How to properly rent a villa in Mallorca
Are you the proud owner of a villa in Mallorca and dream of renting it out to tourists? For this operation to be profitable, it is important to understand all the aspects of seasonal rent in the Balearic Islands, in order to make the right choices from the start.
The Balearic Islands are the second most important tourist region in Spain, only after Catalonia. This means that the demand for seasonal rent is particularly high, especially from a well-off German and English clientele. Modern seaside villas, as well as large traditional stone houses are easily rented from May to September, and even beyond depending on the weather conditions.
Why rent out your villa in Mallorca?
There are as many reasons to rent your property as there are lessors of seasonal Mallorca accommodations. Some owners moved to the mainland but are still attached to their houses in the islands, so they prefer to rent it rather than selling it. Other owners inherited beautiful houses in the island but can only enjoy it one or two weeks per year, so they rent it out the rest of the time. Finally, others have opted for a rental investment in old or new buildings in order to generate a regular income from their new properties.
Regardless of the motivation that drives these owners to rent out their villa for tourists, it is important to understand the expectations of the clientele for whom this type of property is intended. It is obvious that a luxury villa with views to the Mediterranean sea will not be rented in the same way as a small studio in a popular seaside resort.
What do clients expect from a luxury villa in the Balearic Islands?
To have a property capable of seducing demanding potential guests is definitely a good starting point, but it is not enough to make them become actual guests. In addition to the intrinsic qualities of the property and its location, guests expect a 5-stars service. However, offering luxury hotel and concierge services cannot be improvised. It is necessary to be able to respond to all requests with professionalism and reactivity, which demands constant availability and perfect knowledge of the area and of the local players in different fields: cultural and sports activities, catering, childcare, at-home massage, etc. Moreover, the mastery of several languages becomes essential to be able to communicate with customers coming from all over Europe, and to precisely identify their expectations when booking a Mallorca accommodation.
The market for luxury properties is particularly competitive and only the ones with a premium service offer are able to stand out from the crowd by renting at a price in line with their level of prestige.
Tourist rental market in Majorca: requirements to consider
Luxury property or not, seasonally renting a property in Mallorca comes with certain requirements that all owners must integrate so that the operation is not only profitable but also feasible.
Since July 2018, rental restrictions have been gradually implemented in the island. Therefore, in Palma only houses can be rented for short term stays, not apartments. And on the whole island, only properties that have a tourist license (ETV) can be offered for seasonal rental. These are things to be taken into account, in particular for future owners who will invest in a villa already under license, to be assured that they will be able to rent it without delay.
Beyond these restrictions (which aim to preserve the island from the overflow of tourists), there are other administrative requirements that weigh on the shoulders of owners of a Mallorca accommodation. Some examples are the collection and payment of the tourist tax, called Ecotasa, and the application of VAT on hotel services - or its possible recovery in certain cases.
Today more than ever, renting in Mallorca is not improvised!
To rent alone or to go through an agency?
Without a perfect knowledge of all the legal and administrative aspects of renting in Mallorca, it is difficult to get started, unless you go through an experienced intermediary. But not all the players offer the same level of service.
The owners are often tempted to entrust their property to the local real estate agency because of proximity and convenience. These real estate professionals concentrate their interventions on the search for guests, the handing over of the keys, and even the carrying out of inventory of fixtures at the beginning and at the end of the rental period, accompanied or not by a deposit. But these standard services are not enough to satisfy the expectations of a high-end clientele, who are increasingly used to finding all the comforts of a hotel through a breakfast service, regular cleaning or the supply of household linen.
To ensure that your luxury Mallorca accommodation is rented at the right price, you will need to rely on hotel services that only a specialized operator such as Emerald Stay can provide. With over 15 years of experience in Mallorca, our multilingual staff has mastered all aspects of high-end rentals and private concierge services. Trained by the best professionals on the island, they are committed to providing impeccable services. Our knowledge of the local market, trusted suppliers and renowned addresses allows us to offer a unique travel experience and maintain a high level of customer satisfaction and an excellent reputation on the main online booking platforms. Thanks to this expertise acquired over time and to our pricing policy that is constantly adapted to current demand, we manage to improve the profitability of the properties entrusted to us by an average of 30%, simply because we manage to rent them more often, for longer and at the highest possible price.
And our support does not stop there! Owners can also count on our tax expertise to help them recover the VAT on their investments, when possible. We are present at all stages to free them from all the constraints that usually weigh on the shoulders of owners of seasonal short-term accommodation. In this way, renting your villa in Mallorca has never been so simple and profitable!
The seasonal rental in Mallorca is subject to obtaining a tourist license
For each tenant over 16 years old, you will have to collect the tourist tax (called Ecostasa), the amount depends on the type of rental
If you provide para-hotel services, you will have to charge and remit VAT.
Tax collection and remittance is one of the many services we offer to our owners.
Entrust us the management of your property
Emerald Stay's true value lies in the combined experience of its leaders in the technology, hospitality and real estate sectors. We bring all our expertise to the task of providing a highly digital, hassle-free solution for the monetization of premium homes in lifestyle destinations. We call it Smart Ownership, a simple idea fulfilled through an avant-garde execution that requires no effort from your side, other than enjoying your home when you want to, and earning yield while you are not there. We take care of everything else. Everything.