What to do if I want to rent out my holiday flat all year round

If you have ever considered “I want to rent out my flat”, you already know that the first decision you must make is whether to lease it as a habitual residence or as a tourist flat. But what happens if you initially opted to manage a holiday home and now you are considering renting it out for the whole year to the same tenant?

Why rent out my flat all year round?

In recent times, tourist rentals have been a very profitable business in Spain. There is no doubt that it is a good way to obtain income, but you should not lose sight of the fact that it is not exactly passive income.

To manage a tourist apartment, you have to do a lot of commercial and management activity. From registering the property on Google Business to collecting and paying the tourist tax (if applicable in your locality), promoting the property, being aware of key handover every time a tenant arrives, etc.

All of this implies extra work that may not entirely compensate you or simply you cannot undertake. That is why many owners of tourist flats consider renting them out as habitual residences.

Quarantine is a good opportunity to carry out any necessary improvements to the apartment. At the moment, it is still possible to do this kind of work during quarantine, making it the best time to renovate the bathroom or install a state-of-the-art lock that will improve the apartment's usability once the current crisis passes.

Can I rent out my flat through a real estate agency for it to be a habitual residence?

You need to pay special attention to the regulations of your autonomous community or even your locality. In most cases, it is forbidden for properties with a tourist rental license to be rented out permanently.

Inform yourself well on this matter and, if compatibility is not possible, first proceed to deregister your house as a tourist dwelling. If you do not do so, and you put it up for traditional rental, you could receive a substantial penalty.

Once you have deregistered your property as a tourist dwelling, you can rent out your house completely normally, either through a real estate agency or privately.

How much can I rent out my flat for?

This depends heavily on the type of property, its characteristics, and its location. If you want to find a tenant as soon as possible, it is best to set a price that is in line with the market, neither too low nor too high.

If you set a price well below the market, you will rent out the property quickly, but you will not be getting all the return you should. Whereas if you set too high a price, it will be difficult to find a tenant.

Assume your role as landlord

Being a landlord of a tourist dwelling is not the same as being a landlord of a habitual residence. You are going to create a long-term relationship with your tenant and you must be prepared for this, as it implies a series of rights for you but also a good number of obligations.

If you have already made the decision and thought “I want to rent out my flat long-term”, start by taking the necessary administrative steps to be able to put it up for traditional rental, study the market to see what the most suitable price is and make the necessary adjustments so that the property has everything a permanent tenant will need.

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