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Cimalpes

Real estate advice

20 November 2020

How can you improve your rental income in the Alps?

Are you an owner-renter of a property, chalet or flat, in Courchevel, Megeve, Meribel, Saint-Martin-de-Belleville, Tignes, Val d'Isere or another ski resort in the Alps? Our advice for optimising your rental yields and therefore enhancing the value of your property despite a 2020-2021 season marked by the Covid-19 crisis.

In the mountains, the next snow season promises to be absolutely unprecedented, given the concerns caused by Covid-19 and the various restrictive measures taken in France as well as in most European countries.

Despite the increased flexibility of cancellation conditions, bookings, which used to be made several months in advance, especially for the most luxurious properties, have been delayed this year. They will be made at the very last moment, just a few days before departures.

It is also expected that the profile of visitors will evolve with a seasonal rental market that this winter will be largely dominated by local customers, whether French or from nearby countries such as Germany, Belgium or Switzerland. Visitors from distant markets (Brazil, China, Singapore, etc.), who were increasingly numerous to stay in the Alps, will be rare.



An unprecedented season but reasons to remain optimistic



Despite all the uncertainties, landlords still have reason to hope and therefore to prepare. 

Indeed, in the rental agencies, contacts have been sustained since the autumn, confirming that the mountains are an attractive destination thanks to their intrinsic assets (accessibility, wide open spaces, nature, gentle way of life) which are particularly valued in the current context. 

In addition, incoming demand openly favours an individual accommodation format. This winter, regulars of the hotel offer or tourist residences will be turning away from them in favour of renting a chalet or private flat in order to comply with the objective of limiting social interaction. This is why regulars of this type of accommodation will naturally turn to agencies such as Cimalpes, which responds to this growing demand while also offering para-hotel services: a very nice alternative for carrying over hotel customers.

Therefore, with the Christmas holidays just a few weeks away, it is in your best interest to make the most of the remaining time to optimise your appeal. Especially since the clientele, if they are already in search, are both very demanding and very strategic, ready to change property at the very last moment.

Your objective: to stand out from the competition in order to improve your rental income, whether you own a chalet or a flat, and thus make a better return on your property investment.

The following advice is also for anyone who is studying the property market and thinking about making a rental investment in the mountains with a view to reconciling buying for pleasure, building up a property portfolio and seeking rental profitability.



How can landlords prepare for a very special season?



In a wait-and-see market, there is no need to panic. This year, bookings will be made a fortnight before departure in the best of cases. For the Christmas and New Year holidays, bookings will be made at the beginning of December.

The right attitude: stay tuned to the rental market and adapt only when it starts to move. Until then, there is no need to depreciate your property by offering overly aggressive prices. At the moment, there is no problem in terms of rental supply or demand, but a particular context that has prevented the market from taking off during the traditional autumn booking windows. 

On the other hand, the players in the rental sector must envisage a season in which it will be even more important than usual to stand out from the competition.

Rather than lowering your prices, you can, in collaboration with your rental agency, especially if like Cimalpes it can rely on reference local partners, offer your guests a real experience with new and exclusive services. The aim: to give your property a competitive advantage over properties offering simple rentals.



How can landlords take advantage of the current calm?



The period can already be used to update what has not yet been updated or renovate what should be updated. All the more so as potential customers, who are waiting until the last moment to make a reservation, currently have plenty of time to compare or refine their choice.

In particular, it is advisable to improve the general standing of a property by investing in low-cost fixtures and fittings which can make a furnished rental change its range.

In the first place comes everything that concerns comfort and entertainment. Today, it is inexpensive details such as beautiful plaids, trendy cushions or the quality of children's games that can make all the difference.

Then you have to think about digital equipment: wifi access is a must, an Apple TV connection makes the difference. Especially for a season during which the après-ski offer in the resort will probably be impacted by the restrictions linked to the health crisis.

For the most luxurious properties, investors can also bet on leisure equipment to upgrade their property. A sauna, jacuzzi, hammam or even a swimming pool for the most spacious rental properties... All these investments will increase your rental income.







Renting more easily, upgrading your rates... The integration of top-of-the-range hotel services also helps to maximise the profitability of a property.

Indeed, they enable a property to do well by differentiating itself positively, especially in the run-up to a very competitive season, but also by appealing to customers who are used to hotels or tourist residences.

A la carte concierge services, such as the delivery of breakfasts, additional households, or the provision of a chef at home, will be very much appreciated by holidaymakers with high purchasing power, especially in a period when restrictions are pushing them to withdraw into their accommodation.

However, the provision of para-hospitality services is suitable for all types of landlords, as it is possible to start very simply. For example, by providing tenants with quality care or maintenance products with an environmental label, a small gesture that already makes it possible to enhance the value of a rental product.



Will landlords need to be flexible?



You will certainly need to be flexible once bookings have really started as it is expected that supply will still exceed demand in this particular year.

Like all tourism professionals (hoteliers, airline or rail companies, etc.), owner-renters who want to optimise their rental income will have to adapt in real time to the market, leaving real room for manoeuvre to rental and rental management experts such as Cimalpes. 

Another piece of advice: plan your own holidays on the weeks least in demand in order to promote the marketing of your holiday home on the traditionally most expensive weeks but also to maximise the visibility of your property on booking platforms.



Conclusion: a season to test, innovate, strengthen



Last minute bookings are becoming more widespread, local customers are returning, demands for greater comfort are increasing, and aspirations for ever higher quality hotel services are on the rise...

Because the context ultimately reinforces the underlying trends more than it calls them into question, owner-renters in the mountains will also be able to envisage the next season as a foretaste of the tourism of the future.

For if the coming winter conceals its share of uncertainties, the medium-term prospects appear favourable, on the condition however that they adapt to demand.

Find out what Cimalpes has to offer to help you rent your chalet or flat!

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