Ibiza Villa Rentals

Renting out your villa or apartment on Ibiza can be time consuming and expensive.

There are a number of rental options and these are discussed in some detail below:

Ibiza Letting Agents

Letting and property management agents provide a number of different types of rental services to landlords.

The level of service will very often determine the amount they charge. Charges are usually commission, based on the annual rental income of your ibiza villa or apartment. You should therefore discuss and compare the charges of different estate agents in your area. Typically rates vary between 8% and 15% plus VAT. Some estate agents deduct the commission upfront whilst others make a deduction as they collect the rent.

• Introduction Only: The introduction service offered by letting agents very often gives landlords the most basic of all services available. It consists of finding suitable tenants for your Ibiza villa or apartment, applying for references, preparing the tenancy the tenancy agreement and collection of the first month's rent and deposit. The letting agents' charges are deducted from the first month's rent and deposit. As landlord you will be responsible for the deposit and for all future property management issues.
  

• Rent Collection: The rent collection service includes all the services offered under the introduction only service, together with a rent collection service. Once rent is collected the letting agents' rent collection commission is deducted and balance is paid to the landlord. The landlord is expected to arrange to inspect the villa or apartment and deal with any repairs under the terms of the agreement. The issue of notices to quit are normally dealt with by the letting agent but the landlord will need to make his or her own arrangements to deal with all aspects of the tenant moving out.
  

• Full Management: The fully managed service offered is the most comprehensive and deals with almost all the issues of property rental and management required on a daily basis. Urgent repairs will be undertaken as needed by the letting agent and quotes will be obtained for other non-essential matters. The payment for any expenditure will be deducted from rents collected before any payments are made to the landlord. For landlords who working or living abroad this service is essential as all matters are left in the hands of the letting agent

Do it Yourself

The cost of using letting agents can be very expensive and with a little dedication and effort the majority of landlords should be able to deal with the proper management of their properties. Property management involves the following steps:

• Finding Tenants: Letting agents advertise in the local papers and this is the place to start. Choose a paper that has a large property to let section. If you look at this section you will see both letting agents and landlords advertising. The small box adverts normally relate to landlords who rent out their own villas or apartments and the content of these small adverts will give you an indication of what you need to advertise. In the majority of cases all you need to do is telephone the paper with the details you wish to advertise and pay by credit card. The cost of these adverts is relatively small.
  

• Prospective tenants will need to be shown your Ibiza villa or apartment. If they wish to rent the property you should ensure that you apply for several references to include current employer, bank and one other from a previous landlord or friend.Once satisfactory references have been obtained a tenancy agreement needs to be prepared for signature. A standard Assured Shorthold Tenancy agreement can be drawn up by a solicitor or you can use preprinted stationery. If your Ibiza villa or apartment is furnished you should prepare an inventory list and this should be checked and signed by the tenant at the time he moves into the property. This list will also need to be checked when the tenant vacates the property to assess the extent of any claims for damages.

• Collecting the rent: Rent collection can be made easier by arranging for payment to be made by standing order or by collecting post dated cheques. You should check your bank statements to ensure that standing orders are received on the due dates. If payment is not received you must contact the tenant immediately to see why payment did not go through

• Repairs should be undertaken as and when required and all expense invoices retained for taxation purposes. Any repair work undertaken by third parties should be checked before payment is made, although in some urgent cases this may not always be possible.

• Deal with day to day matters: During the tenancy period you should inspect the property to ensure that the villa or apartment is being maintained in a tidy and proper fashion. Any matter that requires action from the tenant should be advised in writing as a form of permanent record. If necessary you should follow up an inspection with a further inspection.

• Arranging tenant to vacate: You should write to the tenant a month or so before he is due to vacate to explain the procedure and arrangements to vacate the property. Include the date, time and indicate that the Ibiza villa or apartment should be left in a tidy manner otherwise you may need to make a claim against the deposit held.

• The inventory list should be checked when the tenant leaves and missing or damaged items should be identified. The deposit should be returned as soon as possible once the extent of any claims has been established. You should be fair and reasonable with your claims and have sufficient evidence to support the amount of your claim.