Renting out can be considered when you buy a property for this explicit reason, when you want to cover the costs of having a property in Spain or if in the current market it wont sell and you decide to wait until the market improves and don’t want the cost burden in the meantime.
Whatever reason, when done properly, renting out can be a rewarding experience and provide a lucrative income. However, many people have limited experience of renting out or rental law in Spain, making it so important to execute all matters in a correct way.
The Bottom Line
We have been an established, legal rental company for over 10 years in Torrevieja.
Our costs are amongst the cheapest in the Costa Blanca.
We advertise our properties on premium websites, our own google promoted website, weekly local newspapers and in our busy office.
Rentals can be:
- Long term (3 months or more)
- Short term (less than 3 months) - Holiday lettings
- A mixture of both!
Holiday Rentals are useful when you wish to use your property yourself periodically.
Long Term will provide a more stable long term income.
A combination of both can also be achieved by taking on holiday rentals* during the main season and then longer term winter lets of 3 to 6 months.
* see paragraph below concerning 'Registration'
It is preferable for your property to be to a reasonable standard. In a competitive market, the more facilities included the more attractive it will be, especially to holiday makers.
If your property is to sleep 4 persons then there should be enough cutlery & crockery & cooking utensils & bedding.
Other helpful additions are:
- Air Conditioning
- Adequate heating for the winter
- Combination of English, Scandinavian & Spanish TV
- WIFI connection
We can assist in providing any of the above and can give guidance as to what a rental property should contain.
Where a property is rented out more than 4 months in any year it is the law that an Energy Certificate has to be available concerning the property.
We can arrange for a valid, properly registered certificate to be drawn up by a fully qualified Architect at a very reasonable fee.
Failure to do this leaves both the owner and us subject to a fine of up to 3.000€ each for a first offence.
The Spanish Government Economy Dept. has published results of first inspections of Energy Performace Certificates. Cases coming under scrutiny showed:
- 40% Falsified Documents
- 40% Properties being marketed for sale or rent without the Certificate in place
- 20% Unqualified technicians signing the documents who did not meet legal requirements
Renting out is a business and as such your house/apartment ceases to be your home but becomes someone else’s home.
In essence you need to detach from the personal side of the house.
You also need to factor in wear & tear and that items will need maintainence and replacements from time to time.
Full property management involves looking after your property, checking it regularly whilst it is empty, advertising the property, checking out prospective tenants, issuing legal rental contracts, collecting payments for rent, electric and water where relevant, dealing with any problems that arise in the property, and dealing with utility bills of the property.
What will I need to do?
As far as signing up with us, it's a simple process that can be done face to face in our office, online, and still by post.
We need, preferably, three sets of keys and we can then take care of the Inventory of items in the property and commence advertising.
When we find long term tenants we will liaise with you for your acceptance.
Holiday Rentals, previously, if you owned just one property which you wanted to use for holiday rentals then there was no need for it to be officially registered.
However, modifications were published which would make it compulsory for ALL holiday lets in the Valencian Community to be registered officially.
These modifications have been passed and it is advisable for those using their properties as a holiday let to make the application now in order to avoid future problems. We can take care of all this for you.
Owners of all tourist rental properties must register the properties and it is compulsory for owners of 5 or more holiday rentals to register as a business in order to legally let the properties.