What revenue can you expect from your holiday rental in the province of Girona?
“What can I make from my holiday rental in the province of Girona?”
We often receive this question and it is an important question if you want to get started in this market. In this article, our goal is to provide you with a clear estimation of the expected income and identify the factors that have the highest impact on income over time.
We will start by providing an overview of the estimated gross and net income from holiday rentals within a 50 km radius of Banyoles. This area is our service area and the region where we have over 8 years of hosting experience. It includes La Garrotxa, Pla de l'Estany, and Alt Emporda. The data in the table below is based on market statistics and has been verified with our own experience in this market.
Income from holiday rentals in Girona province
Revenue represents the total income from guests during one year after platform commissions.
Net income is the income for the owner after deducting cleaning, laundry, and management commissions.
Cleaning and laundry costs typically range between 20% and 25% of revenue (including taxes), depending on the accommodation layout and average length of stay. Generally, the cleaning costs decrease year over year because the average length of stay tends to increase.
The management commission varies between 25% and 27.5% of the gross rental income (including taxes).
What impacts rental income the most?
Factors such as location, house facilities, and rental history have an influence on rental income. Key factors that differentiate properties include having a swimming pool, garden, stylish decor, well-equipped kitchen amenities, and the ratio of bathrooms to bedrooms. Maintaining high standards of cleanliness and linen, along with effective communication, greatly impact the guest experience, leading to return visits and positive word-of-mouth through guest reviews.
However, it is important to note that properties without these amenities can still perform well. Smaller accommodations that lack features such as a swimming pool and garden may generate lower revenues. However, their cleaning and maintenance costs are typically much lower as well, making them still viable holiday rentals. What's most important is that the overall package of location, facilities, and services is attractive.. After a house visit, we can provide you with a better understanding of the estimated income your accommodation can generate.
How we grow income 10-20% year over year
Holiday rentals tend to perform best when professionally managed over an extended period of time. Although the first year may have lower returns due to startup costs and the absence of reviews and return customers, subsequent years often experience significant growth (10-20%). At Els Majordoms, we help our customers increase their rental income year after year by implementing various growth strategies, including:
Customer Feedback and Iterative Improvements: We use guest feedback to identify areas for improvement, ranging from small changes to suggestions for property upgrades.
Extended Stay Incentives: Longer bookings generally lead to lower cleaning costs, which will improve profitability. By catering to the needs of travelers with extended stays, such as offering a well-equipped kitchen and laundry facilities, we will positively impact the average length of stay and overall returns. Leveraging our experience, we will assist you in adding amenities to attract guests planning to stay for an extended period.
Marketing and Brand Building: Our investment in online marketing over time will increase property visibility, direct bookings, and establish a strong online presence with positive reviews. The growth strategy includes focusing on increasing the percentage of direct bookings made with Els Majordoms, bypassing third-party platforms like Airbnb, resulting in a higher price per night.
Operational Efficiency: We will streamline cleaning processes to reduce costs. As our team becomes more familiar with your accommodation, we can implement small changes that will reduce cleaning time. Additionally, we will assist in installing smart home systems that can help reduce heating and cooling costs, for example.
Repeat Customers: Our commitment to high cleaning standards and effective communication with guests before, during, and after their stay helps us gain repeat customers and receive positive reviews, which in turn attract new customers. We also offer loyalty programs to incentivize customers to book their next stay with us. Additionally, all our accommodations benefit from the loyalty of Els Majordoms customers who choose our accommodations because of our service strandards. This includes international sports teams and business travelers.
In conclusion, the revenue and net income from holiday rentals in the province of Girona depend on factors such as location, amenities, and guest satisfaction. Els Majordoms offers services to manage your accommodation and increase income year after year. These services include collecting customer feedback, providing incentives for extended stays, implementing marketing strategies, improving operational efficiency, and implementing programs to encourage repeat customers. By offering professional management services, Els Majordoms assists property owners in maximizing their rental income.
