Renting out the property you own in Spain can be a useful way to finance the purchase and ongoing costs of owning a holiday home abroad. As people grow more disillusioned with the performance of pension schemes, it is also an attractive alternative investment opportunity. Demand for Spanish holiday rental is increasing every year and the Costa del Sol especially Calahonda rent and Costa Blanca attract the greatest number of holidaymakers looking to rent a property in Spain.

There are a number of things to consider before buying a property which you intend to let out:

When you view Spanish properties to buy, bear in mind some other important features of the perfect holiday rental:

You may consider handing your property over to a holiday company. This may make you good money but be careful to check out their fees before you sign any contracts. And remember, you can't build a clientele if you have no details of who is staying there.

There are numerous companies in Spain who will manage your property for you. The service provided by these agencies varies enormously, so make sure you have thoroughly checked what their service includes. For a small established company, expect to pay between 25 - 40% of your letting for their services and £300 per annum for additional maintenance. Many estate agents offer a property management service, but always deal with people you can trust.

Ensure any rental business is legally registered and that you pay the appropriate taxes and insurance. When you provide linens and other services you qualify as a business and should legally declare a property as tourist letting accommodation. This may seem an unnecessary hassle, but remember that if anything goes wrong you will have a legal footing.