Thousands of Holiday Homes and Apartments are offered to rent at the Costa Brava. Mostly the owners do so to compensate the costs of financing their property or to regain their investments.
When letting your property via a rental agency this will arrange the promotion and things like cleaning, small repairs, key service, clean linen and reception of the renters. Therefore in most cases the rent is first being paid to the agency. After compensating their costs and commission you will receive the rest of the payments.
Generally spoken they determine the rental prices in accordance with you. Mostly you will have to pay them 10% up to 30% of the rental prices for their services. In spite of these relatively high commissions, generally you can generate a welcome income by acting this way. Of course you can also try to gain a higher profit by arranging things yourself. Most of the time it will be possible to find a service company as well which can take care of a lot of these things for you.
Of course you will have to meet costs as well when letting your property. Sometimes renters are not so careful or neat with your possessions as you would be yourself. We therefore advice you to calculate costs of replacement of (parts of) your inventory on a regular base and also expenses for maintenance. Next to this of course you will meet higher expenses for using water, electricity and gas or oil.
Finally, however in the rental business it’s very common to forget this, we advice you to realise yourself that in Spain 25% of taxes have to be paid on renting incomes. When you let your property via an agency, this agency is legally obliged to pay 25% of your net income to the Spanish tax department. Also it has to charge IVA (Added Value Tax).