Latest update on rentals

[Ivemovedon]

Hey woe please try not to tar every home owning renter with the same brush.
Theres a lot out there unlike those you know who don't rake in the money but just eke out enough to pay the mortgage... if that. They probably don't declare it because after all their outgoings they don't actually make anything. Who are these people making supposed fortunes at the expense of the Spanish taxman? I've yet to meet one. What i have met is people struggling, want out, and can't even sell the place because of the present economic climate.

And i'm sorry that i don't have too much sympathy for the authorities who are failing to get the tax they thought they would. Because these are the same authorities who kept very quiet 10 years ago when estate agents were drumming up the rental potential of the masses of homes on the market, no matter where they were, residential or touristic. The money was rolling in from the associated taxes from property sales and they kept it all quiet so as not to rock the boat and keep the dinero coming in. Silence was golden in more ways than one. And then there's the old well worn line that buyers should have researched it more if they wanted to rent. Rubbish, because there wasn't one solicitor ( and i use the name loosely) who would put you right, as 9 out oif 10 of them were part of the gravy train with money coming in from conveyancing fees..tell people its unrentable yeah right...and lose money ?.

I have detected on here a feeling of animosity from some ex pats towards the predicament renting owners are now in. Try and recognise they are in this mess not because they were stupid, didn't research, asked no questions and went in blindly...but because of the greed and unethical behaviour of those that are now changing the goalposts.

[Elite of the forum]

So woe seeing your back on this thread Did you or did you not rent before you bought your place?

[Tamkid]

Hi Holierthanthou, you have nailed it exactly, that's how it was, and is, regarding the majority of ex pats who bought property as a holiday home. With my experience of the Spanish Government bureaucracy, i would think it a miracle if they police the rental market effectively.

[Ernie]

I'm still confused by all this.

As a starting point does anybody know whether Cotillo is to be regarded as a touristic or residential area as I can't get the earlier links in this thread to work. Knowing within which of the two categories my apartment is to be classified will at least reduce my confusion by half 

Many thanks,

Ernie

[keithal]

Ernie

You'll need to see the map and work out where your apartment is. Cotillo seems to be split into 3 areas, the northern and southern parts look to be classified as "touristic" while the central part is residential. Unfortunately when you blow the map up enough to try and work out which bit is what it starts to get a bit fuzzy. Doesn't help in that it looks as though the demarcation lines were drawn with a paint brush - a big one!

Keith

[pennylane]

Ok with out getting battered!! Can I ask a few questions please?

1. I'm guessing that the basic income in Fuerteventura comes from the tourist industry?
2. Many of the Hotels rely on All Inclusive?
3. Someone wanting a 1 week holiday in a tourist area will have to book in to a hotel?
4. A Family with no Driver will have to book a hotel in a tourist area?
5. A disabled family who need to be near shops and a beach will have to book a hotel in a       tourist area?
6. A Family who want the privacy of a Villa can not book one in a tourist area?
7. A Family who want apartments can not book them in a tourist area?
8. A Family who want to walk to restaurants and bars, can not do this in a tourist Area, unless they are staying in a hotel?
9. Is this why I can only find villas to rent, over towards GEAFOND with no chance of a nice walk to the shops, restaurants and bars?

I am wondering if Fuerteventura doesn't want tourists unless they want to book A/I with the masses!
I do understand that residents want some peace, and I do understand that regulations need to be followed, but as others have said, who will 'Police' this. Will it be down to local residents watching who comes and goes and reporting landlords/owners of apartments and villas to the authority?
How will residents know if the people using the villa are family of the owner?

There have been ways of owners renting out their properties in different ways and as it has already been said on here, I would think that most owners just break even, with mortgages and running costs etc., and if some owners do rent out  their properties as a business then as in any country, they should be paying due taxes. Although the UK doesn't have a very good record of collecting tax from Big Businesses who trade here etc.....

I'm not surprised that bars, cafes and other businesses have been closing over the past few years. We love Fuerteventura but I can understand why other families choose other destinations where they can rent a Villa or an Apartment, where they choose to.

We've missed Corralejo these past couple of years so I am asking our 'Extended Family' if any of their relatives would like to 'donate' 1 week at their Villa, to us and we can cover expenses 'privately somehow, etc' .............but if we can't find a Villa, where we need it, close to restaurants and shops, then we may have to look elsewhere and that's sad 

Fuerteventura seems to be cutting it's nose off to spite it's face. Sure, the hotels and some influential figures will prosper but the economy will suffer in the end and business and residents will feel it.  Shame, it's such a beautiful Island but some people don't want to share it !

