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Renting your property out to holidaymakers

With many Costa del Sol property owners now looking at ways to help with the operating costs of their property, holiday and long term rentals are a hot topic at the moment. So, if you want to use your Spanish home during certain times of the year and earn rental income the rest of the time when it’s empty, today’s post is especially for you.

With many Costa del Sol property owners now looking at ways to help with the operating costs of their property, holiday and long term rentals are a hot topic at the moment.

Rent our your Costa del Sol property
Rent our your Costa del Sol property

So, if you want to use your Spanish home during certain times of the year and earn rental income the rest of the time when it’s empty, today’s post is especially for you.

Let’s start with the issue of tax.

Well, as with all sources of income, various tax issues will arise related to the short-term rental of your property in Spain, depending on your circumstances.

So it’s a good idea to speak to a financial adviser to clarify your personal tax situation before you rent your Spanish property out.

If you use a rentals management company they should be able to provide you with regular and detailed rental statements which you can give to your accountant for tax declaration purposes.

Now, another major factor you should bear in mind before renting out your property to holidaymakers is that with the worldwide recession biting hard, the holiday rentals market on the Costa del Sol is not quite as buoyant as it used to be.

The numbers of tourists on the Costa del Sol have been down in recent years and, what’s more, the local market is saturated with good quality apartments to let, making it highly, highly competitive.

That means, unless you’re very lucky, your property probably won’t be booked as often as perhaps you’d like.

The good news is that there are some steps you can take to improve your chances of attracting holidaymakers to rent your home, and more often.

If you really want to do things properly, we recommend you find a professionally-run holiday rental company with experienced bi-lingual staff and the expertise and resources to market your property correctly and help you maximise your potential holiday rental income.

A first-class rentals management company will offer both long-term and holiday rental services, so you have a choice and they’ll help you decide your financial objectives from the outset by advising you about the number of weeks per year you can realistically expect to rent out your property to holidaymakers.

The easiest way to find companies offering comprehensive holiday rental services is to go online and do a search through Google, check around the area closest to your property, or ask friends and neighbours for recommendations.

The holiday rentals company you select should be fully geared up to handle the whole business of renting out your property to holidaymakers – from providing appropriate insurance and comprehensive legal and practical safeguards to protect you, your property and the rental clients, to taking bookings and payments online, then being there for guests 24/7 during their stay, and finally paying your fees directly into your bank account.

Is your Costa del Sol property management company trading legally?

These are increasingly tough econmic times here on Spain’s Costa del Sol, and unfortunately there are some unscrupulous organisations and individuals offering property management services that are trying any means possible to keep their heads above water (including, in some cases, those that aren’t operating strictly ‘by the book’). So, what should you do to protect yourself?

property managementNow, it may seem like an obvious thing to point out, but despite the amazing weather, there are unfortunately some unscrupulous organisations and individuals offering property and rentals management services that are trying any means possible to keep their heads above water (including, in some cases, those that aren’t operating strictly ‘by the book’).

On the face of it, organisations and individuals like this might seem to be offering great value for money by charging cheaper rates than the competition, but there’s normally a reason for that – they’re cutting corners somewhere.

That could mean either they’re not providing the level of services they claim they are, or they are operating ‘unofficially’ and avoiding the costs associated with being a legally trading company.

We cannot stress enough how essential it is that any company you use to care for your property on Spain’s Costa del Sol must be trading 100% legally within the Spanish law.

Unofficial outfits and ‘one-man bands’ can be instantly shut down by the local town hall or the tax authorities without warning at any given time.

More importantly, if you are using the services of such an organisation or individual, you may find yourself without a legal leg to stand on, or worse still, be legally liable should any serious problems occur that are related to your property.

So what should you do?

Well, if you’re unsure whether or not you’re at risk by using a property management service that you suspect might not be trading legally, ask to see evidence that they are a properly registered Spanish S.L. (Ltd.) company, with what’s called a C.I.F. registration number which means they will have the capacity to issue you with official invoices which include IVA (Spanish VAT).

Ask them to show you their license to trade in property management.

You should also ask to see evidence that the company has taken out comprehensive public liability insurance, as well as employer’s liability insurance to cover their staff while visiting your property.

You could find yourself facing a lawsuit for damages if any person employed by the management company to do cleaning or maintenance work in your property has an accident and is injured the process.

If the company cannot provide you with readily available evidence of all these pre-requisites, be very wary indeed!

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