Renting long term or holiday lets? If you wish to rent your house and have not decided between the two types of rental we believe this article will assist you.
01Rental for long term or holidays - Long Term
ASecurity and financial stablitity.
When you have a tenant for your house , whether it is a country property, town house or apartment without doubt this is the option that offers a steady return and peace of mind. You will have a fixed income every month and you will not have to worry about cleaning between each visitor and the arrival times of your clients....
The payment of taxes for the long term rental of a property to be used as living accommodation, whether the tenant resides there permananently or only occasionally is made in your annual tax declaration.
The calculation is made by subtracting from the income all deductible expenses, such as rates bill, costs of repair and maintenance, electricity , water , and rubbish collection ( provided you are the one who pays the utilities ) and community fees, There are also reductions depending on the age of the tenants, ( 100% if they are under 30 years and 60% if they are more than 30 years old)
Taking all this into account there may be a possibility that you do not have to pay anything to the treasury when you rent your home.
CNo continuing maintenance costs.
Another benefit of long term rental is that you do not have the continuing costs of maintaining the property, you only have to renew items that are broken or need repair , whereas, if you do holiday rentals , you always have to oversee every tiny detail so that everything is perfect.
02Long term rental or holiday rentals - Holiday Rentals
ABetter monthly rental.
The rental price per week is much higher than the rental price for long periods, sometimes one weeks holiday income can be more than one months long term. For this reason if you can have frequent reservations for your property this is, without a doubt, the option that offers a much higher profit even taking into account that normally you will have to pay all the bills.
BBullish trend in recent years especially in cities.
In recent years the number of tourists that visit our country has increased and undoubtedly, in turn, the amount of tourist accomodation both in large cities and rural zones. For this reason you must ensure that your property has everything necessary to ensure your guests to have an enjoyable stay and go that one step further to make them want to return and tell friends and workmates that your house is the place to go for their holidays.
CLegislative control by the authorities.
This is a subject that has been discussed a lot in recent years and can be very confusing.All properties that are rented for holidays must be registered with the Junta de Andalucia , wherever they are situated ( city, village or town) and depending on their location will be registered under one or another title.
Provided no type of service is offered during the clients' stay the property will be registered as :-
* Rural Tourist accommodation if you are in a location of less than than 20,000 inhabitants
*Tourist apartment if you are situated in a location of more than 20,000 inhabitants.
03But, at the end, which one do you choose?
The choice of rental for long season or holiday, will depend in most cases on the location of the property, facilities and equipment that it offers and availability and also the time that you have to care for it and how you promote the property
If you have a property with good access, well equipped and stylish either in a modern or traditional sense and it is well promoted you can ensure that it is rented for many weeks and thus ensure a higher profit. .
In the case of holiday rentals, you must take into account that, unless you have people who do it for you, you must be available to clean and prepare the house before the entry of new clients, deliver keys and meet clients to take them to the property. You must also be available to deal with any incidents that may arise during their stay.
If your property does not comply with the requirements listed above, and you are not willing to invest to obtain them, then you should discard the idea of holiday rental and focus on long-term rental.
This is one of our houses available for long term rental
And this is one for holiday rental.
If you have any questions please telephone us or make contact via our website www.competaproperties.com