How to make a successful rental business

How one investor turned his Golf del Sur apartment into a successful rental business.

Many of us are interested in the prospect of an investment in foreign property, and properties are regularly advertised as ‘good for rental investment’.  For example, this month’s featured property is one of those, so we thought we’d ask the current owner, Brian Yardley, how he turned his Golf del Sur apartment into a successful rental business.

Brian’s first challenge was to find tenants for the property.  “It wasn’t difficult, but you have to work at it.  You can’t just sit and wait for the phone to ring.”  And putting in some effort seems to be the key to success.

At first he put some adverts in the local Stourbridge paper, which worked very well.

“It has a lot to do with enthusiasm, when people call.  If I’m enthusiastic about Tenerife and the apartment, then that rubs off on them.”  And Brian certainly does not lack enthusiasm.

“You have to talk about it to friends and colleagues.  I play golf, and when I meet someone new, the conversation always gets to “What do you do?”  And when I say, “I rent holiday property in Tenerife,” it’s an interesting talking point.  I mean, how many other places can you sit on your terrace and see dolphins and whales?”

Maybe it was his infectious enthusiasm, but right from that first year, the apartment was rented out for at least two thirds of the year.

“I dropped the advertising pretty soon, and decided to get a website made, instead.  It was a cost decision.  I paid about two thousand pounds in newspaper advertising that first year, and the website cost two hundred pounds.  The calls trickle in slower, but the end result is the same.  You’ve only got fifty two weeks to sell.  You can do that in a few weeks with advertising, or it takes three or four months on the web.  The end result is the same, but the cost is very different.”

Now in his fourth year, renting out the apartment has become much easier, because of re-bookings.  “I read somewhere that 82% of tourists coming to the island have been here before.  And I’ve got a couple who stay for three months every winter; as soon as they leave, there’s another couple who stayed last year.  They’ll be there for six weeks… and the list goes on.  So every year it is easier and easier.”

Brian is now selling the apartment, with the website and future bookings.  Now that he is spending less time in the UK, he is looking for another bolt hole on the Canaries.  “I’ll still be spending most of my time in Tenerife as I also own a villa here.  But you know I met this guy on the golf course…”  and Brian starts to wax lyrical about his next project.

If you might be interested in purchasing Brian’s apartment then please call Tenerife Property shop on 922 714 700 and ask for details.