Advice on renting a property in Spain.

Spain, and in particular the Costa's, has one of the highest rental accommodation markets in Europe. Even in the current economic climate Spain is still one of the top holiday destinations and in recent years has also seen an explosion in foreigners relocating with the majority of these people renting a property rather that buying one. Therefore property owners are in an ideal position to earn extra income from their investment by renting their property.

However the competition is high. The number of properties now available for rent has increased significantly over the past few years meaning tenants have a wider choice. Owners now need to take more steps to attract holidaymakers and/or long term tenants.

Short term or long term rentals?

First you need to decide if you wish to rent your property on a short term or long term basis. Both terms have pros and cons:

Short Term

Short term lets, especially in peak season can achieve high prices but cannot guarantee a regular income. Although Spain is a popular holiday destination it is unrealistic to expect your property to be rented for more than 8-10 weeks a year. However if you intend to use your property during the year then short term lets is the best option as it allows you the use of the property plus generates you an income when it is empty.

For short term lets you normally also pay cleaning and laundry costs after each rental and a high turnover of holidaymakers will see an increase of wear and tear on the property.

Long Term

There is still a demand for quality long term rental properties in Spain as many people are renting rather than buying in these current times. If you do not use or only plan to use your property for 1 or 2 weeks a year then long term renting may be your best option. Longer lets will see you receiving a regular income and the utility bills will also be covered by the tenant. The downside to renting long term means you will not be able to use the property. There is also a higher risk, as opposed to short term letting, of tenants not paying rent and in theory "squatting" in the property.

Property Presentation

Once you have decided whether to rent short term or long term you need to prepare your property for rental. To assist you Tenant Check Worldwide have compiled the following information and recommendations as ensuring your property is well equipped and presented to a high standard will improve your chances of renting it quicker and achieving the return you require.
 

▪	De-clutter your property. Many potential tenants for long term lets have their own belongings and they need to see that there will be room for their own items. Keep it minimal but practical. Remove any personal items from the property or leave in a locked cupboard.

▪	If the property is looking a little tired, consider giving it a fresh coat of paint. This will immediately brighten the property and make it feel more welcoming.

▪	Give the property a full and thorough clean. A dirty property will immediately put people off.

▪	Ensure all furnishings and linen are clean and ready to use and replace any old items.

▪	Ensure all appliances are working correctly. If not, arrange for them to be fixed or replace them. If necessary write instructions on how to use or leave the manuals. If items are still under guarantee leave details of who to contact should they malfunction.

▪	Check all utilities such as gas, water and electric. Ensure all payments are up to date and obtain details such as contact and contract numbers incase there is a problem with any of these supplies whilst you have a tenant in the property. Leave instructions as to where the water shut off and electric panel is or where a tenant may need to go to get new gas bottles. Disconnect the telephone line.

▪	Leave a copy of any community rules for the tenant with any contact numbers they may need such as the community president, community office, local tradesmen that you can recommend or have used in the past.

▪	The property must be secure. Ensure you have keys for all doors, gates, storage rooms, post box and garage. If not, make sure you obtain these prior to the rental and that they all work correctly.

▪	If the property is alarmed leave instructions on how to operate and contact details for the alarm company.

▪	Have adequate building and contents insurance as well as public liability. Inform your insurance company that you will be renting your property.

Marketing your Property

You've decided on the best rental option for you and your property is now ready for a tenant. To generate income you need to generate enquiries and that involves good marketing.

Most people will involve a local rental company who should market your property locally and online but as an owner there are some steps you personally can take to reach a wider audience:

Homeowners holiday rental websites

There are many websites available that allow owners to advertise their property. Some of these are free to advertise on, others may charge a monthly or yearly fee or a commission percentage based on any bookings obtained via their website. It is worth advertising on as many free websites as possible. Although some of these may not be as good as others it is still exposure without the cost. With regards to the "payable" sites look for ones that appear regularly in the search engines and check carefully their prices and terms and conditions before committing to ensure it is right for you.

Advertise to family, friends and work colleagues

Tell everyone you know that you have a property to rent. Send an email to family, friends and work colleagues with a description of your property, photographs, prices and local information. Some employers even have internal websites that allow their staff to post their own adverts. If your company allows this then do it.

Advertise in your local area

Place adverts in your local papers or shop windows. These are normally available for a small cost.

Get your own website

A website is a great way to advertise your property to many people. The website does not need to be big or complicated - 5 or 6 pages should be adequate. Ensure you put a detailed description of the property and good quality photographs. Also include information about the local area, things to do and see, prices, availability and contact information. Tenant Check Worldwide recommends Global Internet Consulting who can offer professional websites at competitive prices. Once you have your own website you can use it in your own local marketing campaigns.

Offer discounts

People love a bargain so offer discounts for early bookings, last minute bookings, mid/long term lets and winter lets. Also consider discounts for repeat bookings. If your tenant enjoyed their stay then offer a discount for next time to try and entice them back.

Offer commissions

Get friends and family to work for you! For everyone they introduce who rents your property pay them a small percentage of the income you make. If they're also making money from your investment it will give them an incentive to get you bookings meaning more money for you!

Get "Tell a friend" flyers

Leave a couple of flyers in your property on each rental so your guests can take them away and give to their friends. Nowadays flyers can be produced for very little cost and can be an effective way to spread the word. Remember, clients that are happy will tell others!

Use Forums

Mention your property for rent on the number of free forums available. Also, if allowed, use it in your forum signature.

Additional costs involved

If you live near to the property then it would be best to manage and advertise the rental of the property yourself. However most owners live elsewhere so therefore you would need somebody local to help you.

Think of the following situations that could arise when renting your property on either a short term or long term basis:
 

▪	The property needs cleaning

▪	The tenants lose their keys

▪	Repairs are needed - flooding, damp, broken appliances etc

▪	Utilities are disconnected

▪	Tenants are late with their rent or have unpaid rent

▪	The property is broken into

▪	Your tenant is injured or has an accident whilst renting your property

Many people choose to use the services of a rental and/or management company. They can advertise the property on your behalf, tend to any problems in the property, conduct viewings, meet your clients, provide tenant referencing or screening and prepare rental contracts.

Rental companies usually charge a commission fee on each rental. This could be a percentage of the weekly/monthly rent or a one off fee. Management fees are usually paid annually. This fee is a small price to pay for peace of mind and knowing that your property and the rental of your property will be as smooth as possible. Ensure you choose a reputable, professional company and obtain references. Ideally choose a rental company that is a member of Tenant Check Worldwide. That way you can be assured that they conduct a check on your potential tenant and avoid any tenants that could cause you unforeseen costs. Remember Tenant Check Worldwide list short and long term tenants, both good and bad.

Apart from agent fees other costs you need to consider are cleaning and laundry costs and it is also advisable to have funds readily available in case items need fixing or replacing. Finally owners should pay tax on any income received from the rental of a property. For more information about this and other legal aspects associated with the rental of property in Spain please see Landlord and Tenant Law in Spain.

Finally

Renting your property in Spain should be an enjoyable and rewarding experience. However this can easily turn into a nightmare if you are unfortunate to have a bad tenant.

Therefore avoid the bad tenant at the start!

Sign up as a member or choose a rental company that is a member of Tenant Check Worldwide and remember to list your tenants and check your prospective tenants.

Back to Tenant Check Spain

Or for more information relating to renting a property in Spain please click on the following links:

Landlord and Tenant Law in Spain
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