Discover the Best Tenerife Villas for Sale: Your Guide to Buying Luxury Property In Tenerife
Why buy in the Canary Islands and especially in Tenerife?
Every year the Canary Islands attract millions of tourists from around the world for numerous reasons making it a popular holiday destination.
That reason alone makes it an ideal location to buy a property for investment purposes, as a second home, or even as your primary residence in a warm climate.
Often known as the “island of eternal spring,” the weather is fantastic throughout the year, with temperatures rarely dropping below 20°C in winter with a comfortable average of 28°C in summer.
Those temperatures and the low humidity make it an ideal climate for those seeking relief from the cold weather of central Europe.
Tenerife is the largest and probably the most popular island in the Canary Islands. It really has a complete spectrum of beautiful landscapes, ranging from sunny palm tree-lined beaches to lush green pine forests and the lunar landscapes of Las Cañadas, the volcanic area of Mount Teide, which is Spain’s highest mountain.
During a day’s exploration of the island, it’s very easy to be able to experience all four seasons in a single day, from the warm sunny beaches in the south, to the cooler but still sunny climes of the north west and the cold snap that you’ll find on Mount Teide.
Many people have experienced sunbathing on one of the sunny beach resorts looking up at Mount Teide in the distance to witness the snow capped volcano.
The property market in the Canary Islands is always thriving and there’s something for everyone. The islands offer a wide range of properties from rural typical Canarian-style cottages, to holiday apartments and luxury villas and apartment complexes built in some of the most exclusive areas of Tenerife.
There are plenty of quiet Spanish villages as well as bustling tourist resorts and the island has several high quality golf courses, some of which have seen international golfing championships played on them. Many of the golf courses are surrounded by luxury villas and apartment complexes.
Tenerife also provides a wide range of water sports and activities, including scuba diving, windsurfing, kite surfing, boat trips and jet skiing and, as well, there are plenty of outdoor activities like tennis, padel, bowls, hiking, horse riding and cycling.
Once you’ve finished with all of that physical activity, you can relax by the pool or visit one of the island’s numerous sandy beaches.
Many people purchase property in Tenerife for investment purposes due to the high rental potential for both long-term residential use and short-term holiday rentals.
If you’re purchasing for rental purposes, ensure that your agent provides up-to-date information on the latest letting laws, things can change and can be complicated too.
Many people also buy property in Tenerife as a second home and spend their winter months away from the cold weather back in their home country. Locals refer to these people as “swallows,” likening them to the birds that migrate to avoid the cold winter months.
Generally speaking, Tenerife is a very safe place to live, there’s precious little crime to worry about, apart from, just like anywhere else in the world, those minor crimes, and the best advice is to make sure that you take the normal precautions when walking the streets or relaxing on the beach.
Don’t leave your valuables unattended and don’t leave phones and bags on coffee tables that are easy for passers-by to snatch.
The Canary Islands are easily accessible and only a short flight away from the rest of Europe, so this makes the island home to a diverse mix of cultures and people from around the world.
For instance, flights from England and central Europe take around four hours, which is shorter than other winter sun destinations that require long-haul flights. Scandinavian flights are also readily accessible and take around 5 hours, so still very acceptable.
For many different reasons, some people choose to bring their cars, so getting a ferry from the mainland is also a possibility and, depending upon where you set out from, the ferry trip can take a couple of days or so.
Doing this is a great adventure – travelling through Europe, stopping off at hotels and famous cities and places of interest, sightseeing and tasting the local cultures on the way to Tenerife must be very enjoyable.
Whether you’re buying property in the Canary Islands for personal use or investment purposes, following the guidelines we set out in this guide will certainly help ensure that you make a safe and wise investment.
We have tried to make things as easy and transparent as possible, and if you have any further questions, feel free to contact us.
The process of buying a property in Tenerife is fairly straightforward if you enlist the help of a professional estate agent and don’t attempt to go it alone.
An experienced estate agent and a legal advisor will be able to guide you through the entire process, so even if you don’t speak Spanish, they should have your interests at heart and you shouldn’t have to worry too much.
To buy a property, you will need to obtain an NIE number and open a Spanish bank account although, with the advent of digital banking these days, you might get away with a European bank, but just bear in mind that some utility companies insist on having a payment from a Spanish bank.
It’s also important to ensure you have the necessary funds to make the purchase, including an allowance for additional expenses such as property transfer tax, legal fees, notary fees, and land registry fees, which typically add up to around 10% of the purchase price.