[Tamkid]

There are at least 122 private villas available for rent on Fuerteventura, advertised on Owners Direct, 86 of those are in the Corralejo, no shortage of private rental properties for your holiday.

With regards policing, if their heart was really in it (which I doubt) then they reckon they will be looking at Utility Usage, Bank Accounts Transactions, comings and goings at the suspected villas (unofficial cleaning etc), internet advertising, names on passports (regarding if you are related to the owner), a "grass the villa owner up" Phone Number. It will obviously be difficult with regard to cash transactions, but the scare factor (if they go ahead) will be enough to put a lot of owners off renting, only time will tell.

[fatherted]

Ok with out getting battered!! Can I ask a few questions please?

1. I'm guessing that the basic income in Fuerteventura comes from the tourist industry?
2. Many of the Hotels rely on All Inclusive?
3. Someone wanting a 1 week holiday in a tourist area will have to book in to a hotel?
4. A Family with no Driver will have to book a hotel in a tourist area?
5. A disabled family who need to be near shops and a beach will have to book a hotel in a       tourist area?
6. A Family who want the privacy of a Villa can not book one in a tourist area?
7. A Family who want apartments can not book them in a tourist area?
8. A Family who want to walk to restaurants and bars, can not do this in a tourist Area, unless they are staying in a hotel?
9. Is this why I can only find villas to rent, over towards GEAFOND with no chance of a nice walk to the shops, restaurants and bars?

I am wondering if Fuerteventura doesn't want tourists unless they want to book A/I with the masses!
I do understand that residents want some peace, and I do understand that regulations need to be followed, but as others have said, who will 'Police' this. Will it be down to local residents watching who comes and goes and reporting landlords/owners of apartments and villas to the authority?
How will residents know if the people using the villa are family of the owner?

There have been ways of owners renting out their properties in different ways and as it has already been said on here, I would think that most owners just break even, with mortgages and running costs etc., and if some owners do rent out  their properties as a business then as in any country, they should be paying due taxes. Although the UK doesn't have a very good record of collecting tax from Big Businesses who trade here etc.....

I'm not surprised that bars, cafes and other businesses have been closing over the past few years. We love Fuerteventura but I can understand why other families choose other destinations where they can rent a Villa or an Apartment, where they choose to.

We've missed Corralejo these past couple of years so I am asking our 'Extended Family' if any of their relatives would like to 'donate' 1 week at their Villa, to us and we can cover expenses 'privately somehow, etc' .............but if we can't find a Villa, where we need it, close to restaurants and shops, then we may have to look elsewhere and that's sad 

Fuerteventura seems to be cutting it's nose off to spite it's face. Sure, the hotels and some influential figures will prosper but the economy will suffer in the end and business and residents will feel it.  Shame, it's such a beautiful Island but some people don't want to share it !

Yeah your right with most of your views, but like in any walk of life there are ways and means to go under the radar. I'm possibly classed as an "old fart" in that i'm only interested in staying in Fuerte long let from Jan thru March,however I'm looking to visit from Oct/Nov this year and there are plenty of vacant accomodations available on the usual websites /letting agencies from 1 week onwards. I think its a case of "flying by the seat of my pants" attitude with some owners and If I/we get caught with the local authorities so be it.

[Spike On Q]

If I build a bar in my garage and open it to paying members of the public can I claim it is not a business and I just needed the money to pay the rent on the garage? How would other local bar owners feel if they were complying with all of the business rules and I was stealing their customers?

[Ivemovedon]

Unfortunately that scenario has no bearing on the situation. It would do though if you were sold that garage with the direct implication that you would be able to open a bar in it. And they, the local authorities and your own solicitor were complicit by their deliberate silence in failing to inform you otherwise. Then 10 years later someone turns up with a clipboard and tells you you can't have a bar there, you should have researched the situation...and its your own fault, you were an idiot for not being aware of the rules we deliberately forgot to tell you about and that up until now have never been enforced anyway.  Nice eh? Mis-selling on a gargantuan scale.

Whose business are they stealing ?. Not other private home renters because very few if any at all in either tourist or residential areas actually possess a license, and are not likely to ever get one by all accounts. They would however be competition for the A/I hotel groups who seem to be the only real winners. They might even have to open even more to cater for the ex private apartment and villa renters. Lucky them.

