Question
I’ve read multiple times about negative experiences of people who rented out properties in Spain. I have a plan to rent an apartment out for long term. What are the main risks and downsides I should prepare myself for? Do I need a lawyer or an agency to rent it out for 3-5 years?
Answers
These are the answers of some Facebook group members:
“The issue is that tenants have so many rights in Spain compared to other places. E.g. if rent isn’t paid you are very limited on what you can do. Once the tenant has a contract of 12 months or more it becomes difficult. Many used to do 11 month agreements for this reason, but although many still do, they are no longer allowed. I rent properties in spain and SO FAR have had no issues but it’s always a bit of a worry”
“Another issue is that you are taxed on the rental income, but cannot deduct for expenses. So if there are any problems, maintenance, decorating, etc you cannot deduct. We rented out a house for a while, but the hassle wasn’t worth it, especially as rents were low. And we were lucky, we had a tenant who paid his rent. Best of luck.”
“I live in Ibiza and what many do here is to rent to summer workers, from May to October at a higher than normal rent. Here is an example. Two beds/ one bath. 1500/2000 a month. Four people live there and share rent. Since they are mostly young people and many are students they go back home at the end of the summer.”
“Dreadful if you want them out or they stop paying as I’m discovering now. Mine haven’t paid for 5 months. I’m waiting for a court date but I bet it will be months. The laws against the landlord and it can take months or even years to get to court. Meanwhile you can’t do a thing and you can’t turn off utilities so you could end up paying those too. There is insurance but they are very strict. You need to have a good look at the laws here because they are complex and all for the tenant. There is now a huge shortage of rental property and rents have gone up because of this. Personally when I finally get mine our I will look at this insurance”
“The biggest risks are finding a good tenant and the fact the tenant has more rights than you do. We were left with nearly 2k worth of damages, sold the place couldn’t face it again, bought a uk rental.”
