Marbella Property Rentals – Your Options During the Economic Downturn

"Credit crisis", "credit crunch" and "global downturn". We have heard the current economic crisis referred to as all of these and more. This has obviously had a big knock-on effect to many looking to sell their properties in Marbella and other parts of the Costa del Sol, with many owners having to resort to renting their properties out either on a long term basis, or as a short term holiday rental in the hope that buyer confidence will eventually be resumed.

Prior to the economic crisis, the Spanish property market was already going through what can only be described as a "bad spell", with property prices at an all time high and supply, far outweighing the demand. Add to this a market that has also been experiencing bad press due to unscrupulous estate agents, corruption in the local governments and many off plan properties failing to be completed on time; it’s no wonder that many property owners are seeking alternative opportunities to create cash flow.

Although the economic crisis will ultimately affect the travel and holiday markets, the rental market on the Costa del Sol, although not entirely unaffected, is still a firm favorite with many holidaymakers from the UK and other parts of Europe.

There can be no doubt that many of us are going to be cutting back on our luxuries including those expensive long haul holidays to the U.S and Asia. This leaves the door open for southern Spain, which has been a favorite holiday destination for many Brits over the years. Its close proximity to the UK, cheap flights and great all year round weather, will be an added bonus to many holidaymakers looking to save money.

With many owners facing the prospect of either repossession or having to accept hugely reduced offers on their properties (up to 30% in many cases), now could be the perfect time for many to seek an alternative option in the form of renting.

When considering renting your property you have two main options, you can either rent your property long term to existing residents or focus more on the short term holiday rentals market. Let’s take a look at both options below.

Long Term Rentals

Renting a property out long term normally means renting your property out for a certain number of months under contract. Common long term rental periods are 6 months or 11 month contracts.

Renting your property out long term enables you to guarantee your mortgage payments (if you have one) for a set number of months. It also means that you have less maintenance to perform compared to a holiday rental, where changeovers have to be done on a weekly or fortnightly basis.

Many owners like the security of knowing that their mortgage payments are being met and that they are receiving regular payments with less hassle than a short term rental.

You also have to decide whether you are going to rent your property furnished, or unfurnished. Furnished properties are more common, but there are still many people looking for the furnished option. It can be better to give tenants the option and if you can warrant the expense, place your own furniture into storage.

Monthly prices range from between 400 euros per month for a studio apartment, up to 2000 euros or more, for a luxury villa in a sort after location.

Short Term Holiday Rentals

Short term holiday rentals are also an ideal way for an owner to maximise the financial return on their properties.

A short term rental is normally provided for holidaymakers for a period of between 1-3 weeks duration and is generally provided fully furnished.

When you run a short term rental, you will need to provide a weekly changeover service in order to clean bins and in order to change bedding and provide clean towels. There are many property management companies on the Costa del Sol that can do this for you for a small fee, or you can do it yourself if you have the time and live close by.

It’s also important that you take a deposit prior to any rental period and also an inventory of the contents of property, so that you are covered for any potential breakages or theft of your belongings.

Holiday rentals are normally charged on a weekly basis and can range from between 150 euros per week for a small apartment, all the way up to 1500 euros or more per week for a luxury accommodation.