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Ask the Experts about Holiday Home Ownership in Spain

property rentalsThere’s a lot of talk right now about the investment potential about buying property in Spain, as with the property market still low and the pound so strong, your money can go a lot further.

However, if you’re buying property as an investment, you should capitalise on it as much as possible and renting it out whilst you’re not using it is the perfect way to start earning from your property right away. This allows you to cover your costs and often more whilst the market recovers and your property increases in value.

Have you ever wanted to own a second property to rent out in Spain, but don’t know how it would work? Well we’re here to help! We are Costa del Sol property management and rentals experts with over 12 years of experience managing our clients’ properties, attracting rental bookings and managing the whole process so that it runs like a dream. Here are some answers to your questions and tips on how to make renting out your property work for you.

What options do I have for renting my property?

You can choose between short term rentals for holiday lets, which are typically from one week to one month rentals during the peak periods of April to the end of September. The advantage of this kind of rental is that you can use the property when you want it and the returns during the summer are really high – what you could earn for one month of a long term rental, you can normally earn in one week as a holiday rental.  The drawbacks of this kind of renting is that you do not have a guarantee of multiple bookings and each holiday booking requires management, key handover, cleaning, a point of contact for issues etc.

Alternatively, you can opt for long term rentals where you have tenants in your property for a period of 11 months on a contract paying a monthly fee, after the 11 month contract is over this can roll over or you can terminate the contract. The benefit is this is it’s very little hassle, you will only get contacted when there are any issues with the property and very often you simply receive your monthly pay checks and check in with tenants from time to time and there’s no issue. Read our secrets of successful rentals

How do I deal with issues if I am not in the country?

We always recommend having someone on the ground to deal with issues such as someone locking themselves out, a maintenance issue, or a cleaning request. All of this is relatively straightforward to deal with if you’re around the corner, but very stressful if there’s an ocean between you and the problem. We have a team of maintenance specialists, cleaners and customer service agents plus processes in place to make things like key pick up and drop off easy to manage. This kind of support gives our clients the peace of mind to know we can deal with any eventuality, a neighbour or friend will have less ability to handle anything out of the ordinary.

Do I need to pay tax on my rental income?

As of 2014 all owners of Spanish properties who are renting out their properties must complete tax returns declaring your profits, but also offsetting them against all your legitimate costs. Read more about tax returns for renting Spanish property. We can help you to file your tax returns if you haven’t done it before.

For more answers to your questions, read our managing a rental property FAQ. If you need help with rental management please don’t hesitate to contact us with your queries or ask for a quote.

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