Buying to Let in Spain
Buying to Let
Some will set out with the intention of buying to let property in Spain, whilst those who have bought a Holiday home may not intend to stay in their Spanish property for many weeks of the year. An excellent way to cover the annual costs associated with ownership is to consider letting for either long term, or shorter holiday periods. You can make a substantial income from rent, or just cover the annual costs associated with the ownership of your Spanish property.
When buying to rent, location is the most important consideration when comes to holiday letting. Distance from the beach and nearest airport, shops and local entertainment are paramount. A successful buy to let property depends on a variety of factors – including the style, standard of the property and facilities, and the availability of a pool, which are all key factors that will influence the success of your holiday letting business. Generally speaking, the better equipped a property; the more likely it is to let well. Internet holiday hunters expect to pay less than when they are booking through a high street company. Obviously, a town apartment in an inland area is unlikely to generate the same level of interest as a seaside villa with a private pool in a top holiday spot!
There are an abundance of 2 bed apartments available to let in Spain, in fact many owners are having to reduce their rental prices to compete. Our advice for those buying to rent would be to go as high up the ladder as you can afford to ensure that the property is rented most of the year round. Three bedroom villas with private pools in a good location are the most popular with holiday makers. On average, a 3 bed villa with a pool will generate around £800 – £900 pw in July and August, £650 – £700 in June and September and between £200 – £550 at other times.
Buying to let on a long term basis is a different proposition. Location, such as ‘front line beach’ is not as important. Long term renters are looking more for the conveniences of living, as opposed to holiday-ing. Many people like to spend a few months looking around for property to buy, but long term rentals tend to be in shorter supply as most owners opt for the higher weekly holiday prices. However, buying to let on a long term basis can be the source of a regular ‘year round’ income, and should not be dismissed as a poor source of income.
Once you have purchased your buy to let property, the next thing to consider is how you are going to equip and market your property for renting. Property Owners who cut costs will never reap the financial rewards. (See our excellently priced range of Furniture Packs Spain) Holiday makers expect certain standards, and there is little point in buying a beautiful property to rent if the sun beds are broken, and the bedding is stained. For more information on equipping rental property, see our Owners Guide to Renting in Spain
Category : Property News