Renting out your Spanish property

Are you planning on renting out your Spanish property? At Habeno we get a lot of questions regarding renting out the property. What are the benefits of renting out my Spanish home? What risk comes with renting out my property in Spain? To best answer these questions, we sat down with Borja Rodriguez - Founder of Vacation Marbella, a property Management company located in the heart of Marbella.

What is a Property Management Company?

In simple words, a property management company saves you time, money and stress. They take care of everything from bookings, key handling, cleaning, collecting rent and making sure you have all the insurance needed. Besides handling everything for you, they usually have a large network of clients looking for a place to rent, which makes sure you rent out your place as much as possible.

Borja Rodriguez

CEO & Founder of Vacation Marbella

Borja is originally from Marbella, but his academic and professional career has taken him around the world. His travel experiences allowed Borja to immerse himself in a wide range of cultures and hospitality, giving him a unique perspective on what world travellers seek when venturing far from home.
When life took him back to Spain, he founded Vacation Marbella, a project that would combine the best of his global experiences with the unmistakable charm of the Andalusian coast.

Vacation Marbella - the local Airbnb of Marbella

Today Vacation Marbella manage more than 250 rooms and properties. Managing homes valued at over 100 million euros, they have earned a special place in the heart of Marbella. Behind these numbers is a journey full of passion and the latest technology, dedication and a deep love for Marbella and its people. Being recognized as Marbella’s “local Airbnb” is not only a title they carry with pride but a reflection of the intimate and personal relationship they have cultivated with the local community.

What are the benefits of renting out my property?

The ability to establish a reliable cash flow is one of the biggest benefits of rental property, as it allows not only to pay off the mortgage on the property but also make a considerable profit through rent collection, appreciation, and tax benefits.

Having rented out the property can also increase the value when selling if you can demonstrate annual returns from previous years.

How much can I earn by renting out my property?

The rental price will depend on the location, current market valuation, size and condition of the property. We highly recommend modern properties, which present very well in photos and videos.

What can I do to increase the earnings?

There are several tried-and-true methods for maximizing profits, the most important is to choose a reliable partner to manage your property and use the best technology like a Revenue Management and Dynamic Pricing tool. An experienced property manager will set a competitive price during the calendar year carefully monitoring the demand and supply on the market.

3 tips to maximize your earnings:

Use high quality photos and videos
List the property on all major booking platforms
Decorate it to suit the broad mass

What do I do with my items?

There should be no valuable personal objects in the property while it is rented out. Nonvaluable items should be locked in one of the storage places within the property.

Are there any legal aspects to consider?

The landlord cannot legally rent out a property in the short-term in Spain without a tourist licence, which will demonstrate that he has conformed to relevant housing regulations. To obtain a licence, the property needs to have an occupancy permit (licencia de primera occupation) and meet the requirements for real estate for tourist use (requisitos de las viviendas de uso turistico), i.e. be adequately equipped and have specific facilities specified by law such as an air conditioning in every room.

Additionally, it is legally required to register both the tenant and anyone else who will be staying at the property at the appropriate police station for the property's location within 24 hours of the start of the stay. This procedure is usually fulfilled by the property manager on behalf of the owner.

What about cleaning?

A clean place is crucial for the guests to enjoy their stay. A reliable property management company usually offers a cleaning service. The guest always pays for the cleaning of the property on top of the rental price.

What happens if something breaks or gets stolen?

If the property was burglarized it is important to notify the police and the property manager or landlord about the break-in. In most cases, the insurance company will compensate for the missing belongings. In regards to the breaks, a popular option for recouping losses is by taking a damage deposit from guests. The security deposit is refundable if there isn't any damage or deducted from if there is.