MAKE THE MOST OF
OVERSEAS RENTALS L
etting your holiday home has become a sophisticated business these days, with growing competition between home owners who need to earn an income from their overseas property.
Some people may decide they need to rent a
property out due to rising mortgage payments (if exchange rates are working against them), escalating upkeep costs, or perhaps because they can’t sell it in a slow market. These “accidental landlords” may not have bought their property to let, yet can still maximise their property’s plus points, even if it might not tick every single box of the perfect rental property. But keeping a property in use does have advantages – a property lying empty for half the year is no use to anyone –and the ever-growing popularity of self-catering villa holidays (over hotels) means the sector is still expanding. So fi rst of all check that you are permitted to rent out your property for short term (holiday) lets. If it is on a development in Spain (especially the Canaries) or the States there may be restrictions within that specifi c urbanisation or community. In Florida, for example, areas close to the beaches or theme parks are often zoned for short-term rentals, whilst others are designated “residential” and only allow long-term lets (over three or six months).
28 AIPP CONSUMER GUIDE
Many second home owners plan to rent out their property to help cover its costs. How to do this best?
Don’t just ask the selling agent, get independent advice too, and fi nd out if you need any kind of licence as an overseas owner. A recent clampdown in the Canaries has led to many owners being hit with fi nes, even though they bought on developments where they were told holiday lets were authorised. Of course, if you have the choice, you will need to consider whether you are targeting long- or short-term letting (or both), bearing in mind the lower weekly income offered by long-term might be balanced out by lower management and marketing costs plus also the security of a season-long booking. In France, long-term rental laws heavily weighted towards the tenant can cause problems for landlords, especially when tenants refuse to leave (eg families cannot be evicted during winter). Some owners fi nd short-term lets in the summer and long-term off-season lets work the best fi nancially. You will need to pay income tax on lets so
investigate the tax situation (which can be constantly changing, so best to seek professional advice), what
Some owners fi nd short-term lets in the summer and long-term off -season lets work the best.
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