Why a competitive long-term rentals market is good for Costa del Sol tenants

Property Owners

List your property with us and take solace in the fact that your property is our business

Go

Read our Blog

Keep up-to-date with whats happening within the property market on Costa del Sol.

Go
Free Guides

The recent economic slowdown has affected the long-term rentals market on Spain’s Costa del Sol in many ways. Most significantly for property owners, the level of competition has gone up as an unprecedented number of new rental properties flood the market. Whilst this makes things tougher for rental owners, it’s good news for would be tenants…

The recent economic slowdown has affected the long-term rentals market on Spain’s Costa del Sol in many ways. Most significantly for owners renting out their property, the level of competition has gone up as an unprecedented number of new rental properties flood the market. Whilst this makes things tougher for owners, it’s good news for would be tenants.

This situation has arisen because many thousands of investors who bought off-plan during the boom years, hoping to sell upon completion, have now taken possession of their property.

But, with the bottom having dropped out of the sales market, they can’t sell. Instead, they’ve decided to ‘sit’ on their investment until the market recovers, and rent out their property in the meantime.

Consequently, the sheer volume of rental properties on the Coast has gone up, and the supply of rental property now far outweighs the demand from prospective tenants.

What’s more, rental prices have come down – as much as 20% on high-end rental properties.

With this in mind, forward-thinking owners now realise that to have any chance of whatsoever of renting out their property in the face of such fierce competition, they must be more realistic in terms of what they hope to achieve financially.

Unfortunately, the days of covering the running costs of a property are now over.

In other words, many owners are lowering the rental fees they’re charging, the theory being that a lower monthly rent will make their property far more attractive to potential tenants, and it’s better to earn less rental income and make a smaller contribution to a property’s running costs, than none at all.

Better choice and lower prices are obviously good news for tenants, but the sensible long-term rental client will also consider such things as the after-sales service they receive from the agent, especially when things go wrong in properties, as they so often do.

A full-service property management company with a long-term rentals department like HomeCareontheWeb will not only be there to keep the property in good condition throughout the tenancy, and make a 24-hr emergency helpline available should anything go wrong – such as a burst water pipe or a broken air conditioning unit – they’ll also hold the tenant’s deposit securely and make regular visits to the property to make sure the tenant is happy and that the rented property is being treated well.

Likewise, with more and more rental agencies on the Coast reporting tenants defaulting on rental payments, some disappearing completely leaving properties badly damaged, companies like ours that take a keen ongoing interest in each tenancy they arrange can act like an owners’ insurance against anything going awry.

Leave a Reply

Your email address will not be published.

Get in touch with us

Whichever way you choose to get in touch with us,
we'll make every effort to reply to you as soon as possible.