Long Term vs Short Term Rentals
The profile of the rental market in Spain has certainly changed in 2021 and I expect there will be lasting effects due to the travel restrictions and COVID-19 heading into 2022.
Now is a good time to review what you want to achieve with your property investment to maximise your income, bearing in mind the rules and regulations that affect the rental market.
What are the main differences between holiday and longer lets?
- Need to be registered with the Tourist board and meet set criteria, pass an inspection & obtain a license number to show on all publicity and marketing.
- Offer higher weekly income rates.
- Have to register guests on arrival with the Guardia Civil/Policia Nacional within 24 hours of the holiday starting.
- Have to have a 24-hour emergency contact number, complaints sheets & bilingual info pack.
Long term rentals:
- Can be classed as either a habitual home or ‘temporada’.
- Are normally with a minimum of 6 months’ rental, but generally a 1-year contract, renewable year on year up to 5 years duration unless classed as ‘temporada’.
- Should have an Energy Efficiency Certificate attached to the rental contract.
- Do not have to register guests with the Guardia.
- Offer reduced level of income but more stable.
- Tenant pays a security deposit for damages.
There is a lot of talk about contracts under one year not being classed as ‘long term’ and therefore not being automatically extended, but this is a myth. It is the content of the contract (ie the wording and the clauses written in) that determine what type of contract you are signing, not simply the duration.
I have over 16 years’ experience in the rental sector, covering both types of rental, so if you are looking for advice on renting your property, then drop me a note on:
firstname.lastname@example.org or email@example.com to see how I can help.