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View Full Version : Laws & Regulations Legalising a long-let car hire business - simple advice wanted



atlantico
26-06-2013, 10:08
we all know that there are plenty of private car rental businesses on the island, renting out 'their own cars' on a monthly basis for about €250-300 a month.

If anyone wanted to legalise such a business that had about 8-12 cars, whats the legal implications ?

a basic 1,2,3 point list would suffice, ie

1. Insurance
2. Taxation
3.

CIM
26-06-2013, 11:12
I´ve often wondered the same... I have a website that used to rank well for car rentals here which I was leasing to someone on a monthly basis. Did get me thinking about how legitimate this type of business is. I know there are lots of rules about having new cars, fleet size etc but these businesses are generally renting/leasing monthly rather than weekly so could be different.
Are you thinking of taking one on?

LUCKY
26-06-2013, 11:26
we all know that there are plenty of private car rental businesses on the island, renting out 'their own cars' on a monthly basis for about €250-300 a month.

If anyone wanted to legalise such a business that had about 8-12 cars, whats the legal implications ?

a basic 1,2,3 point list would suffice, ie

1. Insurance
2. Taxation
3.

Why not get intouch with this gentleman he may be able to assist you
http://www.tenerifeforum.org/tenerife-forum/showthread.php?26568-A-great-opportunity-up-and-all-ready-running-business

atlantico
26-06-2013, 11:33
he don't know, as he's selling private cars out on 'private rentals' which isn't legal, in respect to insurance anyway

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so far I've found one forum that said a licence will only be issued for a minimum of 10 cars - mainland Spain though

casabonny
26-06-2013, 16:16
The minimum legal amount of cars is as you say Atlantico 10 is 10, this used to be 20 but reduced a few years back.Tha cars must not be any more than seven years old and must be legally registered as a rent a car (alquiler sin conductor.)
You must have premises to store said cars , proper insurance for a rent a car fleet,private insurance does not cover hire and reward.You also need an opening license and what is required for this will vary, although not much, from one municipality to another.
That's a brief overview.

atlantico
26-06-2013, 17:07
thanks. I've been told now that if you want 10 cars, you have to have at least 15 parking spaces and it has to be on commercial property (not in your apartment garage ! Lol )

Wonder how so many 'private' rental 'companies' get away with having up to 50-70 cars and not being legal ! Surely someone at Trafico will notice your name on that many cars paperwork !

Is the 'under 7 years old' rule applicable to short term rental and long term rental. Many people have them on a monthly basis on an never ending contract

casabonny
26-06-2013, 19:12
It is irrelevant whether it is long or short term rentals the same rules apply.
Until someone makes a stand against these illegal rents then they will continue.Many legal rent a car companies have made reports to APECA and the police but it still goes on.
the big worry is that if there is an accident with fatal or life threatening injuries the insurers can ( and are quite within their rights to do so) not accept the claim as the vehicle was not been used in accordance with the terms and conditions of the insurance.
would you want to take that chance either as a renter or the person renting them out? Both would be in serious trouble and judges do not take this kind of thing lightly.

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Part of the problem with the illegals is that often. Cars are not in their name hence any fines go to the old owner and if they loose the odd one and cannot get it back they have probably been paid for it. Three times or more over so it's no real loss .