Renting out your Spanish property is an obvious way to recoup your investment, cover the costs of mortgage payments and community fees and if you are currently unable to sell, allow you to make money from your property whilst the market recovers.

Owners have the option to choose short term rentals, ideal if you wish to use the property during the year but aren’t tied in to the peak seasons of Easter and Summer. There’s a lot of competition for rentals in the peak season but there are some properties which are more in demand, such as large villas with pools. If your property is desirable for holiday makers it can be highly lucrative, but can be a pain to manage. It’s also apparent that the tax office is cracking down on unpaid taxes for holiday rentals and owners are required to declare their income and pay 24% of income made by rentals.

Alternatively, a long term rental is a good option if you’re not looking to use the property and you want more consistency and security with payments. There has been a growing demand for long term rental properties in popular areas of the Costa del Sol, and spanish properties on urbanisations with pools are popular for both short term and long term rental clients.

However, there are a lot of horror stories about owners being unable to evict non-paying tenants which has either put people off completely or made them want to request pre-payment for the whole 11 month contract – unrealistic for most renters!

Thankfully for owners who are interested in renting out their property, there was a law brought in during 2011, and then clarified in 2012, which makes it easier and quicker to evict tenants. If a long term tenant stops paying their rent they are required to provide a valid excuse, if they can’t do this and payment is not made within 10 days, the court will rule for immediate eviction of the debtor.

There has also been a reduction in the maximum renewal period which the tenant can demand from five years to three years. If there is a need for you or your direct family to live in the property you can also rescind the agreement by offering 60 days notice – you can find out more on the SpanishVilla.com website.

Renting can certainly be a profitable way to use your property, but as you can see there are a few complications. If you are a community president and your owners are asking you for advice we’d suggest that you consult with legal experts to make sure everyone in the community has the most up-to-date information. You can also share information and experiences with your owners on your own community website.