Holiday Lettings In Spain: Have Your Own Business with your HomeWhether you’re moving part-time to a different part of the world or just need someone to keep an eye on your vacation home, there are plenty of options for homeowners looking for rental property management in Spain. This is a great time to consider renting your property out in Spain, especially for British expats and business managers who spend most of the year traveling. We hope this guide will show you what to look for in rental property management, whom to hire and how you can leave your home securely for long periods of time.
Why You Should Turn Your Spanish Vacation Home Into a Rental PropertyIf you’re planning to be away from your home for long stretches of time, there are two options: You can let it sit empty — with a neighbor or keyholder to stop by to collect your mail — or you can rent it out to holidaymakers during the high season.
Spain is the Go-To Location for UK Holiday TravelSpain has boomed into a favorite location for English second-homes, and a go-to for expats fleeing the endless rain of the UK. Christopher Clover of Panorama Real Estate has been studying the Marbella real estate market for 45 years. Marbella, located between Malaga and Gibraltar, has seen the fastest home-buying growth in years, with the largest demographic of foreign homebuyers from the UK. British buyers in the region increased 28 percent from 2013 to 2014 — accounting for more than 7,000 homes. Brits aren’t just moving to Spain; they’re also visiting the country in record numbers. Chris Kitching, a travel reporter for the Daily Mail, found that 12 million British nationals visit Spain annually, and make up more than a quarter of Spain’s total tourist population. Spanish beaches at Majorca and Tenerife beat out Orlando and Disneyland Paris for favorite British holiday destinations. Because the demand for tourist accommodation is there, expats living in Spain can use their English fluency and cultural know-how to turn their seasonal property into a revenue channel.
Now is the Time to have Rental Property in Spain
Turn Your Vacation Home Into an Investment PropertyRobert Carry of OverseasPropertyAlert.com interviewed real estate professional Barbara Wood about her Spain rental experiences in 2015. Wood explained that most real estate investments that are turned into rentals see an average return of 7–10 percent annually on the Costa Del Sol. On top of the beaches and golf, expats from non-EU countries are drawn to the area because of Spain’s Golden Visa program: Any property owner who spends more than 500,000 EUR is given residency. This means a Golden Visa recipient who rents out his or her home could average 40,000 EUR annually from their property if they market it well, while still having a vacation home of their own.
Why Should You Hire A Rental Property Management Company?More travelers than ever are rejecting traditional hotels and hostels for homestays and house rentals. However, trying to promote your property through Airbnb can be more trouble than it’s worth, and net you lower returns in the long run.
The Spanish Government is Pushing Back Against the Growth of AirbnbAirbnb had more than 150 million travelers in 191 countries as of October 2017, according to publisher and statistician Craig Smith. However, many of the governments in these countries — Spain included — aren’t comfortable with the underground economy that has formed from unregistered rental properties because hotel taxes are a huge source of revenue in some places. Catalonia in particular has cracked down on the rise of these properties as more tourists than ever visit Barcelona. Claire Zillman, a business journalist for Fortune, covered the steps the Catalan government has taken to regulate Airbnb-like rentals. Not only will guest rentals be taxed moving forward, but properties will be limited by the number of rentals and the months they can rent them out. This is because rowdy guests cause damage to properties and invade otherwise quiet neighborhoods.
Management Companies Understand Local Governmental RegulationsInstead of listing on Airbnb, or trying to manage your rental property yourself remotely, Ron Leshnower, president of Fair Housing Helper, recommends hiring a property management company, and letting them help you through the legalities. These companies will vet tenants for you, to make sure that your tenants won’t get rowdy and violate housing agreements, and even run background checks in some cases, before letting renters move into your property. They will deal with issues such as eviction and provide home-prep services in between tenants. This way, your rental property is still a revenue-producing entity, but the challenges of running the business are out of your hands.
What to Look for in Rental Property ManagersOnce you’ve decided to rent out your property through a reliable management company, it’s time to start vetting your local options. Specifically, you need to consider the company’s reputation, pricing, services, and expectations.
Check Whether They’re Legally Able to Run a BusinessBefore you hire anyone to maintain your rental property, check their business background and make sure they can provide the proper government and tax documents to prove their business legitimacy. Keyclean Property Management in San Javier, Spain, has been around since 2002, and has seen rental management companies rise and fall with the country’s housing boom. They explain that every company should have three papers to prove their legitimacy:
- Aa registered S.L. (Ltd.) company
- A C.I.F. registration number (This is a licence to trade in property management.)
- Proof of invoices that comply with IVA, or Spanish VAT