The property rental market in Spain is typically a healthy one without a shortage of tenants. Many people who arrive here don’t wish to buy immediately and like to take anything up to a year, or for some even more, before they decide to purchase. There are also many new residents who are not in a position to buy a property and who are happy to find a long term rental. Unlike the UK, Spain has a long and strong tradition of renting, with many Spaniards never becoming property owners. As a result, the laws relating to long term rentals tend to be more supportive of tenants’ rights than in some other countries, a factor that owners should take into account.
For a number of owners, offering your property for a long term rental is an easier to manage solution than short term contracts, which require a more hands on approach, due to the regular changeover of guests. With long term rentals you can enjoy a regular annual income, but there are always some things to bear in mind.
Use an agent to manage your long term rental
Some people are nervous about the prospect of long term rentals thanks to the numerous stories that abound on the Costa del Sol of unscrupulous tenants. One way to avoid this, especially if you normally live outside Spain is using a reputable agent who can take care of all the legal paperwork and advise you about any other aspects of the rental that will safeguard you and your property. It is best to choose a management company that is a registered Spanish S.L. with a CIF number – Location Property Moves is legally registered for this purpose.
For example, at Location Property Moves I provide as standard, a detailed inventory of your property and its contents, check the tenant’s references, ensure the tenants sign a comprehensive legal rental contract, clearly outlining in Spanish (for legal purposes) who is responsible for what. I can also provide a copy in English for your ease and peace of mind.
In addition, all rental properties now need to be registered or they cannot be marketed, and I can help you take care of this process as well. I also have access to local legal advice, should any problem arise, which means property owners don’t need to find their own Spanish lawyer.
Careful screening of tenants for long term rentals
Carefully screening all tenants, especially with regards to income, is an important way to avoid problems. It is possible to search –in English – a database of non-paying tenants in Spain called the Fichero de Inquilinos Morosos’ (FIM).
Changes to eviction laws
It used to be almost impossible to evict non-paying tenants in Spain, but recently the law has changed to make it simpler and speedier. The new Arbitral Court and express Eviction Law guarantees that cases will be heard within 30 days. It is also much less expensive to go this route — €340 compared with €2000 – and it can be included in the tenancy Agreement.
Owners may also consider taking out rental insurance, which insures against a tenant defaulting on payments and covers the costs of any eviction going to court.
In conclusion, it always pays to take time and care with long term rentals, and to work with a managing agent who can represent your interests and safeguard your property.
Please Contact Me for a ‘no obligations’ chat about your long term rental property. I look forward to hearing from you.