There are several factors that determine the potential income of renting out your vacation home. The location, size, number of bedrooms, distance to the beach or the city centre, the presence of a pool, the season, and many more factors determine your earning potential. Calculate your earning potential estimate (non-binding) now with our tool. This online rental income calculator is free of charge and only takes a minute. If you want a more accurate estimate, or if you want a complete assessment when renting out more than one cottage, you can contact us directly.
Your income can vary from €200 up to €2000 a week, maybe even more. You just have to register your vacation home cost-free and Belvilla will manage everything for you to optimize your rental income: calendars, prices, your personal online environment, rental administration, promoting your vacation home and much more.
Achieving the maximum earnings on your rental is a subtle art. If the rental price is too high, there is a high risk guests will find a cheaper cottage in the area which will leave your place vacant. If the price is too low, you will most likely be able to rent it out year-round, but this won’t give you the optimal amount of profit. So, there is a fine balance between the weekly price and demand. To determine your weekly price, you should take the following factors into consideration:
Location is a very important factor for guests. Some prefer to be away from the city, while others want to be as close as possible to the city centre. But almost all guests want to stay in a nice, safe area with the necessary facilities (how to join) nearby. Because of the difference in location, two identical cottages can vary considerably in price, up to 25% solely due to the location.
If there is a beach in your area this can also be a significant factor in the rental price. The closer to the beach, the higher the price. If for example, you have two identical cottages, but one is only 200 meters away from the beach, and the other three kilometres, the difference in price can be 25%. And an ocean view, for instance, can increase the price even more.
The rental price increases in line with the number of square meters, bedrooms and beds the house has. If your vacation home has many beds you can rent the place out to multiple families at the same time, as long as they have their own designated area. A rule of thumb is the rental price goes up by 5-7% for each additional bedroom.
It almost goes without saying, the more luxurious an apartment is, the higher the price. Swimming pool, whirlpool, sauna, satellite dish, internet, dishwasher, washing machine are all things that can raise the rental price.
The age and general condition of the cottage are also important while determining the rental price. Generally speaking, guests are willing to pay more for a modern or newly renovated vacation home. However, there is also a demand for older, cosier homes as long as they are well kept.
Demand varies throughout the year. In peak season, when schools have summer holiday, your weekly price can be higher than during low season.
Any type of event in the vicinity of your vacation home may influence the demand and thus the price. If there’s, for instance, a sports competition, a festival or any other type of event going on in the neighbourhood, it may increase the demand for your vacation home, which means you can increase the price.
Belvilla makes use of dynamic pricing, also known as flexible pricing. With this approach, the price is calculated using a combination of historical data, internet searches, market and competitor data, analytics and Artificial Intelligence (AI).
This way you can set the price for your vacation home automatically, so it reflects the real-time market value, competing with other offers in your area during a certain period. And the price can only drop by the maximum amount previously agreed upon with you, the homeowner.
You’ll receive the full rental amount within two weeks prior to guest arrival. This means the full rental amount will be in your bank account before the guests walk through the door. In case of a last-minute booking, Belvilla transfers the rental amount as quickly as possible. This way you can always be sure of on-time payment. And if the booking gets cancelled you will be reimbursed up to 100%.
It is also good to know that guests are required to take out a damage insurance policy for each booking. This means your property is automatically insured up to €10,000 in the event a guest damages your cottage. Giving you peace of mind when renting out your vacation home.
Already during the contract negotiations we agree on the commission, also called margin, that Belvilla asks for per booking. The amount of the margin depends on the services you purchase. For example, if you would like us to take over the full cleaning, linen service, pool cleaning and reception of guests from you, we will charge an additional amount for this. We will not charge anything to you, without having made clear (contractual) agreements in advance. By renting out through Belvilla you do not have to do anything about promotion yourself. We provide weekly newsletters for millions of potential guests and advertise on radio and TV. Attend trade fairs throughout Europe and advertise your home professionally on our own website and with more than 2,000 other holiday home providers.
The margin is included in the rental price. The guest pays directly for the commission that is calculated at the time of booking. The sum that is deposited into your account is what you are allowed to keep yourself. You do not have to pay back any amount to us afterwards.
Whether you rent out your vacation home privately or through a rental agency, you always have to pay taxes on the rental income.
The amount of taxes you pay does differ if you rent it out either via a rental agency or via private letting. When you’re considering renting out your home it is important to take these taxes into account.
If you want to learn more about the taxes you have to pay over your rental income, contact your local tax authorities.
Having Belvilla as your holiday letting agent comes with several advantages because posting your vacation home on Belvilla means you are also posting your property on 2.000 other booking sites, such as Booking.com, HomeAway and Airbnb.
This means millions of potential guests worldwide get to see it. While you as homeowner have the comfort of arranging everything from one central hub: My Belvilla. Updating your property details within this platform automatically changes your listing on all the other booking sites. No double bookings, no hassle. Furthermore, you are ensured to receive the full rental amount within two weeks prior to guest arrival, your property is automatically insured up to €15,000, ánd cancellations will be reimbursed up to 100%.
With Belvilla as your holiday letting agent you can rent out your vacation home carefree.