Hi
I run a rental business in the Mijas Costa area for long term lets. The rental market is still quite good as many people cannot afford to purchase anything at the moment. However before you purchase anything let me give you some advice from my own experience:
1 bed properties are very difficult to rent. There is not much demand for these properties as most people, even on their own, would like an additional bedroom for guests. Expect to get around 500 euros a month for a 1 bed - if you're lucky!
The problem with 2 bed properties is the amount available. There are so many 2 bed properties available for rent so people have a vast choice which drives the monthly rental price down. However if your property is of a high quality then you can demand more.
At the moment we have a property rented at the top of Calahonda in Las Palmeras for 900 euros a month. This is a very large 2 bed apartment which is beautifully furnished. We have previously rented another 2 bed for 750 euros in Calahonda. However we have also had properties in Riviera (2 beds) that have gone for 550 euros and 625 euros a month.
Calahonda is a very popular place but rental properties are harder to come by than somewhere like Riviera or Miraflores so prices are usually that little bit higher.
For a good idea on rental prices look at the Sur in English (available online)
"Selling "points on a rental property are:-
SKY TV - first thing all our english tenants ask is "does it have sky?". When you are looking to buy see if SKY can be installed. Alot of complex's have communal systems, some better than others. Miraflores do not allow satellite dishes and have their own system. However this only has around 10 channels. This is fine for a short term let but people who live here want more! We find it harder to rent a property here long term because of this. (it is also the same for spanish and german tv).
Storage rooms - always a good selling point as people seem to have so much stuff!
Internet/telephone - Some places it is very hard to get a telephone connection/ADSL. I was recently told by telefonica in Calahonda that getting a phone line in any property past the toll road was extremely difficult - at least a 6 month waiting list! When you're buying check to see if you can get a phone line and don't just take the agents word for it but ring telefonica and they should be able to tell you.
Air-con - this is a good selling point.
Furnished properties rent much easier than un-furnished but it is imperative that the property looks nice. Keep in neutral and clutter free. Also ground floors seem quite popular as many people have children and/or pets but ensure it has good security such as shutters or rejas (security grills). Miraflores do not allow pets. People also like to be close to shops etc. Parking is also a big priority for alot of people, ideally a garage space or at least a gated community with ample parking. Complex's in Calahonda which are quite popular are Medina del Zoco, Calahonda Golf and Gran Calahonda. Also the Jardines de Calahonda area is beautiful.
Long term contracts are for 11 months. It can be hard to get a 6 month winter let.
Obviously alot of these points would also apply if you intend to rent short term. There are many sites available where you can advertise the property directly. You would however need a cleaner, point of contact etc in Spain. Many companies will say that they can rent your property for X amount of weeks per year however this is not always the case. Before we moved to Spain we used to rent out our apartment short term and only achieved 6-8 weeks a year. Also by the time you deducted cleaning and laundry costs it wasn't a huge amount of profit.
Whatever your long term plans are remember that problems do occur with properties whilst they are rented so it is important that you always have funds available to cover unexpected additional costs. Common problems we have experienced are electrical items breaking, damp and blocked drains.
Hope this helps and good luck. If you have any other questions please do not hesitate to ask.