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Spanish Rental Property

Guide to Renting Out Your Spanish Holiday Home – 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.

Spanish Rental Property- a guide from Assetsure

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