Last updated on January 15th, 2024
Whether you already own a vacation rental in Portugal, or you have plans to invest, this article will help you maximise revenue and get the most out of your investment.
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Whether you already own a vacation rental in Portugal, or you have plans to invest, this article will help you maximise revenue and get the most out of your investment.
- Last updated January 15, 2024
Portugal’s Golden Returns: Maximising Revenue on Your Vacation Rental Investment
In recent years, thriving tourism and a booming short-term rental market, combined with strong house price growth, have encouraged scores of investors to snap up a holiday let in Portugal. Perhaps you are one of them. Or perhaps you would like to be.
This sunny country has long been one of the most popular holiday destinations in Europe—and its appeal continues to grow. In 2023, Portugal’s tourist accommodation sector achieved a record-breaking 22.2 million guests and 59.1 million overnight stays in the first eight months of the year. A staggering 10 million overnight stays were recorded in August alone, and the average daily rate reached record highs in all regions.
Part of Portugal’s appeal is that it offers diverse landscapes and destinations. With its rugged coastline, charming fishing villages, and excellent amenities, the Algarve is the ideal destination for a leisurely beach holiday. On the other hand, those who prefer a city break can venture to cities like Lisbon and Porto, where they’ll find rich historical landscapes, charming culture, world-class food, and plenty of attractions.
Whether you already own a vacation rental in Portugal, or you have plans to invest, this article will help you maximise revenue and get the most out of your investment.
Properties with potential
If you’re yet to purchase a holiday let in Portugal, several factors should inform your search for the ideal property. Location is key to any profitable investment, and you’ll want to identify areas with a strong and consistent demand for short-term rental properties. Other considerations include value for money, rental yield, and growth potential.
Professional real estate acquisition services are a great option for both first-time investors and seasoned property moguls. By working with a reputable business, you can explore investment opportunities that have been handpicked by experts, and acquire property safely, smoothly, and efficiently.
Benoit Properties International offers a global real estate portfolio geared around established cities within stable and growing economies. Its experienced team provides clients worldwide with a range of investor services, covering everything from property sourcing and consultation right through to completion and effective ongoing rental management. (If you’re interested in Benoit Properties’ services, get in touch.)
Professional Listings
Once you have acquired a property and it is ready to rent, it’s time to create a professional listing. High-quality photos and engaging, accurate descriptions are vital to attracting potential guests. You should aim to showcase the best features of your property and make it stand out from other homes on the market.
Getting Noticed
Utilise short-term rental platforms such as Airbnb and VRBO to ensure your rental property reaches a wider audience. You might like to take to social media for further exposure, either through personal profiles or by setting up a business page. On platforms such as Facebook and Instagram, you can also communicate with guests and share positive reviews and feedback.
Local Experiences
Providing detailed information on the best things to do in the area will not only help attract potential guests but ensure they have an all-round positive stay, meaning they’re more likely to return.
On platforms like Airbnb, you can partner with local businesses and offer discounts on attractions—which is another great way to differentiate your holiday let from others in the area.
Competitive Pricing
Now this is perhaps one of the most important steps to maximising revenue. Make sure your rental rates are competitive and attractive by conducting thorough market research. For this, you can rely on Airbtics data. Our Airbnb analyzer provides accurate and comprehensive insights on average nightly rates and revenue, occupancy, seasonality, and more. Simply input your city or area and you’re ready to go.
In order to maximise occupancy, investors should adjust their rental rates depending on the season and demand.
Don’t forget to regularly evaluate and update your strategies based on market trends.
Stay in to know
Vacation rental owners must be well informed on the latest regulations in Portugal and comply with any licensing or tax requirements.
For instance, recent changes to Alojamento Local (AL licenses) in Portugal meant that existing vacation rental owners had to provide proof of activity, or their licenses would be cancelled. According to the new Mais Habitação (More Housing) Policy, active licenses will expire in 2030 and will be renewable every five years. Investors with vacation rentals in the country must keep on top of these kinds of changes to safeguard their investments and maximise returns.
Overall, vacation rental owners in Portugal have a stake in a lucrative market, with the opportunity to generate substantial returns. Effective marketing, operational efficiency, and thorough market research are key to optimising your vacation rental business. By following these steps and adopting a strategic approach, you can create a high-yielding and successful rental investment in Portugal.
Short-Term Rental Data
Short-Term Rental Data
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