The market
In 2011 about 10 million tourists came to Majorca, 4,2 million of them from Germany. For 2012 there are signs of a historic record with an increase of 4 percent. The hotel sector on the island offers a wide range from simple hostels to luxury hotels. This area has been expanded this year beyond the previously represented 5-star segment of the island with the opening of the Jumeirah Port Sóller Hotel & Spa. But the number of tourists who for various reasons don’t book a hotel, but prefer to rent a private holiday home, is increasing continuously in Majorca. With the exception of large families or groups, the idea of saving money is not the reason, because All-inclusive packages in the intermediate category are priced lower than a good holiday home. The motive is rather a holiday experience of a higher quality without the corset of uniform procedures in the hotel and thus more freedom in the vacation planning, as well as sufficient space and privacy. Of course do these individual travelers expect a holiday home of impeccable quality in an appealing environment with high relaxation and leisure possibilities.
The added value
The reason for the owner of a Majorca property to give his real estate in touristic rental is the expectation of a solid return, which is making this business model also interesting for investors.
But even the mix of rental and owner-occupation is economically very interesting and for the majority of the owners the preferred option. After a short initial period and if the owner-occupied periods are not moved massively in the peak tourist season, one can generate a net return of 4% of the total investment even with mixed use.
Legal requirements
Was there yet no absolute legal certainty for the touristic rental of private living space, this area is now clearly regulated by the Tourism Law of the Balearic Islands n° 14.884, law 8/2012 of the 19.7.2012. The passages which regulate holiday stays in private homes are located in the articles 49 to 52. The law explicitly allows the rental of detached or terraced houses if they meet the regulatory minimum requirement. One of the prerequisites also implies that for both, the property and the distributor, a declaration of Responsibility was filed in the appropriate registry of the Ministry. If this is not the case, then the rental is illegal and punishable with severe penalties. For holiday apartments, the rules are more complex, but achievable with expert help.
Practical course – our service
We offer to all of our clients, which we accompany currently in their search of a Majorca property and which are interested in the touristic rental of their real estate, expert and free advice on the above subject. This of course also applies to customers who have already purchased a property through our agency.
Apart from the legal aspect, it is of course also necessary to consider whether the property is attractive for holiday rental and how the relation between the purchase price and rental income is appearing. An important factor, of course, is the costs and not least the competitive situation of the location. For logistical reasons we can only assume the complete rental service at the south coast of Majorca in the region around the beach “Es Trenc”.
To the beach video >>
In the article House buying-plus you can find a detailed service description for our clients, who purchase a property in Majorca for own and/or rental use.
Friendly greetings from Majorca
Franz Stockinger
In 2011 about 10 million tourists came to Majorca, 4,2 million of them from Germany. For 2012 there are signs of a historic record with an increase of 4 percent. The hotel sector on the island offers a wide range from simple hostels to luxury hotels. This area has been expanded this year beyond the previously represented 5-star segment of the island with the opening of the Jumeirah Port Sóller Hotel & Spa. But the number of tourists who for various reasons don’t book a hotel, but prefer to rent a private holiday home, is increasing continuously in Majorca. With the exception of large families or groups, the idea of saving money is not the reason, because All-inclusive packages in the intermediate category are priced lower than a good holiday home. The motive is rather a holiday experience of a higher quality without the corset of uniform procedures in the hotel and thus more freedom in the vacation planning, as well as sufficient space and privacy. Of course do these individual travelers expect a holiday home of impeccable quality in an appealing environment with high relaxation and leisure possibilities.
The added value
The reason for the owner of a Majorca property to give his real estate in touristic rental is the expectation of a solid return, which is making this business model also interesting for investors.
But even the mix of rental and owner-occupation is economically very interesting and for the majority of the owners the preferred option. After a short initial period and if the owner-occupied periods are not moved massively in the peak tourist season, one can generate a net return of 4% of the total investment even with mixed use.
Legal requirements
Was there yet no absolute legal certainty for the touristic rental of private living space, this area is now clearly regulated by the Tourism Law of the Balearic Islands n° 14.884, law 8/2012 of the 19.7.2012. The passages which regulate holiday stays in private homes are located in the articles 49 to 52. The law explicitly allows the rental of detached or terraced houses if they meet the regulatory minimum requirement. One of the prerequisites also implies that for both, the property and the distributor, a declaration of Responsibility was filed in the appropriate registry of the Ministry. If this is not the case, then the rental is illegal and punishable with severe penalties. For holiday apartments, the rules are more complex, but achievable with expert help.
Practical course – our service
We offer to all of our clients, which we accompany currently in their search of a Majorca property and which are interested in the touristic rental of their real estate, expert and free advice on the above subject. This of course also applies to customers who have already purchased a property through our agency.
Apart from the legal aspect, it is of course also necessary to consider whether the property is attractive for holiday rental and how the relation between the purchase price and rental income is appearing. An important factor, of course, is the costs and not least the competitive situation of the location. For logistical reasons we can only assume the complete rental service at the south coast of Majorca in the region around the beach “Es Trenc”.
To the beach video >>
In the article House buying-plus you can find a detailed service description for our clients, who purchase a property in Majorca for own and/or rental use.
Friendly greetings from Majorca
Franz Stockinger
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