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Go Back   Pollensa Forum > LIVING & WORKING IN POLLENSA > Living & Working in the Pollensa Area

Living & Working in the Pollensa Area This forum is for any comments, questions and advice about living (permanently or temporarily) and working in the Pollensa area. Aimed at ex-pats, property owners etc.

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  • 1 Post By bobley
  • 1 Post By SpookyBrewster
  • 1 Post By pollensa
  • 1 Post By Chocaholic

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  #1  
Old 30-07-2018, 18:36
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Join Date: Mar 2017
Location: Newcastle Upon Tyne.
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Default Applying for a rental licence.

Hi.
We've been given the go-ahead, finally from our solicitor to apply for a rental licence.
I just wondered if anyone could tell me what the restrictions will be? I know about the 3,500 euro per bed. But I'm curious as to whether they're going to make us fence in our beautiful pool etc?
We have been letting friends and family use the house this year on an adhoc basis, and would love to be able to market it properly but it needs to be financially worth our while.
Thanks in advance :-)
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Old 31-07-2018, 00:05
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When we bought our place the estate agent said that basically you can make money off the peak 8 weeks of the summer but thats about your lot. You'll get the odd week here and there but not much. So your €21,000 licence (assuming an average 3 bedroom house?) will cost €4200 per year and then split that over 10-12 weeks? Looking on Booking.com it appears I could rent our place for €900/week so 10 weeks = €9000, deduct ~20% tax and then the €4200 and a bit more for utility bills and I'm left making €2500 a year and I probably wouldn't get that much use out of it myself.... It's just not worth doing. IF your place has a pool then folks will pay €2000 a week probably, probably sell it easier so it'd net you €15K over 12 weeks? Thats a bit more tempting...
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Old 31-07-2018, 06:50
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Hmm. Thanks bobley. We're a 4 bed with a pool, so there could be money to be made....it's everything else I'm worried about.
What are the other costs involved do you know? I'm fairly sure it can't possibly be as straightforward as merely paying the 28,000k, and paying the taxes.
It would certainly help for re sale purposes but we're not selling any time soon.
I can't help wondering if I should just start renting it out quietly via word of mouth...and skip the licence (obv I didn't say that :-D )
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Old 31-07-2018, 08:05
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Don't forget the cleaning and laundry costs, increased electricity costs, wear and tear and maintenance.
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Old 31-07-2018, 08:14
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Thanks Goffer-totted all that up.
Electricity is not cheap is it!
I also see that we can offset the mortgage and insurance amongst other things.
I think it's got to be worth a go really. Especially in light of the current restrictions on apartments.
I just don't want to have to fence off our beautiful pool! That might end up being the rate limiting step tbh.
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Old 31-07-2018, 11:12
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Quote:
Originally Posted by SpookyBrewster View Post
We're a 4 bed with a pool, )
A question, is this a villa or town house with its own pool (A single-family building in the regulations) rather than an apartment block and is this 4 bedrooms that each have two single or double beds so 8 sleeping capacity ?

4 bed can be interpreted as 4 bedrooms (8 people) or 4 total occupancy.

If the figures work out I would go for it as rental prices at properties with licences can only increase and licenses are going to be in short supply.
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Old 31-07-2018, 12:04
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It’s interesting that they refer to “places of occupancy” which could be interpreted as bedrooms or beds. The legislation always seems refer to beds rather than bedrooms.

After speaking to an estate agent last week I was told each owner will have to register with the police and ensure the details of all guests are recorded. (Can be done online after creating an account)

Also there will be a charge of €2 per day per person tourist tax and the owner will be responsible for collecting and paying.

Another point raised is that just because a block is accepted as suitable for renting, it doesn’t mean that all applicants in that block will receive a licence. First come first served seems the rule of the day and remember there are a lot of Spanish owners applying at the same time.

It was also suggested that if you don’t have a licence you can’t register with the police so it will be very easy to check up on who is renting illegally.

I can see owners continuing down the friends an family route to stay under the radar.
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Old 31-07-2018, 16:29
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Thanks for your replies.
Mark-it's a detached villa with it's own pool-sleeping 8. So I had figured on €28,000.

Papillon-I too have read about the tourist tax. That will just have to be added to the rental, thus pushing prices even higher.
Also I had heard about the police thing, and providing all the names. I suppose if there's an online form it should be straightforward enough (famous last words)

It does seem like an awful lot of faff when I could just continue with friends and family, but I'm thinking how lovely it would be to be able to market the house properly. It's so beautiful, and I doubt I can get full rental potential through the season just off my own bat.

Aagh. What a dilemma.
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Old 09-08-2018, 15:19
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If anyone would like help with applying for a Tourist License or would like translations between English, Spanish or Catalan do contact Rebecca of Upton Services - Email: rebeccaupton@live.co.uk or see her Facebook Page https://www.facebook.com/uptonservicesmallorca
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  #10  
Old 10-08-2018, 11:28
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Default Requesting a licence

Hi everyone, there is certainly a lot of different opinions of licences and whether they will be cost effective.
But as has been mentioned I am in the process of applying for licences for some clients who have decided to go for it.
If you would like information regarding this, please feel free to contact me.
Rebeccaupton@live.co.uk.
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