{"id":516,"date":"2014-02-28T14:08:26","date_gmt":"2014-02-28T12:08:26","guid":{"rendered":"http:\/\/www.portamallorquina.com\/blog\/?p=516"},"modified":"2015-10-26T14:13:28","modified_gmt":"2015-10-26T12:13:28","slug":"holiday-rentals-sample-calculations-return-investment","status":"publish","type":"post","link":"https:\/\/www.portamallorquina.com\/blog\/holiday-rentals-sample-calculations-return-investment\/","title":{"rendered":"Holiday Rentals \u2013 3 Sample calculations of return on investment"},"content":{"rendered":"

To achieve a lucrative return on investment (RoI), the location of the property<\/strong> (whether it is an attractive travel destination all year round, attractive to several target groups such as cyclists, beach tourists, etc.) and the interior design<\/strong> play a crucial role. They determine the maximum daily rate that can be charged, and the property\u2019s rental capacity. In the latter regard, the rental agency involved plays an important part. Experience tells us that during the first year, when the property is new to the market, there are not as many lettings as in subsequent years, because good properties have a high rate of repeat guests. Premium properties can achieve letting capacity of up to 75% p.a. The average gross return<\/strong> is generally in the region of 4 to 6 percent over the long term.<\/p>\n

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Three sample calculations:<\/strong><\/p>\n

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1.) Country house San Lorenzo (Majorca Northeast)<\/h2>\n
\"Country-house-son-carrio\"<\/a><\/p>\n

Well-kept country houses in a good location are often booked in the summer time of families and are popular holiday homes in the off-season for hikers and cyclists. Ref: 101645<\/p>\n<\/div>\n

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This magnificent stone country house with 255 m\u00b2 living space, 4 bedrooms and 3 baths located in the middle of a green and peaceful paradise not far from Son Carri\u00f3. The new owner expects more than 14,000 sqm, a Garden of Eden, where you can enjoy nature and tranquility. Despite the idyllic are all famous tourist places easily reachable. Manacor is only 5 minutes away by car and the fashionable medieval town of Arta is only 15 kilometers away. Several wonderful beaches and four-maintained golf courses are nearby and complete the attractive leisure activities.<\/p>\n

During the last years, this over a hundred years old country house has been carefully renovated, conserving a lot of details. All installations and electrical works are up-to-date.<\/p>\n

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Sample calculation:<\/strong><\/p>\n