So you are in love with Estepona (course you are, who wouldn´t be) and are thinking about buying a property here. However, you are hoping to make it work for you by turning it into a rental apartment?
Now there is no better time to rent out your property, Estepona is booming! Rentals are in short supply and high demand, especially those within walking distance to the centre.
So what do you need to do in order to get your property up and running?
Well, the first and main priority is to obtain your tourist licence. This licence is essential to register on the main portals, such as Airbnb and Booking.com. Without it, you will be renting illegally, and could face a very hefty fine.
The licence itself is easy to obtain if your urbanisation allows it. That is your first port of call, your lawyer will be able to find out if a tourist licence already exists within the urbanisation, if it does then getting one is usually not a problem. However, your lawyer will be able to assist you further.
So once your lawyer has confirmed that you can have a licence, what do you need to have in place?
- Your property must have direct ventilation to the exterior or patio and it must be provided with curtains or shades (opaque blinds, etc).
- Air conditioning systems and heating
- First aid kit.
- Tourist information about the area, restaurants, shops, beaches, health care services, etc.
- A complaint form
- The total price of the unit, including any bills that will be charged to the renter
- All information regarding cancellation policies when a deposit is required for booking.
- All tenants should know who to call in case of a problem, instructions for the use of home appliances
- There must be a contract drawn up with the tenant stating the price, arrival and departure dates and you must have a copy of the passport or identification document of the tenants. This information must be registered and sent to the Guardia Civil at point of entry.
- First Occupancy License or equivalent.
- You must have an accountant in place in order to submit the correct tax returns.
The cost of a licence differs with each lawyer, however they are around the 100-150 euros.
So you have your licence, what else do you need to consider?
Bedding, towels etc
In order for your cleaning to be as economical as possible, you will need to have two sets of bedding and towels. This enables quick turnarounds. Ideally in the summer months, you want the turnarounds to be as quick as possible, meaning clients leaving at 11am and new ones going in at 3pm. The summer months go quickly and you will want to make the most of the high rates. Two sets of bedding etc also means that the cleaner can do a quick turnaround and take the dirty bedding home to wash and dry.
Kitchen equipment
Guests love a fully stocked kitchen, giving them the home from home experience, so make sure you have all the utensils you need to cook a basic meal. No one is expecting a pasta maker, but a peeler is essential. If you want a comprehensive list, contact me and I will send you my recommendations for a fully stocked kitchen.
Appliances in good condition
There is nothing that gets you a bad review more than a fridge with cracked shelves or a dishwasher with faded switches. Make sure your appliances are good quality, and up to the job. My advice is, when preparing your apartment, invest in good quality appliances, they will last longer, and be cheaper in the long term.
A comfy bed
A comfy bed is very subjective, I recently stayed in a beautiful cabin in Scotland, which I would not return to just because of its very soft bed. For some, that would be perfect, but my neck is still struggling to recover.
I recommend buying a firmer mattress and having the option of a topper if required. You cannot please everyone, but you will please most with this option.
Furnishings
It is very important to be mindful that the furnishings will get damaged or at least overused. Whilst I have found all our clients to be extremely respectful, they are in and out of the pool or covered in sand from the beach, and it will affect your furnishings. Choose simple items, with washable covers. Do not choose a table with a heavy glass cover, which is difficult to clean, keep everything simple.
Partners
You will not be doing this alone, you will need a good lawyer, good accountant and the most important one, a good property manager if you are not close by.
I would, of course, recommend my company, Perfect Place, as a property management company, not just because I am biased, but because we limit our clients to a manageable amount, for us it is not just about the money, although that is always great, it is about giving the client experience which you cannot do to a high level, when you are struggling with the workload.
So, just in case you do not choose us! Make sure that the agency has a limit of properties it takes on, after all, bad reviews seriously affect your rental income for the following year.
It is also useful to choose a company which deal with customers directly, by which I mean, that they communicate and form a relationship. My experience says that customers are much less likely to leave a bad review if they have met the person responsible and they like them. Additionally, any problems can be ironed out straightaway and the customer can get on with enjoying their holiday in your home.
Contacts
I have my choice of trusted lawyers and accountants that I would be happy to share with you. We have been on the coast for over 16 years now, and have built up a wealth of experience and have been helped by some very good people, who I am always happy to share the details of.
The lawyer we are using currently for tourist licences, who seem to be very reactive and reasonable are Sanchez Solicitors who are contactable on 0034 952 919 093.
Finally…….
Try and enjoy it, it is a great investment opportunity to own a rental home in Estepona, and in my experience guests are amazing, and will treat your home as you would hope.
If you want to know anymore information about how to rent out your property in Estepona, give me a call I am on 0034 672 212 368 or email tracey@perfectplaceestepona.com
Hope to hear from you soon
Tracey
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