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Holiday rental business information needed

Posted: Fri May 20, 2022 9:29am
11 replies832 views7 members subscribed
mercanlandy

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Location: Torrevieja

Joined: 18 May 2022

Morning all.

I am a new member of the forum and Know a lot of information I am looking for will be on the site. But I am just asking if you can point me in the right direction for what I am after.

I am looking at buying a property to use as a full time holiday rental and am after a comprehensive " To do list/tick box" which pretty much has it all so you comply with everything you must do and have to be a legal holiday rental business.

Even to include things like professional key holding and cleaning/change over services.

I am not an expat and am living in the UK. 

All guidance fully appreciated.

Best regards

Steve

mack

Posted: Fri May 20, 2022 10:59am

mack

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Joined: 28 Jan 2018

Posted: Fri May 20, 2022 10:59am

Renting your house as a holiday let still a viable option? Part 1 that is part one of six hope this helps 

Mack 

Cheryl

Posted: Fri May 20, 2022 1:05pm

Cheryl

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Posted: Fri May 20, 2022 1:05pm

Tourist Licence for holiday rental 

The main thing I would say is to not rely on an estate agent's word that a property will get a licence, the Community has to allow Tourist lets (some charge a higher community charge, some will have reached their limit and some will have a ban) and then the local Ayuntamiento has to approve it for the Compatability Certificate.

mercanlandy

Posted: Fri May 20, 2022 1:54pm

mercanlandy

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Posts: 3

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Location: Torrevieja

Joined: 18 May 2022

Posted: Fri May 20, 2022 1:54pm

Cheryl wrote on Fri May 20, 2022 1:05pm:

Tourist Licence for holiday rental 

The main thing I would say is to not rely on an estate agent's word that a property will get a licence, the Community has to allow Tourist lets (some charge a higher community charge, some will have reached their limit and some will have a ban) and then the local Ayuntamiento has to approve it fo...

...r the Compatability Certificate.

Thank you, very important information I can look into. So for example if I see a property for sale that I really like who would I enquire to initially regarding authorisation for rental permistion 

Cheryl

Posted: Fri May 20, 2022 3:16pm

Cheryl

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Posted: Fri May 20, 2022 3:16pm

mercanlandy wrote on Fri May 20, 2022 1:54pm:

Thank you, very important information I can look into. So for example if I see a property for sale that I really like who would I enquire to initially regarding authorisation for rental permistion 

Ask the agent to find out the number of the administration or president of the community of owners so you can confirm that they will allow it and then take details to the Town Hall (you may need to make an appointment) to ask if the property will be given a Certificate of Compatibility.
If the community say no, that's the end of it.

The last I heard, Algorfa are not giving out licences at all but that is further inland.

Never give a deposit to the agent, it needs to be made to your independent solicitor as you should never go with the one recommended by the estate agent.

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DUI

Posted: Fri May 20, 2022 4:18pm

DUI

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Posted: Fri May 20, 2022 4:18pm

mercanlandy wrote on Fri May 20, 2022 9:29am:

Morning all.

I am a new member of the forum and Know a lot of information I am looking for will be on the site. But I am just asking if you can point me in the right direction for what I am after.

I am looking at buying a property to use as a full time holiday rental and am after a comprehensive " To do list/tick box" which pretty much has it all so you comply with everything you must do and have to be a legal holiday rental business.

Even to include things like professional key holding and cleaning/change over services.

I am not an expat and am living in the UK. 

All guidance fully appreciated.

Best regards

Steve

Genuine question,why would you want to do it?As far as I’m aware after everybody’s had their hand in your pocket,paid tax etc,there’s very little money left.

mercanlandy

Posted: Fri May 20, 2022 4:28pm

mercanlandy

Original Poster

Posts: 3

1 helpful points

Location: Torrevieja

Joined: 18 May 2022

Posted: Fri May 20, 2022 4:28pm

DUI wrote on Fri May 20, 2022 4:18pm:

Genuine question,why would you want to do it?As far as I’m aware after everybody’s had their hand in your pocket,paid tax etc,there’s very little money left.

No point having money sat in a UK bank account earning nothing in interest. May as well buy a place, so your cash is then an asset which even after paying all the running costs, taxes etc will generate a much healthier return per year if you manage it properly. 

DUI

Posted: Fri May 20, 2022 6:08pm

DUI

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Joined: 6 Nov 2021

Posted: Fri May 20, 2022 6:08pm

mercanlandy wrote on Fri May 20, 2022 4:28pm:

No point having money sat in a UK bank account earning nothing in interest. May as well buy a place, so your cash is then an asset which even after paying all the running costs, taxes etc will generate a much healthier return per year if you manage it properly. 

Do your sums very carefully,and just remember if you need/want to sell your property the market is very illiquid compared to somewhere like the UK and the costs/taxes to sell are very high compared to what you may be used to in the UK.The reality compared to the TV shows is like night and day.

Davebev1

Posted: Fri May 20, 2022 8:35pm

Davebev1

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Posted: Fri May 20, 2022 8:35pm

We put guides up a couple of years ago but very little has changed. Links already given above. A lot depends on where you intend to buy and your budget. A property needs to comply with certain requirements, needs to be in an area where the Town Hall is currently issuing Compatibility Certificates and on a community that hasn't decided to stop any future Licenses. Without the Compatability Certificate you cannot apply for the Tourist License.

With regards to returns, yes, you can still make money from holiday lets even with the extra tax paid by non-EU residents. I would recommend managing the rentals yourself using a local keyholding business for checkins and cleans.

Where are you focusing your property search and what is your budget? - you can pm me rather than put on the public area.

Use an independent solicitor for the purchase who understand the local Tourist License regulations. When you find the property and agree a price ask the solicitor to make initial checks regarding eligibility of the property, he/she can approach the community administrators and check with the Town Hall before you sign anything. Lodge the holding deposit with your solicitor NOT with the estate agent.

There are now estate agents who are well informed but there are still those who are not sadly.

If you find a property that already has a License then the License is automatically sold with the property and can be transferred into the new owners name.

Davebev1

Posted: Fri May 20, 2022 8:40pm

Davebev1

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Location: Playa Flamenca

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Posted: Fri May 20, 2022 8:40pm

DUI wrote on Fri May 20, 2022 4:18pm:

Genuine question,why would you want to do it?As far as I’m aware after everybody’s had their hand in your pocket,paid tax etc,there’s very little money left.

You have made similar comments before without facts or figures.  I am not sure if you have ever actually been involved in holiday letting, do you currently have a holiday let?  Many do still make an income from holiday letting doing it fully legally.

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