RENTAL

TOURIST

 

LICENCE

The Olive properties each benefit from a Tourist Licence. The Tourist Licence is extremely rare, and adds a very profitable dimension to this real estate investment opportunity.

 

The law in Ibiza states that apartment and villa owners may not rent their properties out on a short-term basis. So offering nightly, weekly or any form or short term or ‘holiday’ let is strictly prohibited - unless there is a Tourist Licence in place.

 

Many owners of apartments and villas continue to flout the law, but the fines in place are heavy and they are ill advised to continue. The existence of the Tourist Licence however, allows all owners at The Olive to offer their properties for rental of any kind. So nightly, weekly, holiday, short or longer term rentals are all legally viable without any issue whatsoever.

 

The Tourist Licence exists in perpetuity and does not need to be renewed. It applies to the property, rather than the owner, so adds signifcant value to the property at the time of onselling. This obviously presents a unique advantage to the owner and therefore properties at The Olive should remain easy to onsell for much higher prices than their counterparts.

 

The Tourist Licence gives owners the option of freely renting out their properties on a commercial basis, but should owners decide at any time to themselves have holidays or extended breaks in their own Olive property, they may of course do, for up to two months inside each calendar year. There is no charge whatsoever for owner usage and no blackout dates, so this presents a fantastic opportunity to have a hard working, high yielding investment property that also allows owners to enjoy wonderful Ibizan holidays whenever they can spare the time, completely free of charge!

Rental Management

 

Nativo have created a management company to manage the physical aspects of Olive property (general maintenance etc.) and also to implement the rental operations.

 

The management company will provide an effective booking service for owners using purpose built software that plugs the available Olive properties into all the major Online Tour Operators (OTAs) such as booking.com, airbnb.com etc. The booking service means owners can hand over their property to the management team and have the room nights booked for them for a small administrative fee of just 10%. The Olive will also have a stunning website specifically set up to attract direct rental bookings. Rental guests will be encouraged to book any future stays directly via The Olive’s own website in order to avoid paying commissions to the OTAs.

 

The management company’s interests are perfectly aligned with owners. Their aim is to achieve the highest nightly rate possible and the highest levels of occupancy each year - making The Olive the ultimate armchair investment for those wanting to achieve high levels of rental income without having to spend long hours managing the advertising, booking and administration of their own properties.

CHECK IN / CHECK OUT

 

At The Olive there will be a reception and guest lounge open 24/7/365 to provide various services for rental guests and owners.

 

Services available will be check in and check out, pre and post cleaning of the property, inventory check and billing back to guests for any damaged or missing items, and general guest services such as car hire, the booking of taxis, basic concierge etc.

Rental Projections

 

Whilst the below projections are not guaranteed in any way, the assumptions made are very conservative, given the enduring popularity of Ibiza (approx 7 million visitors per year) and the *occupancy rates of 5 star accommodation on the island (which was 95.2% in 2018) and 4 star accommodation (which was 84.3% last year respectively).

 

*Source: Official Ibiza Tourism Statistics

Property Type Total Property Price (Including furniture, parking and storage) Assumed
Occupancy
(181 room nights
per year)
Advertised
average
nightly
rate
Net nightly
rate
(after OTA
fees, vat
etc.)
Income
per year
Net income
per year
(after community
fee, local
taxes etc.)
Annual Yield Annual yield AFTER tax
Sun terrace of approx 50m2 310,000 50% 250eur 172eur
31,137
euro
25,462 euro 8.21% 6.6.5%
Private ground
floor with a
larger terrace of
approx 70m2
350,000 50% 275eur 189eur 34,250
euro
28,075 euro 8.02% 6.5%
Penthouse with
private roof terrace
of approx 100m2
415,000 50% 295eur 202eur 36,739
euro
29,752 euro 7.2% 5.9%

It is expected to well exceed these average nightly rates, especially during the Summer season (April til end October) and to further increase the income potential The Olive will remain open throughout the year, in order to capitalise on the high demand for accommodation during the island's Winter months and the sharp shortage of luxury accommodation options.

The yields projected here are after all known costs and also personal taxation has been deducted.

AVENIDA SANTA EULARIA 17

07800 EIVISSA

//

+34 634 149 952

+ 44 7748 609 752 WhatsApp

 

claire@nativoibiza.com

TOURIST

 

LICENCE

Rental Management Options

 

Owners at The Olive may choose to advertise their own properties for sale using various means such as the various booking websites; Airbnb, booking.com or Homeaway (for example), or indeed via friends, family and advertising locally, should they wish.

 

However, should owners prefer not to have to invest any time in marketing and managing the rental of their Olive property, Nativo have put in place an optional booking service. The optional booking service means owners can hand over their property to the booking service team and have the room nights booked for them for a small fee - making The Olive the ultimate armchair investment for owners who are perhaps a little short on time.

CHECK IN / CHECK OUT

 

At The Olive there will be a reception open year round to assist owners managing their own stays and stays of their rental guests.

 

Services available will be check in and check out, pre and post cleaning of the property (or daily cleaning should this be required), key holding and various guest services such as car hire, the booking of taxis etc.

Rental Projections

 

Whilst the below projections are not guaranteed in any way, the assumptions made are very conservative, given the enduring popularity of Ibiza (approx 7 million visitors per year) and the *occupancy rates of 5 star accommodation on the island (which was 95.2% in 2018) and 4 star accommodation (which was 84.3% last year respectively).

 

*Source: Official Ibiza Tourism Statistics

RENTAL

TOURIST

 

LICENCE

Rental Management Options

 

Owners at The Olive may choose to advertise their own properties for sale using various means such as the various booking websites; Airbnb, booking.com or Homeaway (for example), or indeed via friends, family and advertising locally, should they wish.

 

However, should owners prefer not to have to invest any time in marketing and managing the rental of their Olive property, Nativo have put in place an optional booking service. The optional booking service means owners can hand over their property to the booking service team and have the room nights booked for them for a small fee - making The Olive the ultimate armchair investment for owners who are perhaps a little short on time.

Rental Projections

 

Whilst the below projections are not guaranteed in any way, the assumptions made are very conservative, given the enduring popularity of Ibiza (approx 7 million visitors per year) and the *occupancy rates of 5 star accommodation on the island (which was 95.2% in 2018) and 4 star accommodation (which was 84.3% last year respectively).

 

*Source: Official Ibiza Tourism Statistics