Buying Property for Short-Term Rental on the Costa del Sol – What to Check Before Purchase
Introduction
Purchasing a property for short-term rental on the Costa del Sol requires much more than simply checking the price and location on a map. In practice, it is the legal, technical, and market analysis that determines whether the investment will work or become a problem.
1. Checking the Homeowners’ Association (Comunidad)
- whether the community statutes allow tourist rentals
- whether there are resolutions limiting short-term rentals
- whether the community plans to introduce a ban in the future
- what the community fees are and the rules for using common areas
This is one of the most common reasons why a property cannot be legally rented.
2. Licencia de Primera Ocupación (LPO)
- whether the property has an LPO or an equivalent document
- whether the LPO reflects the actual condition of the property
- whether any unreported modifications have been carried out
The absence of an LPO often makes it impossible to obtain a tourist rental licence.
3. Location vs. Real Demand
- walking distance to the beach, town centre, and restaurants
- transport connections and parking availability
- the area’s attractiveness to tourists, not just residents
- seasonality of the specific location
A good location will rent well even with a simple standard.
4. Property Functionality
- number of bedrooms and bathrooms
- living space and terrace
- ease of cleaning and maintenance
- a layout that works for guests, not just the owner
Properties that look great in photos are not always comfortable for guests.
5. Cost Analysis Before Purchase
- community fees, utilities, local property tax
- management and cleaning costs
- a reserve for repairs and refurbishment
- taxes on rental income
The purchase should be calculated on an annual basis, not just for the high season.
Summary
Not every property on the Costa del Sol is suitable for short-term rental. Key factors are documentation, the homeowners’ association, and real market demand—not just an attractive purchase price.
