- Rental Property FAQ

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Q. - What are the advantages of renting out my Spanish property long term?

Many property owners are often stuck between the idea of keeping their second Spanish property to themselves to enjoy as they see fit throughout the year and renting it out long term in order for it to pay for itself. Many owners struggle with the concept of having the property but not being able to use it when it is occupied long term by tenants.

The basic fact of the matter is, if you can afford to not rent out your property, then don't. If, however, like the majority of Spanish property owners, you would appreciate some help with paying the mortgage on your property or could do with the extra rental income being generated, then please read on.

The main and obvious advantage to renting out your property long term in Spain is of course the financial benefit that a tenant paying rent every month brings. If, for example, you own a 3-bedroom townhouse in La Cala and you put it out on long let, then you could be earning, for example, a rental income of around €800 - €900 per month. On an 11-month contract (this is the standard long term contract length in Spain) this means that annually you could be receiving between €8,800 - €9,900 help towards your finances. When you factor in that this model on a 10-year plan could net you as much as €100,000 then it really starts to make financial sense.

Also, as previously mentioned, the standard rental contract in Spain is for 11 months of the year. That means should you also wish to enjoy your Spanish property for yourself, you have 4 weeks of the year to enjoy it, before renting out again (this is of course optional, a more frugal approach would be to encourage your tenants to renew the lease after the expired 11 months, particularly if they are good, paying tenants who look after the property.)

Another often overlooked advantage to renting out your property on a long term basis is that the property is used and therefore maintained and secured. A property that has tenants in is always maintained therefore any problems with electrics, water etc. are always taken care of there and then. Imagine the disappointment of waiting for your holiday in your second Spanish home for months only to find when you arrive here that there was a billing problem with the electric company and they had cut your electricity supply (no freezer, no pool pump, no lights!) or that the sprinkler systems were not working and your entire beautiful garden is a nice uniform shade of light brown and very crinkly to the touch? Having long term tenants in your property can avoid all these disappointments, providing they are good tenants who look after the property (ensure your rental agent provides good tenants by demanding references and proof of income etc.)

All in all, the bottom line is that if you can not afford to have your property sit empty for most of the year while paying for maintenance men to come and maintain it in your absence, then it makes total sense to rent it out on a long term basis. To begin the process of finding good and reliable tenants for your long term property in Spain, speak to The Sara Service today.