PROPERTY LETTING TOURISM
Operators Short of Properties
                                                                                                                Mike Walsh

With property rental registrations up by 30% year-on-year and enquiries up by 30% property rentals are changing the face of tourism. The mobility and cost effective advantages of ?letting tourism? could give the tourist industry a much needed booster shot.
Changes in legislation giving better protection to property letting owners, and a more competitive rental market, are accelerating the trend away from purchase to rent. It is a change that could regenerate Costa tourism, bringing it quickly back to pre-recession levels.
The radical shift is boosted further by tighter lending restrictions for property buyers. Michael McLaughlin for southerncomfit.com property rentals says he predicted the change in tourist tastes in 2007. This was a turning point when, for the first time, more tourists rented than bought traditional package holiday deals.
For many buyers property purchase will continue to be an investment offering good returns. However, those who once bought a holiday home are discovering that renting can be a cost effective hassle-free alternative. You get a lifetime of holidays with change left over for the price of an apartment.
A LIFETIME OF HOLIDAYS
The benefits work both ways: The recession means more owners are placing their homes on the rental market to make ends meet.  Southern Comfit’s boss says they are now generating more revenue through rentals than by sales. It is also an interim solution for those finding it difficult to sell their holiday homes.
Returns have been exaggerated by less responsible letting portals, which can lead to disappointment. If income seems too good to be true then beware.
Rents are now very competitive. A nicely located two-bed apartment on the Costa Blanca will typically rent long term at about ?100 a week: A 4-bed villa for up to double that. Add fifty per cent for the short term arrangements preferred by holidaying tenants, which helps compensate for the periods when the property is vacant.
Sometimes returns are confused with profits, which is being economical with the truth. The mortgage may still be active and the owner may still be responsible for local charges and utilities.
A two-bed apartment should, after costs, provide a weekly profit of about ?200; enough to bring financial salvation for many still reeling from the abysmal exchange rate. 
RENTING AS A BUSINESS
Many long term tenants are expected to take responsibility for the electricity and water bills. In Spain these costs are considerably cheaper than they are in the UK.
Pasting a pictured description of one?s property on the company?s notice boards, or putting the word around one?s family and circle of friends, is not necessarily a good idea.
Such tenants are notorious for emotional blackmail in negotiating the rent and can be cavalier as to their responsibilities. There will be the added frustration of cancelled bookings, arguments over seasonal rates, rows over their invited friends, and weeks when the property is empty.
OWNER ? TENANT PARTNERSHIP
Some are willing to take these risks for cash-in-hand deals but this is self-delusion. By declaring your rental income you forfeit a little but you enjoy the peace of mind of knowing you are legitimate. Furthermore, if you are unfortunate enough to get a difficult tenant they will take advantage of your questionable arrangement. It is no use taking a tenant to court for breaking the rules if you yourself are disregarding them. For the same reason taking out insurance is prudent; it can also be a cost effective tax-reducing investment.
For these reasons holiday letting property portals have mushroomed to meet demand from both owners and tenants.
As with all else in life there is a good and bad mix. If registration is free or very low there has to be a catch which will likely mean little advertising being done. What use is an entry that too few see? Another trick to net the unwary is to exaggerate returns.
If the portal you decide on is heavily investing their clients? registration fees in site promotion, and keeping hold of their clients year after year, the modest fee when set against returns is perhaps the best investment the owner will ever make.
Mike Walsh 965 327 259 quite_write@yahoo.co.uk Writer-Partner for Alicante and Marbella Solicitors.