Invest in long-term rental apartments in Spain
12 December 2022
Buying a property to rent is an attractive alternative for many investors. Especially the long-term rental offers many benefits, and reduces the risks of other types of rentals.
If you have capital and are thinking of making this type of investment, perhaps this is the right moment: the news about the rise in rental prices in Spain is constant, and this type of property has achieved an average return of 6.43%. in the first half of 2022.
But is it really worth buying to rent? What aspects influence the profitability of this type of operation? When is the best time to do it?
When to buy flats to rent? Calculate the return on your investment
To find out the profitability of a long-term rental apartment, you must divide the fee you get for a year of rent by the value of the property you bought.
Whether investing in flats to rent is more profitable or less also depends on other aspects, including your financial situation, the state of the real estate market and the rental price, taking into account:
● That the increase in the purchase and sale price of properties between 2021-2022 has caused many families to buy properties owned or, directly, to opt for long-term rentals.
● That the current interest rates, although high, will still allow you to find mortgages and competitive financing to make your investment.
● That it is an investment with which you will obtain liquidity. Because, unlike others, with the long-term rental you will receive extra income, without waiting to cover expiration dates.
Regarding the elements that will determine the rental price and that will also influence the profitability of your investment in the long term, we highlight:
● Where the apartment is located (city). These types of investments are usually more profitable in large cities such as Madrid, Barcelona or Valencia, or in highly touristic areas.
● Where the apartment (area) is located. The rent is higher in upper-class areas, or in neighborhoods well connected to schools, supermarkets, green areas, services, etc.
● Characteristics of the property. With this we refer to its age, state of conservation, size, outdoor areas (terraces, garage, etc.), facilities, etc.
In addition, depending on the above elements, the rent will go to people with a greater or lesser economic capacity.
What factors to take into account: 5 tips prior to buying
1. Set your goals. It is about being clear about how much you want to invest, for how long you want to rent your property and what tenant profile you are looking for.
2. Evaluate the price of the property. Ask if the price they offer you adjusts to the current situation. And remember that you must not only cover the mortgage installments, but also face maintenance and unforeseen expenses.
3. Analyze the possibilities of revaluation of the area. Even if you opt for long-term rental, you should look for booming areas, with demand for housing and where you can recover your investment over time.
4. Study the type of properties that is in greatest demand. This is very important before investing in rental apartments, as it is the best way to ensure long-term tenants.
5. Check the community expenses. Think that the recovery of your investment may be conditioned by maintenance expenses. This is usually more common in large communities or in luxury developments that offer services with swimming pools, sports courts, gardens, etc.
Advantages of investing in apartments for long-term rental in Spain
Like any investment, buying flats to rent has its pros and cons.
Advantage
● The profitability of investing in rental housing is high (almost 7%).
● You will have tax advantages and deductions in repairs, mortgage expenses, amortizations, insurance, IBI, etc.
● You will generate a regular extra income and for a long period of time.
● Long-term tenants tend to take proper care of the properties, and make the necessary improvements to guarantee their long-term comfort.
● There are better payment guarantees.
In addition to extending for a longer time and including more guarantees, long-term rental offers security and stability to tenants and owners.
Having professional advice is essential if you want to invest in long-term rental apartments.
We are a real estate agency in Valencia with experience in the sector and we provide comprehensive luxury property management services in Valencia. You can check our luxury homes in valencia to invest We will be happy to answer all your questions, call us.
Write to us, and one of our premium home agents will get in touch with you.
Other properties
Rent
2.500€
Elegant home in the heart of Valencia.
