Renting your property in Spain |
Property owners in Spain are in the ideal position
to earn extra income from their investment by
renting their property. Whether you choose to rent
on a short term or long term basis, the rental
market at the moment is thriving.
With over 300 days of sunshine a year, Spain is
still one of the top holiday destinations and with
the ever increasing availability of low cost
flights, the popularity of self-catering holidays
has grown significantly in the last few years.
However Spain is also becoming a popular place for
people to move to. In recent years, Spain has seen
an explosion in foreigners moving to Spain for a
better way of life and many of these people choose
to rent a property prior to purchasing.
Therefore as a property owner in Spain you need to
consider a few points before renting your property:
 How often do you plan to use the property?
This will determine whether you wish to rent on a
short term basis i.e. to holidaymakers so that you
can still enjoy the benefits of a second home in
Spain, or whether you wish to rent for a longer
period of time i.e. to people living in Spain so that
you can enjoy a regular return on your investment.
How much income do you wish to generate from the
rental of your property?
Short term lets, especially in peak season can
achieve high prices but cannot guarantee a regular
income. Although Spain is a popular holiday
destination it is unrealistic to expect your
property to be rented for more than 8-10 weeks a
year.
Longer lets will see you receiving a regular income
although the weekly rate will be a lot less than
if you rented short term. Think about your costs
mortgage, community fees etc. Do you need extra
income to help you cover these costs and if so, how
much?
What are the additional costs involved in renting
a property in Spain?
If you live near to the property then it would be
best to manage and advertise the rental of the
property yourself. However most owners live
elsewhere so therefore you would need somebody local
to help you. Many people choose to use the services
of a rental and/or management company. They can
advertise the property on your behalf, tend to any
problems in the property, conduct viewings, meet
your clients, provide tenant referencing or
screening and prepare rental contracts.
Rental
companies usually charge a commission fee on each
rental. This could be a percentage of the
weekly/monthly rent or a one off fee. Management
fees are usually paid annually. Ensure you choose a
reputable company and obtain references. Ideally
choose a rental company that is a member of Tenant
Check Spain, a division of Tenant Check Worldwide.
That way you can be assured that they conduct a
check on your potential tenant and avoid any tenants
that could cause you unforeseen costs.
Other costs
you need to consider are cleaning and laundry costs
and it is also advisable to have funds readily
available in case items need fixing or replacing.
Finally owners should pay tax on any income received
from the rental of a property. For more information
about this and other legal aspects associated with
the rental of property in Spain please see
Renting
law in Spain.
Is the property ready for renting out?
No one will rent your property if it looks run down,
is dirty or has broken appliances. Presenting your
property to a high standard is essential if you wish
to achieve the return you require. Prospective
holidaymakers and tenants have thousands of
properties to choose from so it is important to make
your property stand out from the rest. For more
information please see our
Property presentation
guide.
Renting your property in Spain should be an
enjoyable and rewarding experience. However this can
easily turn into a nightmare if you are unfortunate
to have a bad tenant.
Therefore avoid the bad tenant at the start!
Sign up as a member or choose a rental company that
is a member of Tenant Check Spain.
For more information please click on the following
links:
Why
sign up?
How
does it work? |
