From booking policy to internet access, we examine the services most valued by renters – considerations that are key for optimising income
Understanding what holidaymakers want from their ski property is critical to investors in this market. A joint Savills and HomeAway survey gives insight into renter and purchaser preferences, as well as factors such as income and occupancy.
Renting is becoming more common
When asked about the intended use of the property at the time of purchase, around a third of ski property owners surveyed who purchased their property in the 1990s intended to rent it out for short-term and holiday rental purposes. By 2019, this had increased to over half (54%) of all owners.
Holiday rental income helps to cover costs
The primary reason for renting out a ski property is to help cover the mortgage and taxes; while 30% did so as a secondary source of income, and 27% to help cover the cost of upkeep. In terms of mortgage costs, 60% of owners surveyed cover 80 to 100% of their mortgage payments with rental income. Meanwhile, renting out their ski property is a primary source of income for just 6% of owners surveyed.
The median annual gross yield for ski properties, before considering the mortgage or any other costs, in the survey stood at 5.5%. On average, ski properties in North America had a higher yield than those in the Alps, with a median gross yield of 6.2% and 4.2% respectively.
Bookings and occupancy
When asked about how their property’s booking rate (days rented divided by days offered for rent) over the past 12 months compared to the 12 months prior, half of respondents stated that their bookings had stayed the same or were similar. This is compared to 37% who saw an increase in bookings, and 13% who experienced a decline.
Ski properties in North America fared better on average than those in the Alps over the past 12 months, with 45% of North American ski property owners surveyed seeing an increase compared with 25% of those in the Alps.
On average, ski properties in the survey were rented out for 19 weeks of the year. Considering the average ski season is 20 weeks of the year, this suggests properties are well occupied during the ski season. Meanwhile, owners or their friends and families occupied the property themselves for an average of six weeks during the year.
Meeting holidaymakers’ demands: amenities and features
Owners and renters are broadly in line when it comes to amenities and features they deem essential. Much like the second home market more generally, staying connected to the internet is the most important factor for both owners and renters alike. But, owners consider this more important – and any internet access is more important than high-speed internet access.
Beyond the internet, keeping warm, security, TV and a place to park the car, rank among the most essential factors for renters.
One factor which owners place a higher level of importance on compared with renters is a patio or deck, which 29% of owners deem essential compared with just 7% of renters.
Meeting holidaymakers’ demands: booking policies
When it comes to booking policies, owners and renters are less aligned. ‘Children welcome’ is the most common policy in the survey offered by owners of ski properties, with 88% offering this. But, only just over half (53%) of renters deem this important. Instant booking (booking without waiting for approval) is the policy in the survey deemed most important by renters of ski properties, listed by 77% of people. But, just under half (46%) of owners offer this service.
‘Children welcome’ and ‘rent to under age 25’ are the only booking policies in the survey where the share of owners offering that policy is greater than the share of renters who deem it important – suggesting owners could do more to better service renters and see bookings increase.
Note: In June 2019, Savills World Research surveyed 7,800 property owners who list their properties on HomeAway in 10 markets (US, Canada, UK, France, Spain, Italy, Netherlands, Portugal, New Zealand, and Brazil). A second survey was carried out of 6,800 renters who use HomeAway, from the same 10 countries. Picked up in the surveys were more than 540 owners (around 360 in North America and 170 in Europe) and 110 renters of ski properties. From these figures, we have identified a number of trends in the Alpine market.
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