Marbella Homeownership doesn’t have to be scary

Home owners in Spain are currently pretty much buried under new pieces of legislation issued by the country’s government. If you are planning to buy a home in Marbella or any other part of the Costa del Sol, it is essential to hire a reputable and experienced lawyer who is bilingual – and the services of a reputable and skilled estate agency will also be invaluable, for they can help you avoid many pitfalls and problems, not just when you are engaged in making the actual property purchase, but also later on, when the “investment vehicle” is supposed to show what it’s worth.

Tax Payer’s Burden

Churning out new laws that will make it that much harder for people to let their homes to holidaymakers and causing consternation among foreign tax payers left, right and centre, the Spanish government is currently looking into all aspects of foreigner’s lives to see how they can be taxed further. From the new licensing laws that will govern if a foreign homeowner is permitted to let their home to holiday makers to declaring world-wide income and property – if it can be taxed, the Spanish state coffers can be filled.

Even if you are granted a license to let your apartment or villa to holidaymakers, you will still have to be contactable 24/7, or appoint a representative who will be there during your absence in case of emergencies. You will have to pay this person – more paperwork! If you choose an estate agent who can handle all your present and future requirements, you will save a lot of hassle, legwork and potential fines.

If you opt for long-term rental things never go smoothly either for the latest worry is that insurance policies meant to protect private landlords against defaulting tenants are now under scrutiny for failing to deliver that they promise.

False Security

According to Antonio Carroza, the CEO of Alquiler Seguro, a Spanish company offering rental intermediary services, insurance plans for rental protection are not effective and do not combat non-payment of rent.
 
Essentially, these policies were designed to cover accidents and provide against eventualities, but they were not designed to compensate private landlords adequately in the event their tenants default on payments. These policies are, according to Mr Carroza, a “false security”, lulling landlords into believing there are safe from money-worries when they rent out their property. Unfortunately, these policies contain a lot of small print that curtails landlords’ rights.

A reputable estate agent won’t allow these policies through the door, but unfortunately, not every estate agent is as diligent and therefore these insurance policies are often mis-sold to landlords who later believe themselves contractually bound when in fact they are not.

“When cases of non payment end up in court and the tenant is found to be insolvent (which happens in many cases), the landlord will not only be unable to recoup the unpaid rent but will also have to pay back the money that has been lent to them to this effect by their insurance company,” Mr Carroza explained.
 
This also means that tenants defaulting on their utility bills cause further expenses to their landlord, who by law must pick up the bill.

Be a savvy Investor

If you are buying an investment property in Marbella you might think you are “protected” against potential tenants defaulting – hey, this is Marbella where people have more money, isn’t it? You could be in for a shock!

Unless you use the services of an experienced estate agent who knows how to vet potential tenants very thoroughly, you may well end up with financial problems and an insurance policy not worth the paper it is written on.