7 Mistakes property owners make when renting out their home on the Costa del Sol (and how to avoid them)

Owning a property on the Costa del Sol opens the door to one of the most profitable short-term rental markets in Europe. But with high returns come high expectations — and many owners unintentionally lose money (and peace of mind) because of avoidable mistakes. In this article, we’ll uncover the most common pitfalls and how to prevent them, so your property becomes a safe, profitable investment.

1. Using low-quality photos

First impressions are everything. In a competitive market like Marbella, Estepona, and Benahavís, listings with poor-quality photos get significantly fewer clicks.Professional real estate photography can increase booking rates by up to 40%, especially when combined with home staging that highlights your property’s best features - sea views, terraces, or modern interiors.

2. Setting the wrong price

Pricing is both an art and a science. Many owners set a fixed rate all year long, missing out on peak-season profits or discouraging bookings in low season.A data-driven approach - adjusting prices weekly based on demand, events, and competitor analysis - can dramatically increase annual occupancy and yield.

3. Ignoring legal requirements

The Costa del Sol has strict regulations for short-term rentals. Without the proper tourist licence (Vivienda con Fines Turísticos), insurance, and registration with the Junta de Andalucía, you risk fines and even removal from platforms like Airbnb or Booking.com. A professional agency ensures your property is 100% compliant.

4. Slow or inconsistent guest communication

In today’s fast-paced travel market, guests expect instant replies.Delayed responses can result in lost bookings - or worse, bad reviews. Agencies with a dedicated booking team ensure inquiries are answered in minutes, maximising conversion and guest satisfaction.

5. Neglecting preventative maintenance

A dripping tap or a faulty air conditioning unit may seem minor, but left unattended, these issues can lead to costly repairs and unhappy guests. Regular inspections and preventative maintenance plans protect your investment and reputation.

6. Skipping a solid rental agreement

Many owners rely solely on platform terms and conditions, which is risky. A customised rental agreement protects you from property damage, noise complaints, and potential legal disputes. A professional agency prepares clear, enforceable contracts for every booking.

7. Trying to manage everything alone

Managing a short-term rental isn’t just posting a listing. It’s a full-time business - from pricing and marketing to check-ins, cleaning, guest communication, and legal compliance. Without professional support, owners often experience burnout and lower profitability.

Why professional management matters

The Costa del Sol is one of Europe’s most competitive rental markets. Partnering with a trusted agency like Ela Homes means:

• Optimised occupancy and rates

• Legal compliance

• Hassle-free management

• A curated approach with fewer properties to ensure maximum care

  
  

Ready to maximise your property’s potential?

Avoiding these 7 mistakes is just the first step. At Ela Homes, we specialise in premium property management for short and long-term rentals in Marbella, Estepona, and Benahavís - offering a personalised approach that delivers results.

Contact us for a free rental potential evaluation or explore our exclusive property management services on our website.