Neighbour has rented out our property abroad without permission!

[unsurebut]

My father has a property in Spain. It's been in the family since the 70s as a holiday home. Until 3/4 years ago my father travelled there regularly and the place was occasionally used by other family. Then my father had a catastrophic stroke and wasn't able to travel for a while and the place wasn't used as much.

The neighbour there offered to keep an eye on the place in return for his family being able to stay there on the odd weekend/couple of weeks in the summer. He's a nice guy and has done a lot to modernise the property. My father then gave him permission to rent out the flat when it wasn't being used, again, for the odd weekend / couple of weeks in the summer, nothing permanent or long term and we were to be kept informed about who was staying there and when in advance of it being rented out.

Fast forward to this year and my father has recovered enough to travel. We've booked to go there in June, all very excited. My father emailed the neighbour, only to be told that it's not possible because he's rented the property out until January! Not only is this not permitted, we weren't even told! I am absolutely outraged and my father is very cross. He's emailed the neighbour to say that we will be arriving on said dates and that's non-negotiable, the neighbour has replied to say that he's away this week so will respond next week. Meanwhile, flights have been booked, all on the assumption that we were to be notified in advance of it being rented out.

There's communication between my father and the neighbour referring to the agreement, but no specific contract or anything, and the arrangement has worked well until now. I think what has happened is that the neighbour has become used to us not using it and has been renting it out far more than we were aware.

So what do we do now if he refuses to get the 'tenants' to leave?! Surely their contract with the neighbour is null and void because he doesn't have permission to rent it out on this basis? The neighbour DEFINITELY knows this.

AIBU to demand the people leave so we can use the flat as and when we want?

If it’s a holiday area with lots of ex pats there will be solicitors who speak English. My friend has just been over there dealing with legal stuff about parents house and he doesn’t speak Spanish.

Thank you, that's a really measured post. I agree with a lot but no, I don't think he's been upfront about money, I think he's probably scammed him out of 💶1000s.

Im just trying to figure this out, the neighbour, is a neighbour in Spain or in the UK?

He originally rented the property out himself and spent so much time there that he is now an ‘agent’ for your dad.

That makes me think he is from the UK? Is that correct?

Unless we know wether dad has been receiving regular income from the renting out of his property or not, this is hard to comment on.

Quite a relevant bit of info to omit from the post.
Everyone calling these tenants "squatters" Well, they're not are they, if they've rented it in good faith? How awful for them.
However, if dad has been getting an income?Then he's only himself to blame for the house not being available for your holiday.
Throwing tenants out just because you've decided on a jolly? Nope .
However. If dad has not received regular payment from the neighbour, then that's a completely different situation and I would be getting all of the legal advice I could.
This casual arrangement should never have happened in the first place. So to automatically go in with all guns blazing and fully blame the neighbour?
As I said though. Unless we know all the facts, can't really comment.

To be clear - and I hardly dare type this! - he doesn't receive regular rent payments via his bank account, the neighbour gives him a bundle of cash each time he's out there. So I presume he's not received anything for years?? And YES, I know how stupid that is but in my father's defence his stroke really was catastrophic - robbed him of his eyesight in one eye, half of his body is paralysed and he's permanently wheelchair bound. Unable to work any more, etc etc. There's been a lot going on.

No. It's even worse than that. I've just found out that the 'payment' gets made in the form of a bundle of cash whenever he's out there.

Oh dear lord. This is going to create an absolute nightmare if the authorities become involved then.

It might actually be the best initial course of action to just hope that they do leave in January and take back possession of the property then.

I agree with @AppropriateAdult . Nothing needs to happen this second.

Do you have POA for your dad?

If there’s no written arrangement it’s pretty straightforward - neighbour cannot let a house they don’t own. So this can all be resolved.

How has neighbour historically updated your dad regarding who is renting the home?

I think I would start with the following:

1- Get Spanish solicitor.

2- Scary legal letter to neighbour outlining your expectations (tenant leaves, you get full rental income disclosure and are paid rent within such and such days).

3- Less scary legal letter to tenant letting them know the situation, explaining the tenancy is not legal as owner wasn’t aware etc etc. Give legal/reasonable notice per Spanish law.

4- Get locks changed the second tenants leave.

Try not to panic yet. Nothing will be resolved in next few days, but that doesn’t mean it won’t be.

Compile all documentation/correspondance between dad & neighbour.

This does sound like neighbour has abused an arrangement, possibly thinking your dad wouldn’t return. Hopefully he will swiftly realise you aren’t backing down. I feel bad for tenant caught in middle but they do have a course of action to go after the neighbour.

