Renting out your own property

Many foreigners think about buying real estate in Spain and renting it out, receiving regular income from it. Practice shows that this scheme works successfully. Our foreign real estate agency DENIZESTATE wants to share with you all the necessary information on renting out real estate in Spain. Spain is a country with excellent climate conditions. Millions of tourists come here every year to relax at the sea, get medical treatment, and see the sights of this country. Spain is very colorful and rich in cultural and entertainment venues. And what is the Mediterranean coast worth alone. As we can see, such a large influx of tourists to this country is quite justified. Therefore, you should not even think about whether your rental business will prosper. Of course, it will! If you bought a home in Spain on credit, then the rent will be an excellent way to pay off the mortgage debt. A few years are enough to forget about the mortgage. If you bought a home without a loan, then renting will be an excellent option for pure profit. It is worth noting that there are two types of real estate rentals: short-term and long-term. Short-term rentals, as in other countries, are more expensive. Long-term rentals are cheaper, but their advantage is regular income. If you have purchased an apartment near the Mediterranean Sea, then it is very likely that you will want to live in those apartments during the holiday season. In this case, long-term rentals are not suitable for you, since you will sign a corresponding agreement with the tenants and you will not be able to evict them for a couple of months when you want to live in your apartment. Short-term rentals also have their drawbacks. You will have to regularly look for new tenants so that the property is not empty. You must agree that this is an additional cost of your time, energy and nerves. The profit from renting real estate in Spain is quite decent, because this country is considered expensive in terms of rent. This is not surprising, because many tourists want to visit Spain, maybe even go to this wonderful country in every sense every year. We cannot name the exact amount you will receive from rent, because it depends on several factors, but it is certain that it can be from several thousand to several tens of thousands of euros per year. The factors that affect income from renting out housing include its area, condition, location and, of course, the rental period. Everything is clear with the area – the larger the apartment, the more expensive it is. The condition also affects the price, because an apartment with a luxurious renovation will cost several times more than housing with minor cosmetic repairs or almost none at all. Location is a very important factor. Of course, apartments in Barcelona and Madrid will cost more than in small towns. Villas by the sea are also valued more. As for the rental period, we have already said here – short-term is more expensive, long-term – cheaper. This is a fact. In order for you to be able to rent out your property within the framework of the law, you need to enter into a contract with the tenant. It is drawn up in free form. It specifies all the basic information: information about the rented housing, identification data of the parties and payment terms. It is also worth specifying in this contract who will pay for utilities, so that a conflict on this basis does not arise in the future. The amount of rent is not determined by any law, it will be a normal agreement between the two parties, but this amount must be specified in the contract. Do not forget that in Spain, rental income is taxed. Every year, you must declare income from renting out housing. The tax is 24% for residents, for non-residents such deductions are not provided. In addition, do not forget about the real estate tax, which we wrote about in this article Who will rent out your home? There are options. For example, this can be done by a property rental management company that will fully handle the rental process without your participation. You will have to pay such a company from 7 to 15% of the rent. This option is suitable for people who do not have the free time to find tenants and all the paperwork. If you can handle the issue of renting out your home yourself, you will save money, but not time. The choice is yours.