To let or not to let
Indeed, that is the question. There has been something of a pushback against holiday rentals in recent times, but is that really in the interest of the homeowner?
In response to a combination of housing shortages and the nuisance that can result from poorly managed holiday rentals, the latter is sometimes used as a scapegoat for some of the problems that Spain is currently experiencing. Prime Minister, Pedro Sánchez has pointed to private and corporate investors using up too much of the available housing stock for holiday rentals while the nuisance created by some tourists has led some communities of owners to ban them altogether.
Such reactions are understandable but often shortsighted, as the housing shortage is also caused by the fact that not enough affordable homes have been constructed over the past 20 years or more, while voting away individual owners’ rights to rent out their holiday homes in a tourist destination such as the Costa del Sol doesn’t make too much sense. In complexes where the majority of properties are second homes, this means having them standing empty for most of the year and creating ‘ghost’ communities that require extra security and maintenance.
Benefits versus Disadvantages
Most of the complaints within communities that have led to owners voting against holiday lets tend to have resulted from the noise, crowding and even littering produced by unruly tourists. Some residents have even pointed to security concerns, but all these issues result from poor management and are avoidable with vetting and control. In other words, when a professional company takes responsibility for holiday rentals and property management any potential disadvantages soon convert into benefits, ranging from better home maintenance to holiday rental income that doesn’t cause nuisance.
In addition to the ability to earn significant income from a holiday home that would otherwise stand empty for a large part of the year, its constant monitoring and timely maintenance, as well as avoiding that communities become deserted and empty, being able to rent out your second home in Marbella for short-term holiday lets also adds considerably to its value. According to most studies it can add 10-25% to the resale price of your property on the Costa del Sol and reduces the take it takes to sell.
You need a tourist license to be able to rent a private property to a short-term guest, and this in itself adds to the value of your property, and if it forms part of a apartment complex or villa community that allows holiday rentals but manages the process correctly, not only will the home earn income through the rentals themselves but there will also be an increase in its market value.
If holiday rentals are managed by a professional, experienced company specialised in providing this kind of service within communities it benefits the individual homeowners without causing any negative side effects for the communities themselves. In fact, better maintenance and occupation tends to benefit the latter, especially in the case of residential resorts with luxury amenities such as multiple swimming pools, spa, gym, coworking areas and/or reception – where a professional operations and rental/property management company adds five-star service for homeowner and guest alike.
Advantages of professional property and rental management
- Carefully vetted and managed guest rental process
- High level of service for homeowners and guests alike
- Improved property and community maintenance
- Avoidance of empty homes and communities that produces maintenance and security problems
- Significant income that not only covers costs but produces good ROI
- 10-25% increase in the value of the property (with a tourist license, regardless of whether you rent out or not)
In short, when properly managed, the ability to rent out your Costa del Sol property produces income and adds to the value of your home without causing nuisance for other homeowners. It therefore pays for communities of owners to think twice about banning holiday rentals and instead contract specialised operational, property and rental management companies to control the process to the very highest standards.