Introduction - for many people,
buying a Spanish Rental Property is the first step to moving on a permanent
basis, often people will spend part of the year at their Holiday Home and for
the rest of the time it is empty. Renting out your own home can help pay the
bills especially if you have a
mortgage on the property to contend with. Spain
is a very popular tourist destination and with the right amount of advertising,
you may find renting your property to be quite easy. An Information pack may
help to let your property as will a simple website with some pictures and
details of all of the facilities and amenities available
Types of Letting Contract -
there are basically two types of Letting contract applicable to the Spanish
rental market and it is important that your choose the right one.
Temporada - A short
term or seasonal contract up to one year maximum
Vivienda - A long
term contract. In excess of 12 months.
Short Term Letting - most
spanish rental property will be rented out on a temporary basis and therefore
the temporada contract is the one that is the most common, it will cover all
home letting from one week to one year, under this form of contract, the tenant
has no right to extend the contract. At the end of the period ( usually their
holiday), they will have to leave the premises. You may also be able to let your
property using an English based contract. It is not usual to take a
deposit with this form of letting however, you should consider a booking fee
that can be returned at the end of the letting term. Many people choose to look
after the letting on their own home and of course it is possible to do so, if
you are going to do it this way , you will have to find ways of making sure the
keys are ready for collection on your tenants arrival, employ a local cleaner
and someone to keep an eye on the premises for you. Sometimes in Spanish
communities popular with UK ex pats, many neighbours help each other out with
these arrangements
You will find many property portals now where
you can advertise your home, usually there is an annual fee and by doing it this
way you should receive a fair amount enquires. You may like to consider one of
the large travel companies, if you home is in a good location, they may consider
a block booking. Which ever way you choose, you will need some help making sure
your property is up to the standard required as set down by the local provincial
authority. Short term letting in Spain is regulated on a local basis and you
will need some advise on this matter. Your rental partner may be able to help
you, you could employ the services of a local letting agent to handle all of
your affairs ( it may be a little expensive) or alternatively, you could make
use of a local lawyer or gestor to draw up an initial contract for you.
Long Term Letting - the
vivienda or long-term contract is offered where the tenant is going to stay for
a period in excess of 12 months. It is usually made out for 12 months from the
start. An inventory should be drawn up listing all of the contents in the
premises and you are allowed to take a deposit of one months rent. Long
term letting in Spain is quite highly regulated and more rights are afforded to
the tenant. Although it is possible to agree an English Contract with the
tenant, you will be able to escape the protections offered by the law.
If you give a contract for any period in excess of one year, the tenant is
entitled to renew for up to a period of 5 years. Thus if you supply a two year
contract, the tenant can extend this for up to another three years. You are
entitled to a rent review at the end of each year but you will find it difficult
to obtain repossession of your property, if the tenant wishes to stay. If
you are considering long term letting it is probably best to obtain advice from
a locally based lawyer and preferably one that can advise you on both the UK &
Spanish tax position.
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Copyright Assetsure Limited 2007
Guide to Renting Out Your Spanish Holiday Home
