Today, this article by ShMadrid<\/strong> will discuss long-term accommodation<\/strong><\/a> in the Spanish capital.<\/p>\n Related article:\u00a0The Most Expensive Districts in Madrid to Rent<\/a><\/em><\/p>\n Photo via Pixabay<\/em><\/p><\/div>\n The \u201cPlan Especial de Hospedaje<\/em><\/strong>\u201d (PEH or Special Accommodation Plan) has shaken things up a bit. Tourist accommodation<\/strong><\/a> now has its limits, and as a result short-term rentals are no longer as interesting as they used to be for property owners.<\/p>\n The plan sets a limit of 90 rental days per year<\/strong> for renting out tourist accommodation<\/strong> without the need of an official permit. However, if you rent out your property for more than 90 days per year, you are obliged to obtain a tourist accommodation license, and this is the exact reason why many property owners decide to rent out their property for the long term, instead of just for tourism purposes.<\/p>\n When you compare the profitability of both rental options, in the end the residential lease or long-term contract is more lucrative, despite taking into consideration that prices paid for a short stay are higher. The profit is, however, affected by agency fees the owner has to pay (around 20% of the yearly income of an apartment) and taxes. More than half of the earnings from long-term rentals are exempt from IRPF tax<\/strong> (Personal Income Tax).<\/p>\n Related article:\u00a0Requirements to Rent an Apartment in Madrid<\/a><\/em><\/p>\n Photo via Pixabay<\/em><\/p><\/div>\n If you consider the number of years a property will be rented out, the profitability of long-term rentals is higher<\/strong>, since the owner does not have to pay the agency commission every time, and this ultimately means a profit increase. In addition to this fact, there are also fewer worries and concerns with long-term contracts, as tenants usually stay for more than just a year.<\/p>\n This means more financial security<\/strong> for the property owner, as they will receive income from the property continuously and over a longer period of time. The risk of not making any profit is actually much greater in the case of tourism accommodation, and besides this, a property owner will save money on repairs, maintenance fees and cleaning costs.<\/p>\n And also, considering high property prices<\/strong> in Madrid<\/strong>, many people choose to rent instead of<\/strong> buy<\/strong>, because they are very much aware that they don\u2019t want an expensive mortgage<\/strong><\/a>. This is a great reassurance for property owners, as tenants sometimes end up staying in their apartment for pretty much their whole life.<\/p>\n Spanish people sometimes tend to go for a mortgage, because they are under the impression that renting a property<\/strong><\/a> is a waste of money. On the other hand there are many people in Madrid who decide to rent a long-term apartment, and they do so for many different reasons: students need to stay until they finish their education or traineeships, people are hired for a new job in the city or they can\u2019t afford a mortgage, because they lack sufficient income.<\/p>\n Do you prefer buying your own home or renting long-term accommodation?<\/strong><\/p>\nUnknown facts about long-term rentals in Madrid<\/h2>\n
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