‘Ask the Experts’ about property rentals in Marbella and on the Costa del Sol, Spain
Browse through our ‘Ask the Experts’ archive files to find the answers to questions you may have about property rentals from owners and tenants.
Questions about Decree 218 from owners (click on questions for answers)
General questions from owners
Questions from tenants
Replies to owners' questions
Q: Does Decree 218 say who the DIA has to be shown to and when? We own an apartment in a complex which does not have a First Occupancy License issued by the Town Hall. Our owners’ committee have been speaking to the Town Hall over the past two years, but it might be sometime before the license is ever released! What happens in this situation? Stanton, Herts
A. Under the Decree 218/2005 law, which was issued in 2006 and is now being enforced by the authorities, any person wishing to rent your property long-term can request to see a copy of the DIA (Brief Informative Document) relating to the property.
It is not our Company policy, though, to hand out copies of this document to just anybody.
However, potential long-term rental clients are entitled to see this document and can have their own copy when they finally sign the rental contract.
As far as we can gather from the Law as it stands at the moment, it does not matter that your property does not have a First Occupancy License, but we must inform the potential tenant of the situation and publish this fact on the DIA.
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Q. Help! I don't have ANY of these documents needed for a DIA to comply with Decree 218. Our lawyer may have a few bits and pieces, but by no means all. It sounds like without them you can't let the property. Is that right? Alex, Colchester
A. Technically, until a DIA (Brief Informative Document) is produced for your property, no agency can rent it out long-term on your behalf.
However, there’s no need to panic because we can help you obtain these documents so that you can comply with the Decree 218 law.
The only action you really need to take is to find your ‘Escritura’ or deeds to your property.
If you don’t have these yourself, please email your lawyer with our details so they can send copies to us, forwarding us the email so we know you have instructed them.
They may even have, or be able to obtain, the First Occupancy License and ‘Nota Simple’ for you if you ask them.
But don’t worry if they don’t have all these additional documents. When we are in receipt of the ‘Escritura’ and whatever else they do have, we can then obtain the balance of the documents you need through our in-house ‘Trouble-shooting Service’ which will be charged to your account in the normal way.
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Q. We’re going to buy a holiday home but also want to rent it out. What should we consider? Gary, Singapore
A. Renting is a good way of covering some costs, but do your homework first.
Think about how often you’ll use your holiday home, and how much of the costs you wish to recoup. Do you want to visit certain times of the year, or can you be flexible? Would you rent to holidaymakers? Or would you prefer a regular income from long-term lettings?
Seek the help of an experienced rentals company; they’ll advise you about pricing levels, where best to buy, and how to furnish your property. Any reputable agency will also manage the holiday rental process for you, including handling bookings and payments on-line, preparing your property beforehand, and greeting guests on arrival.
For long term lettings, a good agent will take references, ensure a detailed tenancy agreement is signed, visit your property regularly, and transfer rental fees to your bank. For your peace of mind, the rentals company should be there for tenants and holidaymakers on a 24/7 basis to resolve any issues that may arise during their stay.
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Q. The developer says our new apartment is going to be ready to move into in two months’ time. We’d like some advice on how to furnish it for renting out. Sue and Peter, Suffolk
A. Deciding how best to furnish your new home will depend on your personal taste, available budget and the rental market you want to attract. Here are some general furnishing guidelines - and remember too, not to skimp on essentials like comfortable beds and a quality washing machine!
Furniture should be of a good design, whilst being robust and easy to clean.
Kitchens and bathrooms must be up-to-date, with modern fixtures. When decorating, use a neutral colour scheme throughout. Make sure your appliances and fittings are of a good quality and in working condition, especially plumbing fittings, curtain rails and lighting.
Nowadays a television, DVD and stereo system are essential. Consider too satellite TV, air-conditioning and heating.
If your property is of a luxury standard, and you want to generate premium rental income, your guests would expect tasteful interior design, state-of-the-art kitchen, ultra-modern bathrooms, and high quality furniture and fixtures throughout.
Any good lettings agent can provide you with additional rentals advice - and even help you choose your furnishings supplier.
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Q. My tenant has stopped paying his rent and now he’s disappeared. There’s still three months left on the contract. What can I do? Elsie, East Anglia
A. Anyone in your situation could apply to the court and try to obtain the outstanding rental amounts, and compensation for breach of contract. However, this takes time and costs money, and it assumes that you know where to contact your tenant.
Assuming that there is minimal loss and the tenant has just terminated the contract it may be better to walk away from the situation and prepare your property for renting out again.
