Buying a property to rent out: what to check before signing

Before buying a property to rent out, check that you can use it for the intended letting. Location, price and possible rents matter, but legal viability is also part of the investment.

You may have found a flat near the beach and plan to let it over the summer. Or you may want to buy a flat to offer to people who move for work. In both cases, it pays to review the conditions of that property before handing over money or taking on commitments.

At MH Legal & Seguros we help you analyse the transaction so you can decide with information about the property, the contracts and the letting you want to offer.

Define whether you want a permanent, seasonal or tourist letting

Each modality has a different legal regime. The real purpose of the letting, the conditions of the activity and the territorial regulation determine which rules apply.

The name of the contract does not by itself decide its legal regime. Calling a letting "seasonal" does not allow the rules that correspond to its true purpose to be sidestepped.

Define this point early: it will determine the documentation you need to review and the financial expectations of the purchase.

Check the permitted use in the municipality

The possibility of carrying on a tourist activity must be analysed for the specific address of the property.

Before buying, it is worth checking the applicable planning, the compatibility of the use and the municipal titles required. It should also be checked whether there are restrictions or suspensions affecting new activities.

It is not enough that there are other tourist flats in the street. They may have different conditions, be covered by an earlier regime, or be in a situation that cannot be transferred to your property.

Ask the review to identify the relevant municipal rule and documentation. Where appropriate, it will be necessary to request a report or file a query with the town hall.

Review the requirements of the autonomous community

Tourist regulation varies by territory. The requirements for the property, the start-of-activity procedures and the obligations of the person operating it must all be checked.

The review may include:

• Responsible declarations, authorisations and required registrations.
• The occupation or habitability documentation that applies.
• Equipment, capacity and safety conditions.
• The validity of the titles and updating obligations.
• Rules applicable to a change of owner or operator.

Tourist registration and planning compatibility must be examined together. A single document does not allow the conclusion that the whole activity meets the requirements.

Check the statutes and agreements of the community

If the property is part of an owners’ community, request the constitutive title, the statutes and the agreements relevant to the intended use.

In communities governed by the state Horizontal Property Act (Ley de Propiedad Horizontal), anyone wishing to start the tourist activity covered by its article 7.3 must first obtain the express approval of the community.

Article 17.12 requires the favourable vote of three fifths of the total owners and of the participation quotas.

There is a regime for certain activities predating 3 April 2025. Its application must be checked on the documents; buying a property that was already advertised does not allow you to assume that this regime covers you.

Where a specific territorial civil regime applies, its particular rules must be analysed.

If the seller is already letting the property, verify what you can continue

An active listing, good reviews or a calendar full of bookings can make the purchase attractive. However, it pays to review the documents supporting that operation.

Check:

• Which property and holder they correspond to.
• Whether they are in force and subject to conditions.
• What the change of owner or manager requires.
• Whether there are outstanding administrative requests or incidents.
• What happens to existing bookings and contracts.

Do not assume that the seller’s permissions or conditions transfer automatically. The sale contract should reflect what is transferred and the pending arrangements.

Listing registers do not replace permits

Before publishing listings, review the current requirements for the channel and the letting modality you intend to use.

In any case, a presence on a platform or the existence of a registration number does not by itself prove the planning and tourist viability of the activity.

Resolve viability before signing the arras

If the intended letting is decisive for the purchase, try to complete these checks before committing.

When questions remain open, negotiate how they are incorporated into the contract:

• What result must be evidenced and with which documents.
• Who carries out the arrangements and bears their cost.
• The deadline for resolving them.
• The consequences if the intended use turns out not to be viable.

A clause must be adapted to the transaction. A generic reference to the property "being suitable for letting" may leave important points unresolved.

Calculate profitability on the real conditions

Once the use has been checked, prepare a budget that includes maintenance, management, insurance, taxes and periods without income.

Also review whether works or adaptations will be needed and whether the insurance taken out covers the intended activity. These costs can change the outcome of an investment that seemed attractive.

Are you thinking of buying to let?

At MH Legal & Seguros we help you review the legal situation of the property, the conditions of the intended use and the contracts for the purchase.

Contact our team and tell us the municipality, the property you are considering and the type of letting you want to offer. We can identify the checks your transaction needs before you sign.