What is the exact position about apartments in 2018

[Family Ordonez]

I am still confused. If you are in an apartment block in Puerto Pollensa zone what are the license options open to you. Are you only able to use the 60 day option or can you also use the 365 day option ?

In Puerto Pollenca you can have the 365 day option. You need the community to agree and have the deed to show such notarised. You will need an up to date Cedula/Habitacion certificate and an energy certificate rated F or better. There is a lot of form filling and taxes to be paid prior to being issued with a license- I now have one and can tell you it is a huge relief...

I wouldn’t dare to rent without, too much of a risk..

 

[Chelseadons]

I'm sorry for being dim but can you confirm whether the following is a correct statement. In Puerto Pollensa you can do both the 365 day and 60 day options.

 

[bobley]

Yes, that's correct but the 60 day option only applies if you actually live in the property.

 

[Luckjon]

In Puerto Pollenca you can have the 365 day option. You need the community to agree and have the deed to show such notarised. You will need an up to date Cedula/Habitacion certificate and an energy certificate rated F or better. There is a lot of form filling and taxes to be paid prior to being issued with a license- I now have one and can tell you it is a huge relief...

I wouldn’t dare to rent without, too much of a risk..

On the original guidance for applications in addition to the documentation you have listed, it stated that apartments must have a separated metered water supply. Is this correct or has it quietly been dropped?

 

[Family Ordonez]

On the original guidance for applications in addition to the documentation you have listed, it stated that apartments must have a separated metered water supply. Is this correct or has it quietly been dropped?

Hi

That is correct, apartments must have their own water meter.

 

[mike_dublin]

https://majorcadailybulletin.com/ne...apartments-for-holiday-rental-has-fallen.html

The Foro Vacacional, an organisation dedicated to the promotion of holiday rentals, held a conference on Tuesday. Among those attending were the government's director-general for tourism, Antoni Sansó, the president of the Habtur holiday rentals association, Joan Miralles, and his predecessor, Juan Estarellas, now the CEO of Foro Vacacional.

A headlining revelation from the conference was that 75% of apartments that had once been advertised online as holiday rentals no longer are - some 35,000 properties, it was said. The reason? The fear of being fined. For Sansó, this was evidence of the effectiveness of legislation. It is being complied with.

Despite the legislation, Estarellas produced figures to suggest that there is growth in the Balearics rentals market that averages over two per cent each month. In the past year there has been 16% growth, making the Balearics the Spanish region with the second highest increase. Demand for rentals is growing, he observed, and so are prices - up by 19%.

Legislative restrictions have had a particular impact in Palma, where supply has fallen 40%. This has led to Palma being one of the most expensive European cities for rentals, with an average income of 1,000 euros per month.

...

see full article on the MDB website

 

[Luckjon]

I was never much good at maths, so I would be grateful if someone could explain how it is possible to have a 16% increase in rentals when there has been a 75% fall in the number of rental properties available. Need Rachel Riley from Countdown to work this out.

 

[Deanscroft]

It may be due to the claimed increase being due to an increase in footfall through the airport. More people are coming through the airport but for shorter periods due to the decrease in available rentals and higher prices. Goes to show you can claim anything by selective use of the figures.

 

[Teacu]

As someone once said - Lies, damned lies, and statistics ..

 

[Pocket_Buddy]

It may be due to the claimed increase being due to an increase in footfall through the airport. More people are coming through the airport but for shorter periods due to the decrease in available rentals and higher prices. Goes to show you can claim anything by selective use of the figures.

I would say I definitley agree with this.... I have had 2 trips over to Mallorca this year, 1 week in Pollensa and 3 nights in Palma. Thats 4 trips through Palma airport yet thats 4 nights short of my one trip only (2 trips through Palma airport) to Pollensa last year.

 

[Rockape]

Hi

That is correct, apartments must have their own water meter.

A question for you Family Ordonez, if I may?

