Tuesday, December 6, 2011

Long Term Renting Your Property in Puerto Banus Marbella

There was a massive influx of investors buying properties a number of years ago on the Costa Del Sol. A gold rush mentality certainly existed from 1999-2001 and houses flew off the shelves, often 2 at a time from the same buyer. Rightly or wrongly, they were advised to double up and perhaps sell one, and with the profit they made they would end up being mortgage free. We know what happened shortly after that period.

Long Term Rentals Can Help Cover Your Expenses

For people who have over exposed themselves, long term renting can be a way of mitigating your outgoings and allowing you to cover the monthly costs you are liable for. Mortgage payments, community fees, yearly taxes etc will continue to leave your account regardless. Rentals can certainly get you some income to cover the majority, if not all of your costs.

What Expenses Will I be Liable for?

You will be liable for community fees and all of your yearly taxes. You will also be liable for maintenance, as long as it isn´t caused by your tenant doing something ridiculous. The good news is that the tenant will pay the electricity, water bill, phone bills so all the standard monthly outgoings will be signed over to the renters name.

Commission Charged By Agencies

For agencies specialising in Marbella long term rentals, standard fees would be 1 months rent. Anyone whose commission exceeds this for an 11 month rental just isn´t being competitive. Generally for 6 month rentals, 50% of the first months rent would be taken. Agents often work together, using a MLS (multi listing service) platform, so if two agents were involved in getting a rental for your property, they would split the commission between them.