financing

Should I rent my Spanish property short-term or long-term?

Choosing between short-term holiday rentals and long-term residential rentals is one of the most important decisions for investment property owners on the Costa Blanca.

Each strategy has distinct advantages and considerations.

Short-term holiday rentals: Higher gross income potential (typically 30-50% more than long-term), flexibility to use the property yourself during off-peak periods, and the ability to adjust pricing dynamically.

However, you need a tourist license (Licencia Turística), management is more intensive with guest turnover, there is seasonal variation in income, and wear and tear is higher.

Holiday rentals also face increasing regulation.

Best for: properties in prime tourist locations near beaches, with pools and modern amenities, that you want to use personally part of the year.

Long-term rentals (12+ months): More stable, predictable income with less management effort.

Tenants typically take better care of the property.

However, Spanish tenant protection laws (LAU) give tenants significant rights — including the right to extend for up to 5 years (or 7 for corporate landlords) and rent increase limits.

Eviction for non-payment can take 6-12 months through courts.

Lower gross returns but also lower costs (no cleaning between guests, lower management fees).

Best for: properties away from tourist areas, or owners who want hassle-free passive income.

Middle ground: Some owners opt for seasonal rentals — renting for the winter season (October-March) to long-stay visitors (often retired Northern Europeans) and using the property themselves or for short-term rentals in summer.

This can optimize income while maintaining flexibility.

WOW-Estates can advise on the best rental strategy for your specific property and circumstances.