Stay calm, don’t say/do anything rash.

Good luck.

So your Father is aware that the property is being rented if he is receiving the rental income

You have all been very naive and I actually feel sorry for the tenants

Quite a few posts advising "change the locks". May not be wise - this is from the squatters rights vs landlords link posted a couple of times up thread

Not quite the same but friends of the family had a huge house on the Spanish side of Gibraltar with an apartment block. They lived in England and the property was rented out and a woman handled it. When I went to stay with a friend I got one of the worst apartments but I rang the family friends who were really angry that I was fobbed off and I got a nicer apartment and after that the woman (who was English) was fired.

My DP’s have a holiday home in SW France, friends and family use it, we did suggest renting it out but by the sounds of this thread they’re right not to.

If the property has been rented out then there are supposed to be licences and the owner is supposed to do tax returns etc in Spain (I know because we own a property there that we rent out). I am going to assume this hasnt been done, which could be an issue for your father as well

Oh my God, that's horrendous for so many reasons. I'm so sorry.

I think you need to find a good Spanish solicitor and get this sorted out legally; you don't want to risk making things worse by not knowing the law. You may have to accept a degree of cutting your losses but that's worth it to be free of this mess.

I agree with this.

If he's been taking cash in hand payments for rentals with no paper trail at any point, let alone for years, then he can't pursue this legally without having admitted he's broken property laws himself. Presuming he hasn't been declaring and paying tax in Spain for the rental income?

Someone needs to get on a plane today and go over there, find a spanish interpreter if you spanish isnt fluent and sort this mess out. a verbal agreement is still an agreement in law. its your fathers word against the neighbours as to what was agreed. Dont leave this any longer now that you know. find a spanish solicitor and sort this out. In the meantime, you have to make sure this doesnt happen again and therefore you need powers of attorney. your dad has made some really unfortunate decisions and yes he has lost money but as he has been handling wodges of cash there are all sorts of implications on him for unpaid taxes insurances etc. this is serious and needs to be treated as such asap.

OP your posts dont make sense. First your DF was to ill to travel and hasnt for some time. Then when you tell us he actually gets rental income so is clearly aware of the agreement. You then shift and say actually not he just gets cash when he goes over. But surely he has never been over if he has been too ill to travel?

It does sound like you are knowingly aware that there are tenants but have decided as its your families property you are entitled to kick them out so you can holiday there for a week or so.

If the tenants are honest and understanding they may be happy to move out but I do feel sorry for them as it sounds like your DF was aware and happy with the setup its only now you want to go and take him you want them out. Appologies OP if thats not the case but thats how it reads to me. Poor tenants.

It could get worse for your dad.
My FIL got into trouble with HMRC for not declaring the income from the rent on an apartment he owned in Spain.
He thinks a disgruntled holiday let tenant reported him.
Hr had to pay back a lot of back tax.

I think your father could potentially be in a spot of bother here. He has been allowing a neighbour (could it be argued his property manager?) to rent out a property, presumably with no proper safety checks (like electrics/gas safe etc) and he has not declared the earnings for tax purposes.
Does your Father claim benefits and has he declared his income from this property? Or even that he owns the property as an asset?

This is exactly my point. Her father has no doubt broken the law in relation to income declared, paying taxes, making sure the property is safe and legal etc. Imagine being those poor tenants. its their home. they have no idea of the background shenanigans on this. This needs sorting out asap it really really does.

Good. He was evading tax.

If in Spain it is very difficult to get people to leave properties, even if they are squatters, it can take two years on average! I would play nice and try and get it sorted ASAP

This exactly!

I'm a bit confused. There was an agreement that the neighbour would do work on the property and rent it out while it was empty. Which he has done. This has been the agreement for 3-4 years.

Your father did not put a formal agreement in place, receives bundles of cash, and now would like to return to the property. Except the neighbour has rented out the property until January.

I realise this is inconvenient, and I do have sympathy with your father's health situation, but honestly it doesn't seem that the neighbour has done anything hugely wrong to me. He's acted as a property manager, as agreed. This is, unfortunately, on your father.

Would of been ideal for you to help with the property in Spain then? Instead of leaving him to deal with it.

All of this.

Unfortunately this is a much bigger problem than not being able to stay in the property for your holiday.

It sounds like your father has knowingly been renting this property without any of the proper checks or declaring the earnings for the last 4 years. Although more than likely longer than this, as he must have been renting it prior to the stroke if he has recieved bundles of cash in the past.

There's a huge can of worms being opened, and this could end up being a very costly process.

So how many years has this guy been "keeping an eye" on the property & renting it out?