[SheilaW]

Private letting to tourists provides extra business to the island, not just competition for the same customers. There's enormous demand from Brits who want that type of accommodation, and ONLY that type, and in terms of percentages that demand is even greater from the French (and no doubt other nationalities). I'm active on tourist information sites for both groups and, believe me, there's a real market for private villas and apartments and even B&B or just a room in a private house. The bigger and more "inclusive" the hotels get, the more many people shy away from them.

If this new law has the effect of denying home owners the right to advertise eminently suitable accommodation, then the island will be the loser. Particularly with this push for a more upmarket brand of tourism. Are all those "5*" tourists really going to want to stay in AI hotels rather than in luxury villas with PRIVATE pools and spas?

[Ivemovedon]

Good post SheilaW. Its hard to believe anyone could think otherwise.

The same thing is happening in portugal at the moment. Owners are obliged to become legal and in so doing have to register with the Portugese tax system. The big difference there though is they are not implementing draconian off limits rental areas and are not withholding licenses. If you apply for them within reason you will get one. They are also bringing in new tax levels for home owning renters to make it worth their while but also by tax payment to be an asset to the Portugese economy. I know all this because a close relative has just been through the process and was very impressed with how easy it was to register and how rental friendly the rules are.   All a far cry from Fuerteventura.

Its refreshing to see someone who lives there having the good of the islands future at heart, instead of the blinkered attitude of some who thinks its their own little private retirement bolthole.

[Fred]

I have not seen a map which identifies which areas are touristic or residential in Correlejo. Does anyone know which category the Tamarindo area fits into? I have an apartment on a residential site there but I do not rent it out.Lots of apartments are rented out on this site even though it is classed as residential.

[SheilaW]

I have not seen a map which identifies which areas are touristic or residential in Correlejo. Does anyone know which category the Tamarindo area fits into? I have an apartment on a residential site there but I do not rent it out.Lots of apartments are rented out on this site even though it is classed as residential.

I don't know the full history of Tamarindo but from what I've seen it's absolutely absurd that they aren't officially available to tourists. They've been built with about 3m2 of space in a corridor for the most minimum of kitchenette areas, and no storage areas whatsoever. Doesn't that sound like temporary, holiday accommodation, rather than residential?

@ Holierthanthou: When I retire (I'm registered as autónomo at present), I want to be living in a thriving and happy Corralejo and Fuerteventura. I can't imagine anything worse than being somewhere that has nothing more going for it than beaches and sun. They're both lovely to have, but alone they don't make for a full and happy life. Not in my book, anyway. Having lots of happy tourists around filling the bars and restaurants is what we need, and so does the council if only they'd wake up to the fact. (BTW, I have absolutely nothing to do with the tourist trade, financially. I'm just happy spending my money in those places.)

[chrisandco]

I have picked up a few comments from these posts that show that some people are ill-informed.
Firstly, if you have a holiday home here, particularly if you are renting it, you have to complete a Spanish tax return. It doesn't matter if you are making a profit or not. You can offset some expenses (Different for residents and "extranjeros")so you may not pay any tax but you must still complete a tax return.
Secondly, anyone who earns money from cleaning, maintenance etc. who is not registered, paying social security and tax, is working illegally. There has been a clamp down in recent years on people working in bars, restaurants, shops without paying anything. One of the arguments from the hotel lobby is that they have to compete with apartments where no tax is paid and cleaners are paid cash. Expect a purge, sooner rather than later.

[Ivemovedon]

All the more reason for them to go down the line Portugal has taken. They are making it worthwhile for owners to register and become part of the economic system. Not sure how a successful purge will be implemented against illegal workers, they can't even manage it in the UK. If you are renting illegally and paying no tax you aren't on the radar. If you aren't on the radar they can't inspect your outgoings. Even if they could they would have no idea of cash payments to service providers. Good luck to them if they want to purge the hundreds of gardeners, and handymen that are around but i think they'll be on a wild goose chase particularly in rural areas.

[Archer]

And there is VAT to be charged on ALL vacation rentals, so another way of breaking the law if the rental is not formalised.
My personal view is that there is still quite a lot of tourist registered accommodation in the main resorts - just look on the tour operator websites, and I'm optimistic that they will eventually grant more licences to suitable properties. But this will never include Residencial - the clue is in the name! And, it was written into your Community rules when you bought.
And of course there are plenty of resorts not covered by the map of red areas.
I don't think it's quite as bad as some believe.
BTW:If you say that your agent and lawyer mislead you, why not take action against them, afterall, the rules are not new, just tightened up? Or name and shame them on this forum!!
I've heard there's still agents telling people it is ok to rent to tourists.

