Q: Why do we need to change our rental arrangements?
A: We have many unsold weeks and blocked villas that will bring no income, unless they are sold or rented.
We now have a total bad debt provision of 300,000EUR. Efforts are made to follow up debtors, but a good number of them have subsequently died or are untraceable. Efforts to reclaim money through the Spanish Courts has proved very difficult and expensive. We do use debt collectors however.
Failure to obtain rental income is going to have a very serious effect on the Community’s finances in the future and will almost certainly lead to very substantial increases in maintenance charges, and even that will probably not keep pace with the gradual decline in owners. The situation is worsening rapidly.
Q: Why are the new rental rates so high? We can rent cheaper elsewhere and we are pricing ourselves out of the market?
A: Las Casitas is a premier resort, and experience has already demonstrated that we can command high rental charges, higher than most other local resorts. Rents are calculated by OnaGrup through a system that measures demand and the market. Any decline in demand would automatically lead to a lowering of prices. This system ensures we can get the best price possible for rentals.
Q: What was wrong with the original WimPen rental system for owners ?
A: Quite simply, WimPen has no expertise in rentals and their rental programme was not successful, as many owners who tried to rent out can testify. The rents they were charging were low and uneconomic, in spite of which, very many weeks remained unrented. For some years, many owners complained that it was cheaper to rent than to own!
Q: Why cant loyal owners have a bigger discount than the 20% currently offered?
A: In short, because any discount given to owners is a charge on the Community’s finances, ie it is paid by other owners. There are many more owners who never rent than those that do, and it would be unfair to expect them to foot the bill for owners who want a subsidy on their rental rates. This was the view taken by the AGM.
Maintenance charges have not been increased for owners however, which depending on the Euro exchange rate, may actually be a reduction. This is only made possible by improved rental income and now there is a real benefit to being an owner of the weeks you want.
Q: I cant afford these new rents, but I want to continue coming to Las Casitas for extra weeks, what are my options?
A: Buy extra weeks. They are very cheap, in many cases, purchase price plus maintenance is cheaper than renting. Weeks in the Holding company can be handed back when you no longer want them. Many owners have already done this, and weeks can be purchased from as little as £400.
Alternatively, see if you can make contact with another owner to arrange a private rental. You can use our owners’ Facebook page to contact other owners.
Q: Has our rental income improved?
Yes, Here is the rental income report for the last 2 years and the projected income for this year, based on actual receipts so far and advance bookings up to September
Year ending August 2016
( includes advance bookings) 227,587€
Year Ending August 2015 (actual) 190,914€
Year Ending August 2014 (actual) 148,198€
To obtain the 20% owners discount the reservation should only be made direct through WimPen’s reservation department in Tenerife or through the members area on the new Wimpen website. You will need your usernam and passowrd. You can access members area here:
Or call Wimpen reservation department
UK call rate: 0203 162 0885
Telephone: 00 34 922 741 415
00 34 922 741 417
Owners Rentals -
This has been the hottest topic for some years. Owners voted in favour of OnaGrup’s new rental marketing program at AGM, and some owners who regularly rent have been surprised and upset at the substantial increase in rental charges.
There have also been changes in arrangements for letting owners weeks, which for some owners have caused consternation.
Here I attempt to answer some of the questions that have arisen and show how our resort is benefitting from improved income.
Call 01243 601100 or 0796 222 4554
This website is managed by your Owners representative and is entirely independent of Wimpen and Onagrup.
Views expressed here are those of your Owners rep, and are not necessarily shared by the Administrators of Las Casitas