The less rent you ask for, the more money you will make.

Quinta do Lago is one of Europe’s best golf and luxury villa resorts.  So why is the market in rentals going down there?  Answer: because half the concrete poured in Europe in 2006 was in Southern Iberia.  This pattern is repeated across Southern Europe.  Demand is declining because there is an oversupply.

The trap: you will be encouraged to ask for a lot of rent.  The following are responsible:

• People you know.  They stand around in pubs and at barbecues and say ‘I/my mate/my cousin get(s) £9000 a week for his villa’.  This is bollocks, made up to impress.
• Estate agents.  They do want you to buy the house, you know.

Do not ask for a lot of rent.  Are you happier with 2 weeks let at £5000 or 15 weeks let at £2500?

If you let cheap then you are not undervaluing your property.  You are  investing in next year’s tenants.  The strategy you need to adopt is one of building up your clientele.  I know a man with a nice villa in the South of France who does nothing.  Old customers approach him every August and by September he is fully let for the next year.