If you are holidaying in Playa Blanca you will probably notice various Estate Agents offering Apartments for sale at Sun Park with the inducement of a guaranteed rental income.

Sun Park is a very nice and well maintained complex, however, if you are tempted to buy an apartment, be very cautious in respect to the guaranteed rental income schemes, which seem to be good to be true.

We bought an apartment in 2007 at Sun Park from Paul Carroll of Ultimate Holmes, with just such a guaranteed rental income. However, the guarantee proved to be worthless, as in April 2007, Paul Carroll disappeared, as did Ultimate Homes, and we have not received a penny of rental income.

When we finally managed to make contact with the Director of the Sun Park Senor Pedro Coll, he denied all knowledge of any guaranteed rental scheme, despite the hotel accommodating guests in our apartment!.

Therefore if you are buying an apartment, make sure you use an independent Spanish lawyer, and an Independent translator, and find out who will be paying you the guaranteed rental income, and whether they have the financial means to be able to pay you the rental income promised

I would hope the guaranteed rental incomes offered by Atlantico Homes, Cactus, and Volcanoe Estates are genuine, however, I suspect that once the initial three year term expires, whilst you can enter a further rental scheme known as the Community of Exploitation, there will be no guarantee in respect to the rental income. The terms of the Community of Exploitation are that you will recieve a percentage of the profits equal to the number of the apartments you own at the end of the financial year and a voucher for a fortnights stay at Sun Park Self Catering. If you do not join the Community of Exploitation, then you can not let the Apartments yourself, and will have to pay for Electricity, Water, Local Government Rates, and a Community fee of 88 Euro per month.

I am not saying do not buy an apartment at Sun Park, but just be sure you know what you are getting yourself into.

Once the guaranteed rental contact expires, and you have to join community of exploitation if you want to rent the apartment out legally to tourists, the return you will expect to receive for a year is just under 2000 Euro, however, that is before the Community of Exploitation pays the Community Charge, Electricity, Water and local taxes, leaving you with nothing but a tax bill to the Spanish Government on 2000 Euro! So if you need the rental income from the property to pay the mortgage you will be in big trouble.

I realise that this is an old post (it was at the top thanks to spam).

Surely any "Guaranteed" rental scheme involved in a property purchase is simply the (real) price of the property plus three years income? So all you are doing is giving the seller/agent three years rental income in advance, which they are going to give back to slowly (if you are lucky, and they don't wind up the operation or disappear in the meantime).

That's what it looks like to me anyway.