Gone are the days when a hotel was the only option when thinking about quality, stress-free holiday accommodation.
In fact, many people nowadays opt for a house or apartment over a hotel or guesthouse when it comes to planning their dream getaway.
Lagos-based Holiday Rentals and Property Management company Destination Algarve has had a front-row seat in this rise in popularity, so in this article, they’ll be taking us through the perks of self-catering accommodation for guests and why more and more homeowners are letting their homes. So, read on to find out why this trend is on the up, and see if these pros sway you towards choosing self-catering for your next trip or even making an investment in a holiday home of your very own.
Why is the demand for holiday homes growing?
Better value for money
Renting an apartment near the beach or a family house with a swimming pool can mean significant savings compared to a hotel, especially in peak season, with the benefit of usually having more space for yourself and your family.
Practicality
A holiday home is flexible and able to adapt to your needs; the wide range of apartments and villas available means you can choose the property size and amenities that you want, cherry-picking the ones that will make your holiday memorable.
Space for the whole family
For those travelling with a family or even in larger groups, it can be difficult to find a hotel to accommodate everyone and where you’ll be able to spend time together. However, when renting a house or apartment, you’re all in it together, sharing living areas to ensure more quality time together.
Unique, luxurious experiences
Holidaying in an apartment or villa makes you feel less like a tourist and more like a traveller, ready to dive into your destination alongside the locals, giving you a peek behind the scenes at what real life is like in-location and broadening your options for activities, events, and exciting experiences.
Whichever way you look at it, holiday homes are gaining popularity, becoming a standard choice among corporate and leisure travellers alike, and with the list of benefits above, it’s no wonder. As a luxury holiday rental service in the Algarve, Destination Algarve is passionate about giving their guests access to the best self-catering holidays they could have, the company’s portfolio of 75 properties giving holidaymakers variety in and around the Lagos area in the beautiful Western Algarve. Although many of their guests return time after time, and recommendations bring in yet more bookings, the rise they’ve seen in the demand for holiday home rentals goes far beyond that… and beyond the perks listed above, another contributing factor may just be the rise in supply too, with guests given more choice as more and more property owners follow the trend. But what’s leading to this situation with many more rental properties becoming available?
Benefits of investing in a property for holiday rentals
High profitability
The frontrunner is, of course, the financial factor. From helping to pay for the running costs to bringing in profit that can be re-invested in the property, letting brings in cash, and seasonal (i.e. summer) rentals can bring in far higher rates than annual rentals.
Guest selection
Your house, your choice: simple as that. When it comes to renting out your property, you make the decision about when it will be available for rentals (versus when you want to use it yourself), and what sort of guests you would like to accommodate – usually it is possible to specify a minimum age limit, group size, and so on – it’s all down to you. This is true whether investors manage rentals themselves or use a professional management company such as Destination Algarve, giving owners peace of mind that their home is in safe hands.
More secure investment
An investment in property is safer than many other kinds of investment and, when well-chosen and managed, can bring in revenue for the foreseeable future. In addition, and like all investments, it’s there for when you need it, ready to be sold and exchanged for another property or the profit re-invested somewhere else.
Less risk
A well-presented holiday home with all modern conveniences and in a top tourist destination like Lagos will always be in demand, which means that high occupancy rates and excellent nightly rates are all but guaranteed in the summer months. However, the team at Destination Algarve very sensibly advise prospective property owners to think carefully about purchasing a property if they are solely reliant on rental income to cover their mortgage costs (in addition to the ongoing day to day running costs) for a property).
Thinking of investing in a holiday home?
If the points above have got you thinking, here’s a thought from Destination Algarve, who have drawn on almost 20 years of experience to provide their final recommendation:
Exclusivity sells
In terms of property, that is. Exclusive properties (such as the stunning ‘LUX MARE’ villas – the current flagship properties in Destination Algarve’s expanding portfolio) will generate a much higher return than, for example, 2-bedroom apartments. With far more of the latter around, it means the supply is likely to match (or even exceed) the demand. However, the more exclusive the property, the lower the supply, and therefore the greater demand and financial return.
So there you have it, insights from Destination Algarve, who pride themselves on a personalised service to guests and property owners alike, allowing both to make the most of holiday home rentals and the growing trend of self-catering holidays.