Rent allows me an income every month, but how do I put my house on the rental market? What do I have to know before renting?

Being the landlord can sometimes be a worry, but if you know how to rent your property and what you should do, it can be easy and you can get a lot of tenants and therefore a good income.

01How do I put my house on the rental market: Preparation of the house.

The preparation both inside and outside of a property in order to rent it is very important. Keep in mind that there must be enough items for the number of guests. For example, chairs. If the property has capacity for 8 people there should be at least 8 chairs (so that they can dine all together and at the same time), as well as sofas and chairs, beds, sun beds etc.

ADepersonalize:

You must remove objects that have both, personal and valuable importance, such as, family photos, glass objects, frames, etc.

The decoration of the interior must be with neutral items and without striking colours. Neutral colours offer a more relaxing feeling!

The walls are better in colours such as white or beige, again, giving a relaxing feeling.

BReparation work:

Everything should be organized and in correct working order. There should be no cracks, damage to appliances, damaged furniture, etc. If a client sees that there is something broken or neglected, it could provoke negative comments that potential  future clients may see; so it will have a detrimental effect on the rental of the property.

CDo I have to rent the property furnished?

With respect to this, you have two options, rent the property furnished or non furnished.

If you rent the property for tourism purposes, the property has to be fully furnished. It is even better if it is fully equipped: kettle, juicer, microwave, coffee maker etc. When renting for holidays, clients like to have everything they would have in their own home and even more!

If you decide to rent it non furnished you would have the option of renting the house for a long period and the clients will have the opportunity to install their own furniture. There are certain clients that look for this option, for example, couples that before buying, would like to try for a period to assure them that they like the area.

In this article we will assume that the house is furnished and that you have opted for the option to rent for weeks (holiday lets).

02How do I put my house on the rental market: Documentation.

When renting your property, it must be registered with the Ministry of Tourism of the Junta de Andalucía. This means that the inspectors from the Junta de Andalucía have seen the property confirm that it meets the necessary requirements:

• Installation of 1 fire extinguisher, per floor.
• Smoke and Carbon monoxide detectors, 1 per floor.
• A first aid kit.
• The installation of a sign with a code that the Junta de Andalucía gives the property.

To get this registration, you must fill out a form and submit it together with a copy of your NIE or ID and title deeds to the town hall of the town where the property is located, and they will take care of sending it to the Junta de Andalucía.

The Junta de Andalucía will send you a letter with your registration number and then you will have to put the sign with the registration number, which you have provided, at the entrance of the property (In a visible location).

After a few months an inspector will come to the property, and, if everything is in accordance with the requirements, he will sign a favourable report. Then the property is registered and has fulfilled the requirements and is ready to rent .

03>How do I put my house on the rental market: Investigating the market.

When choosing a price for your rental property there is various things that you have to take into account:

• Capacity of the property.
• Where it is located (Near or far from shops, the beach, etc.).
• Access.
• Facilities you have, air conditioning, fans, TV.

AThe right price.

The best way to obtain the right price, neither very expensive nor very cheap, is to investigate the current market and the pricing that there is in the area. So at the time of deciding the price, you can base it in comparison with other properties.

BCarry out some improvements.

If you are looking to rent with in the more expensive bracket  there are some things you must do to ensure it is an attractive prospect. . Install air conditioning (if the property does not have this already). You must make sure that the property is well equipped, with a modern television and channels with various languages and all necessary appliances; touch up the decoration, removing furniture that is not necessary.

Presentation is what attracts customers!

04How do I put my house on the rental market: Photos & Videos.

The photos and videos that you have published, are the most important when you want to get a lot of clients! You must have good quality photos that show the best of what the house has to offer

APhotos.

To get the perfect photos you have to take into account various things.

• Light - it is best to take photos during a sunny day, since natural light provides clarity to the photo, with the windows open and the lights on.

• Organization - it is important that everything is clean and that there are no objects in the background of the photos; for example, things on beds, tables, countertops, etc. The clients expect to arrive and see the house as they see it in the photos, if the house is clean and tidy in the photos it reflects tranquillity and comfort.

• Orientation - The photos should be horizontal. Thus they give the effect of a wider space. If you take the vertical photos, the photos may come out too cropped and give a cramped feeling.

BVideos.

When taking a video, you must use the same rules as when you take photos. The lights should be on and the blinds open to get natural light.

You must take the video with the horizontal orientation. It should not have a long duration, since customers may get bored. It must be short and show the unique characteristics of the property.

05How do I put my house on the rental market:  How do I protect myself?

AGuarantees of payment.

When you rent your property you can feel insecure with respect to payments and trust between you and your tenants; but there are various ways to feel more secure when renting a property.

You must sign a lease agreement with the tenants in which the payments to be made, length of stay and rental terms are clear, thus avoiding possible future discussions.

The rental price, the security deposit and payment method will be agreed between both parties and will be reflected in the contract.

• The price will be reflected per night, and if something different is not agreed, as a general rule, it will include the consumption of water, electricity, heating, air conditioning, final cleaning and use of bedding, towels and kitchenware.

• The security deposit is used to cover possible damage or damages caused during the stay, so the amount will be lower or higher depending on the  value of the contents and the rental period.  The longer period, the greater the amount of value of the contents , the greater the amount of security deposit.

• To confirm the reservation, an advance can be requested as a deposit. This advance cannot be more than 30% of the total stay. If the reservation is cancelled by the user, the owner may withhold up to 50% of the advance made if the cancellation is made within ten days of the scheduled date for the arrival. If the reservation is cancelled less than ten days before the scheduled date for the arrival, the total amount of the advance may be retained. When you cancel the reservation, you must return the advance made. If you do so less than 10 days in advance, you must also compensate with 30% of the price of the contracted stay.

If there is a cancellation of the reservation, due to personal or private circumstances, reasonably justified, no penalty may be applied. Personal or private circumstances are understood as reasons beyond the party who invoked them, abnormal and unpredictable whose consequences could not have been avoided, despite having acted with due diligence. This would apply to both the tenant and the owner.

05Taxes.

The tenants are responsible for declaring and paying a number of taxes and fees each year to hacienda, as you are offering a hotel service. This must be included in the IRPF declaration.

If the owner of the property is a resident, he will pay the corresponding amount at the end of each year along when the tax return is done. If the owner is a non-resident, the corresponding amount will be paid every three months.

The amount to be paid depends on the income obtained and the expenses generated for and during each reservation.

For more information about this, please consult your tax advisor.

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