By Damon Mitchell •
Published: 03 Mar 2020 • 18:17
Back to basics with Rentals Costa Blanca. Credit: Shutterstock
CARLOS Pérez-Lanzac, President of the Asociación de Viviendas Turísticas de Andalucía (AVVA) has announced that according to data, between 2018 and 2019, around 1,500 owners of tourist homes in the province of Malaga have ceased to rent them out as holiday apartments. One of the reasons may be that the once high profitability, has begun to moderate, to lower, and many owners prefer to convert their apartments for long-term rental, which are less subject to the demands of tourism and therefore generate a safer income.
Pérez-Lanzac, points out that the renting out of a holiday apartment may not be as easy as people think. A lot of documentation needs to be prepared, reforms, decoration plans and a heavy load of paperwork. A strong investment is needed at the beginning and, together with the tax burden, having it in the market is not so profitable, so the owners reconvert them so that they are long term. Thus, the homes are written off.
“Registration is slowed down,” he says. “The pace has dropped a lot,” he adds. That, in itself, is not bad but indicates that amateur investors are leaving the market.
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