How to finish an investment property? (Holiday let edition.)
Owning an apartment can get expensive. While the availability is limited, enduring demand drives prices up.
In recent years, rental housing in Malta has evolved into a growing business. Investing in a property to turn it into a fruitful rental is an attractive source of income. Property sales are not slowing down with countless new construction projects in Malta and Gozo. And with interest rates at historically low (3.5%), many investors opt to buy a second or third property.
Renting out residential real estate generates an income of 5-10% yearly, but in central areas such as Sliema and St. Julian’s, this can be as high as 15%.
International tourism is a significant contributor to the Maltese tourism ecosystem. According to Statista Research Department, in Malta, the inbound tourism spending amounted to roughly 2 billion euros in 2022. This means 2.3 million travellers in a year.
To rent successfully, it’s essential to make your property attractive to interested parties.
I usually hear from prospective clients: “I want to spend as little as possible since it will be for rental, and I do not want to spend much on it.” And this usually means no insulation (already essential worldwide) and really just installing the bare minimum.
First of all, you’ve got to know what adds value.
Many tenants have a set range for the rent they are willing to pay, and personal add-ons do not always help move that needle.
Holiday homeowners must consider style and durability to ensure their property looks homely and appealing. But decorating a rental property is different from decorating your own home.
When decorating a rental, you must create something that suits everyone and anyone while being hard-wearing and durable enough to be cost-effective.
For example, you can opt for tile or vinyl (LVT) flooring. With functionality for everyday life and an extensive range of patterns and colours, vinyl flooring suits every interior. Also, it can be used in every room, even in the bathroom.
Forget about apple green or purple walls! Think neutral. Go for some kind of white (you wouldn’t believe how many different whites are on the market!). If you have several rental properties use the same brand and colour so you can keep a few tins for whenever a touch-up is needed.
Correctly choosing the size of the boiler for your apartment is a must. Generally, 50 litres per 2 people is the minimum capacity. If your place can accommodate 4 people (but you only have one bathroom), you must go for 100 litres. If you have two bathrooms, then two 50 litres boilers, you need to get.
There is a reason tourists choose apartments over hotels! Fitted kitchen with a fridge and freezer. Also, a washing machine and dishwasher are a must.
Furnishings
Go for the minimum; no need to overwhelm the property with different items.
I am attaching documentation that includes the requirements by law. (Subsidiary Legislation 409.11 Holiday Premises Regulations) This is a very detailed documentation, and although I do not agree with every line, it is what it is.
I recommend a sofa bed for the living room with at least 160*200 cm beds (not 135*190 cm as in the regulation) in the double bedrooms. While the average height in Malta is 159cm for women and 169 for men, these numbers are at least 10 centimetres more for tourists.
“To ensure comfort while sleeping, the bed length should be 250 mm longer than the individual’s height”.
Architects’ Data, also simply known as the Neufert, is a reference book for spatial requirements in building design and site planning.
Also no need for massive wardrobes. Your tenants are staying in the property for one or two weeks. Just think about what you usually need when you go on a vacation yourself.
But no need for desks and chairs; no one will sit down and write letters.
With temperatures reaching well into the 40s in summer, providing a working A/C for every bedroom is essential. As well as black-out curtains or black-out roller blinds.
Although Malta’s mosquitoes do not carry any diseases, their bites can cause terrible itching, so apartments with mosquito nets will be more popular.
How often to paint a rental property is the landlord’s sole preference. However, besides aesthetics, there are instances where painting is absolutely a must. For example, suppose the property has evidence of chipping, peeling, or mould. In that case, this must be addressed before renting out the home.
Holiday home interior design really can’t be underestimated!
We live in a digital world, and many tourists share their travels on social media. I’ve also stayed in plenty of homes where I did not want to share any photos because the interior design was not only boring, but really cheap looking, and dull. But I have stayed at places full of unique ideas and booked again the following year.
Ultimately, as a holiday homeowner, this is what you want. Happy customers who will give fabulous reviews, advertise your place for free on their Instagram accounts and recommend your place to their friends and family.