Expats and problem tenants in Spain

November 3, 2009 – 5:14 pm

Problems with tenants in Spain and Tenerife may be reduced by using an agent

Problems with tenants in Spain and Tenerife may be reduced by using an agent

According to Paragon España , part of the Paragon Advance group of companies offering tenant referencing and rent warranty in Spain, reluctant landlords in Spain are increasingly experiencing problems with bad tenants hit by the economic downturn.

It is claimed that the number of defaulting tenants and evictions have tripled in the past two years and many of the landlords who are experiencing problems are expats who moved to Spain for a better lifestyle and then became reluctant landlords. They have been forced into letting out their homes in order to be able to pay the mortgage and, for those investors who jumped on the Spanish property market, buying off plan, only to see it go into freefall before they could offload their investment, they have had their fingers burned and are having to let long term and ride it out.

Many expat landlords are unaware of the different mechanisms in place to secure rental income and often fail to implement them in their rental agreements which can leave them unprotected if the tenant does not, or cannot, pay the rent, according to Paragon España. This is where the use of a rental agent pays dividends and Tenerife is no exception to this rule.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , | Comments (0)

Russian buyers still interested in Tenerife and its property.

June 25, 2009 – 12:05 pm

Russian buyers are still interested in prime property in Tenerife

Russian buyers are still interested in prime property in Tenerife

Russian property buyers remain very much interested in quality residential properties in prime locations but have reduced budgets.

The majority of current interest is from the second generation of Russian High Net Worth Individuals.  This buyer category will typically have a smaller budget than the initial wave of Russian buyers and will be more cautious in approach.  In contrast to the typical Russian buyers of two to three years ago, they are no longer driven by spontaneous interest. They are looking more long term in order to find a property that will match their lifestyle aspirations and are prepared to wait until they find exactly what they are looking for in Tenerife.

Today’s Russian buyers will more often than not want to integrate into the local community as they are often seeking a year-round destination rather than a holiday home. It may also mean renting before committing to a purchase in order to get a feel for the local environment.  

This means that their requirements when looking for a property are more driven by practicality: a classic exterior with a modern and functional interior offering good space, which comes well specified and with the latest hi-tech accoutrements and modest rather than extensive staff accommodation.  Sea views are preferred although there is demand for quality and prime properties in all Tenerife locations.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do | Tagged , , , , , , , , , , , | Comments (0)

Help for Spain and Tenerife’s economy.

June 7, 2009 – 6:02 pm

Help for Tenerife and Spain's economy

Help for Tenerife and Spain's economy

In the annual state of the nation debate held last week, Spain’s President announced a package of economic measures designed to boost the Spanish economy. These included a  helping hand for Spanish tourism and by extension, property investment in Spain. Under the new Government initiative, airport taxes will be zero per cent as from the third quarter of this year.

Airlines whose passenger figures this year equal or exceed last year’s figures will be entitled to 100 per cent discount on airport taxes. To qualify for the zero tax, airlines will be required to present their passenger numbers as from July this year.

The measure applies to all Spanish mainland and island airports and is expected to boost the tourist industry considerably. Spain is one of the world’s most visited countries, but like most top tourist destinations has seen a fall in its visitor figures since mid 2008.

Spanish airport taxes are among the highest in Europe (and the world) and not surprisingly, those in the tourist sector including tour operators and hoteliers have been calling for a substantial reduction for some time. The recent Government announcement has naturally been welcomed by all sectors of the tourist and property industry.

The main airlines serving Spain and Tenerife are expected to start offering discounts and special offers on flights straightaway and this is predicted to have an immediate effect on tourist figures.

Zero airport tax is excellent news for the whole of Spain but it’s especially welcome for the tourist hot spots like Tenerife. Spain is the number one short-haul destination for holidays and at the moment when people are watching their budget, cheaper flights will be a major deciding factor on where they want to go.”

This measure will obviously have an important knock-on effect  on Spanish  and Tenerife property. Now that some areas of Spain like Tenerife are showing real promise for lifestyle investment, zero airport taxes couldn’t have come at a better time and those looking to invest in  a variety of property types be it prime property, villas with pools or one bed apartments will be delighted with the news .

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife | Tagged , , , , , , , , , , , , | Comments (1)