Buy-to-let investments & Holiday rentals

Marbella is a top touristic destination and a lucrative market for buy-to-let investors. One of the special and most attractive characteristics of the rental market in the Costa del Sol is that it offers the opportunity to combine holiday rentals (during the summer period) with temporary leases (from September to June).

In ITURBE PROPERTIES we manage a large portfolio of properties for our buy-to-let investors, and we use this formula that allows our clients to receive the highest returns from the leases (the rental amount per week during the summer season is almost the same as the monthly rent received from September to June).

Holiday rentals have its own particularities, and in order to make sure our clients acquire the best and most lucrative property, we always check that holiday rentals are allowed within the community where the property is located, and we do also register the property for holiday rentals in the Junta de Andalucía to avoid any future prohibition to carry out this activity.

Let´s see these two points separately:

POSSIBILITY TO PROHIBIT HOLIDAY RENTALS

Since March 2019 Communities of Owners can limit or condition the activity of holiday rentals within the community and, although controversial, the general understanding considers that the limitation or condition do also refer to the possibility to prohibit such activity.

This prohibition only affects holiday rentals, and it is not applicable to other kind of leases which can´t be limited (such as leases exceeding a period of two months, leases for habitual residence of the tenant,…).

The prohibition must also be expressly established in the Community´s Bylaws and in case it was not included when they were drafted and registered, it is only possible to ban the activity of holiday rental if the prohibition is agreed by three/fifths of the owners (and shares) and the agreement is registered in the Land Registry.

However, the prohibition or limitation do not have retroactive effects and will not affect those properties that were already carrying out the activity of holiday rental at the moment the limitation or prohibition is agreed. Therefore we recommend our investors to engage us to register the property for holiday rentals as soon as the acquisition is finalized.

The Community of Owners with the same majority of three/fifths has also the power to set a surcharge or an increase in the share of the common expenses of the properties carrying out holiday rentals, but not exceeding 20% in any case.

REGISTRATION OF THE PROPERTY FOR HOLIDAY RENTALS

In order to avoid the prohibition to carry out the activity of holiday rentals, it is also mandatory that the property is duly registered for holiday rentals before the Junta de Andalucía (Regional Government) at the moment the ban agreement takes place.

The activity of holiday rentals in Spain is regulated separately by each Autonomous Community, and since 2016 in Andalucía it is not possible to carry out the activity of holiday rentals without the registration. Moreover, lack of registration implies fines from 2.000 € up to 150.000 €

In big lines, holiday rental properties are those located in residential land, offered as touristic accommodation for a price (rent), and rented out regularly on a short-term basis (less than two months). The property should also be advertised using specialized touristic media such as intermediaries in exchange of a commission, or sites allowing reservations (real estate agencies, holiday rental websites such as Aribnb, HomeAway, Tripadvisor,…).

These properties should fulfil some requirements such as having the First Occupation License, being fully furnished and equipped, counting with cooling / heating system, rooms with proper ventilation, having first aid kit, complaints book, touristic information,…

In ITURBE PROPERTIES we always check and carefully analyse the Community of Owner´s Bylaws and the Minutes of the Community of Owner´s Meetings, in order to verify that our properties can carry out the activity of holiday rentals; and we do also register the property for holiday rentals before la Junta de Andalucía, to make sure any future prohibition of this activity will not affect them.

Finally, buy-to-let investments are a great option for non-European citizens looking forward to benefit from all the advantages of the Golden Visa, whilst they get the highest returns from their property/ies. You can learn more in our post “Golden Visa and buy-to-let investments”.

We offer a combined service including the Purchase Process advice and the Golden Visa application service, as well as post-sale and management services, and if you are interested in our listings please click here.

Don´t hesitate to contact us, we are here to help you!