Investing in holiday rental property in Mijas Costa can be highly rewarding, but only when it is done with the right knowledge and preparation. Keith from Target Property Spain, a local real estate specialist on the Costa del Sol, regularly works with expat and international investors and sees the same costly mistakes repeated time and time again.
Understanding these common errors before purchasing can make the difference between a profitable investment and a stressful, underperforming asset.
Below are the top three mistakes investors make when buying holiday rentals in Mijas Costa, and how to avoid them.
1. Buying for Personal Taste Instead of Rental Demand
One of the most common mistakes investors make is choosing a property based on personal preference rather than what holiday renters actually want.
While a buyer may love a unique layout, bold design, or secluded location, holidaymakers typically prioritise convenience. Proximity to the beach, restaurants, transport links, parking, communal pools, and easy access are far more important for short-term rental success.
Successful holiday rental investments are driven by occupancy rates and guest appeal, not emotional buying decisions. Investors who focus on renter demand from the outset typically enjoy higher booking levels and more consistent income throughout the year.
2. Underestimating Running Costs and Ongoing Expenses
Another major mistake is failing to calculate the true cost of owning and operating a holiday rental property in Spain.
Beyond the purchase price, investors must factor in:
- Community fees
- Utilities such as electricity and water
- Property management and cleaning
- Insurance
- Local taxes and rental-related costs
When these expenses are overlooked, projected returns can quickly disappear. Experienced investors in Mijas Costa always calculate net returns, not just gross rental income, before committing to a purchase.
Understanding the full financial picture ensures the investment remains profitable and sustainable over the long term.
3. Ignoring Rental Licences and Local Regulations
Holiday rental regulations in Spain, and particularly in Andalusia, are an area many investors misunderstand or ignore altogether.
In Mijas Costa, short-term rentals require the correct licences, insurance, and compliance with both regional laws and individual community rules. Some urbanisations restrict or prohibit holiday rentals entirely.
Failing to verify these details before purchasing can result in fines, legal issues, or being unable to rent the property at all.
Working with local professionals who understand current regulations is essential to protecting both rental income and the long-term value of the investment.
Investing Smarter in Mijas Costa
Holiday rental property investment in Mijas Costa remains a strong opportunity for expat and international buyers, but success depends on making informed decisions from the very beginning.
Avoiding these three mistakes allows investors to:
- Maximise rental income
- Reduce risk and stress
- Protect resale value
- Enjoy a smoother ownership experience
Keith from Target Property Spain specialises in helping investors identify properties that perform well as holiday rentals while remaining compliant with local laws.
For personalised advice or to discuss investment opportunities in Mijas Costa, readers are encouraged to Contact us to speak directly with a local expert.