Letting your property in Spain can provide a useful income, but there are many regulations to be aware of and ensure you that you meet fully before you can do so

Letting your Spanish property to tourists for holiday lets can be a good source of supplemental income. In fact, it was reported in January 2016 that the average rent across Spain rose for the first time in eight years in November 2015, increasing on average by 3.8 percent per year. However, there are a number of important preparations and logistical steps that need to be taken before you can make your Spanish property available to rent. We cover the most important points.

We always recommend asking your solicitor to check with the local town hall about any specific policies and to ensure that you have all the different areas of regulation covered.

As the property owner, you will need to make sure that your property complies with all local and national regulations.

Rules and regulations

Be aware that there are very strict rules to ensure that all landlords maintain their rental property adequately and ensure they comply with all relevant legislation, including building and disability regulations.

Lettings Licence

All property owners in Spain who wish to rent out their property need to apply for a licence to let the property. Be aware that these are not always approved, and some of the larger cities, such as Barcelona, are limiting letting in some areas.

Finance - Letting

All property owners in Spain who wish to rent out their property need to apply for a licence to let the property.

Timescales

  • Most holiday lets in Spain run for up to a month, with different tariffs, depending on the time of year. Longer lets, of up to six months, are usually offered at more favourable rates.
  • Recent Spanish laws fixed long term leases at three years on a renewable basis. It is usually a two month notice period for tenants to leave the premises, which is similar to the process in the UK.

Additional costs

Bear in mind that there is usually a community charge, unless the property is an individual house, rather than a property on an urbanisation, and this charge applies to both owners and tenants.

You will need to purchase public liability insurance to ensure that the property you are renting out is fully covered.

Bear in mind that there is usually a community charge, unless the property is an individual house, rather than a property on an urbanisation, and this charge applies to both owners and tenants.

Ensuring that your property meets the relevant criteria

Some of the key areas of compliance include the following:

  • You must ensure that you have a Licence of First Occupation for the property (there are many different names for this, including: a First Occupancy Licence, Habitation Certificate, Habitation Licence, or in Spanish, Licencia de Primera Ocupación, Cédula de Primera Habitabilidad, Cédula de Habitabilidad, Cédula de Ocupación).
  • The property must comply fully with all local and national planning, health and safety, disability access and security laws.
  • All rooms must be well ventilated, with blinds or shutters.
  • There must be a fixed air conditioning unit in every room of the property. (as a fixed fixture, not a portable device).
  • If letting your property in the winter, (this winter season runs October – April) you must ensure that a fixed heater is available in each room.
  • You must provide a first aid kit and fire extinguisher.
  • You are liable for a full cleaning service at the start of each new tenancy.

Don’t get caught out!

It is always advisable to consult an independent solicitor before you consider letting your property, to ensure you comply with all relevant rules and requirements. Many landlords have been fined in sums running up to thousands of euros for not getting the right licence, planning permission or ensuring disability access.

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