Management Companies Spain
For absent owners, finding someone trustworthy to look after your property in your absence is essential. Problems can arise whilst the property is empty, i.e. water damage, electrical problems and insect infestations, which are common problems here in Spain and can de-value your property. There are many management companies based throughout Spain, but choosing the right one can be difficult.
Ex-pats operating illegally from homes are offering Management Services to property owners. Some owners, on the presumption that they are getting better value for money (ie a cheap service) are handing keys to these individuals along with the consequent risks. These illegal traders are not insured (they cannot be insured as they are not traders) therefore, you personally will be liable for loses or damages if your property is burgled. The Spanish Authorities are clamping down on this type of activity as the majority do not pay taxes on their earnings.
Reasons to use a Professional Management Company
- 1. To guarantee that your investment receives the best possible care and attention from someone who is ‘on-hand’ here in Spain
- 2. A property that is obviously visited regularly is less likely to be targeted for burglary.
- 3. The knowledge that someone who you can trust is ensuring that everything runs smoothly. What happens if the toilet doesn't flush, a window gets broken, or the swimming pool pump breaks down?
- 4. To keep the property free from the ‘element problems’ - mainly damp and mould growth which are unfortunately a significant problem with homes in Spain.
- 5. To ensure a high standard of cleanliness and maintenance
- 6. Regular testing of appliances
- 7. A management company usually incorporates a letting agency, whose job is to make sure that your property gets good exposure to the rental market
- 8. Knowledge that someone is on hand with keys, should tradesmen need to enter the property
- 9. To forward post that will build up during long absences. Despite most owners using standing orders to pay bills, on occasion this system fails and services are not paid. Reminders not collected will result in termination of the service.
When you visit your Spanish home, it is unlikely that you wish to spend time cleaning, mending and finding local contractors instead of relaxing and enjoying yourself, and it is under circumstances like these that employing a management company can truly be of benefit. They can arrange for tradesmen to take care of these specific problems on your behalf.
Being burgled is not something we like to think about - we all believe that 'it cannot happen to us'. The reality though is that it can be you, and if is, you need to make sure that it is reported immediately to the police and your insurance company. Regrettably owners tend to request professional management services after the event. By introducing simple precautions the 'nasty man' could have chosen your neighbour’s house instead.
Letting
For those purchasers of property in Spain who wish to cover their mortgages or guarantee an additional income, renting is an excellent option. Long term rentals can ensure a year round income, whilst holiday letting gives owners top dollar during the summer months.
As every year, the number of vacant rooms in hotels increase, and hoteliers on the Costa Blanca are complaining about the ever increasing number of private owners renting their holiday homes. This situation is forcing the Inland Revenue and other local authorities to enter measures to stop the illegal trading.
The legal status is as follows: If you rent your home to holiday makers, you need to register your property with the Ministerio de Turismo (Ministry of Tourism) to ensure your property meets the minimum health and safety standards. At the same time, your records will be entered into the system and taxes (35% as non resident) will be required to be paid on the earnings produced for its rental.
Non resident owners of property in Spain are able to conduct their business through legal management companies by allowing their “friends” to continue enjoying holidays in their private homes in Spain, whilst knowing that all the necessary services - including maintenance, changeover cleans, or damage repairs - on your property, are being carried out on your behalf.
People are more likely to look after your property if they feel you have gone to a lot of trouble to make them feel comfortable and welcome. A management company based locally. can do all that for you. If renters have a fantastic holiday, this will lead to repeat bookings, and free word of mouth advertising as they promote your property to their friends.
