Note

Buying a house in Spain to rent out

§ 1Who will rent it

Start with the tenant. Families, workers, students and retirees look for different homes. Ask local agents who rents in the area, what they ask for and how long homes stay empty. This page belongs to the chapter in the chapter on buy to let, which explains the law of long lets.

§ 2Choosing the area

Look at transport, jobs, schools and services. Check whether the area is declared a stressed residential market, where rent rules differ, as the market-and-rules section explains. Ask about any planned developments or works that may change demand.

§ 3Running costs

List the costs the owner pays: local property tax, community fees, insurance, repairs and the cost of vacancy. In a lease, ordinary small repairs are usually for the tenant and large ones for the owner, but ask your lawyer to check the contract. Costs that you can’t control, such as a special assessment, should be asked about before you buy.

§ 4Community rules

Read the statutes and the minutes. Long lets are generally allowed, but a community may have rules on noise, pets, use of common areas and works. Ask for the accounts and the reserve. The legal process section explains communities and the debts that follow a unit.

§ 5Condition and certificate

A rental home must be habitable and meet the standards of the place. The energy certificate must be provided when you let. Ask a technician to inspect the structure, the damp, the wiring, the heating and the plumbing. A home that needs work will have empty months. The property types section explains renovation.

§ 6Papers

Check the registry, the cadastre and the licences. A home with a gap in its papers is harder to let, to insure and to sell. The legal process section explains the checks.

§ 7The lease

Ask your lawyer or agent for a lease that fits the law. The rent, the deposit, the term, the indexation and the division of repairs should be written down. More on long-term letting rules explains the legal rules and more on letting agents explains agents.

§ 8Money

Work out the yield, as the chapter on rental yields explains, using realistic rent, costs and vacancy. Keep a reserve for repairs and empty months.

§ 9Decide

Visit at different hours, talk to the neighbours and the administrator, and test the numbers against a lower rent and a longer vacancy.

§ 10Furnished or not

Decide whether to let furnished. Furnishing raises the cost and the wear, and may suit some tenants, while an unfurnished home is simpler. Whichever you choose, list the contents in an inventory that tenant and landlord sign.

§ 11Keep records

Keep the survey, the certificate and the quotes you collected. They help you set the rent and defend the condition of the home.

§ 12More on this topic

More on a property with a tenant explains buying a home that is already let.

General information only. This is not legal, tax or financial advice. Check your own situation with a qualified adviser.