How to rent your Kalkan villa for maximum returns
Kalkan holiday lettings are highly in demand and as such holiday home buyers can't help noticing that they can enjoy the Mediterranean sun as well as build a little nest egg for themselves in sunny Kalkan. Not to mention the superb views, great food and lovely atmosphere.
Both villas and apartments rent well in Kalkan, however, in our experience Kalkan villas generate far better rental yields as holidayers rent in search of privacy and exclusivity. How much rental you will manage to generate out of your villa in Kalkan will very much depend on the following three factors:
1. Calibre of property
2. Whether you self manage the process or
3. Contract it to companies such as Exclusive escapes, Tapestry Collection and Simpson Travel (these are the 3 main VIP villa renters - however, they will only take on board high calibre villas)
Irrespective of the calibre of property, your maintenance fees and annual upkeep are pretty much the same for a £200k villa or a £500k villa. You are looking at around £2,000 per annum for pool maintenance and garden upkeep. You will incur these whether or not you rent out your home.
How to rent out your property in Kalkan
If you self manage the process, then you will not have to pay anyone for managing your rentals, instead you will need to respond to your own leads and make your own arrangements on the ground, which are easily done. Portals such as Holiday lettings, Owners Direct and a few others will see to the job just fine. You will receive enough enquiries to book 15 - 18 weeks even in the first year. Year two onwards this number may go up as much as 25 weeks a year. These types of portals cost no more than £250 per year. So on a self-management basis, you have generated your leads and booked them.
Now you need someone to clean the villa and prepare the villa before and after each holidayer arrives, as well as attend to occasional issues as they arise. There are companies that provide this service in Kalkan that are very efficient. Generally it will cost you £100 for cleaning and another £100 per month to be on call for issues that may arise from time to time.
So, if you have 20 weeks of rentals – with a mix of people going on holiday for 1 or 2 weeks, adding up to around 12 clients for 20 weeks, this means cleaning before and after is around £1,200 plus say 5 months of support totalling £500. Therefore you are looking at costs of:
Pool and garden - £2000
Cleaning linen change etc - £1200
Support - £500
Total - £3700
Add insurance, utilities etc - £1000
Total costs rounded up - £5000
Example Case Number One:
In this example, we are going to take a villa in Kalkan priced between £400,000 to £500,000 – for this amount you can buy a very attractive and luxury villa in an elite area with superb sea views. This type of villa should generate around £2,500 per week in rental income. Even if you only generate 18 weeks in the first year, this would end up at around £45,000 minus the costs – netting you a total of £40,000. This is an achievable figure if you know what you are doing and are diligent in responding to client enquiries on a timely basis.
If you take this same villa and contract your property out to Exclusive Escapes or Simpson Travel for example, then they will offer you an annual contract with a guaranteed rental income, usually paid 50% upfront to the season and 50% at the end. If we take the same villa example above, then you are likely to receive a contract of around £28,000 to £30,000 per annum. Pool and garden expenses as well as insurance and utilities are still payable by you, but they will deal with the rest, including cleaning before and after, airport transfers etc. Therefore, if your contract is say £30,000, after expenses you will get around £27,000 in net income. Compared to the potential of earning £40,000 on a self-manage basis, this is significantly less, however, you would not have to deal with any enquiries, client issues, etc. They take care of it all.
Please note, however, that these companies will generally block off your villa from May through to end of October without any personal use. If you wish to use your villa for a few weeks in the meantime, then you will need to rent it off them.
Example Case Number Two:
Taking a look at this luxury villa in Kalkan on our website - we managed and rented this villa in its first year of completion and year two. Our rate for renting it was £3,500 per week, including airport transfers. The owner £2,750 per week in net income. The first year of completion it managed to deliver 15 weeks of rentals as we only started the rentals at the end of June because the villa was not completed until the end of May. We will let you do your own math on the income generated on that lovely home. It now generates up to 25 weeks a year in rental income at the same price.
Bottom line is if you play it smart, your property in Kalkan can deliver almost 10% rental returns, which is a phenomenal return considering average rental yield in the UK is short of 5%.