LONG -TERM LETS

With the property market slowing down here in Spain, many people are looking at renting as an alternative to buying. This gives people time to establish whether their chosen area is suitable for them and if they can adapt to the Spanish lifestyle.The advantages in renting means should you want to relocate to another area or have to return to the uk,you have not got the headache of having to try and sell the property.

Consequently buying a property in Spain for long term rental has excellent investment potential especially if you aren't planning on using the property yourself. With many properties being reduced in price at the moment there are bargains to be found making better value for money.

There are many factors you need to take into account when considering letting your property long term or becoming a tenant:
 
ADVANTAGES & DISADVANTAGES

Long-term lets have their advantages and disadvantages, although most home owners in Spain find the rewards outweigh these, particularly when compared to short-term letting.

Among the advantages are:

FOR THE OWNER:

Regular monthly income
    
Less 'wear and tear' on the property compared to short term lets
    
Reduced property management costs as the Tenant looks after the property

The possibilty of adding value to the sale of the property (especially if you have a good tenant) as this shows the property generating a regular income.

FOR THE TENANT:

No long term financial burden

The freedom to move around should you want to try another area or style of property

Affordability to perhaps rent a higher standard of property than you would be able to buy

No headaches trying to sell the property

Among the disadvantages are:

FOR THE OWNER:

You will not be able to use the property yourself unless you specify the periods of the year available for long term rental e.g long term lets only in winter.

It can be difficult to sell the property with Sitting Tenants, although this can be overcome by serving a two month notice to vacate or by only having the rental contract for a maximum period of 10 months.

You could have problems evicting the Tenant for whatever reason  depending on the legal contract they signed.

FOR THE TENANT:

You could have to vacate the property should the owner decide to sell

The headache of moving every few years

The restrictions imposed by the owner