Your estate agent should provide you with a detailed breakdown of these costs beforehand to ensure that there’s no delay in buying the property once you have your heart set on one.
Once you’ve found your ideal property, you’ll usually need to pay a non-refundable deposit of 10% and sign a private sales agreement with the seller or their representative.
The completion date of the sale is discussed between both parties before a contract is written and a mutually convenient date is written into the private purchase/sales contract.
Generally speaking, the sale will be completed within approximately 60 days, but can be much quicker if everything is in place. At this point you will sign the title deeds, called the “escritura” in Spanish, in front of a notary and that’s where the buyer will make the final payment.
Your legal representative will then register your new property at the land registry, in your name, and within 30 to 45 days an original copy of the “escritura” will be available for collection from your advisor’s office.
Your legal advisor will also transfer the utility bills from the previous owner into your name and set up standing orders with your bank.
They’ll also need to notify the local council that you’re the new owner and, if the property is situated within a complex, they’ll also notify the community office that the property has changed hands. They’ll then also need to set up a monthly payment to the community for the monthly community fees.
Additionally, it’s essential to take out property insurance to protect your building and contents. If you’ve bought a property within a community, then, generally speaking, the buildings insurance for your property will be included within your monthly community fee, but having a contents insurance will be necessary.
This will obviously need to cover you for theft but also the cover needs to be in place for damage to any neighbouring properties that might be damaged due to a water leak from your property or maybe a fire that affects the properties in the surrounding area.
If you plan to rent out your property, ensure that you do so legally and use a reputable rental agent to manage the process for you.
If your property is part of a complex, you may need to rent your property through the complex reception if they have the sole management rights. You should investigate this before buying, so that you’re aware of any obligations that you might need to meet.
Finally, you might like to consider hiring a property maintenance company or key holder to look after your property when you are not in the country.
Research, research and research.
When it comes to buying property, especially overseas, it’s a decision that requires plenty of careful consideration. Doing your research beforehand is crucial.
Before deciding to buy, it’s a good idea to ask yourself why you want to purchase the property.
At Signature.luxury, your estate agent will be asking you these sorts of questions so that they can direct you to the properties that will suit your requirements.
Some of the questions that need to be answered are:
Is it for personal use, retirement, or investment purposes?
Do you want a property in a community or a detached property without community fees or maybe one in a village setting?
Are you interested in renovating and reselling the property for a profit?
Is it important to consider an exit strategy for the property – are you considering keeping the property for a short time, with an intention to sell it with a view to making a profit?
As mentioned before, your agent will take you through these sorts of questions and find out your criteria, so do make sure you communicate your specific requirements to them.
Visiting a few properties with them can help them understand what you’re looking for.
Clearly, you’ll also need to decide on the location of the property you’re going to buy and whether it’s the right area for you, especially if you plan on staying long-term.
Being in the centre of a busy holiday resort may be ideal for holidays but, staying long term with the hustle and bustle and ever changing neighbours, may not be the ideal situation for you.
You might consider the option of renting a property in the area first as this can give you a feel for the area before making a purchase.
If you’re buying in a complex or community, keep in mind that there are usually additional costs for service charges and community fees to maintain the complex.
Find out what the ongoing fees will be before purchasing, this way you can budget your monthly running costs properly.
Also, you’ll need to be aware that some complexes may not allow short-term rentals, so if you’re buying an investment property that you plan to let out on a short term rental basis, make sure you’re allowed to do so.
If you’re buying a detached property, you’ll need to consider things like gardeners, pool maintenance companies and general maintenance companies, in case you need them.
The more time you spend researching and deciding on your requirements, the more time you’ll save when viewing properties and you’ll hopefully be able to find the right property much sooner.
As mentioned before, clear communication with your agent is key to finding the right property. But don’t necessarily just think about what you do want.
There’s also an argument to make a list of the things that you don’t want which can also be very helpful.
Use a professional estate agency
If you’re looking to buy or sell a property in Tenerife, it’s important to use a professional agent to ensure a safe and simple process.
You may very well have heard horror stories of buyers losing money when buying property abroad, but this should be avoided by using a professional agent and legal advisor.
Cutting corners and dealing with untrustworthy individuals, often met in bars or cafes, can lead to problems.
It’s essential to follow the full legal process and never buy a property from someone you haven’t thoroughly vetted.
Find out about them on the internet: how long have they been in business, what reviews do they have on Google or maybe Facebook. It’s all relevant and can help you avoid costly mistakes.
To find the right property at the right price and to match your financial requirements, it’s important to seek out a professional estate agent with an office that’s open to the general public.
