Budgeting for a Villa for Rent
There are a number of price points that can be explored due to the sheer volume of supply of villa properties for rent. Although prices are majorly driven by the location, the age of the property, the amenities and the season are also major factors that must be accounted for. Short stays are slightly costlier than longer periods. Apart from these factors, the type of amenities, the décor and furnishing and comforts also influence the rent. Fully-furnished villas are priced higher as the clientele expected in these properties are for short-stays lasting up to a few weeks. Un-furnished or semi-furnished properties are typically on the market for longer stays ranging from a few months to an annual lease. Going about hiring a villa does take a bit of time and costs factoring in seasonal rates, location etc.
The macro-level differentiator for the rents charged are whether the property is by the coast or in the hinterlands.
Popular areas on the northern coastline include Candolim, Baga, Anjuna, Vagator, Arambol and Calangute. Most of the properties available here are for short-stays and are fully furnished. The closer the proximity of the property to the beach the higher the rent gets.
Average rents that can be considered here for a four bedroom villa that is gated and with a swimming pool would be in the range of Rs. 35,0000 a night for a weekend stay. Most of the clientele for these properties are vacationers that are looking for an exclusive property all to themselves and expect all the comforts that come with it. Stays for longer periods are not very common in these areas as homeowners prefer the villas to be listed for the shorter periods. Properties for longer stays are generally available towards Mandrem or Morjim and are comparatively priced cheaper than those that are available at prominent tourist hotspots.
Villas on rent for long leases are generally priced at Rs. 40,000 and upwards in tier II areas of the coastal belt. It gets even cheaper as you head towards towns like Siolim, Assagao, Saligao, etc that neighbour the beach belts and are a little quieter as compared to the main tourist areas.
Villa rentals vary depending on the tourist season. The months of June until September are when the monsoon lashes the coastal state of Goa and hence it is considered off season for tourism. Although it is a nice time to visit to enjoy the sights and sounds of the rains, the major footfalls visiting are the interstate tourists. Rentals drop to nearly 50% and sometimes even more during this time.
The first chartered flight usually arrives by the end of September or towards the beginning of October and this marks the commencement of the tourist season in the state. Off-season rates transition to season rates with prices steadily climbing as the season progresses. December is peak season where the rents are the highest. It is unlikely to get a long-lease rental during this period as homeowners prefer to rent off their villas for short stays. Most homeowners accept bookings as early as six months; hence it is good time to strike a favourable deal. Most are willing to discount their prices or even extend the duration of the stay if the advance booking amount is higher.
Rental villas are available in a variety of categories. To start with, there are unfurnished villas that are very commonly found on the market. These however are not vacation rentals and are more targeted towards annual leases. Properties in this category are commonly found close to cities and towns. Towards the beach belts it is the short stay villas that are commonly available. Depending on the space available, there are a wide range of listings that can be found. This includes have a private swimming pool, chauffeur driven car, chef for gourmet cuisine and also spa services. Listings in these categories can be found from the basic villa that has the bare minimum covered to listings that offer stays in the lap of luxury.
Another property type are independent homes and Portuguese villas. Many of these have been converted to suit the needs of a vacationer and have all the basic amenities such as furniture and appliances.
Another aspect to budget for are deposits that need to be paid in advance before you occupy the property. Long stays require a deposit of 3 months along with an advance cheque. These details need to be mentioned in the lease agreement including the terms for claiming it back from the homeowner. Short stays require a deposit that on an average can range anywhere between Rs. 25000- Rs. 50,000. Each homeowner is different, and therefore many are flexible with the amounts. The rates of deposit are arrived at considering the age of the property and the type of property.
Generally a broker’s fee of a month’s rent is applicable for the services they render. This fee is associated only for long lease properties that are rented out for a year’s time. There also are notary fees applicable for drafting the lease agreement and to notarize it. Broker fees are usually a month’s rent, although some are willing to negotiate on this aspect so feel free to negotiate with your broker the terms of his services well before the hunt for a villa begins.
The must cover bills for the month are electricity and water bills. The billing cycle for the power bills is once every month and for the water is once every quarter. These bills can be paid online on specified government website as well as at local banks in the area. You would also have to budget for cable bills, this can be paid on a monthly basis or yearly as well. An internet connect would cost as low as Rs. 400 a month depending on the type of data plan that you opt for. There also are maintenance charges that will be incurred if you are living in a society or a gated complex comprising of a number of properties. These fees are for maintaining of common areas such as gardens and pools and also for utility bills.