[Ivemovedon]

Take action against them?. What sort of action?. Proving a cospiracy of silence conducted over 10 years ago in somewhere as notorious as Spain is for local government corruption is optimistic to put it mildly.

You'd have more chance of nailing Sepp Blatter.

[woe10]

So woe seeing your back on this thread Did you or did you not rent before you bought your place?

Yes I did, in the early 90's, before all these laws were in place. It was a free-for-all then 

[pennylane]

Thanks for replying to my questions everyone.
I am trying to find a villa, North of the Water Park.
My Daughter and I are both disabled and after orthopaedic surgery I was trying to find a Villa closer to the main strip in Corralejo.
Owners Direct do have some Villas, yes but most of them are over towards the Geafond area.
My Daughter needs a wheelchair now for going any distance and it would have been good for us to stay somewhere closer to the shops and restaurants, with out having to hire a car and drive everywhere. There will be 6 of us in our Family group, so I would need to hire a people carrier.
The flights in October, on the only date that we can make it, are around £200 each and the only Villa that I have been offered up to now is over £1000 . I'm not considering A/I but there are sites offering flights/hotel and A/I for under £300 per person.
Maybe I'm naive but I thought that I might have found a Villa for no more than £500. I guess prices have gone up since I last stayed in Fuerte?
I will keep looking on Owners Direct etc and see what I can find, within walking distance. 

[Tamkid]

Hi Penny, depending on the age of your daughter the Barcelo Hotel (Adults Only) in Corralejo is geared up for Wheelchairs, its just off the main drag, great hotel in all areas of service. I do knowthat James Villas have quite a few rentals on the same drag as the Barcelo, might be worth having a browse on their site if you haven't already.

[paully]

I don`t honestly think there are many villas so close to the main street..There are a few close to the Campanario centre but as they are almost by the sea, will command top dollar. Realistically, for your price range, the area you don`t want to be in is where you will get the best prices..

     If you are looking for good weather early October time, look at the mainland resorts or Balearics..Many of which might fulfil your requirements...Don`t rule anything in and don`t rule anything out

[Elite of the forum]

So woe seeing your back on this thread Did you or did you not rent before you bought your place?

Yes I did, in the early 90's, before all these laws were in place. It was a free-for-all then 

Thank you woe i supposed that makes you one of the elder immigrants,oops sorry ex pats on the island   

[Spike On Q]

The laws are passed by the government of The Canary Islands who are given a mandate by the people that are allowed to vote in the governmental elections due to their residential status

It's called democracy - how would you feed if some foreign johnnie, without voting rights in the UK started to criticise laws passed by a democratically elected British government?

As I've said before, become a Spanish national, stand for parliament and get the laws changed -  otherwise not much point in critisism as the local populace seem quite happy with the way things are

Holiday lets weren't even mentioned in the recent national elections

[Archer]

You'd have more chance of nailing Sepp Blatter.

Haha HTT, that's funny 

Mind you, I think it happened, today!!

Seriously though, do you want to tell us who told you it was ok to rent when you bought, and what your lawyer told you? Is it one who still gets recommended on this forum. Just interested to know.

[warriors]

hi, anyone know where I can view a map showing the rental areas in Cotillo?
thanks

[Archer]

There's a link on page 1 of this thread, and another on page 2. They are really slow to load and move around, so be patient!

[Spike On Q]

The estate agents and management companies are still at it  -  just look at their web sites. They rely on the naivety of many people, just like the timeshare and other scams used to. Remember the adage that goes back centuries, "Buyer Beware!"

There are even people happy to let the estate agents deal with "all the legal matters"  too, we've seen them here!!!!!!

[Ivemovedon]

You'd have more chance of nailing Sepp Blatter.

Haha HTT, that's funny 

Mind you, I think it happened, today!!

Seriously though, do you want to tell us who told you it was ok to rent when you bought, and what your lawyer told you? Is it one who still gets recommended on this forum. Just interested to know.

No archer i wouldn't name names on this forum. No way. It never actually happened to me as i built my house and renting it out wasn't a priority. But i know that many people did buy for that reason and were terribly let down by those that should have been advising them. If they are still doing it now its scandalous.

[Ivemovedon]

The estate agents and management companies are still at it  -  just look at their web sites. They rely on the naivety of many people, just like the timeshare and other scams used to. Remember the adage that goes back centuries, "Buyer Beware!"

There are even people happy to let the estate agents deal with "all the legal matters"  too, we've seen them here!!!!!!

Then why don't the authorities police this mis-selling at source instead of waiting till people have bought and then fining the owners?