Why is Tenerife so good for rental investors?

If you are a property investor with property in Tenerife to let, then chances are, you had a very good Christmas, and you are looking forward to a very happy new year.  With island ranked as the most popular winter getaway destination from the UK, beating the likes of Barbados, Egypt and Goa, Tenerife rental investors have been rubbing their hands with glee as virtually every single available bedroom filled up for the winter.  There’s no getting away from it, the growing popularity of private holiday rental in Tenerife has had a major effect on the profitability of property investments.

Sky News called it ‘the end of an era’, as the demand for package holidays dwindles to be replaced by the growth of the independent traveller.  The reasons are multiple but are fundamentally rooted in post modernist individuality.  Our willingness buy off the shelf holidays designed for the average Joe Bloggs declines as we are less and less likely to identify with the herd.  Nowadays we each see ourselves as unique and our purchasing habits in all product areas from fashion to cars have become a statement of that individuality.  And it is the same with our leisure choices.  A quick look on the internet at the most popular travel booking sites illustrates this perfectly.  Every factor of the trip can be individually selected from a menu, allowing the user to create their custom holiday.  Technology has been a major influence on our ability to be different.

The real winners in this ‘trend to be different’ are the owners of investment property who are letting property in Tenerife.  With the low marketing costs that the internet allows, the ability to reach this market of individuals has never been easier.  An informal straw poll of fly to let investors in Tenerife shows the web as an important marketing tool, behind personal referrals and repeat visitors.  The overwhelming majority of rental property owners in Tenerife are very optimistic about their projected earnings over the coming year, expecting an increase on the previous one.  So what can be charted by the analysts as a sociological shift can be very directly seen in the pockets of property investors.

This change in holiday habits is already having an effect on the property market in Tenerife.  As demand rises for privately rented holiday accommodation, so supply follows closely on its heels.  Increasing numbers of buyers are now listing rental income as an important factor in their purchase.  Newspapers from the Times to the Sun have all woken up to the phenomena with numerous articles expounding the value of such investments, and the BBC recently showed a documentary on the subject.  Fly to let has entered into the popular vocabulary.

Of course, not every property is suitable for such an investment.  Although the changes can be easily shown on the macro level, at the micro level care needs to be taken in selecting the right property for the best rental returns in Tenerife, and the minimum problems.  There are many factors to be taken into account, from the type of holidaymaker you might expect in the area you are considering, to the rules of the specific community of owners.  With experience of the market, a well established and reputable estate agent will be able to advise and assist you.  Needless to say, choosing which agent you use is of paramount importance to the success of your investment, so look for one with a good track record and third party recommendations, such as property awards. With the proper advice, you will be able to look forward to a lucrative and enjoyable experience for years to come.