With a
buoyant Spanish property market many home owners are
buying for investment reasons with a view to renting
out their property on completion. This makes
financial sense in many cases but you need to ensure
that you buy a property that not only appeals to you
to live in but will be just as attractive for long
and short-term rental clients.
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By law you
are supposed to inform the Spanish Tourist
Board that you are renting your property out
but many ignore this law and rent out their
property regardless.
The Spanish
tax authorities are clamping down on anyone
who illegally lets out their property
without having registered first. They now
have special teams devoted to tracking down
the property owners who are benefiting
financially from renting out their property.
Proving
cash has changed hands is a challenge for
the authorities so they find it easier to
target the home owners that are advertising
locally. |
It is quite
common when new builds are near completion
for the owners to receive brochures from
property management companies offering their
services. They will inform you of large
furniture packages that can be purchased
along with all the other items needed by
potential rental clients such as bed sheets,
crockery, cutlery etc. All this can be taken
care of by the management Company on your
behalf.
Renting out your property is a decision that should
not be taken lightly. You need to consider both
sides of the equation in terms of generated income
and the deteriorating condition of the property
after a long summer.
All
this has to be paid for by yourself so you will need
to take into account the maintenance of the property
as well as the Management Company fees for finding
you clients.
You
will need to ensure that the Management Company has
a large enough database of clients to be able to
rent your property for the periods you would like.
Finding the clients out of season is of course more
difficult so many property owners also do their
share of advertising to assist the Management
Company.
Renting out your property is a completely hands off
approach as the Management Companies staff will take
care of all the turnaround work such as cleaning and
changing sheets etc.
Many
property buyers purchased on the assumption of
renting only to find that when they view their brand
new property they had a change of heart and prefer
to either move in themselves or just use it for
family and friends to rent.
