Your expected rental return will vary greatly from resort to resort and from one type of property to another. Figure 5 (below) gives a rough estimate of expected rental figures across several key resorts for three different property types. While it is hard to generalize, we hope that the above figures act as a useful guide.
It is however worth noting that:
- Figures exclude agency commission of typically 20-25%
- Figures are based on standard apartments. Penthouses/lake views will
increase rents accordingly
- Figures are based on modern new build apartments. Older re-sale
properties will command lower rents.
As discussed in the Tax section on the previous page, many of the new build tourism developments will come with an obligation to rent out
the property when you are not using it personally. These schemes are often operated as apart-hotels and usually take one of three forms:
In this instance all the income will be pooled across the whole resort. The earnings are then divided among the property owners (after a typical operator commission of 25-35%) and distributed in proportion to the individual property purchase prices.
In some cases the resort operator may decide to offer a rental guarantee. This can be for any period of time but is likely to be lower than your expected return without the guarantee. This is to reflect the fact that the operator is taking on the risk.
Under an allotment arrangement owners will advise the management
company of the weeks they wish to use the property personally. For the remainder of the time, the operator will rent the apartment out and you will receive the whole income for each week’s rental (minus the operators’ commission of 25-35%).