Member Article

Choosing a Rental Agent in Spain

The Spanish rental market for villas, townhouses and apartments has made a complete about turn and there is now a major shortage of good quality residential properties on the market. Many investors are now buying properties to let due to the increasing popularity of renting as a long term investment.

Most property owners appoint a rental/management agent to handle the rental and upkeep of their properties there are literally hundreds of agents to choose from, however some are better than others. Check out AgentsWall Agents Directory and view their latest rental properties.

These top ten tips from AgentsWall.com helps you to find a professional Spanish letting agency that will allow you to rent your property to a qualified tenant and give you some peace of mind.

1. The Rental Agents Location

It’s a sensible decision to use a local rental agent that is in the same location as your rental property. Most towns and villages have a several agents specialising in both long term and short term/holiday rentals.

2. Choose the Service Level

Most letting agents offer two or 3 levels of service.

Tenant-find only – meaning that the Agent will advertise for a tenant, reference check and draw up the rental contract between the landlord and tenant but the landlord will be responsible for the day to day management and rent collection.

Tenant find + rent collection – where the Agent will do all of the above and collect the rent from the tenants but any other matters or repairs will be the responsibility of the landlord.

Full Management Service – ensures that the Agent manages everything to do with the letting from start to end including contracts, inventory, rent collection and general maintenance and repairs. The landlord will only become involved if there are major repairs required or legal action is necessary.

3. Contracts

In Spain rental contracts should always be in Spanish but will usually have an english translation. For details on the current legislation governing rental contracts in Spain please click here*.

4. Advertising and Marketing Your Property

In order to rent a property quickly Agents will rely on marketing and advertising and in Spain this usually involves international marketing and a strong online presence.

It’s always a good idea to ask the Agent where they are marketing and also how long it generally takes to find a quality tenant. Good Agents will know the market inside out and will often be searching for properties for qualified tenants.

Experience and local knowledge of areas, amenities and schools is also essential for a letting agent so try and choose an Agent who has been in business for a number of years and knows the market!

5. Money Matters

Rental Agents will usually handle security deposits, rent payments and also money for repairs. It is essential to ensure that these monies are protected in the event the Agent goes bust or disappears!

A reputable Agent in Spain will have either a company bank account or a dedicated client account for deposits and any other monies held on behalf of either tenants or the landlord.

6. Legal Requirements

Landlords are responsible for ensuring that their property is fit for purpose and meets the Spanish laws governing rental contracts. All appliances should be in good working order and electrics and gas safe to use.

Landlords are also responsible for paying any tax due from rental income this should be stated clearly in the contract. * The legal requirements for short term or holiday rentals are different to the above and can be found here.

7. Repairs and Maintenance

A property needs to be regularly maintained and it is the responsibility of the landlord to make sure that all repairs are carried out promptly and to a high standard. The tenant is also required to look after the property and ensure that the property is kept in good order.

Rental Agents will normally have a list of professional trades persons who they use to carry our any repairs and or general maintenance.

8. Maintenance Fund

If you choose to pay an Agent to manage your property you will be required to pay a fee either monthly, quarterly or annually and the Agent will also normally require a fund or float to be deposited to pay for urgent or minor repairs. If repairs are above a certain amount the Agent will usually contact the landlord for authorisation and funds.

9.Rental Agent Charges

The fees for a tenant find are usually equivalent to one month’s rent plus IVA for each year of the rental contract. This will generally include the reference checks and also the inventory.

For a fully managed service the cost varies with different agents and also depends on the size of the property and the location. All fees should be clearly shown and documented in your management contract as well as any extraordinary fees that may be charge for callouts or out of hours work.

10. Accounts

Before agreeing to any rental or management contract make sure you are fully informed about how and when you will be paid and also how often the agent will update you about the rent, repairs and also the condition of the property.

This was posted in Bdaily's Members' News section by Joe Graham .