Spanish Property News

One of the topics we often get questioned about is property rental in Spain. In times such as these most people will consider whether their property in the sun could be generating some income to pay for itself.

The way in which you rent your Spanish property out is determined by the type of property you have, its location and whether you wish to use the property yourself.

There are two basic rental types in Spain - long term or holiday rentals. Holiday rentals can be 3-4 days up to 3-4 weeks. Typically they are located in resorts or areas known to be popular with the local and / or foreign tourist market. Properties on developments with pools are very popular for holiday rentals, as are private villas with pools.

Long term lets can be located in cities, the country or resorts. There is really scope for any type of property to be suitable as a long term let. Young commuters may be looking for a well located apartment while retired ex-pats may be searching for a quiet country finca. It's worth noting that I've had several conversations with other agents and marketeers recently and all have said that enquiries for long term lets are on the increase - perhaps a sign of the current economic climate.

Both types of rentals have their pros and cons.

Holiday rentals can provide an excellent rental yield with a weekly rental charge. Typically in Spain the months of July and August are most popular however here on the Costa Calida the summer rental season can extend from April through to October. Depending on where in Spain your property is located you may also get winter rentals - if you are near golf or skiing facilities for example. If you set your rental rates competitively and target your market you should find new renters each year and build up repeat bookers. Another big advantage is that both you and your family can still use the property. You just book out the dates you will be staying and take bookings for periods when the property would normally be standing empty.

However holiday lets can have higher overheads and can be more labour intensive. The property will need to fully equipped down to the cutlery. You may hold a damage deposit to cover breakages but higher than average wear and tear on both furniture and soft furnishing is not uncommon. Utility bills are payable by the owner and of course you have limited control on expenditure in this area. You will need to arrange for key handover / meet & greet, linen & towel laundry, cleaning and basic maintenance. The bookings themselves need to be well managed and you have to be prepared to continually monitor your property to ensure it is maintained to a good standard throughout the rental season.

Mid to long term lets can be furnished or unfurnished and usually tenants do not expect a fully equipped property (i.e. crockery, cutlery, linen etc). Although the property is unavailable to you for the length of the contract the utility bills are paid by the tenants and you do not have the problem of it standing empty. You will have to ensure any property maintenance problems are dealt with swiftly. While monthly income may be lower than holiday rentals you do receive regular income for the length of the contract and do not have the hassle of arranging cleans, changeovers and laundry.

We run a successful holiday rental apartment ourselves and while it is hard work we have a streamline process from advertising through to the actual rentals which works well for us. However if you live in another country it can be difficult to manage everything from a distance. If you prefer a less hands-on approach you can always employ an agent to do as little or as much of the management as you require.

With long term lettings I would always recommend using an agent with experience in this market to manage your tenancy contract, the tenants and the property.

In summary renting out your Spanish property can be a very good way to generate income from the property. You should always check your insurance policy, use a tenancy agreement and also take relevant legal and tax advice. Holiday makers are still flocking to Spain to enjoy the sun and increasing numbers of residents are searching for long term homes, so if you have a property in Spain, or you are thinking of buying one it is certainly worth thinking about.

Labels: Costa Calida Holiday Rental, Property Rental Spain