Renting your property long term
LONG -TERM LETTING
With property prices increasing faster than inflation, greater mobility in the labour market and an increasing number of immigrants, renting is becoming progressively more popular and in many parts of Spain there's a constant shortage of rental properties. A meager 10 percent of dwellings are available for long-term rental. Consequently buying a property in Spain for long-term letting has excellent investment potential, particularly if you don't plan to use the property yourself.
There are many factors you should take into account when considering letting your property long term:-
ADVANTAGES & DISADVANTAGES
Long-term letting has its advantages and disadvantages, although most home owners in Spain find the advantages outweigh the disadvantages, particularly when compared to the short-term letting.
Among the advantages are:
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A REGULAR MONTHLY INCOME
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LESS 'WEAR AND TEAR' ON THE PROPERTY THAN A SHORT TERM LET
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NO NEED FOR REGULAR INSPECTIONS AND MAINTENANCE, AS THE TENANT LOOKS AFTER THE PROPERTY
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A POSSIBILITY OF ADDED VALUE WHEN YOU COME TO SELL, IF YOU HAVE A GOOD TENANT
Among the disadvantages are:
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YOU CANNOT USE THE PROPERTY YOURSELF UNLESS YOU SPECIFY CERTAIN PERIODS OF THE YEAR TO RENT
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CAN BE DIFFICULT TO SELL THE PROPERTY WITH A LONG TERM TENANT IN RESIDENCE, ALBEIT THIS CAN BE OVERCOME BY SERVING A TWO MONTH NOTICE TO VACATE
FURNISHED OR UNFURNISHED
People generally want furnished properties especially at the lower end of the market, whereas at the top end of the market, their can be demand for unfurnished. At The Rental & Sales Centre we prefer to let properties furnished as, as the property looks better and surprisingly bigger not too mention letting in this method will demand a higher rental income and have a higher potential market than unfurnished properties.
In general you should buy the best furnishings you can afford and avoid using things you no longer want, cheap or second-hand furniture which will probably need replacing more often anyway.
You will need an inventory for a furnished property, which should be completed by the owner, prior to a tenant moving in. The inventory can be prepared by DFC Spanish Rentals if required, and after the tenants have vacated DFC Spanish Rentals will check the items against the inventory list.
FURNISHINGS AND FITTINGS
A property should be fresh, light, spacious and perfectly decorated in neutral colours (white, cream etc), with modern, hard wearing furniture and a well presented terrace or garden, don't forget to include terrace furniture. You should supply quality appliances but not go overboard with the design or kitchen gadgets. Keep kitchen worktops uncluttered and make sure there is plenty of cupboard space.
It is advantageous to have soft furnishings that have machine washable covers (Two Sets), preferably in a 'stain forgiving' colour.
At DFC Spanish Rentals we shall ensure the furniture and decor is spotless and in excellent condition each time a property is let. We shall after consultation with the owner throw away and replace any bedding or appliances that are well past their best. Furthermore we shall ensure that handles, knobs, curtain rails and anything else that will get lots of hard usage are in good working order.
If you want to market a property at the top end of the market it must be beautifully or even luxuriously furnished and equipped. This includes top of the range finishes, bedding, kitchen appliances (i.e. Dishwasher, Microwave, etc), Satellite TV, DVD Player, Stereo System, Power Shower and Off-Road parking.
SETTING THE RENT
DFC Spanish Rentals will guide you into deciding what rental income can be achieved for your property as it is important to get the correct balance between a competitive rent and one that gives you a reasonable return on your investment. We normally recommend a rent that compares with that of similar properties in the area. It's not worth charging 500 € per month for your two-bedroom property if there are similar properties in the area charging 400 € per month unless demand exceeds supply. In a buyer's market, it's worth charging slightly below the going rate to ensure you get a tenant.
For example:
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Your rental income is higher if you let your property for 400 € per month for 12 months = 4800 € per annum.
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Than if you charge 500 € and take 4 months to find a tenant thus returning you = 3200 € per annum.
Here at DFC Spanish Rentals we can advise you of comparative rates for similar properties in the same area.
FINDING TENANTS
Here at DFC Spanish Rentals our top priority is to find a good and reliable tenant.
ADVERTISING
INTERNET - The internet is a limited advertising tool for long-term rentals, as accommodation is usually on the market for a very short time.
SIGNS - Another very effective method we use here at DFC Spanish Rentals is to attach our 'For Rent' and 'For Sale' signs to the outside of properties including our office and mobile telephone numbers. Calls will be answered 24hrs a day.
WORD OF MOUTH - This works very well for DFC Spanish Rentals we are based in relatively small communities where everyone knows everyone and their business. The word is spread widely in local estate agents, builders, supermarkets, bars, restaurants and local communities.
We ensure we supply a quick and efficient response to any enquiries and, above all, have someone on hand to show prospective tenants round the property, as we find most clients like to see the accommodation as soon as possible.
As your managing agents DFC Spanish Rentals shall source to find suitable tenants and look after your property, which is especially advisable when you don't live in Spain or close to where your rental property is situated. We offer professional advice on how best to let and market your property to yield maximum rent. We offer a potentially wider market for tenants, and peace of mind regarding maintenance, security and dealing with problems.
DFC Spanish Rentals will carry out the following services:-
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ADVISE YOU ON THE 'MARKET' RENTAL FOR YOUR PROPERTY
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MARKET THE PROPERTY
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ARRANGE VIEWINGS AND CHECK POTENTIAL TENANTS
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CHECK REFERENCES (IF AVAILABLE)
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PREPARE THE TENANCY AGREEMENT
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COLLECT AND HOLD DEPOSIT
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COLLECT RENT AND PAY INTO YOUR SPANISH BANK ACCOUNT
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PAY ANY NECESSARY BILLS ON YOUR BEHALF
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CARRY OUT REGULAR INSPECTIONS
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DEAL WITH ANY TENANTS PROBLEMS
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ARRANGE MAINTENANCE, EMERGENCY REPAIRS AND REPLACEMENTS OF ANY DAMAGED OR FAULTY ITEMS
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DEAL WITH INSURANCE CLAIMS
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ARRANGE ANY NECESSARY CLEANING (BETWEEN LETS)
KEEPING TENANTS
Once we find a good tenant, we do all we can to make sure they stay. Good tenants are too precious to be mistreated or taken for granted and model tenants need to be well looked after. We shall endeavor to keep the property well maintained, and with support from the owner replace worn out furniture and redecorate regularly, repair broken items, and replace irreparable items promptly particularly essential items such as water heaters and washing machines.
Maintaining a good relationship with the tenant is an essential part of our management so if a tenant asks for extra furnishings or upgrades to the property, before refusing outright we will always consider if this is a reasonable request and put it forward to the owner. Upgrades are usually a good investment and add value to the property and may persuade a tenant to stay longer. On the other hand we don't want to be seen as over generous and pamper the tenants every whim.
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