What actually determines villa returns?

Start with net, not gross

Rental projections are often presented as gross revenue or as a yield on purchase price. What reaches an owner is revenue after platform commissions, management fees, staff, utilities, consumables, maintenance, local taxes and the reserve you need for replacements.

Any figure without those lines visible is a marketing number, not a forecast.

The drivers that matter

• Location and access: how guests arrive, how far the beach or town is, and the road at night.
• Product fit: bedrooms, privacy, pool, light and layout relative to the guests the area attracts.
• Seasonality: the gap between peak and quiet months, and how long the shoulder periods last.
• Competing supply: what has been approved or is under construction nearby.
• Operations: response time, cleanliness, maintenance and review quality compound over time.
• Lease economics: remaining term and extension cost, spread across the hold period.

Stress-test the projection

We look at a conservative case alongside a central one: lower occupancy, softer nightly rates, a maintenance surprise, a quiet season that runs long. If the property only works in the optimistic scenario, that is worth knowing before you buy.

Past performance of any property is not a guarantee of future results, and we do not promise returns.