The 3 Main Buy to Let Schemes

Pooled Rental Income:

Having purchased your property you allow the developer to rent out your property on a daily or weekly basis. All members of the Pooled programme have an equal share of the income generated regardless of how many weeks one individual property is rented out. This is a very up market rental programme and is operated as if the properties were a high class hotel.  The level of furniture quality would need to be quite high.  The service charge for this type of rental is around 35% of the income generated. You would have use of the property yourselves for 6 weeks per annum.  The usual contract period would be for 12 months.

Guaranteed Rental Income:

The two types of guaranteed rental income schemes available are:

(A) High Season Programme:  Runs from May to September inclusive and guarantees an Income of 7000.00 € for the 5 months.

(B) Long Term Rental Programme: Allows your property to be let on 11 month contracts with an average of 800 € per month guaranteed depending on the number of bedrooms the property has. 

 With this type of scheme there is no allowance for the owner to use the property.

Open Market Letting:

With this type of letting the risk is all yours.  You would need to hand your property to a letting agency that would find your clients and would look after the cleaning and maintenance of the property.  The rewards can be much higher with this type of scheme with income of around 750 to 1000 € per week let dependent on the number of bedrooms and the location of the property.  The agency would normally charge between 15% and 25% commission dependent on the level of service you would require from them.

 There are some exciting opportunities for all of the above schemes some are constructed for immediate use whilst others are available Off Plan with varying completion dates. Prices for the above vary from 175,000.00 € for a 2 bed 2 bath apartment up to 500,000.00 € for a 3 bed prestige golf complex apartment.

 Mortgages are readily available for non Spanish residents on the Costa del Sol up to 70% of valuation of the property. Mortgage interest rates are very favourable at the moment some as low as 3.25% P.A. variable.

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