It’s a good idea to make contact with an agent that you consider to be the best option for you. No agent should be against having a phone call, a video call or a number of emails with you so that you can get to know them.
Be aware of the agent that wants to charge you for a video call or for viewing properties and who says he will rebate you these costs if you buy through them. Yes, it happens and it’s not a professional way to conduct business at all.
Maybe you’re already in Tenerife on holiday, it might be a good idea to schedule an appointment to meet in the agent’s office to discuss your needs.
A reputable agent will want to know your financial situation and requirements to help you find the best property.
Being open with them about your financial situation will save you both time and it will also save time for the sellers. It will also ensure you get shown the most suitable properties.
Try to avoid dealing with “one-man band” agents who lack an office and may only want to meet at a property or in a bar or hotel reception.
It’s better to stay away from these types of agents and seek out those with established businesses and years of experience in the industry. There are plenty of agents with offices and staff – the one man band is very often a high risk for buyers and sellers alike.
Furthermore, a professional agent should never pressure you into buying a property, but rather guide you through the process, answer any questions you have and show you a selection of suitable properties for you to buy.
Your agent should be able to help you with opening a bank account, applying for foreign identification numbers and recommending qualified legal advisors, furniture shops, cleaning companies, and tradesmen.
Overall, they should take care of the entire buying and selling process to ensure a smooth experience for you and, by following these tips and working with a professional estate agent, you can safely and confidently buy or sell a property in Tenerife.
Negotiating the price
Many people ask whether or not a property asking price is negotiable. Most sellers set a price that they expect to reduce slightly to facilitate the sale. Therefore, for the majority of times when you’re purchasing a property, it’s advisable to attempt to negotiate the price with the seller.
However, here at Signature.luxury, it’s important to ensure that the deal is fair for all parties involved. If you make an absurdly low offer, the seller may feel insulted and refuse to sell the property to you at all, so we need to tread carefully.
To make negotiations smoother, provide your agent with a price range that you’re willing to pay, so they can negotiate effectively on your behalf.
This approach can save you time and help you secure the property you want. Also if you’re able to complete the transaction quickly, the seller may be more inclined to lower the price.
It’s best to avoid the temptation to become too friendly with the seller and attempt to negotiate directly. Your estate agent has experience in negotiating and will act as an intermediary to remove personal emotions from the process.
Doing it this way, buyers can make offers and sellers can decline or accept in a way that doesn’t cause any upset to either party or cause any possibility of losing face and maybe losing the opportunity to purchase the property you want.
Your agent will leverage their experience to achieve the best possible outcome for both parties involved. Remember, negotiations should always result in a win/win situation for everyone.
Always use a lawyer
As important as it is to use a professional estate agent, it is just as crucial to have an independent legal advisor to guide you through the buying process.
Just as you would be strongly advised against purchasing a property in your home country without legal advice, the same holds true for buying property in Tenerife.
We always recommend visiting the legal advisor’s office for a free consultation to learn about their services and to ensure that they are fluent in your language to avoid any communication issues.
Your agent should be able to arrange this for you and should probably attend the first meeting, not only to introduce you to the lawyer, but also to confirm with the lawyer the property that’s being bought and any other specifics that might not be thought about by you at the time.
Having been in business a number of years, your estate agent may be able to recommend a reputable legal advisor.
Some agents suggest that you do not need a legal advisor and they will handle all the paperwork. If this happens, it is best to insist on using your own legal advisor or simply find an agent who uses an external, unbiased, legal advisor who will represent your interests.
The point is that, because they’re neutral, they represent you. If the agent disagrees with you procuring the services of an independent legal advisor, then it is probably best to simply not buy through that agent and seek out another.
Your legal advisor will ensure that the property you are purchasing is free of any outstanding debts, tenants, or legal issues. This is their job and it is of the utmost importance for you as a buyer to ensure that you’re buying the property safely.
They will also ensure that the property is registered with the land registry in the name of the people that are purporting to be the sellers, and also that all utility bills and local taxes are paid up to date.
It’s also important to have your legal advisor review all of the documents before you sign anything and have them explain them to you personally, in detail.
For us, a buyer finding a legal advisor is of such importance that, even if you’re not using us as your agency, and you can’t find a highly recommended advisor, please feel free to make contact with us here at Signature.luxury and we’ll point you in the right direction.
Part of buying a property in Spain is that you’re required to apply for an NIE number – this is a Número de Identificación de Extranjero which is a foreigner’s identification number.
