This is the second in a series of articles looking at the reasons why people buy property in Spain, and specific things to look out for depending on which type of buyer you are. Today I am looking at buying a property to let or rent out.

Even among people looking for a buy-to-let property, there are different motivations which affect the type of property they buy: Some people will be looking to rent it out for a couple of years, and then either sell it or use it themselves to settle down. Other people will be looking to use the property as a holiday home and just rent it out when they’re not using it to help pay the mortgage. Then there are the professionals investors who are looking to buy a number of properties which can be rented out for as many weeks as possible with the highest return.

In this article I am going to concentrate mainly on people who are looking to buy a property in Spain for the main purpose of renting it out and getting the highest annually return on their investment. However the considerations below are important to varying degrees when buying any rental property, but of course for people planning to leave in it themselves one day, the location requirements for one may be a little more subjective and personal, and not necessarily ideal for rental.

Price
The annual return on the investment is the most important factor if you are looking to optimise your capital in any rental property. The price of the property should be as low as possible compared to the potential annual income from renting. Apart from the annual return on the investment, you should also take into consideration the potential increase in the property’s value over the years and should be looking for an average annual return on your investment of between 5-10%.

For example: If you looking to buy a 250,000€ flat you can properly rent it out for about 25-40 weeks per year (depending on the property, location, rental promotion, etc) for an average of 600€ per week which will leave an annual return on the investment of between 6% - 9.6%. From this amount you will have to deduct the annual property taxes, community fees and gas, water, electricity, etc.

Quality
When buying to rent, the property will wear much faster and the furniture and installations will need to be resilient but still changed or repaired frequently. As the original quality of the property you buy is normally reflected in the price, it is important here not to buy too cheap. In addition to the longevity factor, any rental property has to be of a reasonable standard from day one to attract holiday makers, and it must include all the normal facilities expected such as a pool, garden, parking space, more than one bathroom, etc. The quality and area of your property also determines the type of clientele - i.e. a rental property in Marbella needs to be of a higher standard compared to a property in Torremolinos but the rent will of course also be higher.

Location, Views and Utilities
The location of a rental property is very important. Most holiday makers are looking for beach and sun, nightlife and/or golf. It would of course be perfect to be able to offer all within walking distance but this is rarely possible (and when this is possible, it will normally be too expensive to give a high return on the investment) and it is therefore a good idea to focus on one or two aspects. Although it is normally not possible to find a property on a golf course, being near to a beach with good access to nightlife and restaurants is very important, and at a minimum a good local supermarket, and one or two restaurants and bars within few minutes distance is pretty key. If you are looking to buy a property in a new development you need to bear in mind that, although the price may be good, new development areas are likely to be less attractive to tourists until the infrastructure is complete. The views from the property are less important but a good view will improve your rental price.

Golf is an important factor in Spain, and definitely here in Almerimar. To secure a good annual income a golf course nearby, for example, is an insurance that the price will increase. Due to the perfect climate on the coasts of Spain it is possible to play golf nearly all year round and golfers normally prefer playing during spring and autumn as the summer gets too hot. If the property also has a pool and is within reasonable distance from the town that is an added bonus. A property focused more on being next to the beach and the nightlife will normally be rented out during the summer but during the rest of the year it could be more difficult. The rental price during the summer months will normally be higher than the average annual price.

Ok so interesting to think about, and I have to say that Almerimar over the last couple of years, has ticked all the boxes, since we have had a lot of new-build, in a well established community with access to both beaches and good golf course, AND lots of bars and restaurants.

About Almerimar

Almerimar is located in the region of Andalucia, Spain. The nearest airport is 30km away in Almeria. Other airports that are within 3 hours include Malaga, Murcia, Granada, and Alicanti. Other holiday resorts in the region include Mojacar , Aguadulce and Roquetas de Mar

Almerimar is also one of the largest marinas in Spain with over 2,000 births and excellent boatyard facilities.