You can help prevent this from happening in the future by ensuring you have an adequate security deposit in place, by taking up references on your prospective tenant, and by maintaining regular contact with your tenant throughout the tenancy.
Alternatively, consider using a reputable rentals agency that will do all this
work for you and help you to minimise the risks of renting.
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Q. We are thinking about renting out our property long-term but are worried in case of any problems, like the tenants not vacating at the end of the tenancy. What do you advise? John and Alicia, Cheshire
A. In our experience, problems such as tenants not vacating at the end of their tenancy rarely, if ever, happen. However, like you we have heard the stories, so here are some guidelines to help safeguard you when renting long-term.
If you live abroad, it’s advisable first to find yourself a reputable local rentals specialist who will manage your property for you during rentals.
Management of your property is essential for two reasons. Firstly, it helps ensure your tenants are happy with their tenancy and, secondly, it alerts you to any property maintenance problems so they can be dealt with swiftly.
This relationship with the tenants is enhanced when the management company provides a 24/7 emergency service, and visits tenants regularly to check the property on their behalf.
Before the tenancy begins, expect the company to take up references on tenants, together with a two-month’ security deposit, refundable when tenants vacate the property at the correct time, and leave it in the condition in which it was found.
Tenants should sign a comprehensive legal rental contract, clearly stating what happens if they fail to vacate at the end of the stipulated period. Penalties may include forfeiting the security deposit, or paying a punitive increase in the rental fee.
If the worst came to the worst, and depending on the local court’s caseload, our lawyers say it could take 2-4 months to evict tenants, but you could claim the penalty rental for the extra stay.
Obviously, if the rentals agent has a good relationship with the tenants, they would have ascertained the tenants’ intentions at the end of the tenancy, and either agreed an extension of the rental period with you, subject to a new contract, or helped them find another property to rent or buy.
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Q. How can we maximise the rental income from our new apartment? George and Helen, Whitby
A. Given the uncertain state of the property rentals market over the past year, this is a frequently asked question. The answer depends on your circumstances and how much you’re using your property.
If you’re only intending visiting one or two weeks a year, you could consider a long-term rental where the tenant pays a fixed monthly amount and the utility bills. The long-term market is buoyant, with many Northern Europeans looking to work and live here on the Coast.
In order to preserve the ongoing security of a regular income from a long-term let, many homeowners even rent a separate property on the Coast for their annual holiday.
If you’re intending using your property at different times of the year, then holiday rentals are probably best for you.
The holiday market on the Coast is not quite as buoyant as it used to be; numbers of holidaymakers are down, and the local market is saturated with apartments to let, making it highly competitive.
Whilst any reputable rentals company would promote your property well, we would also recommend a spot of your own marketing as well.
Good sources of rentals are friends, family and work colleagues. In addition, you could advertise in your local newspaper, on holiday rental websites, and even try a postcard in your newsagent’s window! This approach works particularly well when you already have an efficient management company in place organising your keys, laundry and cleaning needs, and taking good care of your guests when they arrive.
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Q. I want to increase the rental fees for my apartment this year but my agent has advised against it. What are your views? Nigel, Yorks
A. If you are exceeding your expectations in terms of the number of weeks or months that you are actually renting out your property, then a small percentage increase in your fees should not unduly affect the amount of lettings you will achieve.
However if you are finding, as many holiday homeowners on the Coast are, that your occupancy levels fall far short of what you really want, then you should heed the advice of your agent.
You could even consider reducing your rental fees to be more competitive and increase the amount of lets you achieve, as the market is currently quite saturated with apartments to let.
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Replies to tenants' questions
Q. For weeks now, my landlord has been ignoring my requests to fix the air-conditioning in my apartment. The rental agent won’t do anything about it either, saying I have to talk to the owner. What can I do? Helen, Marbella
A. Unfortunately, yours is not an uncommon problem. Many rental agents simply find a tenant for the owner and charge them upfront, and at that point their obligations cease to both owner and tenant.
As for having recourse to your landlord, this will depend on what is stipulated in your rental contract. If it says your landlord is responsible for the maintenance of appliances then you should be able to claim that he is in breach of contract.
Your best course of action is to consult your solicitor and get some practical as well as legal advice, such as paying for the repairs yourself and deducting the cost from the next rental payment.
It is especially important to get legal advice if your rental contract makes no mention of your landlord’s responsibility for maintenance or, worse still, if you have no contract at all.
Should you consider renting another property at any stage, you might like to think about going through a rentals agency that also manages the property on behalf of the owner throughout the duration of the tenancy. Look out particularly for a company who has the owner’s authority to action emergency repairs, and who clearly indicates this capability in your rental contract.
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