Generally speaking, this is applied for at the national police station and can either be done by you, or with the help of your agent or legal advisor. Most agents or legal advisors will charge a small fee for the time involved but they will guide you through the process.
You’ll have to book an appointment with the police station online and then, at the designated date and time, you’ll have to present the forms and proofs of payment and ID documents that will be required from you. You’ll then be told to return about three or four days later to collect your new NIE.
If you are giving your agent or legal advisor a power of attorney to act for you, they can normally apply for your NIE on your behalf and, as such, it’ll be a lot easier for you. It may be an idea to ask them for advice on this matter.
Using a Power of Attorney to buy
Sometimes using a power of attorney can be a great option if the buyer or the seller won’t be available in person for the notary signing, so granting someone a power of attorney to act on your behalf can be the less expensive and easier option.
Clearly giving someone a power of attorney is a great responsibility, so it’s crucial that you know and, above all, trust the person to whom you are granting the power. Before doing so, it is recommended that you consult with a legal advisor.
If you’re buying a property, the power of attorney should be specific to the purchase of that property and you should not grant a general authority unless you are clear as to what that power of attorney can be used for.
Doing it this way will ensure that the person only has the power to act on your behalf in matters relating to that property purchase and nothing else.
The process of granting a power of attorney is simple and can be done at a notary’s office reasonably quickly, and, as mentioned earlier, is usually cost-effective as it can save you the expense of travelling back to Tenerife to sign the documents in person.
If you’re back in your home country and then find you can’t travel for whatever reason, a power of attorney can also be prepared and signed in the country where you reside. Doing it in your home country will require a special process and your legal advisor can explain that to you. It is more involved than doing it while you’re in Tenerife and will cost more, but if you’re unable to travel, then it’s likely to be the best option for you.
Private sales contract
To reserve a property that you want to buy, you’ll need to sign a private sales contract and pay a deposit of 10% of the purchase price, more on this later.
This contract will contain details of the property you plan to purchase along with the conditions of the sale. Your agent or legal advisor will prepare this document, and it will typically be signed by the vendors or their representative and the buyer or their representative.
It should be noted that if a representative is acting on the vendor’s behalf, it’s essential to verify that they have power of attorney to sign the contract, otherwise the contract will be made null and void. Your agent or legal representative will be able to check that the power of attorney is acceptable.
The private purchase contract will outline the terms and conditions of the sale, including the price, maximum timeline for signing, the date by which the reservation deposit must be paid and liability for costs.
It will also mention that the buyer is responsible for all expenses related to the buying of the property, and that the vendor must sell the property free of debt and tenants, as well as being up to date with all of their tax liabilities. All of this will be covered within the contract.
The typical timescale from signing the private sales agreement to completion at a notary is around 60 days, although this may be flexible depending on the buyer’s and seller’s situations but, whatever the situation, a mutually agreed date will be written into the contract and this will need to be adhered to.
Although a date will be agreed, this date will be an absolute maximum date by which the property deeds (escritura) will have to be signed at the notary. For example, the wording to be used should be something along the lines of “…to be signed at the notary on or before 31st August 1980” meaning that, if both parties are ready to execute the contract before the maximum date, then the operation can be carried out at the notary on a convenient date for all parties involved.
Once the deeds have been signed at the notary by the buyer and the seller, or their respective representatives, and the final payment has been made, the keys to the property will be handed over to the new owner.
Just as an aside, if you’re transferring funds from abroad, do ensure that the money arrives into the Spanish bank account that is due to make the payment to the seller in plenty of time before the signing date at the notary. Don’t wait until the last minute, as this could cause you to miss the signing date.
In fact, having said all of this, there is actually a legal allowance, for both buyer and seller, to have a fifteen-day period of grace after the passing of the maximum signing date. This is to resolve any unforeseen issues before completing the sale, but it’s to be used in emergencies only.
Paying your deposit
As mentioned previously, once you’ve found the property of your dreams you’ll need to pay a deposit.
A deposit, typically 10% of the agreed sale price, is required to secure the property and have it removed from the market.
This deposit is usually held in either your estate agent’s client account or, preferably, your legal advisor’s account.
It can also be kept safe at a public notary’s office, which will require additional paperwork as well as a fee. Get advice from your agent about this, if this is the way you want to proceed.
There is a case where the owner of the property you wish to buy can ask for the deposit to be paid into their own account. If you can avoid this, all the better, but if they are fiscally resident in Spain and have a Spanish bank account, it is a reasonable request. But if you have a good lawyer, hopefully the seller will accept that and allow the deposit to be paid into their client account.
