Holiday Lettings - Is it worth it?

You also have to factor in & get a licence.

Discussed at length on this forum 

I have friends who own & let properties in Florida and Majorca and there are many factors to consider.

How many weeks do you want to let it out and when? Assuming you still want to holiday there, then every week that you use it, is a week less available to be let. And if you are using it in the prime holiday times of year, then that exacerbates the financial impact. For example, if family holidays are 2 weeks at Easter, a week at Whit, 8 weeks Summer (to allow for different school holidays - i.e. Scotland) and a week in October, then that's 12 weeks, but if you want to use it for even as little as 3 weeks in those times, then you've just reduced your prime letting periods by 25%.

Of course, people without school age children would also be interested and, thanks to the weather, we have a long season (March - October), so that gives you 40 weeks in total. I would suggest assuming a 50% occupancy rate in prime season (if you're lucky) and 25% at other times. Depending on the amenities (does your apartment have access to a communal pool, etc.), say, £500 per week in high season and an average of £350 at other times, you could gross £6k, then deduct 25% for advertising / agent costs (based on Holiday Lettings, etc.), so that's £4.5k income. All this based on you only using the apartment when it's not let (which is do-able if you're flexible). You then need to allow for cleaning / keyholder costs per week of occupancy, plus insurance, maintenance, etc. - say £500+

As per other posts, you also need a licence or no reputable advertiser / rental agency will work with you; and then you will be taxed on the income.

My friends make this work (although the ones in Florida are on golf resorts, so have a nearly year round season and domestic guests also) and, over the long term, if you're netting £3k per year, then that's £30k over 10 years - and the rates you get may be higher than I've quoted. But then you need to off-set this against the inconvenience of potentially not being able to use it when you want, damage and wear & tear on the property, possibly upsetting your neighbours, etc.

I would suggest you have a good look at the Holiday Lettings / Holiday Rentals websites to understand the market in your area; and then they should give you a steer on potential occupancy rates, costs, earnings, etc.

The other alternative is to rent it at 'mates' rates' to friends & family, who you should be able to trust re-damage etc. and (sshh) you could avoid tax and having to get a licence.

Hope this helps!

if you’re looking to generate income then forget it.....especially if you have to pay a management company too. All guests have to register with guardia so no avoiding income tax..which is 19% on any income minus acceptable expenditure.....if its your holiday home I’d keep it for yourselves!

I can only support the other comments and replies to you from fellow forum members

A Property Rental LIcence may take up to year to obtain and you have when licensed to display the 

official placard on your outside wall. The inspections are strict and include cupboard and cleaning,

Then a property manager maybe 200-300€ a year

If you have Air con ensuring it is not  abused and so massive electricity bill

Cleaning every time maybe 50€ a time

Compulsory registration with the police both in and out for every set of guests

Not to have a licence Spain now has many inspectors, and if you are caught you could end up

in court with recent fines all around 120,000€ plus a fine for your guests as well maybe 10,000€ for use of unregistered accommodation.

Tax yes on your all profits at about 20% and after BREXIT it will rise to 25%

Lots to consider and lots to think about