Marbella in Spain is one of the most popular holiday destinations in Spain. The area has plenty of property developments that are already completely sold out, just finished, almost complete, or in the process of being built. The continued development in Marbella is due to the demand for more homes in the area. It is a popular beachside town for affluent Spanish as well as those from other European countries that have fallen in love with the area.
All you need to do is look at our home page to see just how many properties are available in the area. Many of these properties are empty during the off-peak colder months in Spain as they are owned by people that have purchased the place as a family holiday home.
However, more recently we have seen tourism picking up over the winter months. Plus during the summer months, the town’s accommodation is now completely booked up, and the homes that were ghost houses during the off-peak season are occupied throughout the summer. Furthermore, property sales are higher than ever before hence the demand for an increase in development in the area.
Why Is Marbella Booming At The Moment?
Despite a gloomy outlook for the EU economy, Marbella seems to be on the rise. People are still coming, and this is largely because of the holiday rental market. This is not people looking for hotels to stay in, but instead, people that are looking to stay in vacation rental apartments on short term holiday leases.
With the emergence of vacation rental websites, it has made things a lot easier for the large number of property management companies in Marbella to rent out their client’s holiday homes. Most of the property management companies’ clients do not complain because they are getting reduced property management fees, and in some cases, the property management companies are giving their clients a monthly paycheck rather than their clients paying for their property management services.
How Are People Making Money From Property Management Firms?
Vacation rental property management software by companies such as Lodgify has made life a lot easier for property management companies. The software allows the property management company to centrally manage all their client’s properties. With its calendar synchronization tools, the property manager is able to list their client holiday homes on dozens of vacation rental websites. This is known as a channel management tool.
The channel management tool does exactly what the name implies. It manages all sales channels. In the vacation rental market, a sales channel is anywhere a company is able to get a booking. For instance, HometoGo is an example of a website that anyone that wants to rent out their property as a vacation rental, can list their property on this website without charge. When people book, HometoGo will charge a fee to the account that the booking came through, and the remainder of the fee is the account owner’s income.
The idea of the vacation rental property management software is to make sure that when a booking comes in on HometoGo, the calendar syncs to its central calendar. Then any other websites that the same property is listed on will have their calendar updated. The dates that were available will now be crossed off all other calendars as unavailable.
Repeat Business/Returning Guests
You may have picked up on the fact that the vacation rental websites that allow property management firms to list properties for free only pay the website when a booking is made. This fee is 20% of the booking fee. What most property management firms will do is use these vacation rental websites as the first point of contact with their guests. After this, they will introduce their guests to their own branded website, which would the same Lodgify website that is being used for its vacation rental property management software.
The Lodgify platform also has a booking engine built in, email system, real-time chat, and website builder. This allows the property management firm to save costs on web designers because the platform is already there and anyone in the office can configure the website using the builder tool.
Also, anyone that booked via a vacation rental website can now be told that for future bookings they can get a 10% or 20% discount by booking directly via the website. This is because the property management company can eliminate the 20% fee that is not charged for direct bookings via their Lodgify property management website tool.
This works well for several reasons. First of all, anyone returning will want the discount and to stay somewhere they are familiar with. Second of all, if they recommend Marbella to friends or family, the guests are likely to recommend the property management firm’s website to book the same place at a discounted rate.
Marbella’s tourism is increasing even though the world economy is doing so great at this time. One of the main reasons is because property management companies have now found a way to reduce the time it takes to manage client properties and increase their profits by renting out the properties on short term lease contracts. Often the profits from short term leases are so high that the client does not have to pay any property management fees and instead receives a monthly income.
With the vacation rental market booming, more people are seeing the benefits of investing their money into property in Marbella. While these property owners are not staying in their holiday home, they can make money via the fast-growing vacation rental property market. The best way to do this is by using a property management company or by setting up their own vacation rental property business.
Software such as the Lodgify property management system has made it easier to advertise these holiday homes on multiple websites. These websites are multiple sales channels that help to gain bookings and increase occupancy rates via the increased visibility of the property’s availability, which in turn means growth in profits.
As such, Marbella is now seeing an increase in new developments around the area as construction companies, holiday home owners, property investors, and property management companies are all cashing in on this rising marketplace.