Valencia
A5308
170 sqm House
4
2
Rent
1.000€
Central and charming home for rent
Valencia
A5334
85 sqm House
1
1
Buy
2.500.000€
Excellent property in Campolivar
Godella
V775
660 sqm House
4
4
Buy
590.000€
Fabulous apartment very close to Plaza del Ayuntamiento
Valencia
V5212
142 sqm House
3
2
Rent
3.700€
Soon available
Puzol / Puçol
A120
320 sqm House
5
3
Buy
1.150.000€
Elegant beachfront duplex in Amare Beach Denia
Dénia
V808
249 sqm House
4
3
Rent
2.400€
Spacious and bright home next to the North Station of Valencia
Valencia
A5331
237 sqm House
4
3
Buy
460.000€
Gorgeous views, unique plot: Alfinach
Puzol / Puçol
S209
Buy
1.000.000€
Renewed 4 stories home in Alfinach
Puzol / Puçol
V267
300 sqm House
4
3
Buy
799.000€
Magnificent property with views of the Palace of Justice and Porta la Mar
Valencia
V5229
227 sqm House
4
2
Rent
2.800€
Luxury home in the heart of Valencia
Valencia
A5135
133 sqm House
3
2
Rent
2.300€
Rented
Valencia
A5329
175 sqm House
3
2
Buy
1.100.000€
Elegant and bright penthouse at L'eixemple
Valencia
V5225
144 sqm House
2
2
Buy
1.600.000€
Exclusive penthouse in prime area
Valencia
V5226
247 sqm House
4
3
Buy
1.800.000€
House with exclusive design in Santa Bárbara
Rocafort
V773
781 sqm House
6
6
Buy
495.000€
Spacious apartment in the best beach location in Gandía
Gandia
V774
152 sqm House
4
2
Rent
2.300€
Fantástica vivienda en alquiler amueblada en Jaume Roig
Valencia
A5332
170 sqm House
3
2
Rent
7.500€
Outsanding penthouse, Los Monasterios
Sagunto / Sagunt
A131
205 sqm House
4
3
Rent
2.200€
Bright five-bedroom rental property
Valencia
A5333
180 sqm House
5
2
Buy
1.300.000€
Exclusive property in Marqués de Sotelo Ave.
Valencia
V5224
225 sqm House
3
2
Rent
2.250€
Spacious and bright house in a pedestrian street
Valencia
A5243
173 sqm House
3
2
Rent
4.500€
Bright apartment on Calle Colon
Valencia
A5120
234 sqm House
4
4
Buy
1.900.000€
Outsanding villa at El Plantio, La Cañada
Paterna
V772
690 sqm House
5
6
Buy
1.200.000€
Outsanding passive house in Alfinach
Puzol / Puçol
ON201
345 sqm
4
4
Rent
3.700€
Beautifull home for rent Los Monasterios
Puzol / Puçol
VA102
337 sqm House
5
4
Buy
1.590.000€
Modern villa with sea views Los Monasterios
Puzol / Puçol
V149
500 sqm House
5
5
Rent, Buy
6.600€, 2.400.000€
Gorgeous design house and landscape
Sagunto / Sagunt
A129
390 sqm House
4
4
Buy
3.600.000€
Exclusive listing with beautiful views
Puzol / Puçol
VA122
610 sqm House
6
6
Buy
1.150.000€
Luxury home in a privileged location
Valencia
V5210
203 sqm House
3
3
Rent
3.500€
Reserved
Valencia
A5282
240 sqm House
4
3
Artículos Relacionados
What are the best areas in Spain to invest in real estate?
September 27, 2023
Leer más
Discover the exclusive country club of Los Monasterios
May 19, 2023
Leer más
The Process of Buying Property in Spain for International Buyers: Key Considerations and Steps
October 11, 2023
Leer más
Investing in Luxury Real Estate in Valencia: A Golden Opportunity for International Buyers
July 10, 2023
Leer más
Advantages of investing in luxury real estate
January 2, 2023
Leer más
International Buyer’s Guide: Acquiring Luxury Properties in Valencia’s Exclusive Urbanizations
July 21, 2023
Leer más
American School of Valencia: The best educational and life choice for your family
February 13, 2023
Leer más
The 6 best things of living in Valencia
May 9, 2023
Leer más
How to sell your inherited property at the best price: Tips and effective strategies
August 18, 2023
Leer más
Residency Benefits Through Real Estate Investment in Spain: Visa and Residency Permits for International Buyer
August 18, 2023
Leer más