How to Turn Your Private Island into a Rental Property
Owning a private island can be your successful startup. Especially if you have an island with good climate conditions and spectacular nature sites. Moreover, lots of buyers who are interested in purchasing a private island consider this property to be a good investment. Even if you are not going to make an island your residence place, you can rent it out to others both on a long-term basis or as a tourist spot for vacation rental. Let’s consider how to prepare your island property for rental to start this business tip-top.
There are 4 main directions you need to develop in advance to prepare your island for rent. The first and foremost is considering the legal status and permits. And we are going to start with it.
Starting with Legislation and Permits
Being simply an individual is not enough to make business on your private island rental. Most economies around the world have questions for such individuals and require them to obtain the status of an entrepreneur to pay taxes and get permits for island rental. Please, do not neglect this step and consult with your country’s tax specialist and lawyer to get appropriate permits and legislation for your business.
Besides, it is worth considering the terms of your purchase contract: often, important info about the status of the land you own and conditions of your owning are indicated. If there are no prohibitions for using the land in rental goals, then it’s OK for you. Any doubtful information should be discussed with your lawyer to avoid non-legit situations and issues.
The next thing to consider is what you want your island to be as a rental property. There are lots of ideas about that. Yet, the most in-demand are as follows:
- Renting out an island as a private residence for a long-lasting perspective.
- Making it a tourist spot for short-term rental.
- Renting it out for industrial goals.
As the practice shows, most people gladly love to spend vacations on an island, thus, the second option is the most popular among island owners and tourists.
Yet, to make your private island a popular tourist direction, you should consider opportunities and evaluate the main features and perspectives of your property.
- Evaluate the location – where is your island located? How far is it from the mainland? Is there regular transportation or transfer to your island?
- Climate and environmental conditions are the cornerstones of a successful rental business. Tropical islands are usually at the top of popularity. Yet, even islands in North America, Northern Europe, or distant Pacific directions can be also great as rental properties if they have spectacular landscapes, and nature wonders, or you have wits to attract tourists to them by some specific offers.
- Considering the seasonality of your rental offer is the next thing in our to-do list. Some isles fit all-year-round rental, while others are appropriate for visiting only in certain periods. So, it is important to consider, too.
- Evaluate the current development of your island and its infrastructure. Are there accommodations for tourists or tenants? Do you have utilities and supplies for comfortable living? If not, then it is worth considering how much investment you have to do to improve the situation.
- Plan the attractions and offers which may interest your clientele. That’s the basis for your further USP to promote your rental business successfully.
So, when you see the real state of affairs, you can develop a plan and follow it gradually.
Supplies and Staff Employment
If you successfully developed the infrastructure on your island, and it is looking like a bonbon for possible tenants, it is still not the end. You have to plan supplies and get hired people who will provide all the necessary services for your island’s guests.
As for supplies, it is a must to get some reserve sources of electricity, make fresh water supplies, and purchase the necessary appliances and electronics. Do not forget about tourist equipment if you are going to offer some attractions to your visitors i.e., snorkeling gear, fishing equipment, boats and paddle boards, golf carts, bikes, and all of that kind. BTW, getting a stable Internet connection is also a must if you want to go ahead of your competitors.
The next point of the plan is your staff. Of course, if you rent out your island as a regular residence place, you probably won’t need to provide your tenants with staff. Yet, for tourist rentals, it is a must. Even if you are going to manage all the things yourself, you need the help of a cook, a housekeeper, or cleaner, caretaker and probably, some technicians to maintain the island’s infrastructure and provide some small repairs instantly. So, it is worth considering how many people you need to hire, where to find them, and what salary you can pay them.
Marketing and Advertising
When your business plan to transform your private island into rental property comes to a final stage, it’s time to think about promotion. People should know about you to visit your island. If not, you shouldn’t wait for the queues of tourists and tenants. The best ideas for marketing and promotion of your island rental offer are as follows:
- Use social networks to gain clientele. That’s a powerful source of clients.
- Contact real estate agencies and travel agencies to conclude a partnership and make them add your offer to their propositions.
- Place your offer in specialized online platforms and catalogs. For example, you can place the information about your private island for rent on Findislands.com. Here you may get the most leads and promote your business tip-top.
We hope that our tips may come in handy for you and you will start your successful business with their help.