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The Benefits of Transitioning from Long-Term Renting to Renting for Months/Seasons in Real Estate

The Benefits of Transitioning from Long-Term Renting to Renting for Months/Seasons in Real Estate

 

Introduction

In recent years, the real estate landscape has witnessed a growing trend of individuals and families transitioning from traditional long-term renting to opting for shorter-term rentals, whether it be for a few months or a full season. This shift in housing preferences is driven by several factors, including flexibility, cost-effectiveness, and a desire for a change in lifestyle. In this blog post, we will explore the numerous benefits of moving from long-term renting to renting for months or seasons in real estate.

1- Flexibility

One of the primary advantages of short-term renting is the increased flexibility it offers. Long-term leases often require tenants to commit to a specific time period, typically a year or more. However, by opting for shorter rental durations, individuals have the freedom to explore different locations, experience new neighbourhoods, or even try out different cities or countries without being tied down to a long-term commitment. This flexibility allows for a more dynamic and adaptable lifestyle, catering to the needs of the modern renter.

2- Change of Scenery

Renting for months or seasons allows individuals to experience a change of scenery, which can be particularly appealing to those who enjoy variety or are seeking a temporary escape from their routine. Whether you’re looking to spend a summer by the beach or a winter in a picturesque mountain town, short-term rentals provide the opportunity to immerse yourself in different environments and explore diverse communities, all while enjoying the comforts of a home away from home.

3- Cost-Effectiveness

Contrary to popular belief, short-term rentals can often be more cost-effective compared to long-term leases. While the monthly rental rates may appear higher, it’s crucial to consider the overall expenses associated with long-term renting, such as security deposits, utilities, maintenance costs, and even furnishings. Many short-term rental options come fully furnished and include utilities and other amenities in the rental price, eliminating the need for additional expenditures. Moreover, the ability to negotiate shorter lease terms allows individuals to align their housing expenses with their current financial situation.

4- Reduced Commitment

Renting for months or seasons allows tenants to avoid the long-term commitment that comes with traditional leases. Life circumstances can change rapidly, and having the flexibility to adjust housing arrangements accordingly can be a significant advantage. Whether you’re planning to relocate for work, considering purchasing a property, or simply uncertain about your future plans, short-term rentals provide the freedom to make decisions without the burden of an extended lease agreement.

5- Convenience and Amenities

Many short-term rentals are designed to cater to the needs of tenants who desire convenience and a wide range of amenities. Whether it’s fully equipped kitchens, in-unit laundry facilities, access to fitness centers, or even pet-friendly accommodations, short-term rentals often offer the comforts and conveniences of a home, allowing tenants to settle in quickly and enjoy a hassle-free living experience.

Conclusion

The benefits of transitioning from long-term renting to renting for months or seasons in real estate are undeniable. Flexibility, cost-effectiveness, the opportunity for change, reduced commitment, and convenient amenities make short-term rentals an attractive option for individuals and families seeking a more adaptable and fulfilling lifestyle. As the real estate market continues to evolve, these alternative rental arrangements provide a modern solution that aligns with the needs and preferences of today’s renters.

 

in Blog Posted by Federico Buigas

Spain’s Real Estate Laws: Security for Investors

Spain is a popular choice for real estate investors worldwide. With pleasant weather, rich culture, and a steadily growing economy, it is no surprise that many investors have chosen to purchase property in this country.

However, investing in real estate can be risky, especially if one is not familiar with local laws and regulations. Fortunately, Spain has a system of laws and regulations that protect real estate investors.

Here is an overview of the laws and regulations that offer security to real estate investors in Spain.

The Law on Real Estate Transactions
Spain’s law on real estate transactions, or Ley de Ordenación de la Edificación, establishes minimum standards for the construction and sale of real estate. The law requires real estate developers to provide a financial guarantee for deposits made by buyers and for damages caused by construction defects.

Consumer Protection Laws
In Spain, consumers are protected by several laws that apply to real estate transactions. Real estate developers are required to provide accurate information about properties, including dimensions, location, and property features. They must also provide an energy rating for the property and inform buyers of the operating costs of the property.

Laws on Property Rentals
Real estate investors in Spain can also be assured by laws protecting the rights of tenants. Landlords are required to provide clear and precise rental contracts that describe the terms and conditions of the rental. Tenants also have rights to protect their safety and health, as well as to ensure the confidentiality of their privacy.

Regulations on Foreigners and Investors
In Spain, foreigners who wish to purchase property must obtain a tax identification number (NIF). Foreign investors are also subject to restrictions on property ownership in certain areas. However, most foreign investors are allowed to purchase property in most regions of Spain.

In conclusion, Spain has strong laws and regulations to protect real estate investors. Investors can have confidence in the Spanish legal system and be assured that their investments are secure. It is always recommended to consult a lawyer specializing in real estate law before purchasing property in Spain to ensure that all applicable laws and regulations are understood.

