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Villa Owners Face 2012 Holidays Squeeze
- By Henry Ashworth
- Published 01/3/2012
- Best Interisland Travel
- Unrated
Henry Ashworth
Information about flights to the Spanish island of Menorca can be seen at http://yourmenorca.net
Menorca villa holiday companies who offer villa holidays in Menorca are on-line, and the villa companies include James villas
Villa Owners Face 2012 Holidays Squeeze
Villa holidays have become part of the travel scene over the last quarter of a century, and offer holidaymakers an alternative to longer established hotel based trips.
And while not as popular as hotels, there's a good demand and villa holidays are available both through specialist companies and direct from owners who advertise them on themed internet sites.
Typically both companies and owners will show photographs of the accommodation inside and of the gardens and pool, availability, prices and reputable ones will also have reviews from previous renters.
Other information will include whether it's advised to hire a car or if the local amenities and beaches are within walking distance, how far it is to the nearest main airport along with offers of flights which can be included at the time of booking.
And the system works well, with private companies providing reps in the resorts and many private owners publishing a telephone number as a contact point in case of any problems that arise during a trip, and the choice is wide and varied - just look in a search engine for example for Tenerife villa holidays.
Compared to hotels, villa holidays are often ideal for families as it gives more space than hotel rooms, a private swimming pool, often two bathrooms, the ability to go self catering with kitchens and utensils included - and the price for two adults with three children will often work out cheaper than booking two or more hotel rooms.
The villa owners are invariably private individuals rather than companies or corporations in the case of hotels, and renting their overseas home for others to use helps pay for the upkeep, but also for many a mortgage that is secured on the villa.
And of the travel press coverage of the recession and how it is affecting different sectors of the market - local businesses, car hire, etc. as well as hotels - the one group of people who are invariably overlooked are the private villa owners, many of whom have been struggling during the recession, and if occupancy levels drop in 2012 could see some of them with more financial problems.
A common perception of a villa owner is someone who is wealthy, but this iamge is often far from reality - many villa holiday owners have a mortgage on their domestic property and also on their overseas home, and sometimes the mortgage has been granted on the strength of their domestic property. While it maybe the ideal to have both mortgage free and an idyllic lifestyle with a holiday home for retirement, it can take fifteen to twenty years for the mortgage to be paid off, and renting the villa out to holidaymakers is an integral part of their overall financial plan.
With the recession continuing into 2012 many owners will be hoping to buck the trend and have near to full occupancy rates to keep going - so what costs do they have apart from a mortgage to pay?
Local taxes (the UK equivalent of the council tax) and tax on profit from letting - and if the villa is sold at a profit after inflation Capital Gains Tax. Insurance for the villa and for covering injury and accidents for anyone who is renting the villa as a holiday let. Regular maintenance for a swimming pool and gardens. General maintenance including keeping the villa to a standard acceptable to villa holiday companies and private renters. Advertising fees and if let via a villa holidays company a share of the revenue, in some cases the owner will receive payment from the villa holiday company in return for them renting it at a rate they decide upon.
Villa holidays are a great alternative to hotels, and provide space, privacy and a level of comfort that hotel holidays can't match, and with the recession continuing there could be less villas available unless a good number of those who do venture abroad in 2012 opt for a villa holiday.
And while not as popular as hotels, there's a good demand and villa holidays are available both through specialist companies and direct from owners who advertise them on themed internet sites.
Typically both companies and owners will show photographs of the accommodation inside and of the gardens and pool, availability, prices and reputable ones will also have reviews from previous renters.
Other information will include whether it's advised to hire a car or if the local amenities and beaches are within walking distance, how far it is to the nearest main airport along with offers of flights which can be included at the time of booking.
And the system works well, with private companies providing reps in the resorts and many private owners publishing a telephone number as a contact point in case of any problems that arise during a trip, and the choice is wide and varied - just look in a search engine for example for Tenerife villa holidays.
Compared to hotels, villa holidays are often ideal for families as it gives more space than hotel rooms, a private swimming pool, often two bathrooms, the ability to go self catering with kitchens and utensils included - and the price for two adults with three children will often work out cheaper than booking two or more hotel rooms.
The villa owners are invariably private individuals rather than companies or corporations in the case of hotels, and renting their overseas home for others to use helps pay for the upkeep, but also for many a mortgage that is secured on the villa.
And of the travel press coverage of the recession and how it is affecting different sectors of the market - local businesses, car hire, etc. as well as hotels - the one group of people who are invariably overlooked are the private villa owners, many of whom have been struggling during the recession, and if occupancy levels drop in 2012 could see some of them with more financial problems.
A common perception of a villa owner is someone who is wealthy, but this iamge is often far from reality - many villa holiday owners have a mortgage on their domestic property and also on their overseas home, and sometimes the mortgage has been granted on the strength of their domestic property. While it maybe the ideal to have both mortgage free and an idyllic lifestyle with a holiday home for retirement, it can take fifteen to twenty years for the mortgage to be paid off, and renting the villa out to holidaymakers is an integral part of their overall financial plan.
With the recession continuing into 2012 many owners will be hoping to buck the trend and have near to full occupancy rates to keep going - so what costs do they have apart from a mortgage to pay?
Local taxes (the UK equivalent of the council tax) and tax on profit from letting - and if the villa is sold at a profit after inflation Capital Gains Tax. Insurance for the villa and for covering injury and accidents for anyone who is renting the villa as a holiday let. Regular maintenance for a swimming pool and gardens. General maintenance including keeping the villa to a standard acceptable to villa holiday companies and private renters. Advertising fees and if let via a villa holidays company a share of the revenue, in some cases the owner will receive payment from the villa holiday company in return for them renting it at a rate they decide upon.
Villa holidays are a great alternative to hotels, and provide space, privacy and a level of comfort that hotel holidays can't match, and with the recession continuing there could be less villas available unless a good number of those who do venture abroad in 2012 opt for a villa holiday.