How to Sell a Holiday Rental Property?

Owners of holiday rental properties in Spain often connect informally through different Facebook groups.

In recent months, many owners have been offering their properties for sale at prices above those of similar homes, even within the same building or residential complex.

Does it make sense to ask for a premium when selling a holiday rental property?

Listings published on platforms such as Airbnb cannot, in principle, be transferred to a new owner, although some people claim that it can be done quite easily.

If this is not possible, the property’s history would be lost, including all previous reviews — whether positive or negative — and the new owner would have to start again from scratch, as if it were a new listing.

In addition, some permits granted for operating a holiday rental are issued to a specific person rather than to the property itself. This varies depending on the Autonomous Community and the local council.

This means that the new owner may have to apply for a new permit, which might not be granted if the regulations have changed, something that has been happening increasingly often in different parts of Spain.

However, someone with experience in holiday rental management will know whether a property justifies a higher purchase price by considering factors such as:

• Competition
• Pricing potential and profitability
• The location and characteristics of the property
• Legal certainty in the city where the holiday rental is located

In the United States, there are property professionals who have acquired dozens, and sometimes hundreds, of homes because they recognise their profitability and understand that paying a premium can sometimes make sense.

In Spain, however, investment in holiday rental properties has not been encouraged by the government and, in some cases, has even been discouraged for different reasons.

The challenge is that, once the market matures and offers clear rules, holiday rentals could become an interesting investment alternative, both defensively — to preserve the value of your assets — and offensively, by seeking to increase their value through attractive returns.

As with any other investment, knowledge and a certain amount of luck are required to make the right decisions and achieve the objectives that have been set.

As an owner, it is advisable to be transparent and show potential buyers:

• The property’s historical income
• All documentation relating to licences and permits
• The relationship with neighbours
• Any situations or circumstances the new owner should be aware of

This way, potential buyers will be able to understand the real value of the property beyond the market price of similar homes.

Have you sold your holiday rental property? Tell us about your experience.