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Whether you are buying to rent your property on a short
or long-term basis, there are a number of points you would
be wise to consider.
If you take into account the number of existing developments
where properties are already being rented or could be, never
mind the new ones, you´ll appreciate that there is a great
deal of competition around.
In the short-term ….
Consequently, if you will rely upon the rental income to
pay the mortgage or any other charges associated with owning
a property in Spain e.g. community fees, taxes etc. you
are best advised to hold off buying until you are in a better
financial position.
It is extremely difficult to predict how many weeks rental
you will secure on a short-term/holiday lettings basis so
your calculations should always be based on a worst-case
scenario. The most popular months for renting are obviously
July and August but outside of the peak season, you may
only attract 5 or 6 weeks of lets.
Realistically, you should be looking to earn a contribution
to your community fees or to pay for your own holidays with
the rental return.
Owners wishing to rent for short-term (3 months or less)
are more successful if the property is beachside and close
to established amenities. (Be cautious of complexes that
have no shops or restaurants being built nearby. The promise
of a commercial centre isn´t always enough. It may not happen
for a couple of years time or at all ….). Also, golf-side
apartments are not as lettable as beachside apartments in
my experience.
The quality of the build isn´t any guarantee of rentability.
It´s all about location and facilities for the holidaymaker
and long-term tenant. Furniture should also reflect the
quality of the property as holidaymakers expect to find
a home from home and are also more likely to repeat-book
if standards are high.
If you wish to rent through a local agency, they should
suggest a typical inventory for holiday lettings and ensure
that the locks are changed after every long-term tenant.
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the longer-term ….
Long-term letting might be a consideration for investment
purchases in locations near to amenities or with good access
to the coastal roads.An additional attraction might be that
the tenant is more likely to treat your property like a
home.
Don´t rush into buying furniture until you have your first
tenant in place. If a person rents for long-term, furniture
that suits the tenant is all-important.Of course, the tenant
might prefer the property to be unfurnished which would
obviously save you a considerable outlay.The most common
profile of a long-term tenant is a couple or family ´trying
out´ life on the coast or living in various locations before
committing to buying or settling here.
as an aside …
Taxation issues for non-resident owners should be discussed
with a qualified professional.It is also advisable to be
adequately insured for any type of letting and public liability
should be considered.
and finally …
Ideally, you should consult a reputable rental agent in
the area in which you are viewing before you buy. Ask them
to demonstrate how many weeks properties in the area or
complex that you´re interested in were actually rented for
in the past two years and for how much.Anyone can pluck
a figure out of the sky to ´encourage´ you to buy but it´s
what people have actually booked and paid for that counts!
Katie Anderson
Rentals Manager
katie@exclusive-marbella.com
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