Long Term Property Let

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This topic contains 6 replies, has 2 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 4 months ago.

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  • #52013
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi,

    I’m trying to work out costs associated to long term (11 month) property rental on the CDS from a property owners perspective. I think I have an idea who pays what costs but I wonder if I have missed any items or have incorrect info. I’m a UK resident.

    Long Term Let.
    1.Managment Fee – Payable by property owner – amount ( 1 moths gross rent)

    2.Spanish Rental Tax – Payable by property owner – amount (25% of gross rental income).

    3. Buildings and Contents Insurance- Payable by property Owner

    4. Wealth Tax – Payable by property owner – amount ( is there a formula to quantify my wealth tax liablity?)

    5. Local Taxes ( IBI, Rubbish Collection) – payable by property owner

    6. Utilities – Payable by tennent.

    Any Help would be greatly appreciated.

    DGR

  • #63781
    Profile photo of Anonymous
    Anonymous
    Participant

    DGR

    I would advise caution entering the long term rental market. Most agents will tell you that 11 month contracts will be fine – they are not in most circumstances. If the property is unfurnished then the chances are the tenants will have the right to extend the contract. Any subsequent contract will be deemed as ac ontinuation which means they have the right to stay there for five years. Then you try getting them out.

    Two years ago I went through exactly this process and after three months the tenants didnt pay. I took them to court 9at a cost of 1000 Euros) and the day before they paid, so effectievly I had no case to answer.

    They subsequently did not pay. I was advised by my solicitor thatbecause they had an 11 month contract the chances of me getting them out were very slight. I was also shocked to hear that potentially I could have to sell my house to them at the market value of the day the moved in (dont know how true this was but it sickened me to find out)

    Fortunately for me after 3 more non payments and 3 Buro faxes to them, they decided to leave to go somewhere they werent being molested.

    I urge you to seek proper legal advice before considering long term lets – you may regret that you didnt. And if you did then you need to add solicitors costs to this and get a very good contract drawn up which states that you will be moving back into the property at the end of the term (and be prepared to do so if you have to)

    The law in Spain is worse than the UK for landlords – and they wonder why so many properties lie empty. Be careful

    Regards

    Vince

  • #63981
    Profile photo of Anonymous
    Anonymous
    Participant

    DGR

    I would advise caution entering the long term rental market. Most agents will tell you that 11 month contracts will be fine – they are not in most circumstances. If the property is unfurnished then the chances are the tenants will have the right to extend the contract. Any subsequent contract will be deemed as ac ontinuation which means they have the right to stay there for five years. Then you try getting them out.

    Two years ago I went through exactly this process and after three months the tenants didnt pay. I took them to court 9at a cost of 1000 Euros) and the day before they paid, so effectievly I had no case to answer.

    They subsequently did not pay. I was advised by my solicitor thatbecause they had an 11 month contract the chances of me getting them out were very slight. I was also shocked to hear that potentially I could have to sell my house to them at the market value of the day the moved in (dont know how true this was but it sickened me to find out)

    Fortunately for me after 3 more non payments and 3 Buro faxes to them, they decided to leave to go somewhere they werent being molested.

    I urge you to seek proper legal advice before considering long term lets – you may regret that you didnt. And if you did then you need to add solicitors costs to this and get a very good contract drawn up which states that you will be moving back into the property at the end of the term (and be prepared to do so if you have to)

    The law in Spain is worse than the UK for landlords – and they wonder why so many properties lie empty. Be careful

    Regards

    Vince

  • #63793
    Profile photo of Anonymous
    Anonymous
    Participant

    vbtudor,

    Thanks for the advice, I had assumed that if I got my lawyer to draw up a contract it would be OK.

  • #63993
    Profile photo of Anonymous
    Anonymous
    Participant

    vbtudor,

    Thanks for the advice, I had assumed that if I got my lawyer to draw up a contract it would be OK.

  • #63794
    Profile photo of Anonymous
    Anonymous
    Participant

    So did I – but the law is not on your side. the safest way is really to only offer 6 month contract and make sre it is furnished or part furnished. Do not offer a continuationof contract. If you want to keep the same people in then you need to have a definitive break so the only way to do this is to ask them to leave for a week – and commence a new contract. Not sure if this is even possible, but just make sure you get good adivce becaus eit cost me in the region of 3,000 euros to get them out – and I was lucky they left of their own accord.

    Better still if there is an agency handling it get them to write the ocntract in their name with the proviso that if yours becomes unavailable they will be responsible for providing suitable accomodation – make them earn their money.

    Best of luck and beware

    Vince

  • #63994
    Profile photo of Anonymous
    Anonymous
    Participant

    So did I – but the law is not on your side. the safest way is really to only offer 6 month contract and make sre it is furnished or part furnished. Do not offer a continuationof contract. If you want to keep the same people in then you need to have a definitive break so the only way to do this is to ask them to leave for a week – and commence a new contract. Not sure if this is even possible, but just make sure you get good adivce becaus eit cost me in the region of 3,000 euros to get them out – and I was lucky they left of their own accord.

    Better still if there is an agency handling it get them to write the ocntract in their name with the proviso that if yours becomes unavailable they will be responsible for providing suitable accomodation – make them earn their money.

    Best of luck and beware

    Vince

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