Worldwide Pandemic: Holiday rentals in freefall!
Should I consider renting my Costa del Sol property long term?
Yes definitely! You should consider this option if you feel the annual running costs are going to be an extra burden on you over the next few years.
It can certainly be argued that holiday and short term rentals will be taking a huge hit over the next few years. You may think that summer 2021 will be ‘back to normal’, but consider this: The fear of contracting this disease will be with us for a few years in Europe and throughout the world. It’s this fear that will make many people stay at home rather than risk their health on flights and hotels in foreign countries.
We, at Simply Costa Homes, have spent the past few years focusing on selling property here on the Costa Del Sol and we hope to continue to do so over the next few years. However, in an uncertain market, it is inevitable that house prices will fall and renting long term will become a much more interesting option for many owners. This is because it gives you a solid annual income over the next few years, plus an expected long term capital growth, without having to worry about the upkeep and general maintenance costs on an empty property abroad.
Some owners may wish to rent for a short period so that they can either regain access to their property or perhaps have the option to holiday rent sooner rather than later should the situation improve in the next few months. Unfortunately this is probably not an option now during this pandemic and its aftermath.
As of March 2019, the minimum long term rental contract is five years. Seven years if you’re a multiple owner.
At first you might think, ‘No way! That’s far too long!’ But five years solid monthly income may be a better option for some of you rather than waiting and hoping that the short term rental market will pick up again. It’s certainly worth thinking about.
‘Yes, but you hear so many stories about tenants trashing the place’ Of course there is a risk with everything, but if your rental contract is professionally and legally managed, the risk is minimal. The vast majority of tenants are responsible people. Also, from a legal point of view, you as the Landlord are in a much stronger position if you have a genuine legal long term rental contract with your tenant.
Some of you reading this may already have tenants in either 6 or 11 month contracts. The problem you face is that your tenant may decide to stay on after the agreed term, in which case, you have no option but to allow them to remain in your property for years to come if they keep paying the rent on time, despite the fact they have signed a contract with you.
There are some other factors to consider whether or not to rent long term, e.g. payment of deposits, commission, bank transfers etc.
We are sure those of you who are interested in a long term rental solution brought about by the pandemic, will have many questions you want answered before you commit. So the best way forward is to call us for a chat about your personal situation and for us to give you the best advice we can offer. Call 0034 618 475852 for free advice concerning your situation now.
Questions? Do not hesitate to contact us!
Do you need more help in finding your new home? Contact us and we will be happy to help you.