Is cabo roig a good area to buy a holiday rental

Hi Pete thank you so much for your reply.  Yes I have just been reading the information about the licence it seems difficult to be honest especially when your not in the country to organise.  I am going to contact some management companies to obtain quotes. Thanks again for your help.

Hi jan , did you ever buy in the area ? 

Looking to buy a 2 bedroomed apartment ( shared pool)close to beach and amenities ...

Looking to leave in the hands of a letting agency (20%) is it do-able to end up with £6000 profit a year ???

Hi

Allow well over a year to get the license but before putting down a deposit on the property check the local town hall are issuing the Compatibility Certificates.  Orihuela Costa are, but very backlogged, so Cabo Roig should be ok.  San Miguel I have heard still are not, but that might finally have changed.  Town halls are under no obligation to issue that first certificate and without you cannot apply for your license.

Someone mentioned en-suites, but it is just the main bathroom that has to be a minimum 4.5m2 (although some properties have got licenses despite having smaller bathrooms - possibly obtained before the checks were being made).

If you buy a property that already has a license it is a relatively quick process to change it into the new owners name - it's the property not the owner which is licensed.  So that could be a consideration.

Our house in Playa Flamenca was available this year for 43 weeks rental and we have obtained 32 week (we use it ourselves for 9 weeks).  I may still get a late booking for one or two weeks left available.  We do not do massive advertising as a lot of our guests are people who have been before or direct referrals.  I would say any property that can be rented without the need to hire a car is more attractive to families, but if you are looking at the 'snow bird' winter lets then they tend to hire a car anyway.  Anywhere along the coast in Orihuela Costa is potentially good for holiday letting.

The tax situation for Brits is that if/when brexit happens the rate will leap from 19% after allowable deductions to 24% on the gross rentals, so that also needs to be factored in - unless we stay in the EU of course.  Then the cost of some of the better advertising sites - we only use the established one that are targeting our preferred market, which is families.  We do not use any sites that tell us who is going and when as we what direct contact with the potential guests before accepting any bookings.  We have a duty to our community to ensure any guests understand that it is not a holiday park but a residential community.  We handle all our own admin, booking forms, contracts etc from the UK but have a keyholder (who is excellent), registered to work in Spain, who does the meet and greet, cleaning and is on call for emergencies.

Please do not reply on an estate agent knowing the full requirements to get a tourist license.  In theory they should know, but they are not your legal adviser and you must ask you INDEPENDENT lawyer to check the property details for compliance - that is part of his/her job.

There are still sites that are happy to advertise unlicensed lets, but the risks are high as the fines are massive for letting out without a license.  Legally you cannot advertise for holiday letting until you have your license but you can do seasonal lets, so lets of say two or three months, if you need income from the property while you wait for the license.

I will send you a private message too.

Bev

I am so glad Pete posted a link for me to all your invaluable information regarding buying a property with the view to short term holiday let’s. Thank you so much Bev and Dave.