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PABLADO LUV IT

Purchase and Rent
« on: August 08, 2012 »
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  • New user so sorry

    Having visited LG for 5 years now we ( me and my wife) were thinking of buyer a small apartment and renting it out during the summer.

    I was told in February and May (our last 2 visits this year) that this is against regulations - is this correct.

    You can buy but cannot rent


    Pablado

    Offline Tanemera

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    Re: Purchase and Rent
    « Reply #1 on: August 08, 2012 »
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  • Take a look at the thread under "Letting" and you will get all the information you could wish for.

    Offline losgiganteskid

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    Re: Purchase and Rent
    « Reply #2 on: August 08, 2012 »
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  • ...................and if that isn't enough info you can read the full monty here www.janetanscombe.com/illegal-letting-in-the-canaries
    I wanted to be the Cincinnati Kid - but couldn't spell it

    Offline Beanie

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    Re: Purchase and Rent
    « Reply #3 on: August 08, 2012 »
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  • In a nut-shell - yes, it is illegal to rent out!  Isn't it a shame we are also putting people off buying on the island as well as everything else, it's just another example of what is going to happen and the disastrous overall effect of this ill-conceived law.

    Offline Mr Max

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    Re: Purchase and Rent
    « Reply #4 on: August 09, 2012 »
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  • Yet more mis-information, which is actually the root cause of the problem, perhaps more so than the law itself which has been in place for 16 years.

    In a nutshell, it is not illegal to let a property on a residential complex on a "long-term" basis - legally there is no definition of what constitutes long term, but anything over 3 months is apparently accepted by the authorities, whereas anything under 3 months is considered to be a touristic let which is illegal, especially if "advertised" on the internet.

    On a complex which has been designated as touristic, (there is a long list of such complexes in the area earlier in this thread), you can buy to let, provided the letting is done through the appointed on-site agent.


    PABLADO LUV IT

    Re: Purchase and Rent
    « Reply #5 on: August 09, 2012 »
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  • Thank you for the information. I will hopefully read this shortly.

    Another issue was when we came over in January we looked at a couple of apartments in our favourite place Pablado Marinero and also in Crab Island

    Our bank originally said they would lend us the funds if we put down a deposit which was fair enough.

    On our return in May our bank moved the goal posts and increased the deposit by roughly 400%.

    We are back over in December hopefully so I need to start saving

    Offline Chiquita

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    Re: Purchase and Rent
    « Reply #6 on: August 09, 2012 »
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  • Yet more mis-information, which is actually the root cause of the problem, perhaps more so than the law itself which has been in place for 16 years.

    In a nutshell, it is not illegal to let a property on a residential complex on a "long-term" basis - legally there is no definition of what constitutes long term, but anything over 3 months is apparently accepted by the authorities, whereas anything under 3 months is considered to be a touristic let which is illegal, especially if "advertised" on the internet.

    On a complex which has been designated as touristic, (there is a long list of such complexes in the area earlier in this thread), you can buy to let, provided the letting is done through the appointed on-site agent.

    Just to add to the above you can also do the lettings yourself as long as the property is registered with the onsite agent and he is there as the contact for keys, emergencies etc for which he may charge you.

    From what I understand the authorities require this so that it will be easier for them to identify all private lettings and make periodical checks.

    Offline Mr Max

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    Re: Purchase and Rent
    « Reply #7 on: August 09, 2012 »
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  • Poblado Marinero is a registered touristic complex ( the actual list is under the lettings thread )

    So buying to let can be done there, BUT please, please, please take independant legal advice before you part with any money

    http://newsinthesun.com/news-from-the-british-consulate-june-2012/british-embassy-warns-ensure-you-rent-out-properties-legally/

    PABLADO LUV IT

    Re: Purchase and Rent
    « Reply #8 on: August 09, 2012 »
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  • Will do and thanks for the advice

    We have discussed with one of the local agents in LG who has given us some basic details

    Caroline

    Re: Purchase and Rent
    « Reply #9 on: August 11, 2012 »
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  • je désespère
     
    Fed up of hearing about this one now.  I know some people have strong opinions on this subject but it doesn't make it right or fair.  Yes, yes I know it's their country and their silly law but........... at what cost?

