Changes in Rental Licenses for Holiday Homes in the Comunidad Valenciana: Your Opportunity for Rental Optimization

As of August 8, 2024, significant changes have been implemented in the rental license regulations in the Valencian Community. These changes are designed to improve the quality and transparency of the rental market and provide owners and investors with new opportunities to optimize their rental strategies. Whether you own an existing property or are considering investing in the region, these new rules can contribute to a successful rental experience.

Key Changes

Rental license renewal every 5 years 

The revised rules state that rental licenses are now valid for a period of 5 years. This gives you the opportunity to regularly update your rental license and comply with the latest regulations. It not only helps you stay legally compliant but also enhances tenants' trust in the quality and safety of your property.

Active renting within 2 months of license receipt

An important change is that the landlord must start renting within two months of receiving the license. This encourages a quick return on your investment and helps bring your property to market quickly. This measure ensures that your property is actively rented and contributes to more efficient use of your real estate.

License revoked after 1 year of inactivity 

Although this measure might be seen negatively, it can also be seen as an incentive to keep your rental activities consistent. This promotes a dynamic rental market and prevents your properties from remaining unused, which benefits overall market conditions.

Rental license not automatically transferable upon sale

When selling a property, the new owner must apply for a new license. This ensures that all licenses are specifically linked to the owner, providing more transparency and security in the rental market. It also gives the new owner the opportunity to obtain a rental license that suits the current market conditions.

Municipalities can impose rental restrictions

Municipalities now have the option to establish specific restrictions and rules for renting, provided they are published in advance. This ensures a more regulated structure and enhances the quality of tourist properties, making it attractive for new investors. It is important to note that these rules are strictly applied and monitored in larger cities. In Costa Blanca South, where the number of hotels is limited, and the supply of holiday homes is large, control is less strict. This is because the number of properties is so great that thorough control is difficult to carry out.

Who Needs a Rental License?

A rental license is required if your property:

• Is rented for a period of 1 to 10 days to the same person.
• Is offered through rental agencies or platforms such as Airbnb, Booking.com, or Homeaway. These platforms increase your visibility to an international audience.
• Offers additional services such as key management, cleaning services, or breakfast. These extras increase the appeal of your property to tourists.

Important Regulations for Longer Rental Periods

If you rent for more than 10 days, you must have your license canceled. If you do not, your property remains registered as a rental for periods up to 10 days, and you may not accept tenants for longer than this period. Violations can lead to heavy fines, ranging from €100,000 to €600,000. Additionally, when renting with a license, the entire property, including the garden and other facilities, must be made available. It is not allowed to rent only an apartment or part of a property on the same domain.

Another important rule is that renting while you are present or living there (such as a hidden B&B without the correct permit) falls under serious violations and leads to the highest fine scales. If you have a rental license with a VT number, you can rent for a maximum of 10 consecutive days. Renting for longer periods without a license is possible, but a combination of both is legally not allowed. Therefore, you must make a choice: either rent with a license for up to 10 days per tenant or for longer periods without a license.

Optimizing Your Rental Options

The new guidelines provide investors with the chance to optimize their rental strategies and take advantage of an increasingly professional market. The regulations provide more certainty and transparency, which can positively affect your return and the value of your property. Moreover, transparent registration with the local police or Guardia Civil provides extra security and control over who enters your property, contributing to peace of mind for both owners and tenants.

With these adjustments, it becomes easier to build a successful rental strategy without worrying about unexpected fines or loss of licenses. A well-maintained and safe property leads to better reviews and increases the attractiveness for potential tenants.

Take advantage of these changes and optimize your rental strategies for a successful rental experience in the beautiful Valencian Community.

Customers who purchase a property from us can always turn to our professional legal partners for further questions. They are ready to provide expert advice and support.
This article is based on information from our reliable partner, who provides accurate and up-to-date information directly from the source on a daily basis.

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