# Short Term Letting Lanzarote



## Mr G (Mar 15, 2014)

Hi,

I am recently back form a visit to Lanzarote and looked at some possible Holiday Homes. We were very interested but then the issue of short term rentals not acutally being legal on communities without a touristic license became apparent. The property we were interested in does not have a license and I understand that none are currently being issued.

Once we'd done the figures on the purchase, it simply didn't make financial sense for us to own it and leave it empty when not using it for holiday purposes so we would need to let it to a small degree (approx. 3 months of the year) to cover some of the costs and lessen the impact of owning it.

The people I spoke to about the law during the visit said this was not something that was inforced and that it was highly unlikely that I would be fined for letting out the property on a short term basis. However each of these had an interest in selling me the property!! I've searched myself and can see a large number of properties being openly advertised for short term lettings on the internet - some even in the same community. 

The other option would be to legally let it for 3+ months at a time but I am not sure what demand there would be for this sort of let in Playa Blanca area for a 3 bed villa and what sort of monthly rent it would attract.

My wife has pretty much written off the idea but I am still clinging on that this is something we could do and enjoy for years to come but it needs a minimal rental income to take the sting out of the outgoings.

Does anyone have real world experience of this on Lanzarote or one of the other Canary Islands? Happy for you to PM me if you prefer. 

Can I keep my dream alive?

Many thanks.

G


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## xabiaxica (Jun 23, 2009)

Mr G said:


> Hi,
> 
> I am recently back form a visit to Lanzarote and looked at some possible Holiday Homes. We were very interested but then the issue of short term rentals not acutally being legal on communities without a touristic license became apparent. The property we were interested in does not have a license and I understand that none are currently being issued.
> 
> ...


:welcome:

while things are sometimes a little different in the Canaries, & from comunidad to comunidad - it's more a question of licensing than fines - I don't know if it's true that no licences are being issued there - I'd check with the ayuntamiento (town hall) to be certain

another issue is that often, on gated communities, (& even sometimes just urbanisations (estates) of individual villas) the _community _rules say that short term, holiday lets aren't permitted - so that's something else to check up on


you say that letting it out would 'take the sting ' out of the outgoings - the best advice I've ever seen given to those wanting to do what you are planning, is that if you _need _the rental income, don't do it - there's no guarantee that you will be able to let the property at all

& you do realise that you'll be paying a non-resident tax on the property, too? based upon imputed income - whether you manage to let it or not


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## Mr G (Mar 15, 2014)

Hi,

Thanks for the reply. Good points. I am sure the community rules would allow the letting as the developer was one of the people that suggested it wouldn't be a problem and certainly some of the already completed builds on the complex are being advertised and let out short term.

Happy to pay the tax - it would just need to go into the mix of outgoings to then determine whether it needed to be let out for 12 or 14 weeks of the year etc. to cover the basic costs. Not looking to make a profit from it and wouldn't want to over let it due to wear and tear generated.

Appreciate that there is no certainty of rentals - I guess with everything there is a risk.

From what I can see the rules make sense but would have been better applied if the person owned and rented out more than one property - i.e. is making a living / running a business from renting out their properties. 

I can only guess that the rules are either being ignored or must be seriously restricting the number of people that can purchase a holiday home on the islands. It will be a small number of people that can afford to purchase and run a home and only use it for 2-3 months of the year themselves. Sadly I am not in the camp!!

G


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## 90199 (Mar 21, 2010)

The only way round your problem, is long term rental, for which I believe you do not need a licence.

Many years ago I travelled the same road, I very soon found that the resort prices were vastly inflated, that was on Gran Canaria. I eventually bought on the small island of El Hierro, larger property at a greatly reduced price, which I have never needed to rent out.

I also have an apartment, which I want to sell, the amount of enquiries I get from people wanting to rent is quite surprising, however I do not want the hassle so I always refuse. The community is a disaster, one can never get a decision, most of the community do not pay the charges or keep the rules. I would never buy again where there is a community involved.


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## jojo (Sep 20, 2007)

Mr G said:


> Hi,
> 
> Thanks for the reply. Good points. I am sure the community rules would allow the letting as the developer was one of the people that suggested it wouldn't be a problem and certainly some of the already completed builds on the complex are being advertised and let out short term.


The cynic in me would say, make sure you have that in writing - or at least no clauses to say you cant. 

Jo xxx


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## xabiaxica (Jun 23, 2009)

jojo said:


> The cynic in me would say, make sure you have that in writing - or at least no clauses to say you cant.
> 
> Jo xxx


absolutely

also, bear in mind that once the developer has gone, the properties all have owners & a committee has been appointed, the majority might vote to stop holiday lets

an urb I used to rent on did just that after there were massive problems caused by holidaymakers - several properties were owned by one person who let them to big groups

the committee simply voted to stop holiday lets after he had been warned & refused to abide by the rules as they stood

these committees have a frightening amount of power - they can even force the eviction of owners!!


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