You have a spare apartment, or you want to invest with good returns, and you heard that renting out apartments is the way to go. Either way, Madeira is a great place to do it. With many tourists and a growing digital nomad community, Madeira Island attracts people worldwide. So with that, here are some tips on how to rent out your apartment in Madeira.
Legalities of renting out your apartment in Madeira
There are two general taxes to look out for when acquiring a new property: the Municipal Transaction Tax (IMT) and the Municipal Property Tax (IMI). The former is a tax that is paid only when you acquire a property. It is one time and differs based on the location of the property. The latter is paid annually, and the size of the tax will be determined by the council to which your property belongs. Before you sign a contract with a tenant or even put the property up for rent, you need the licence for residential purposes, which you will also get from the local council. When you sign the contract, the licence needs to be a part of it. There is other paperwork to keep an eye on, but these need your utmost attention.
Marketing your apartment in Madeira
So you jumped through all the hoops, and now you want to attract the right kind of people. But who are they? After you have determined your target demographic, make sure to list the pros and cons of your apartment. One thing many landlords are anxious about is the location of their property. No matter where your rental is, there is always someone who is looking specifically for that place. Whether your apartment is close to the beach, with a lovely view, or in the heart of the city, there will always be something to offer. Make sure also to list some disadvantages of your apartment. This may seem silly or even counterproductive, but it goes a long way towards the satisfaction of your tenants. If they know all there is to know about your apartment; they will make an informed decision and be far more likely to be satisfied with their renting experience. This means either a returning customer or a hearty recommendation, both of which translates to more income for you.
How to equip your rental in Madeira
Different tenants have different needs, and staying on top of them is not always easy but having the right furniture and equipment for the right type of tenant goes a long way towards their satisfaction. With all the costs you already have to shoulder, this may seem like another expense cut. However, making your apartment visually stand out or having a dedicated workspace in the rental will give it a more specific selling point. The changes don’t need to be huge – pick a few visible and impactful ways to make your apartment better and invest in those. You’ll soon see more people interested in your property.
Click here to find out more about how you can add your property to Flatio and start advertising it today.