When you take all the costs of the licence into account, the cost of advertising the property, cleaning, laundry, electricity, management etc. How many weeks do you have to rent your property out per year, before you start making money?

 

[Family Ordonez]

A question for you Family Ordonez, if I may?

When you take all the costs of the licence into account, the cost of advertising the property, cleaning, laundry, electricity, management etc. How many weeks do you have to rent your property out per year, before you start making money?

That’s a difficult one as the the rental costs I charge differ depending on the the time of year. I haven’t worked it out exactly, I should have and will do then let you know.... We use the apartment approx 6-8 weeks a year at the moment so it will be available to rent for the remainder. Prior to this year it was fully booked April to October and the winter months half full so I am confident there will be profit. I would guess at the licensing costs, management and advertising being covered at 8 weeks. I have however increased my rental prices and will have to be strict with this as do not want to be in a situation where I am just turning money over and causing a lot of wear and tear to the apartment which we can’t then upkeep to the same standard. Personally I would rather have an empty apartment than not being able to make enough money to upkeep it.

 

[Rockape]

That’s a difficult one as the the rental costs I charge differ depending on the the time of year. I haven’t worked it out exactly, I should have and will do then let you know.... We use the apartment approx 6-8 weeks a year at the moment so it will be available to rent for the remainder. Prior to this year it was fully booked April to October and the winter months half full so I am confident there will be profit. I would guess at the licensing costs, management and advertising being covered at 8 weeks. I have however increased my rental prices and will have to be strict with this as do not want to be in a situation where I am just turning money over and causing a lot of wear and tear to the apartment which we can’t then upkeep to the same standard. Personally I would rather have an empty apartment than not being able to make enough money to upkeep it.

Gosh, if you had it fully booked between April & October and half the winter months, you did well then and I would expect will do even better now. Interesting, thanks!

 

[Gp1602]

We spoke to a restaurant owner last night who said this week was very busy but he had seen a 25-30% drop in profits and this had led to him laying off 4 staff. He said the rental situation is a real concern for him.
Such a shame as I appreciate the need to charge higher prices to cover your costs as an apartment owner but not everyone can afford those increased costs and that’s the problem.
I hope the law is “tweaked” to some degree to make it more beneficial for the people who live and work here to continue to do so and to make holidays for those visiting still affordable.

 

[P&C@29]

We spoke to a restaurant owner last night who said this week was very busy but he had seen a 25-30% drop in profits and this had led to him laying off 4 staff. He said the rental situation is a real concern for him.
Such a shame as I appreciate the need to charge higher prices to cover your costs as an apartment owner but not everyone can afford those increased costs and that’s the problem.
I hope the law is “tweaked” to some degree to make it more beneficial for the people who live and work here to continue to do so and to make holidays for those visiting still affordable.

When we were there last week a restaurant owner told us the same and said he was trying to keep open for the sake of his staff, but even his staff were wondering how he was doing it

 

[Rockape]

I've been giving this new rental law some consideration and realised that the whole thing is massively flawed. I'm amazed no one appears to have brought this up before, least of all people who were defending renting. It is a completely unfair tax for one fundamental reason, it takes absolutely no account of the value of the property and therefore what is achievable in terms of income. I'll explain more:

If you own a 3 bed villa/house/apartment that has proven to be eligible for a licence then you will be taxed at 3500euros per room, so 10,500euros.

As we know some of the properties around PP (for example) can sell for millions, so to compare two properties on one holiday rental web site for a week in Sept, a three bed villa is the same price as a 1 bed apartment.

Therefore one person would have paid 3500 euros and the other 10500 and their incomes will be the same. That is until you take into account the fact that 3 bed villa has a pool and the upkeep of that, plus the cleaning of the much larger space to boot! Completely unfair!