    Enough.

    Gets off soap box.

    Offline Beanie

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    Re: Purchase and Rent
    « Reply #10 on: August 11, 2012 »
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  • Well said Caroline!  I've been trying to avoid responding again on this subject at risk of sounding boring or a kill joy!  But really, I find it totally unfair to give someone like Pablado the impression that it's all so fine and hunky dory to buy to rent in Los Gigantes when the situation is far from straightforward and I would not recommend ANYONE buying to rent in Tenerife at this time, particularly with changes to the letting laws imminent.  Yes, you can buy in a so called 'touristic' complex - these are few and far between in Los Gigantes and also dare I say, they are some of the least 'desirable' locations.  To rent, you are required to register your property with the sole agent who may or may not be able to rent your property - he can also tell you when you can and cannot use it yourself, take a good 'cut' from your rentals and can rent other properties in the complex in preference to your own, and there's nothing you can do about it.  In the worst case scenario, he may even refuse to take on your property at all, in which case you are not even then allowed to rent it out yourself, so are again stuck.  The current law for touristic complexes is that the sole agent must represent 50% + 1 of the owners. The talk is that the revised law will make it even more onerous as the sole agent has to represent 70% of the owners, giving the agent even more power.
    Please be very careful Pablado.  By all means buy for your own occupation and enjoyment but please don't be dependant on letting to buy your property.  It sounds good in theory but the reality at the moment is that hundreds of people, like myself, have been lured by the same idea only to find we are 'illegal'.  Please read Janet Anscombe's site, in detail - I have been following this site myself for nearly a year and it is because of this that I, eventually, reluctantly, withdrew the adverts for my property rental.  I have not been fined - yet - but I know people who have been and others who have sold or are in the process of selling their apartments because they are so worried about the huge fines being levied. 
    I'm sorry, but I did not make the rules and certainly don't agree with them, but because the Canarian Government have now chosen to implement these laws with gusto, it is only fair to make people aware rather than lull them into a false sense of security or to 'hush it up'  and let yet more people fall into the trap.

    Offline Mr Max

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    Re: Purchase and Rent
    « Reply #11 on: August 12, 2012 »
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  • Beanie

    1.  The complex under discussion IS a registered touristic complex.
    2.  It is in a prime location (Marina)
    3.  It is one of a number of registered touristic complaxes in LG and surrounds - the full list has been given several times.

    4.  If you read the posts carefully you will see that nobody is suggesting he goes ahead without taking proper independant advice, and most certainly not from the agent he is currently talking to, which would seem to be something you probably did not do, hence your circumstances.

    5.  Nobody said it would be easy, nor necessarily a suitable arrangement for his circumstances, but it is possible to do, and can suit many people's circumstances - much like time-share did.

    6.  Buying to let is no different to playing on the stock markets, in the casino, or at the races - if you play by the rules there can be reasonable returns to be made at the end of the investment period.  If you cheat the rules or take an ill advised gamble along the way, then true enough, many of your warnings and advice are spot on.

    Offline Edward Bear

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    Re: Purchase and Rent
    « Reply #12 on: August 12, 2012 »
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  • My God this string has become so incredibly boring. Can we put a full stop after it PLEASE .

    Offline losgiganteskid

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    Re: Purchase and Rent
    « Reply #13 on: August 12, 2012 »
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  • Delighted to oblige Mr Bear - here it is >         .
    I wanted to be the Cincinnati Kid - but couldn't spell it

    Caroline

    Re: Purchase and Rent
    « Reply #14 on: August 14, 2012 »
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  • To stamp it you need another, unbiased full-stop and here's mine    .

    As I said before, fed up of this topic now.  There are people that will never agree, no matter how long we harp on about it.