It’s very important to understand that you must be absolutely sure that you can proceed with the sale because this deposit is non-refundable and you will lose it if you don’t go ahead with the purchase. It will be written into the contract and is Spanish Law that if the buyer doesn’t complete their side of the contract, the 10% deposit will be awarded to the seller as compensation. On the other hand, if the seller pulls out, you not only get your deposit back but you can apply for the same amount back as compensation too.
If this happens, legal action may be required, and your agent and legal advisor can provide you with more details on how this process works.
As you can see, this is one of the more important reasons that a legal representative or estate agent holds the 10% reservation deposit in the first place. It’s easier for you to get it back if things don’t go as planned.
While talking about the deposit, you ought to know as well that, when you sign the property deeds in front of the notary, you will be required to prove the source of all of the funds that you’ve used to pay for the property purchase, so it is advisable to transfer the deposit, and the rest of the funds for the sale, directly from your own bank account and not from a third-party account holder.
Signing the title deeds at the notary office
When purchasing a property, it is crucial to ensure that it has an escritura and that it is registered at the land registry office.
Your agent and legal advisor will verify these details for you.
On the day of the property transfer, the final payment must be made to the vendors and the keys to your new property will be given to you at the notary’s office.
Not only must you prove the source of your funds but you must also make the final payment through a banker’s draft or bank transfer. If the vendor has a mortgage on the property, a portion of the payment must be made directly to their bank to cancel it, your legal advisor can deal with that for you. Your legal advisor must also ensure that the mortgage cancellation is registered with the land registry, and the vendor must bear the cost of this.
Any outstanding debts of the vendor may be withheld from the funds the buyer pays them, again your agent and advisor will guide you if you have any doubts.
At the notary, your advisor and agent should be present with you, and the deeds must be accurately translated so that you understand exactly what you are signing.
On the day of the signing at the notary, you will need to provide your passports and NIE numbers. The notary will confirm your identity and that the information in the title deeds is correct before allowing you to sign.
The presence of the notary is to ensure that everything is done correctly and although the buyer is paying the notary’s invoice, the whole process protects the buyers and the sellers.
After signing the escritura, your legal advisor will register it in the land registry in your name. This process can take 30 to 45 days. Once completed, you will be able to collect an original copy of the title deeds and all invoices for any incurred expenses.
To assist you and your legal advisor in opening utility accounts and registering you with the town hall and other government departments, you may also request a photocopy (copia simple) of the title deeds on the day of the signing, which only takes around 15 minutes to be produced. Although not signed, it will be printed on headed notary paper and is exactly what’s needed for certain offices.
Extra fees and costs
When purchasing a property in Tenerife, it’s important to consider the additional costs that come along with the purchase price. These costs can amount to approximately 10% of the total purchase price, although the percentage may be slightly lower for higher-priced properties due to fixed fees and slightly higher if you’re using a mortgage to buy the property.
At the time of writing this document, there is a property transfer duty of 6.5% on property purchases, which is included in the estimated 10% extra costs previously mentioned.
Additionally, notary fees, land registry fees, and legal advisor fees must also be paid by the buyer, so it’s crucial to have the necessary funds available.
To avoid any surprises at the notary signing, it’s recommended to obtain a comprehensive breakdown of all costs from your agent or legal advisor prior to finalising the sale.
It’s also advisable to retain all receipts for the expenses incurred during the property purchase, as they may be used to offset any future profits when selling the property.
Your financial advisor can provide more information on this matter.
Opening a Spanish Bank account
As a property owner, it’s advisable to open a bank account. However, it is not obligatory, but there are some utility companies that will only accept payment from a bank account registered in Spain.
You don’t have to have an account to buy a property here, you don’t even have to have an account open on the date that you sign the property deeds at the notary, although you will have to have one shortly after so that your legal representative can set up your regular monthly payments. Having the account open will allow you to transfer the funds necessary to set up standing orders for utility bills such as water, rubbish, sewage, electric, property insurance, and local property rates.
Your agent or legal advisor can guide you through this process and even recommend a suitable bank.
Talking about choosing a bank, consider using one that has a branch close to your potential property so you can visit them in person if needed.
Choosing a bank with staff who speak your language and an easy-to-use online banking system in your language can also make the process smoother.
Clearly, it’s a personal decision that you must make for yourself but if you need advice, then we at Signature.luxury are here to help.
To open a Spanish bank account, you’ll need your passport or ID card and proof of your ability to open an account, as well as proof of income, and some banks expect you to prove that you’re paying tax in your home country, so showing your last tax bill will be necessary too.
