The right price largely determines what letting actually produces. Too high and your occupancy falls. Too low and your yield does. A good price comes from the market, your costs and the characteristics of your property.
Step 1: look at the market #
Start by comparing similar properties in your area. Look at the type of property, the number of bedrooms and bathrooms, facilities such as a pool or air conditioning, and the position relative to the beach, the centre and everything else.
That gives you a realistic picture of what guests will actually pay, rather than what you would like them to.
Step 2: build in the seasons #
Demand varies enormously by period and your pricing has to follow it.
High season carries the highest rates and the highest occupancy. Mid season sits lower, often 20 to 30 per cent below high season. Low season is lower again.
Working with seasonal rates lets you make the most of the peaks while avoiding empty weeks in the shoulders. A single rate all year is the most common mistake owners make.
Worth knowing for the Spanish coast specifically: the low season is not empty. Northern European winter visitors keep occupancy respectable from October to March, particularly on the Costa del Sol and Costa Blanca, which is not true of most Mediterranean markets.
Step 3: work out your costs and your target #
Your rate needs to cover your costs and leave room for a return.
Fixed costs: mortgage payments, local taxes, community fees and insurance. Variable costs: cleaning and linen, maintenance and repairs, electricity and water, and platform or partner commission.
An example. If your annual costs are €12,000 and you want €8,000 of return, you need €20,000 of income. Letting 20 weeks a year, that means an average weekly rate of €1,000.
Test that against what step 1 told you. If the market says €700, either the weeks have to increase or the target has to come down.
Step 4: adjust for your property #
Not every property is equal. Extra quality, a sea view, a modern finish, a private pool or a strong position all support a higher rate. Where those are missing, the rate sits lower.
Be honest with yourself here. Owners consistently overvalue their own outlook.
Practical points #
Follow the market and adjust when it moves. Use different rates by season. Look at occupancy rather than rate alone, because a high rate on an empty calendar earns nothing. Consider flexible pricing when demand shifts. And test your pricing and adjust on the results rather than defending your first guess.
In short #
The right rental price combines market knowledge, your costs and how your property is positioned. Review it regularly rather than setting it once.
Last reviewed 2026-08-24
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