Are you missing out on thousands a year that you could be earning?

Are you missing out on thousands a year that you could be earning? Do you own a holiday home in Spain? Have you ever considered the benefits of letting it as a long term rental using a proper professional managing agent, especially as opposed to a holiday let?

Let´s face it, when you decide to rent your property as a let, there are quite a few cost implications. Firstly, you have to provide a lot more furniture and stuff at your property or apartment as the sort of furniture in a holiday rental needs to be better quality than a long term rental. Also, in a holiday rental, it is a pain as you need more “stuff” such as an ironing board, iron, hairdryer, stereo, TV. All those extra things cost money!

As a holiday let you then have the cost of advertising. Often this can be much more than expensive compared to an agent´s fees and much more effort. Speaking to people it seems that they spend about 10-12 hours per month managing their property as a holiday let, whereas when agents are managing it seems to be on average one hour a month at most for them, obviously they are dealing with all the maintenance issues.

One big issue of course is security, by letting people that you don´t know use your property you are taking a risk that they will treat it in the right way. The same goes for a long term let but you are reducing the risk significantly as any good agent worth their salt will take references and interview the people to really ascertain they are suitable tenants. Bad tenants reflect on an agent so it is important for them too to get it right.

Renting a property on a long term let means your property is let during the low season and cleaning costs are minimal, as opposed to the costs of having properties cleaned and restocked with fresh sheets and towels for tenants.

Financially is it worth it? This tends to depend on the property, as a holiday let earns more per week/month if occupied, but of course it all depends on the rate of occupancy and unfortunately holiday let occupancy rates are not as high as they used to be. Long term rental properties are in short supply, however, and tend to rent very quickly, especially larger properties. Obviously if a property is totally unlet, it it is only costing you money.

What about tax on rental income, short or long term? Quite simply, whether you are non resident or resident of Spain you should be declaring income from a property you let. Poli in Spanish Solutions ([email protected]) Telephone 966761741 can advise further on this, but clearly you are always going to be making far more than you are being taxed.

The bottom line is that by buying or already owning a holiday home an owner can provide themselves with a substantial rental income if planned and managed carefully. If you have a three or four bedroom house on the Orihuela Costa, you really are losing out on a nice rental income per annum.

Please contact us at Comaskey (Susie) on [email protected] or 966773453 to discuss further.

You might be interested in these related articles:

  • Archives