay the corresponding taxes.
This applies to all vacation rental owners, even if they only rent out part or an annexe of their vacation property.
The tax year runs from 1 January to 31 December. You must file your tax returns by 30 June of the current year. On the other hand, if your property has been unoccupied for some time in the last year, you are still obliged to file your tax returns.
If you are not sure how to file your tax return, you should go to your nearest tax office for more information or visit the Tax Agency's website.
3. Tailor your property to a target group
Now that you have registered your property as a holiday rental and have fulfilled all the requirements for setting up a successful holiday rental business, you will need to think about your future guests. Depending on the type of property you have and its location, there may be different types of guests for whom your rental is suitable.
Define your target group
Why is it important to have a target audience? Travellers are looking for properties with specific details such as property location, price, amenities and more. Knowing your target group will help you increase bookings and avoid cancellations.
A smaller flat may be perfect for solo travellers or honeymooners, but may not be suitable for large families.
The location of your property also plays a crucial role. A large property in a rural area might be ideal for groups of friends or for hosting events. At the same time, a flat in the city may seem suitable for millennials.
Equip your holiday home with great amenities
One way to attract guests is to have great amenities. A fast Wi-Fi connection and a desk facility can get more bookings from telecommuting guests, while eco-conscious guests will certainly appreciate the waste separation.
Outdoor amenities, such as terraces, a nice dining area or a swimming pool, will be popular with most guests looking for a relaxing holiday.
Even if you don't have an outdoor space, you can make your property more attractive if you have a well-equipped kitchen or comfortable, open spaces. In addition, security also plays an important role, as families travelling with children will appreciate any protection the house has for them.
4. Descriptive texts and photos
Before you list your rental on one or more websites, you will need informative text and convincing photos. The most beautiful property won't get many bookings if the ad displays boring, confusing or overly long text; nor will bland photos convince guests to book.
What to highlight?
Your ad should focus on the things that make your property unique and perfect for your target group: Do you have good sea views, are you within walking distance of the nearest beach, or is the outdoor area ideal for unwinding, enjoying the sun and relaxing by the pool? Think about what your main selling points are and highlight them in both text and photos.
Professional texts
You may feel inspired to write great copy for your holiday rental, mentioning all the strengths and why it is the perfect accommodation, however, it may be a better idea to have a professional content writer create this copy.
Professional content writers can be of great help in attracting the customers you want. It is essential to know exactly what information travellers are looking for and what services and places nearby should be mentioned. A very long and rather descriptive text can be overwhelming and may not have the desired effect.
A concise text that provides all the necessary information and leaves out redundant points is indispensable for success.
Professional photos
Just like a professional content writer, a professional photographer will know exactly how to stage your property and show it at its best.
Weather, time of day, incidence of light and perfect angles can make all the difference to your photos. And a smartphone can't compete with a state-of-the-art camera.
First impressions are crucial, and professional photos are likely to capture the attention of travellers and make them even more curious about your property. In fact, professional photos have been shown to generate 5 times more bookings than unprofessional photos.
5. Post your holiday rental
As a last step before receiving the first bookings, you need to post your rental on websites so that everyone looking for accommodation in your area can find it. However, knowing where to place the advert and keeping track of the different websites can be a challenge, not to mention managing multiple calendars and finding the perfect pricing model. In the long run, this can lead to overlapping bookings, cancellations and personal stress.
The advantages of a channel manager
Advertising your holiday rental on the big portals such as Airbnb or Booking (the best known in Andalucía) or also with local agencies can help to increase your bookings and your income. On the other hand, this can cause multiple problems with double bookings, different pricing models and difficulty with calendar management.
Using a channel manager, such as Bookiply, is an all-in-one solution to save you this kind of challenge. Your rental will be displayed on multiple channels while all calendars are synchronised. This means that nights that have already been booked through a certain channel will also be blocked on other portals.
In addition, Bookiply provides you with professional multilingual text and professional photos for your advertisement, as well as an account manager, who will be your contact person for all matters.
Prices
Prices vary due to many reasons, such as property type, location and amenities. Although you can determine an average nightly rate based on these criteria, having the same rate throughout the year is not a very reasonable option due to seasonality, demand and length of stay.
Discounts can also be applied to attract guests who wish to stay longer in your rental. Although the nightly rate may be lower, you will earn more revenue by having your calendar full for a longer period of time. In addition, you can add additional rates when you receive more than a certain number of guests.
A good pricing model is vital for business success.
With all these steps completed, you are now ready to start your holiday rental business.
We hope you feel inspired and ready to get started on this journey. When your first guests arrive and enjoy an unforgettable holiday in your home, you will know that it has all been worthwhile.
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