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Amenities list for Nice Pebbles guests

At Pebbles we’ll always find you the right property for your needs. We have access to 10 years worth of rental figures for all key locations in Nice. We’re confident that no-one in Nice knows what and where to best buy for rental investment.

The buzzword for property was always “location, location, location”. These days location is not enough. These days, I tell my investment buyer clients “amenities, location, amenities“. Why? The answer is simple and it has everything to do with filters. Guests searching for a short term rental property want to find quickly a property that is perfect for them. The key word is quickly. They want to search, buy and have their feet up watching Netflix within the hour. Search filters help them do that.

Pebbles rental guests most sought after amenities are outside space, air-con and sea views. So they will start with these filters to narrow their search. If 20+ properties come up for their dates will all the amenities they wanted from their short let accommodation, they’re not going to search any longer. Only when less then 10 properties come up may they widen their search.

For an investor buyer, wanting a 4% – 6% yield, you need to buy smart. Here’s how to get the most from your property budget in 2017:

More than 700,000 euros to spend:

In this price bracket, you should be in a prime central location and ensuring the property ticks most, if not all of the search amenities. That’s outside space, air-con, two bathrooms, lift and perhaps a sea view. You will also probably be looking for 3 beds.

Don’t be seduced by a fantastic interior. Too many rental guests will not even see the interior if they are using search filters. If a property offering has no outside space or air-con, we’ll generally discourage an investor from, well, investing. A property over 700,000 euros will not produce a good enough annual yield without outside space and air-conditioning and three bedrooms.   Of course, there are always exceptions, but right now, I can’t think of one.

Put yourself in a guests shoes: with a decent budget, they are going to narrow their search by finding properties that have both air-con and outside space. If 36 properties come up available for their dates then they choose from the 36 and don’t even consider widening their search. That means they will never even see your property, do not know it exists, and won’t ever read the guest book comments or see your amazing interior design.

Properties that have key amenities may command a sales premium now. Sellers know that they are selling a valuable commodity. Fair enough. As an investor buyer, don’t pay this premium if you are not getting the amenities. We’d rather you wait until you find a property that has them, unless it’s an absolute bargain. We discourage any of our pure investor buyers from spending more than 600,000 euros right now if a property doesn’t have outside space. (Where there is outside space, you can usually put in air-con, so the two go hand in hand).

Golden rule: There is no point in spending 100,000 euros on interior design if only 20% of site visitors will ever see your property. Buy smart. Buy with amenities.

Between 700,000 – 300,000 euros to spend:

In this price bracket you should still be able to get key amenities as well as a great location. The higher end should net a three-bedrooms, the lower end, two-bedrooms.

This is still the price point that we think currently obtains the best annual yield. There are many a property on the Pebbles rental portfolio that are consistently getting a 5% yield at this price point. Maybe at the lower end, you’ll have to forgo one or two amenities, but you should be able to secure outside space or air-con. Then you are looking for either a lift, sea view or second bathroom. These amenities ensure your property comes up in the search filters, and then it’s about what you choose to do with your space – and great, appealing design is then key.

In this price bracket, properties on our rental portfolio which are well designed are consistently taking 30,000 + euros annually. Some are taking 50,000+ euros net annually. Properties that are falling short are undoubtedly ones that need a face-lift or the furniture has been poorly planned or designed. We can help if you need an interior designer.

Golden rule: Achieving good solid yields is then about making the most of the space bought. Think microwave, English TV (Netflix especially) washing machines and dishwashers plus fantastically appealing interiors.

Below 300,000 euros to spend:

OK, you don’t have the budget to buy properties with all the amenities, but all is not lost. You buy what you can and you price to suit the more budget guests. Price is your key factor when you don’t have amenities. You are looking for guests who search by price, guests who know they can’t afford / prefer not to spend on luxuries such air-con and outside space, lifts etc.

The good news here is these guests are likely to want a base and are going to be out all the time. This is less wear and tear, and less use of your utilities. Recognise this and buy the best amenities you can, in the best location you can. Know what your competition is charging for similar rental space, and price accordingly to compete.

Don’t rule out buying for investment on the long term let market . There is a shortage, and so there are decent returns to be had.

Golden rule: If rental return is important to you, try and find a turnkey rental already on the market. The more rental history, the better.  You will be buying a ready made business that already had a reputation and following, and are likely to get the “goodwill” thrown in for free. Don’t underestimate the value of this. No downtime on the investment can be worth £1,000s.

What Properties do Pebbles take onto their rental portfolio for 2017?

Here at Pebbles we’ve had a policy since 2015 where we will not take a rental onto our portfolio unless it has either air-con or outside space. Sometimes we make an exception, such as a rooftop pool, but not often. The properties on our portfolio without these two key amenities have been with us 6 years or more, and loyalty counts for something in our book.  Every year, we find a natural shedding and we replace with apartments with the amenities we know our rental guests want.

From 2017, we have got even more fussy. Our clientele want amenities. We want to give our guests what they want. Guests may have been happy to rent with less amenities before the short let revolution, but now they have plenty of choice. Only if an apartment has outside space and air-con will we now consider taking it onto our portfolio.

If you buy a property that a partnership with Pebbles Rentals is not viable, my book Room for Profit will help you decide how best to market and on what platforms if you decide to rent your new home yourself.

Buying for yourselves more than for investment, but want to rent out a little?

If instead you plan to stay in the property and are not interested in the short term let market, then good news. You should be able to pick up a bargain from the scores of properties coming onto the market from old-timers investors who can no longer rent their property for the rates received pre-2015.

I’m happy to advise you what to buy and even where to list that suits the property you are considering buying. Email me at gayle@nicepebbles.com.

 

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