The exact requirements will differ from bank to bank, so once you’ve made your choice of bank it’s best to discuss the requirements directly with the bank’s staff.
It’s obviously important to keep funds available in your Spanish bank account to ensure that essential bills are paid on time. A utility cutoff while you’re away can be an expensive and difficult problem to resolve.
Additionally, failing to pay local authority taxes on time can result in compounding interest charges, so it’s important to stay on top of your accounts.
Mortgages
If you’re going to require funding to buy your property in Tenerife, then it’ll be highly advisable to seek mortgage advice before embarking on your property search.
By doing this, you’ll have an idea of how much a bank will be willing to lend you, which will save you time when you find a property you like.
When obtaining a mortgage, the bank will evaluate the property and may lend you a percentage of the lower value between the sales price and the valuation. The percentage offered may vary depending on the bank, but if you’re a resident, you could receive up to 80%, while non-residents may receive up to 60%.
However, these percentages are examples and should be confirmed with your bank or mortgage advisor.
Failing to have a mortgage in place during your property search can result in losing the property you desire as many sellers are unwilling to wait for a buyer to apply for a mortgage, particularly if the market is fast-moving.
Additionally, having your funds in place puts you in a better position to negotiate a better sale price.
Therefore, it’s crucial to speak to your estate agent, bank or financial advisor and initiate the mortgage process before you start your property search.
It may be beneficial to apply for a mortgage in your home country to maybe release equity from a property there, thus making you a cash buyer, which would put you in a better position for buying.
Before applying for a mortgage, it’s vital to inquire about any early cancellation fees that may come as a surprise if you decide to pay off your mortgage early.
Making a Spanish Will
Discussing death may be uncomfortable for many people, but it is an inevitable part of life that we must all face.
As a property owner, it is important to prepare a Spanish will to protect your estate in Spain.
While some countries allow modifications to existing wills to include foreign properties, it is advisable to have a Spanish will covering any property that you own in Spain, therefore avoiding any future complications.
You can sign a Spanish will at the notary’s office, and it is a cost-effective solution. Consult your agent or legal advisor to assist you with the process.
Keep in mind that preparing a Spanish will is a necessary step to protect your estate in Spain.
Property Insurance
Clearly it’s essential to insure your property to protect against any damages or problems, particularly if you plan on leaving it unattended for any period of time.
However, if your property is part of a community or complex, it’s important to understand the insurance coverage you need.
Normally, a community or owner’s association manages communal areas and services such as cleaning and maintenance, and you’ll be required to pay community or service charges to cover these costs. While the community may have an insurance policy in place to cover communal areas, it usually does not cover any potential damage to your property or those that are connected to your property.
To properly protect your property, you’ll need to take out a separate insurance policy that covers both building and contents.
Something else you should consider, if you’re renting out your property, you may also need public liability insurance to protect against any accidents that may occur.
Your estate agent may be able to offer advice and recommend insurance companies, but it’s also a good idea to speak with local insurance agents who speak your language.
While it’s possible to purchase insurance online, sometimes it’s better to get face-to-face service with someone who speaks your language and understands your protection needs.
If you’re taking out a mortgage on your property, your bank may offer you insurance coverage and insist that you use their policy to protect the lender. However, you are free to choose your own insurance company and shop around for quotes. If your bank pressures you into using their insurance policy, it can be quite expensive, so it may be worthwhile to cancel it after the first year and switch to another provider.
Things to consider after the purchase
After purchasing a property, there are a few practical steps you can take to make life easier for yourself, especially if you plan to spend time away from your property.
Here are some tips to consider:
Key holder or management company: It’s wise to have a reliable key holder who can look after a set of keys for you in case of an emergency. Property management companies often offer this service at reasonable prices.
Building and maintenance company: Having the contact details of a trustworthy building and maintenance company is crucial for any repair work you might need. Your property management company can usually recommend a few options for you.
Cleaning company: Consider hiring a cleaning company to prepare your property for your arrival, so you don’t have to worry about cleaning every time you visit. Your property management company might also offer this service.
Online banking: Setting up online banking facilities from your bank while you’re in Tenerife is important so that you can access your accounts while you’re away. Some banks may require additional steps such as collecting a coordinate card in person or registering your mobile phone for confirmation codes.
Letting agency: If you’re planning to rent out your property, you may need to work with a letting agency for bookings and other matters. Do some research or ask your agent for recommendations. They will be happy to help.
