Managing Holiday Rentals for UK Owners – Impact of Poor Euro Conversion Rates

With the euro conversion ranging between 1.05 and 1.1 to the £ in the last few weeks, it makes poor reading for UK owners who restrict their marketing of their second homes to a UK audience.  With British holiday makers watching carefully the “zones” in which they choose to holiday.. ” whether a bottle of wine will cost them £10 or £15″ does make a difference.  With the low cost airlines lending themselves nicely to cheap travel around Europe, owners need to take advantage, and think of better ways to enhance their opportunities when considering other factors affecting the demand.

The need for the British owner with a property within the ‘Euro Zone’ to sustain rentals is more important now as they see their property running costs in euros cost them more in £’s.

All is not bad.. and owners should be looking to penetrate the ‘European Market’ (as in French, German, Dutch, Belgique and so on… clients).  Clients in these countries are getting an absolute bargain with the very favourable exchange rate euro to £1  (if your property rental pricing is in £’s).

Providing the owner (or agent acting on their behalf) has good T’s and C’s protecting all parties, there is no reason (and often the client in the euro zone will want) to pay upfront for the total cost of the property rental, ensuring they get the best price, determined by the rate in force at which the payment crystallises. All parties concerned are therefore winners; the euro zone client gets a very favourable rate, and the owner can convert at that current rate back to £’s immediately securing the required sterling value, and get potentially earlier bookings.

For owners not accepting euros as a method of payment,  it is seriously impeding their opportunities. Especially in today’s converging markets ,with many banks offering free transfers between sterling and euro and vice versa; Halifax UK to Halifax Hispania (newly Lloyds International) is one offering this service.

Linda French

www.sunandsnowinspain.com

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