And that is before I could compare a 4 bed multi million pound property with a 4 bed villa tucked in a not perfect position. Then, for the same week in Sept 19, the rental costs are 3500e and 850e. Although rates obviously change through the months, taking that as an average for 4 months one income is 42000 and the other one 10,200. How can that be fair? Its so unfair, its ridiculous!

 

[Family Ordonez]

I've been giving this new rental law some consideration and realised that the whole thing is massively flawed. I'm amazed no one appears to have brought this up before, least of all people who were defending renting. It is a completely unfair tax for one fundamental reason, it takes absolutely no account of the value of the property and therefore what is achievable in terms of income. I'll explain more:

If you own a 3 bed villa/house/apartment that has proven to be eligible for a licence then you will be taxed at 3500euros per room, so 10,500euros.

As we know some of the properties around PP (for example) can sell for millions, so to compare two properties on one holiday rental web site for a week in Sept, a three bed villa is the same price as a 1 bed apartment.

Therefore one person would have paid 3500 euros and the other 10500 and their incomes will be the same. That is until you take into account the fact that 3 bed villa has a pool and the upkeep of that, plus the cleaning of the much larger space to boot! Completely unfair!

And that is before I could compare a 4 bed multi million pound property with a 4 bed villa tucked in a not perfect position. Then, for the same week in Sept 19, the rental costs are 3500e and 850e. Although rates obviously change through the months, taking that as an average for 4 months one income is 42000 and the other one 10,200. How can that be fair? Its so unfair, its ridiculous!

Couldn’t agree more, our apartment is quite spacious, we also have a roof terrace therefore the cleaning costs are expensive, sometimes around 170-180 per changeover - the electric is also expensive to run air con and reverse for heating. There is also more costs with wear and tear, we will now find it very hard to make a profit taking into account the associated costs with the license also. However we will see how it goes, we can’t charge the same rental as sea front apartments which are paying the same license fee as ourselves....

 

[allanglens]

I've been giving this new rental law some consideration and realised that the whole thing is massively flawed. I'm amazed no one appears to have brought this up before, least of all people who were defending renting. It is a completely unfair tax for one fundamental reason, it takes absolutely no account of the value of the property and therefore what is achievable in terms of income. I'll explain more:

If you own a 3 bed villa/house/apartment that has proven to be eligible for a licence then you will be taxed at 3500euros per room, so 10,500euros.

As we know some of the properties around PP (for example) can sell for millions, so to compare two properties on one holiday rental web site for a week in Sept, a three bed villa is the same price as a 1 bed apartment.

Therefore one person would have paid 3500 euros and the other 10500 and their incomes will be the same. That is until you take into account the fact that 3 bed villa has a pool and the upkeep of that, plus the cleaning of the much larger space to boot! Completely unfair!

And that is before I could compare a 4 bed multi million pound property with a 4 bed villa tucked in a not perfect position. Then, for the same week in Sept 19, the rental costs are 3500e and 850e. Although rates obviously change through the months, taking that as an average for 4 months one income is 42000 and the other one 10,200. How can that be fair? Its so unfair, its ridiculous!

And you expect taxes to be fair?

 

[Rockape]

And you expect taxes to be fair?

I didn't say that though did I? I said the differences in what people received in rent against what they paid for the licence was unfair. Its such a massive difference it really doesn't make any sense.

I know its not the UK, but something like that would never happen here, as its a totally discriminatory policy. The richest owners won't even notice the cost of the licence, whilst people like FO above are going to struggle to make it work.

Which means for many it wouldn't work at all.

 

[debz1]

I didn't say that though did I? I said the differences in what people received in rent against what they paid for the licence was unfair. Its such a massive difference it really doesn't make any sense.

I know its not the UK, but something like that would never happen here, as its a totally discriminatory policy. The richest owners won't even notice the cost of the licence, whilst people like FO above are going to struggle to make it work.

Which means for many it wouldn't work at all.

Which is why when we worked out the costs even if we wanted to we wouldn't consider applying for a licence. It's bonkers