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legal letting agents

Posted: Mon Jun 27, 2022 10:24am
14 replies319 views5 members subscribed
Grace52

Posts: 78

11 helpful points

Location: Playa Flamenca

Joined: 30 Jun 2017

Hi I own a 2 bedroom apartment in the Playa Flamenca area and I am thinking of renting it out when we are not using it.  I would like a company that people can recommend as I have owned my property for a few years now.

Hoping someone can help with some advice

Regards

Cheryl

Posted: Mon Jun 27, 2022 2:48pm

Cheryl

Legendary helpful member

Posts: 2973

3533 helpful points

Location: Albatera

Joined: 8 Jun 2017

Posted: Mon Jun 27, 2022 2:48pm

You need to have a Tourist Licence before you can advertise.
If you live in a community then you have to get their permission first. They may agree with no strings, they may make you wait until it can be voted on at the next AGM, they may charge a higher community fee or they may refuse altogether.
You then need to get a Compatability Certificate from the local Ayuntamiento and they will determine if the property is suitable and not in an area which they consider to be residential or already over populated with holiday lets.
If you get this then the actual licence will be issued in Alicante and you need to buy a plaque and register with the Guardia Civil.
Then you will need to do quarterly tax returns and pay 24% on gross earnings with no deductible expenses.
Our forum members DaveBev1 have produced a thorough guide.

Grace52

Posted: Mon Jun 27, 2022 5:17pm

Grace52

Original Poster

Posts: 78

11 helpful points

Location: Playa Flamenca

Joined: 30 Jun 2017

Posted: Mon Jun 27, 2022 5:17pm

Cheryl wrote on Mon Jun 27, 2022 2:48pm:

You need to have a Tourist Licence before you can advertise.
If you live in a community then you have to get their permission first. They may agree with no strings, they may make you wait until it can be voted on at the next AGM, they may charge a higher community fee or they may refuse altoge...

...ther.
You then need to get a Compatability Certificate from the local Ayuntamiento and they will determine if the property is suitable and not in an area which they consider to be residential or already over populated with holiday lets.
If you get this then the actual licence will be issued in Alicante and you need to buy a plaque and register with the Guardia Civil.
Then you will need to do quarterly tax returns and pay 24% on gross earnings with no deductible expenses.
Our forum members DaveBev1 have produced a thorough guide.

Thank you for your reply I wanted to go through a letting agent. I thought they would organise everything for me and I would pay them the fees. Regards Grace 

Davebev1

Posted: Mon Jun 27, 2022 10:04pm

Davebev1

Legendary helpful member

Posts: 1560

2200 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Mon Jun 27, 2022 10:04pm

Grace52 wrote on Mon Jun 27, 2022 10:24am:

Hi I own a 2 bedroom apartment in the Playa Flamenca area and I am thinking of renting it out when we are not using it.  I would like a company that people can recommend as I have owned my property for a few years now.

Hoping someone can help with some advice

Regards

Cheryl has outlined much of the process. Whether you use an agent or not makes no difference, you need the Tourist License first. It is illegal to rent a property as a holiday let without one.

You will need to apply to the Town Hall for your compatibilty Certificate and unfortunately Orihuela Costa take many months to issue them, sometimes over a year. They will check your community have not registered to not permit Licenses and your property meets requirements on room sizes and equipment. Without that certificate you cannot apply for the License. You will also need an EPC. 

If you are a non EU resident then tax is 24% of the gross rental, so if you choose to use a letting agent then their fees are not tax deductable.

You are welcome to message us with specific questions.

Madcarew

Posted: Mon Jul 4, 2022 8:05am

Posts: 57

27 helpful points

Location: La Zenia

Joined: 13 May 2021

Posted: Mon Jul 4, 2022 8:05am

Go to the town hall and get a tourist licence which you have to do whoever let's it out. Then stick it on AirBnB which is very easy to do.

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Grace52

Posted: Mon Jul 4, 2022 9:10am

Grace52

Original Poster

Posts: 78

11 helpful points

Location: Playa Flamenca

Joined: 30 Jun 2017

Posted: Mon Jul 4, 2022 9:10am

Madcarew wrote on Mon Jul 4, 2022 8:05am:

Go to the town hall and get a tourist licence which you have to do whoever let's it out. Then stick it on AirBnB which is very easy to do.

Thanks I am thinking of doing this 

Madcarew

Posted: Mon Jul 4, 2022 9:26am

Posts: 57

27 helpful points

Location: La Zenia

Joined: 13 May 2021

Posted: Mon Jul 4, 2022 9:26am

Grace52 wrote on Mon Jul 4, 2022 9:10am:

Thanks I am thinking of doing this 

You won't be disappointed, we did it with a cave house in the mountains near Alguena and we are fully booked for the next 6 weeks. You have to do a bit of work, taking photos etc but it is not difficult.

Davebev1

Posted: Mon Jul 4, 2022 9:50am

Davebev1

Legendary helpful member

Posts: 1560

2200 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Mon Jul 4, 2022 9:50am

Madcarew wrote on Mon Jul 4, 2022 8:05am:

Go to the town hall and get a tourist licence which you have to do whoever let's it out. Then stick it on AirBnB which is very easy to do.

You do not get the Tourist License from the Town Hall.  The Town Hall will handle only the Compatibility Certificate, which is just stage one of the process.  In Orihuela Costa that is likely to take about a year, and that is presuming that a) the property meets minimum requirements on room sizes and equipment, and b) that the community have not registered for no more TLs on the community.  Then you apply, with your certificate, to the office for Tourism in Alicante for the License itself, which (if the EPC, Certificate and other documentation are correct) will take a few weeks.  Only then can you start advertising.  You will also then need to visit the Guardia Civil (in other locations it may be Policia instead) to obtain log-in codes for registering your guests on the Hospederias website, buy the plaque and complaints forms and ensure the keyholder/cleaner/management company you are using is legal.

There are many of option regarding advertising, airbnb not necessarily being the best option.

Grace52

Posted: Mon Jul 4, 2022 9:50am

Grace52

Original Poster

Posts: 78

11 helpful points

Location: Playa Flamenca

Joined: 30 Jun 2017

Posted: Mon Jul 4, 2022 9:50am

Madcarew wrote on Mon Jul 4, 2022 9:26am:

You won't be disappointed, we did it with a cave house in the mountains near Alguena and we are fully booked for the next 6 weeks. You have to do a bit of work, taking photos etc but it is not difficult.

Did you go to the town hall in person and did it take long to get the certificate as I have been told it can take up to a year which is putting me off 

Davebev1

Posted: Mon Jul 4, 2022 10:00am

Davebev1

Legendary helpful member

Posts: 1560

2200 helpful points

Location: Playa Flamenca

Joined: 7 Nov 2017

Posted: Mon Jul 4, 2022 10:00am

Grace52 wrote on Mon Jul 4, 2022 9:10am:

Thanks I am thinking of doing this 

Please see the comments from myself and Cheryl about the process.  There is a lot more to do than just visit your Town Hall and stick it on airbnb, which someone else has said.  It is not a quick process in Orihuela Costa.  As also pointed out, there are many options regarding legal ways to advertise the property that do not involve airbnb as well.  

Whether you hand the entire renting out over to an agent or handle the bookings with a reliable and registered keyholding company will make a big difference to the returns.  The first option will result in less income but hopefully little call on your own time, the other gives better returns, more control and direct contact with the renter but takes up your time.  Either way the Licensing process is still the same, you cannot legally let the property without the License, you will still need to pay quarterly tax on the rental and adjust the non-residents tax at the year end.

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