Buy to rent a property in Tenerife.
Tenerife, the land of the eternal spring! Where we see year on year increasing visitors numbers for holidays and semi or full retirement!
Buying a property to rent out in Tenerife has never been a better idea. The estate agents are overflowing with daily enquiries to rent a property for 3 month to a year and beyond. Rental prices have increased accordingly along with property sales prices. Even with a mortgage on the property you could see a monthly profit (Depending on size of deposit) location is always the key with all property choices and the rental market is just the same. If you buy a property for example in central Los Cristianos or Playa de Las Americas you will pay more for your property but rent it out much quicker full a higher price.
For a 1 bedroom property in Los Cristianos or Playa de Las Americas with a Price of €155000
Down payment 30%
Annual interest rate (3.25%)
Mortgage term 20 (years) *
Down payment: €46500
Mortgage principle: €108500
Taxes (~10%): €15500
Monthly payment: €615
The rental of this property would be more than €615 and well over €700 per month. Each and every month you will be paying some of your capital off and increasing your equity in the property. At the same time your property will be increasing in value. It is a win, win situation!
Los Cristianos is a very popular location as it has all the amenities that you could wish for. There are restaurants of all types from Spanish, Swedish, Italian, French and Chinese and Japanese. Local workers would wish to rent in this area as well as people who want to avoid the colder climate throughout most of Europe. The winter being the most popular time to rent out for 3 to six months, giving you the owner a chance to use your property as well as earn money from it at the same time.
Properties out of town.
Although there will not be quite as many enquiries for these properties the figures still stack up favourably. You would expect to be able to buy a property out of town for approximately €80,000 to €130,000 instead of over €150,000. The rental clients that you would attract would be working people in Tenerife who want a bigger property as they have a family and have their own transport. The rental per month would be approximately €350 to €600 depending on size and how many bedrooms. A one bedroom could be bought for the lower figure and a 2 to 3 bedroom property could be bought for the higher figure.
Whichever type of property you would choose to buy in the South of Tenerife Morfitt Properties would have a client for you in a very good time frame.
Morfitt Properties Tenerife fees for property management.
Our fees are similar to what rental Estate Agents in the UK. We charge a set up fee of €250 for preparing a contract with photographed inventory when we have found a suitable tenant for you. We then charge 10% per month for collecting the rent and banking it for you. We also look after any property problems that may occur. We take care of small repairs that may need doing from time to time or ordering a new washing machine when the existing one breaks. Very often our owners are in a different country and we make sure that they have no worries and the whole experience is problem free.