Property to rent in Spain, how to make money renting
Point one. The market and its demand
Spain is one of the most popular tourist destinations in the world. Demand for rental housing in this country is constantly growing. And the reason for this growth is tourists who visit Spain all year round.
According to the National Institute of Statistics, last year, 82 million tourists visited Spain. During the season, vacationers book almost 80% of vacation rentals. In cities such as Valencia, Murcia, Villamartin, Alicante and Torrevieja.
Point two. The right choice of real estate
In order for your home to be rented well, you need to pay attention to three main factors:
- Good location: proximity to the sea, to the green zone or to famous attractions.
- Necessary infrastructure: proximity to shops, restaurants or shopping centers.
- The technical condition of the housing: the availability of amenities, necessary equipment, repairs and the condition of your property.
Point three. Legal subtleties
In case of short-term rent, in some regions of Spain a tourist license is required. Specialists from WTG Spain will help you with obtaining this permission. Also, when renting out home, you need to draw up an appropriate contract in which you must register:
- All rental conditions,
- The amount of the deposit, which is set by the owner of the property,
- Terms of termination of the contract,
- Personal data of both parties.
Fourth point. Costs and taxes when renting out home
- By law, income from housing must be declared in an annual tax return. The tax rate is 19% for EU citizens and 24% for everyone else.
- IBI - a tax from individuals on real estate, which must be paid once a year and its amount is up to 2% of the cadastral value of housing.
- Property insurance. In this case, you can choose the best tariff for you yourself.
Point Five: Your income
In general, with a competent approach, when renting out a house you can make good money, and the declared 5% per annum (of the market price of housing) is a very real figure.
For example, if you want to rent a small apartment in a coastal city, and it's market price for the current day is 100,000 euros, then you can safely count on a passive net income of 5,000 euros per year (or 600 euros per month).
If you want to avoid the process of searching and selecting a potential tenant, you can entrust your home to professionals. WTG Spain has been operating in the real estate market for over 25 years. With us, more than 500 apartments have become a source of constant income for their owners.
We will take care of the entire range of services of the entire rental process:
- Obtaining a license.
- Pre-rental preparation: major repairs or cosmetic restoration.
- Professionally prepared advertising in the form of photo and video presentations.
- Accommodation on all leading real estate rental portals and in the best print media.
- Ensuring the process of settlement and eviction of tenants.
- Cleaning and guarantee of the safety of your living quarters.
- Full legal support: payment of taxes and utilities.
We hope this article has been helpful to you. WTG Spain - Your property in Spain is waiting for you.