Renting out a holiday home
 

Hi
Looking at buying a Property in Sunny Spain. One thing we have spoke about is renting it out to holiday makers. So the question is Does any one have any experience of this. The Idea would be to hand it over to a Holiday letting firm and let them deal with bookings and cleaning between guests.
We would then spend the winters there.
So any Ideas or input
Over in Spain in a week to start the search

Re: Renting out a holiday home
 

Hola

In my area, in the summer (July and August) the weekly rent of a three bedroom villa with a pool approaches 1,000€ per week. I would suggest you think carefully about what you want and then investigate "high worth" summer holiday villas

Davexf

Re: Renting out a holiday home
 

Hi we will take advice on what we could charge from letting agent. Was more Interested in whether people got ripped of by the letting agent was the property trashed by holiday makers. did all the profit go in agent fees, cost of people to clean or maintenance costs
Sort of was there any money to be made.

Re: Renting out a holiday home
 

You must be careful with the holiday licence laws - ALL holiday homes now require one and they're getting harder to obtain.

Re: Renting out a holiday home
 

We have a holiday Booked in a flat in Spain. We are in Spain for 5 weeks are plan was have a look round and also have a word with the company we are renting off. Will ask them about the Laws and see what they say.

Re: Renting out a holiday home
 

Would you rather have some kind words of advice from people on here who have nothing to gain from trying to help you, as opposed to putting yourself at the mercy of an agent, who has everything to gain and will not be the first that has tucked up an unsuspecting Brit??? Do not necessarily trust an Agents advice over someone who has been there.

The above us correct regarding new Licensing laws, wait until you get to the tax and insurances bit.

Lamb to the slaughter comes to mind. Good luck!!!

Re: Renting out a holiday home
 

Thats why we posted on here would love to talk to some one who has been there done that got the tee shirt.

Re: Renting out a holiday home
 

By local standards, €1000 per week isn't "big money". That would be quite cheap. Tax is about 10%, required insurances are about 300€ per year, depending on coverage. Licensing, however, has become quite expensive. €3500- per bedroom (one time).

The bigger problem you may find, is that if you leave it to a "management company", you'll likely find that they're quite expensive, don't work very hard at keeping a decent holiday let, and you end up with unhappy holidaymakers who write nasty things on TripAdvisor and AirBnb etc., and ultimately, you lose bookings, even at that cheap price.

Re: Renting out a holiday home
 

We do what you are proposing, spending some of winter in Spain and letting the house out in summer.

You will after tax, expenditure and agents fees end up with around 40% of the price the agency charge for the house, this is still a reasonable amount and for us is worth doing especially as we would not want to be there for the summer.

We have a German agent who handles only houses around us, an area of around 5km, they are extremely trustworthy, efficient and reliable, as far as damages go we have very little.

The whole process for us is perfect, if we were unsure of our agent we would never rent the house out, for us it would not be worth it so the agency is crucial

Re: Renting out a holiday home
 

Laws are changing here very quickly to clamp down on abuse of this activity. Yes you do need to have licences and make regular declarations. You will need someone to assist you. Don't expect some kind of cash cow. Everyone and their mother is doing it so not exactly a shortage of properties. Plus remember Brexit could alter various tax requirements. Also give a thought to how you might feel if your UK neighbour rented their property to holiday makers at every chance. Not much fun being woken up by pissed Brits flopping around in the pool at 3.00 am

Re: Renting out a holiday home
 

Thanks
We know the Letting agent has a lot to do with and we would have to put a lot of trust in them.
To end up with 40% we would say was a result. We know the money would never make us millionaires
For the Laws we would talk to the Agents, Solicitors and Try and talk face to face with people who already do this.
As for the Brits surely there not all Drunk. Could not the local bars not stop serving them its illegal to serve a drunk in the UK ( I know I own a bar in Scotland) Or could the owners of the pool not close it after sunset? Some could end up hurt or worse.

Re: Renting out a holiday home
 

Don't worry about those stupid comments (drunks etc.) that might happen where he lives but it certainly doesn't happen everywhere. Just make sure to do your homework before buying!

Re: Renting out a holiday home
 

Thanks for the support and input.
On a side note. We own a pub with Holiday lets next door and have to deal with the odd Drunk. So drunks and stupid comments are water of a ducks back.

Re: Renting out a holiday home
 

All our neighbours have the agents number and we have told them to contact them if they hear anything that may be of concern, they have never had to ring them.

Our area is rather quite so it normally attracts people that want a relaxing holiday, a few drinks maybe but no drunken party's!

As i say it works for us and although you only end up with 40% after tax it's still works out at around €2800 nett a month in August and July

Re: Renting out a holiday home
 

I used to reckon on netting 40% to 50% after all expenses laundry and advertising. One thing to mention is you (or your agent) have to complete a tax return in each of your names every quarter - not once a year as in the UK. We did it with no problems ourselves but some have been overcharged for this service by rip off accountants.