Before renting your property, every owner must do their homework. Here we detail several tips that every owner should consider before renting their property.
It is said that if an owner plays their cards right, it can be a rewarding experience and, in the long run, a good way to obtain stable recurring income. And since no one wants to encounter a tenant from hell, an owner must behave as best as possible. So be prepared to do your homework before renting your property.
This guide presented by AYRE Estates aims to provide good advice, as well as solutions and details that every owner should take into account. We also address long-term rentals, vacation rentals also in Andalusia and the Community of Madrid*. Indicating that this information is for informational purposes only, lacking contractual value, or if the Autonomous Community of Andalusia has made any modifications to its law or regulations after the publication of this guide.
However, if you wish, we can assist you with the management of your tourist apartment, or with the procedures related to obtaining your tourist license in the Community of Madrid or Andalusia. You can schedule a consultation by phone or in person, contacting us through the inquiry form or calling the phone number +34951915000
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You must determine the market rent, which will depend on the location and the qualities, finishes, furnishings of your property and the number of similar properties available for rent in your area.
You can choose to place an ad on a website, either paid or completely free until the property is rented. You can also check newspapers and various property rental websites to see how much other owners with similar properties in your area are charging.
There are a number of steps you can take that will increase the chances of finding reliable tenants and not delaying the leasing of your property.
- Property condition
Before deciding to rent your property, you must ensure that your property meets certain minimum standards according to the law (for example, that it has a certificate of habitability, that it is in good structural condition, that it is free of humidity, has hot and cold water, adequate heating and ventilation means, appliances in good working order, electrical installation in good condition, gas installation (if available) and/or pipes in good condition).
If it seems that your property has been well cared for and respected, it is likely that your tenants will treat it with respect and at the end of their lease (or rental according to the Urban Leasing Law) the property will be in good condition.
- Verification of data and tenant scoring.
As long as possible, we should have a reference from the previous owners of your potential tenant.
Obtain a reference from your potential tenant's employers. It is true that nowadays it is not always possible to be in contact with previous landlords where the tenant we are facing has lived, and it is also not common to have references from the employer for our future tenant, as it is more usual to ask for the last pay slips to check the average they have earned in recent months, and to verify if their job is temporary or permanent, and if they have the capacity to meet the rental payment.
Scoring is an evaluation system that predicts the likelihood of your tenant defaulting, allowing you to determine their profile to know the probability of them not paying the rent. If your potential tenants are students, you should always have their parents act as guarantors of the lease agreement. - Tenant interviews: be careful not to discriminate
When you have been able to verify the financial profile of your potential tenant to pay the rent, it is time to interview them. Be careful with the questions you ask, as the law prohibits you from refusing to offer accommodation or terminating a lease for any of the following reasons: gender, marital status, family status, sexual orientation, religious beliefs, age, disability, race, membership in the traveling community. You must base your decisions on the merits of potential tenants, - Lease and contents list
You must take a photograph of your property and its contents. You should also make a list of your furniture, equipment, and belongings included in the rented property, attaching it as an inventory of the property, the contents to the lease agreement.
Our real estate agency AYRE Estates can draft a lease agreement for your rental property that will help create a smooth relationship with your tenants and ensure your peace of mind. Adapting and preparing the document to the needs of both parties. Since in most cases, one downloads a generic contract model from the internet that does not respond 100% to what both parties initially agree upon verbally.
As a general rule, tenants usually pay at the time of signing the contract (if this coincides with the handover of keys) one month of rent in advance, and a second monthly payment as a deposit, which in Andalusia must be deposited in AVRA (Andalusian Housing and Rehabilitation Agency) or in Madrid, in the Social Housing Agency; according to the law, the period cannot exceed 30 days from the date of signing the lease agreement, as otherwise the amount of the deposit will incur a surcharge.
