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Would like to buy a property to rent as holiday let when relocate

Would like to buy a property to rent as holiday let when relocate

Old Apr 22nd 2018, 10:15 pm
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Default Would like to buy a property to rent as holiday let when relocate

Hi, this is a very tentative query given that Brexit hasn't happened yet, but just to give you all an idea:

Me and OH would like to relocate to Spain at some point (Malaga area). He is 57 and had to retire due to ill health and receives a pension of £26000. I'm 43 and still working.

What we would like to do is rent a property for ourselves out there, but also buy a property which we can let out to tourists. Our property here isn't mortgage free, and our house is a high maintenance one, so there's no way we would want to rent it out, it wouldn't be worth it.

I realise that buying a property to let to tourists is entirely different to a residential property and that there's tax and licences etc to consider. I've tried looking online to find holiday rentals to buy, but I cannot find anything other than residential properties to rent, or holiday lets if I'm the tourist. The latter gives me an idea of costs and availability, but I need an idea (even a rough one) of how much an apartment would cost in the first place.

Any advice appreciated - and I hope my post makes sense!
Thanks
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Old Apr 22nd 2018, 11:07 pm
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Default Re: Would like to buy a property to rent as holiday let when relocate

Renting out property in Spain is not as easy as you may think, lots of rules and regulations over there. You need to spend some time reading other threads on the forum.
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Old Apr 22nd 2018, 11:15 pm
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Default Re: Would like to buy a property to rent as holiday let when relocate

Originally Posted by bob_bob
Renting out property in Spain is not as easy as you may think, lots of rules and regulations over there. You need to spend some time reading other threads on the forum.

Thanks for your reply. I appreciate that there would be many hoops to jump through, some of which might be expensive and time consuming, however, my question is where can I find prices of properties which we would be allowed to rent out as holiday lets? I've been reading through the forum, but can't find anything. Until I have even a rough idea of prices I can't really do anything else.

Cheers
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Old Apr 23rd 2018, 12:12 am
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Default Re: Would like to buy a property to rent as holiday let when relocate

https://www.idealista.com/en/venta-v...provincia/mapa

https://www.thinkspain.com/property-...rder=HighToLow
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Old Apr 23rd 2018, 12:54 am
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Default Re: Would like to buy a property to rent as holiday let when relocate

You can buy anywhere and rent it out. But yes there are now stricter rules concerning licences and condition etc. I understand from various articles etc long term rents are going up (shortage and big demand) and people are also making good money on holiday lets thanks to AirBNB and the like...

Last edited by spainrico; Apr 23rd 2018 at 12:58 am.
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Old Apr 23rd 2018, 3:27 am
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Default Re: Would like to buy a property to rent as holiday let when relocate

Originally Posted by LadyGoneGone
I realise that buying a property to let to tourists is entirely different to a residential property and that there's tax and licences etc to consider. I've tried looking online to find holiday rentals to buy, but I cannot find anything other than residential properties to rent, or holiday lets if I'm the tourist. The latter gives me an idea of costs and availability, but I need an idea (even a rough one) of how much an apartment would cost in the first place.

Any advice appreciated - and I hope my post makes sense!
Thanks
We have a couple of properties near Gandia that we rent out for short term holiday lets on AirBnB.
OK its not too much different than the UK. You buy a property and then let it out long term or short term.

If you wish to rent out the property on a long term basis you need to realise that as a landlord you have fewer rights than in the UK and it can take between 3-5 years in legal processes to get a tenant out for whatever reason if something goes wrong. This is not a route that I would be interested in when investing money.

Short term holiday lets of a few days to a couple of months, you need to apply for a tourist license and the regulation is different per region/community of Spain.

Be careful with apartments in towns as the town halls my have their own additional regulations.
For example, if you wanted to gain a tourist license on an apartment in central Valencia ... this will only be granted if the apartment is on the first floor, with a shop or restaurant below... and no other apartments on that floor, where the apartment is someones main residence!

I highlight this as different towns/areas can have different regulations on top of the regions.
You need a good lawyer, and ask the lawyer to find out from the town hall of the area you wish to buy in.

Detached Villas in holiday places - Urbano (not on rustic land) will normally get a tourist license without too many issues.

What area are you thinking off?

This all sounds a little complicated, but you get used to it and living here is very rewarding.

Last edited by Smithy73; Apr 23rd 2018 at 3:39 am.
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Old Apr 23rd 2018, 8:12 pm
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Default Re: Would like to buy a property to rent as holiday let when relocate

Originally Posted by spainrico
You can buy anywhere and rent it out. But yes there are now stricter rules concerning licences and condition etc. I understand from various articles etc long term rents are going up (shortage and big demand) and people are also making good money on holiday lets thanks to AirBNB and the like...
Interesting article in El Pais today . Palma , Mallorca become the first Spanish city to prohibit the letting of apartments for holiday rentals from 1st June this year. Only detached houses will be able to offer this service.

https://elpais.com/economia/2018/04/...73_547313.html

In a separate article the government there fined Trip Advisor €300,000,- for advertising "illegal" holiday apartments
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Old Apr 23rd 2018, 11:03 pm
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Default Re: Would like to buy a property to rent as holiday let when relocate

Thanks for all of your replies, you've all been very helpful.
I knew that the fines had already started on the Canary Islands, so it comes as no surprise that it happens in Spain.

We're thinking of the Malaga area, but are open to suggestions, we'd only be interested in renting out to tourists; there's probably more wear and tear, but at least you don't have to worry about being stuck in a legal wrangle for years!
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Old Apr 24th 2018, 2:58 am
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Default Re: Would like to buy a property to rent as holiday let when relocate

Originally Posted by LadyGoneGone
Thanks for all of your replies, you've all been very helpful.
I knew that the fines had already started on the Canary Islands, so it comes as no surprise that it happens in Spain.

We're thinking of the Malaga area, but are open to suggestions, we'd only be interested in renting out to tourists; there's probably more wear and tear, but at least you don't have to worry about being stuck in a legal wrangle for years!
Malaga a great area for that business as demand is very high. Just check the local regulations.
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Old Apr 24th 2018, 3:01 am
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Default Re: Would like to buy a property to rent as holiday let when relocate

Originally Posted by LadyGoneGone

What we would like to do is rent a property for ourselves out there, but also buy a property which we can let out to tourists.
What I don't understand. Why would you want to rent a property for yourselves and also buy another to let? Why don't you just buy one property and use as your main home (be mortgage free and enjoy life)?
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Old Apr 24th 2018, 3:15 am
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Default Re: Would like to buy a property to rent as holiday let when relocate

Originally Posted by Moses2013
What I don't understand. Why would you want to rent a property for yourselves and also buy another to let? Why don't you just buy one property and use as your main home (be mortgage free and enjoy life)?
The reason we would want the rental property for ourselves is in case things don't work out and we would want to come home.
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