So – you’re about to sign on that dotted line? You’ve committed to your Spanish holiday investment. Now you’re asking yourself …
‘How do I let my Spanish home out?’
Setting up a Spanish Holiday let is rarely as easy as many would have you believe. But – like anything worthwhile, to get the most of your Spanish holiday property, you need to rigorously prepare and plan. With an effective holiday home letting strategy in place, you’ll be good to go … and ready to make the most of your hard work and investment! Here’s our 3step guide to setting up a Spanish holiday let.
Step 1 – Location and Legals
This is almost a pre-step – topics to consider before you even start thinking about setting up a Spanish holiday let. Of course, location is key. That’s a given – but not only because of the desirability of the area, how close it is to the sea, and the suitability of local amenities. Location also matters for legal reasons. Recently, rental laws in Spain have changed – some of them dramatically. They vary massively from one region to the next. You need to check out the regulations and make sure you know what’s required before making your investment.
Licensing your Spanish holiday home to let
Most regions require properties to be licensed. Fail to have your licence in place before you rent out, and you could face a heavy penalty. Here are a couple of instances of recent law changes:
- Andalucia is the latest region to introduce holiday rental licenses. Requirements include central heating and air-conditioning. Bear in mind the potential cost of having these installed – often more than you might think.
- Barcelona – rental properties here are only allowed if they are already licensed.
Other regulations to check up on
You must have sufficient buildings and contents insurance.
Your rental income is taxable to the Spanish tax authorities, with potential regional variations.
You may be able to offset mortgage interest costs and expenses as an allowable expense in the UK and Spain. However, you’ll have to provide documentary proof of income, expenditure, an HMRC certificate of tax residency in the UK, and submit these to the Spanish tax office.
Step 2 – Get your sums right
Before buying property in Spain to rent out, you need to be sure of your finances. You may well need a degree of rental income to fund your purchase. Think also about maintenance expenses. Have you also thought about management fees and cleaning costs?
Remember too that, whereas some regions of Spain are popular as holiday let destinations all year round – the Costa Blanca, Costa del Sol and the Canary Islands – others are more seasonal. Setting up a Spanish holiday let in areas like the Costa Brava might prove trickier to rent out all year round. So, think about how much annual profit you’re looking to make. Don’t take it for granted that your holiday rental will be booked out 24/7. Be cautious – plan for fallow periods.
Step 3 – Efficient, friendly Spanish holiday property management
Will you be living nearby? A simple question but one you should take seriously. When you’re setting up a Spanish holiday let, how you manage your property will be vital to its financial success. If not you, then who will be looking after your property? There’s plenty to consider – handling bookings, receiving payments (although these days these are increasingly managed online), cleaning, laundry, meeting and greeting.
A happy, smiling face
The last of these is especially important. You need someone who’s friendly, efficient, punctual and reliable to make your guests feel at home from the moment they arrive. Someone who can be trusted to present a happy, welcoming face – to answer any questions your guests might have; to make sure that everything is in good working order and sparkling clean; to provide a welcome pack of food and drink essentials, as well as a vase of flowers on the kitchen table.
Avoid the cheapest
So, who will be the happy, smiling face of your Spanish holiday let? If not you, then could you pay for a trusted friend to take o the role? There will be plenty of local managing agents available – but you need to make sure they’re up to the task. Ask around. Find out who other holiday property owners recommend. The management role is such an important one – going for the cheapest will almost certainly prove to be a false economy.
Is your management company compliant?
There are plenty of people available to offer holiday rental management services in Spain. You may opt for a local individual with that personal touch. Perhaps you prefer a holiday let management company. Either way, make sure that their service complies with the local Spanish law. For instance, in many regions, you’re required to register your guests with the local police station within 12 hours of their check-in. It’s a simple process, but if you’re entrusting the management of your holiday let in Spain to someone else or an organisation on your behalf, you’ll need to make sure they comply.
Other Spanish holiday let factors to consider
There are plenty more factors to bear in mind when setting up a Spanish holiday let. Here are just a few:
- Proximity to an airport
- Local attractions
- Local attractions
- Local public transport
Spanish property holiday lets – an excellent investment
There’s no doubt that investing in setting up a Spanish holiday property let can be a secure and profitable way to invest. You have the flexibility of using the property for your own holidays whilst letting it out to others as and when you want. However, it’s not the kind of enterprise to jump into without careful forethought and planning. Plunging ahead without the right advice and strategy could prove costly. But – get it right and your Spanish holiday property let could prove the best investment decision you ever take.