Tenerife Realty Estate Agents offers an extensive property portfolio of both resales and brand new off plan developments, a personally selected range of luxury properties, exclusive villas, fincas, townhouses, penthouses and apartments.
Complexes here in Tenerife fall into two categories, Residential and Touristic.
In order to legally Holiday Let, you must purchase a property on a Touristic Complex.
Touristic Complexes hold a Tourist License awarded by Turismo, the Tenerife Tourist Board.
In addition to a Touristic License, the Touristic complex must also have a designated Sole Exploitation Company, whom you must rent your property through.
You cannot rent your Property Independently.
The Exploitation (Management Company) ensures all Guests are registered with the Tenerife tourist board.
They also ensure all apartments are to a set standard and ensure maintenance of the complex e.g. fire extinguishers, fire alarms as well as the correct insurance etc…
Community Fees on a Touristic complex are usually higher as there are many more facilities, such as heated swimming pools, security, reception, and pool bar.
So in order to holiday let you must purchase on a complex with a Touristic License and a Sole Exploitation company.
Complexes in Tenerife belong in two groups, Touristic and Residential.
To be able to legally short term let (Holiday Rentals), you need to buy a home located on a Touristic Complex.
Touristic Complexes have a Touristic License granted by the Tenerife Tourist Board Turismo.
As well as the compulsory License, the Touristic complex must also have a specific Sole Exploitation Company, which you must let your home through. You cannot legally holiday let your Property yourself.
The designated Management Company registers all Visitors and Holiday makers staying in their accommodation with Turismo Tenerife tourist board.
They also guarantee all rental accommodation is to a fixed standard and guarantee routine maintenance and upkeep of the complex e.g. fire alarms, fire extinguishers and liability insurance etc…
Community Service fees on a Touristic complex are generally higher as your fees contribute to many extra amenities, these can include heated communal swimming pools, reception, security and gardeners.
To be able to legally holiday let you must invest in a property located on a complex which holds a Touristic License and a Sole Exploitation company.
As an Investor you must make certain that you are satisfied with the rental income provided by the onsite Exploitation Company.
Residential Complexes are generally more peaceful with fewer facilities, which usually means the monthly Community Fees are lower. It also usually means you will not be disrupted by holiday makers pulling suitcases or diving into the swimming pool in the early hours of the morning.
By Canarian Law you are only allowed to rent your property on a residential complex long term, with a contract for a minimum period of 3 months.
Worth taking into account is the fact that with a rental return income on a long term let that there will be less expenditure e.g. no weekly laundry and cleaning expenses, management company charges, and less wear and tear.
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