Contact Ruby Realties +34 937 975 602 / [email protected]

in Blog Posted by rebecca

The advantages of investing in an apartment to renovate

Investing in a renovating apartment may seem risky for some, but it is a popular real estate investment strategy for several reasons. First, buying a renovating apartment can be cheaper than a new or move-in ready property. Sellers may want to sell quickly and at a lower price to avoid additional renovation or property management costs.

Secondly, buying a renovating apartment gives you the opportunity to customize and renovate the property according to your taste and needs. You can work with professionals to create a personalized and unique space that meets your needs and preferences. Additionally, renovation can reduce long-term maintenance and repair costs, as you are able to replace faulty or outdated appliances and materials with modern and more durable ones.

 

Another advantage of investing in a renovating apartment is the potential for significant appreciation. If you successfully renovate the property, you can increase its value and make a significant profit by reselling it or renting it out at a higher price. Moreover, the demand for renovated apartments is often higher than for non-renovated properties, which means that you can find tenants more quickly and at higher prices.

Finally, investing in a renovating apartment can offer attractive tax benefits. Indeed, certain renovation expenses may be tax-deductible, which can significantly reduce short-term and long-term investment costs.

Of course, there are also risks associated with investing in a renovating apartment. Renovation costs can exceed estimates and timelines can be longer than expected, which can impact your finances and return on investment. Therefore, it is important to conduct thorough research before investing and to work with qualified professionals to ensure that you have an accurate estimate of costs and timelines.

In summary, investing in a renovating apartment can offer many advantages, including the opportunity to customize and renovate the property according to your needs and preferences, as well as the potential for significant long-term appreciation. However, it is important to exercise due diligence and work with qualified professionals to minimize risks and maximize the return on your investment.

Come and see what ruby realties has to offer, contact our agency RubyRealties : +34 937 975 602 / [email protected]

 

 

in Blog Posted by rebecca

Best Areas of Barcelona to Live in

Best Areas of Barcelona to live in

Barcelona is a vibrant and diverse city that offers something for everyone. If you’re thinking about moving to the city and looking for the best areas to live in, you’ll have plenty of options to choose from. Here are some of the most popular and desirable neighborhoods in Barcelona that are worth considering:

 

El Born
El Born is a charming and historic neighborhood located in the heart of the city. This area is known for its narrow streets, picturesque plazas, and colorful buildings. It’s also home to some of the best restaurants, bars, and shops in the city, making it a great place to live if you’re looking for a lively and diverse community.

 

 

Eixample
Eixample is a spacious and upscale neighborhood located just north of the city center.

This area is known for its beautiful tree-lined streets, impressive architecture, and high-end shops and restaurants. It’s also home to some of the city’s most iconic landmarks, including the Sagrada Familia and the Casa Batllo.

Gracia
Gracia is a bohemian neighborhood located just north of Eixample. This area is known for its independent shops, bars, and restaurants, as well as its strong community feel. It’s also home to some of the city’s most colorful streets and plazas, making it a great place to live if you’re looking for a more relaxed and laid-back lifestyle.


Barceloneta

Barceloneta is a lively neighborhood located on the beach, just east of the city center. This area is known for its seafood restaurants, bars, and nightlife, as well as its proximity to the beach. It’s a great place to live if you’re looking for a more coastal lifestyle and enjoy the beach.

 

Ultimately, the best area to live in Barcelona will depend on your personal preferences and needs. Whether you’re looking for a lively and diverse community, a more relaxed and laid-back lifestyle, or a more suburban lifestyle, there’s a neighborhood in Barcelona that will suit your needs. It’s important to visit the different neighborhoods and explore for yourself before making a decision.

Come discover the offers of Ruby Realties present in these neighborhoods. Feel free to reach out and ask us for anything more
information you may need at + 34 937 975 602

in Blog Posted by rebecca

Top 3 tips for Renting a Room in Barcelona

Barcelona is a cosmopolitan city where you can create many relationships. One of the ways to form a new friendship is through co-living. As it is quite expensive to rent a flat alone, renting a room is the perfect way to have fun, save money and enjoy social life with people from all over the world.

TIP 1– Look at description of the flat
Avoid surprises by carefully reading all of the advert. Taking into consideration important questions; Are charges included? Is there a washing machine? Nearby transport? Are pets allowed? Do you have an elevator?
nb. If you rent a property, it is essential that you take photos of the condition of the property when you move in and when you leave and send it via email on the date of capture. This can help you resolve issues that may arise when your lease expires.


TIP 2– Relationships are key
Rooming can be the best experience of your life as well as the worst. To avoid any problem, meet all the residents, know what they do in life and what they like. Relevant questions are; Are they the same age as you? Do they have the same interests? Are you all people who like to party or do you prefer quiet living? Are they tidy? A good personality match will make for a better rooming experience


TIP 3- Watch out for scams
Do not rent your room until you are actually in the city and can visit the place. If the thought of finding your room when you arrive can be comforting, it may not always be what you were hoping for. Some online adverts do not reflect the actual appearance of the apartment. Visit the flat before making an offer. Be realistic and don’t let yourself be seduced by bargains.

