# Do you Let a Holiday home in Spain?



## teemyob (Nov 22, 2005)

I ask because it is something we are considering.

But we have been quoted 40% commission for Managing the property. Includes marketing, general maintenance and linen.

I realise there are lots of costs involved in doing this but think 40% is quite high?.

Anyone?

TM


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## Rankins (May 1, 2005)

Try this forum specifically for Spain rather than motorhomers.

http://www.eyeonspain.com/forums/


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## teemyob (Nov 22, 2005)

Thanks.

I have tried a couple of ex pat forums.

I have found them very secretive and snooty about some of these kind of questions.

You should see some of the reactions where I stated we were looking to mortgage 50% of the property!.

TM


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## barryd (May 9, 2008)

I'm sure there are a few on here Trev. You could try a pm to hogan. I know he lives in Spain and had a villa with a pool he was or is selling.

I agree about the ex pats forums. I didn't get on well with the either.


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## TheNomad (Aug 12, 2013)

Dunno if this'll help:

Be very, very, careful about commercial letting if you've bought a property in Spain with a hipotica (mortgage). 

If you're thinking of using an Agency, then you'll have to be up-front and legal about the letting of the house/apartment, with all the taxation etc issues that doing it properly (rather than on the "black" for cash) throws up here.

I hear than many (most?) Spanish banks and Caixas now expressly forbid the commercial sub-letting of the property as one of their mortgage lending terms.

Also worth doing a bit of research on how house insurance Companies here would react to such commercial subletting.

Do bear in mind also that it s VERY crowded market here now; so far as I can see there really are a helluva lot more properties being advertised as being available to let than there are punters wanting to rent them.
Certainly I suggest you don't believe a word that any Agent promises you about massive and constant returns.....cut any and all Agent blather by at least 50% to get a more realistic sense!



I rented out a property here for about 6 years, as a series of long-term rentals. But it was much easier as there was no mortgage on it, we were living only 20 mins away, and both we and the tenants were happy to do it "black" rather than official.


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## hogan (Oct 31, 2006)

Hi Teemybob
Over the past 6 years several of our friends have let their villas, both privately and through agents. 
Without exception they all had horrendous experiences. 
From finding the villa ransacked and cleared of furniture to having the villas turned into a pot growing farm and getting a electric bill for €1000 s .
One friend who let discoverd that after the tenants left she was chased for unpaid hp payments as the tenants bought a car on hp. 
In Spain the debt goes with the house not the person. 
Mine is empty 6 months of the year but a friend pops in every other day to keep a eye on it for me. 
So my advice is DONT DO IT.


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## teemyob (Nov 22, 2005)

Thanks.

I am warming to the idea of a smaller villa for Exclusive family use.

But in the area of Javea where I understand crime is quite low!

TM


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## erneboy (Feb 8, 2007)

I ended up with an interest in two apartments on a Polaris resort as a result of helping a family member out. We have rentals in the UK which do much better. 

Occupancy in the Spanish apartments is very poor, maybe 15 to 20%. That's due to the huge amount of competition and my brother being, quite rightly, unwilling to reduce the rent to a level where it's not worth cleaning up and risking damage. You can have a damage deposit but your agent may not see the damage as the occupants leave unless it's very obvious. It's not something I would have considered and I certainly wouldn't get further involved. All that is besides what The Nomad had to say which I am fairly sure my brother has ignored.

In the UK we pay 12% for a total management package, including collecting rents, arranging repairs and paying any bill which fall to us. We don't need to be involved at all. It took a long time to find a company who did the job properly and we now use small local management companies and have had very good service. If you feel you aren't getting that just move on and try another, Alan.


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## thieawin (Jun 7, 2006)

I own a farmhouse and two apartments in Sitges

We don't let the farm

We do let the apartments

1. Demand will dictate rental, but many resorts have huge numbers of ex pats and locals trying to sell and rent until they sell. Result over supply and reduced rental values and occupancy. 

2. charges will vary, but with IVA at 21% on their charges and for a full service for holiday lets (including the web site, bookings, meet and greet, credit card charges, plus clean and launder you can expect realistically to pay between 30% to 40%. Half commission and half cleaning charges. So you can find someone to do the prepare,meet, greet and clean for about 20% inc IVA if you handle marketing and sales yourself

3. The horror stories about being wrecked and cleaned out happen in any rental market. UK or Spain, but tend not to happen with short term holiday lets where you don't allow under 25's or big groups or all male groups, ie identify a safe market.

4. Don't do long term lets to locals or ex pats, they can gain rights which mean it is hard to evict them and that is when the bills mount up and damage can be done.

5. use a gestor to do your Spanish tax quarterly, returns and payments, on income, and at year end. Remember you will pay Spanish tax on all income and not be able to set off anything apart from the IBI local rates. You then declare to the UK tax man and you will get tax relief on the tax you have paid against your UK tax. So what you pay in UK will depend on your tax bracket.


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## 91502 (May 1, 2005)

I have a friend in Spain with two houses, he lives in one and rents next door out. 
He has just stopped renting due to the new rules about government licenses etc.
Apparently it's turned the whole rental thing on its head.
If you want more info I can put you in touch, there in the UK for the summer and I am sure he will be happy to tell you all about if.
James


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