Buy to Rent Out
Renting out their Spanish holiday home is for many of our clients a way to earn back the annual running costs of their property and for others it can be an additional income.
A study of a well known holiday-home rental platform reveals that demand for holiday lets in Spain has exploded this year.
The typical letting season is 20-24 weeks on the Costa del Sol. However you’re unlikely to achieve this many weeks’ occupancy in the first year. Most likely it will take up to three years to reach fully occupancy.
If income from a Spanish home has a high priority, the location must be one of the main considerations when buying. When considering the location you should bear in mind certain factors:
- Proximity to an airport, a property should be situated within easy reach of a major airport, as most holiday makers won’t consider travelling more than 30-45 minutes to their destination after arriving at an airport. The Costa del Sol has two major airports, Malaga airport and the Gibraltar airport covering the whole Costa del Sol within 45 minutes drive.
- Public Transport & access, it’s an advantage if a property is served by public transport or is situated in a town where a car is unnecessary.
- Attractions, the property should be close to attractions and/or a good beach, depending on the sort of clientele you wish to attract. If you want to let to families, then a property should be within easy distance of leisure activities such as theme parks, water parks, sport activities and nightlife. Proximity to one or more golf courses is also an advantage to many holiday makers and is an added attraction outside the high season.
- Swimming pool, a (communal) swimming pool is a must in most areas, as properties with pools are much easier to let than those without, unless a property is situated on a beach.
Our clients always ask us what are the letting rates of a property. Rates vary greatly depending on the season and the size and quality of a property. An average apartment or townhouse sleeping four to six in an average area can be let for between €300 to €1,000 per week, depending on the season, location and quality. At the other extreme, a luxury villa in a popular area with a pool and accommodation for 8 to 12 can be let for €1,500 to €3,000 (or more) a week in the high season.
Rates usually include linen, gas and electricity.
Costs & expenses
When letting your property, make sure you allow for the numerous costs and expenses that inevitably reduce the amount of profit you can expect to make. These may include: cleaning between and during lets; laundry of household linen; garden and pool maintenance; maintenance of appliances; replacement of damaged or soiled items; insurance and utility bills (electricity bills can be high if your property has air-conditioning or electric heating).
If you let a property, it isn’t advisable to fill it with expensive furnishings or valuable personal belongings. While theft is rare, items will get damaged or broken over a period of time. Small, two-bedroom properties usually have a sofa bed in the living room.
However the furnishings should not be expensive, its important to have appealing furnishings.
Properties should be well equipped with cooking utensils, crockery and cutlery (including a kitchen knife that cuts!), and it’s also usual to provide bed linen and towels (some agents provide a linen hire service). Make sure the bed linen and towels are of good quality and replace them often, before they wear out.
Appliances should include a washing machine and microwave, and possibly a dishwasher and tumble dryer. Depending on the rent and quality of a property, your guests may also expect central heating, air-conditioning, covered parking, a barbecue and garden furniture (including loungers). Heating is essential if you want winter lets, while air-conditioning is an advantage when letting property in summer.
If you would like to let out your property you can use specialized agencies to do this for you. Depending on the area we can advise you with some names of agencies we collaborate with. You can also do it yourself by using portals such as airbnb and/ or you can make your own website.
Whether you do it yourself or you get an agency to do it for you, we would advice to make some very good pictures of the property interior and exterior, the communal areas and the nearby area which will attract holiday makers to book your property.
If you do your own letting, you must arrange for cleaning and maintenance, including pool cleaning and a gardener if applicable. Ideally, you should have someone on call seven days a week.
In order to legally let out your property you are required to register you property as a holiday rental property. You can ask your lawyer to do this for you or you can do it yourself by filling out an online registration form. The timeframe to process the form and issue the Registration Number is two weeks. However, you may begin rental activity from the moment you present the form to the registration office.