Wishing you best of luck and if you decide you prefer to rent an entire flat please don´t hesitate to contact Ruby Realties for our selection of mid term flats. + 34 937 975 602

in Blog Posted by rebecca

Buying a Property for Investment in Barcelona

Property Investment tips

Buying a Property for Investment in Barcelona

Lets start with the basics:

What is the definition of a wholesale real estate investment?

– This is a type of real estate investment strategy in which an investor buys a property not for use, but with the intention of selling it at a profit.

It is important to note that for this type of investment to be profitable, the focus must be on speed rather than maximum profit. So keep in mind that every day that passes costs you more money (mortgage, utilities, property taxes, insurance and other costs associated with home ownership).

In order to get a good start on this investment it is important not to overpay for a house and to know how much any repairs or improvements will cost before you buy.

The 70% rule                                                                                       

In addition, the 70% rule states that an investor should not
pay more than 70% of the after-repair value (ARV) of a property minus any
necessary repairs. The ARV is what a house is worth once it is fully repaired.

To flip or to rent – what do you need to think about?

Expenses! And they have to be calculated before making the offer

Financing – If you are not a resident of Spain right now in 2022 it is very difficult to get a mortgage. If you are looking to get a mortgage from a Spanish bank this should be your first stop to see if you are eligible. Otherwise purchasing in cash (which also gives you stronger negotiating power when purchasing) or getting a mortgage from your country of residence.  

Tax – One of the main mistakes non-european investors make is by not accounting for the taxes involved aside from the purchase tax of 10% plus a 1-2% for notary and legal fees. You will then have to pay taxes on income if you will rent the property, for non-europeans this means NO DEDUCTIONS! 24% income tax on the full rent base. There are ways to pay less by removing fixed costs inside the contract, like IBI, community, internet etc.

              ie: The rent the tenant has to pay is 900€ rent base + 50€ of ibi + 50€ community + 50€ internet obligatory fees. The total the tenant has to pay is 1050€ but the client will pay tax on 900€ not 1050€. 

Ruby Realties

Upkeep - investing more

If renting, 10% of the rental annual yield should be counted for maintenance and upkeep of the property. Sometimes this can go over 10%; boilers, air con, new showers, Insurance issues. Unforseen costs can come up and it is part of the risk that comes with owning property.

Examples of the unforeseen: We have a flat that has a recurrent issue with cockroaches and rats. We continually have to hire an exterminator but the neighbour above is a hoarder and refuses to pay to treat his flat which is where they are coming from. The only thing we can do is report him to the town hall. But nothing has happened so far to remove him.

Another where the community wouldn’t pay to fix a beam causing a continual enormous leak to our clients flat and after 8 months the owner had to pay for it himself just to be able to move on and is now taking them to court which will take years. EXPECT the unexpected! Do not assume you will not need to invest more later.

Selling – Selling at the right price can take 3-6 months. I have had many times before clients that I will tell the client you can get “X€” for this property and they will tell me “ok lets try X€ + 30-50,000€”

In 3 months it doesn´t sell and they tell me “ok lets drop.” I recommend “X minus 20,000€.”

“But you told me X€ 3 months ago?”

“Yes but now the market has moved”

“No lets put it at X€” And again it doesn´t sell.. because they didn´t listen to the expert at the time and end up selling at a loss and/or having a property sit for years.

Property markets are not fixed, they go up, they go down, they have peaks and lows and Barcelona especially has high and low selling seasons.

If you are only buying to sell you need to have enough money to cover the costs while you wait for the sale.

If you are planning to rent and sell, please note this is usually harder. Almost all buyers want to see the property. Most prefer to choose their own tenants. As well the tenants inside can be messy or cook smelly food or not allow entrance at all. All of this can make a sale hard/impossible.

In my opinion it is better to pick your action; or you are going strong for a sale, or you are renting for income.

Ruby Realties

THE SKILLS

Its so important in whatever investment you make that you know what you are doing or that you hire an agent who knows what they are doing.

I once had an investor tell me “Well I´ll only pay you if I buy something”. He was looking at me like a standard estate agent. An estate agent is out for himself and himself only. He is looking for commission, most great agents I know are sharks. Hungry for the deal and the close.

We, at Ruby, are here for you, the client, to give you the knowledge and tools that you need to make a good purchase. Make sure you have calculated it all;

  • Has the property been checked for defects?
  • Does the building have the ITE (building inspection)?
  • Are the community up-to-date in payments?
  • Are there squatters in the building?
  • Is there a bar near by? – noise issues
  • and much more that needs to be considered.
  • Does the owner really own the property?

If you don´t live here, and even if you do, you need someone that is well versed on the action you are going to take, so that you buy the best deal. Paying a small % at the beginning is well worth the money than buying something that has a hidden issue and making a bad investment.


For your free consultation about your next investment please don´t hesitate to contact me at:

[email protected] or +34 622451895

in Blog Posted by Federico Buigas