| The popularity of purchasing a buy-to-let property | | | | of each month. |
| along the coastal resort towns in Spain has lead | | | | Bill payments need to be clearly stated in the |
| to a variety of misunderstandings and general | | | | contract to ensure the obligations are understood. |
| confusion regarding the rights of owners and | | | | This will include water, electricity and any other |
| tenants. Understanding Spanish rental contracts | | | | bills relating to the use of the property. Bills such |
| can assist with both owners and tenants to know | | | | as community fees must be paid by the owner |
| the extent of their rights and obligations. | | | | of the property, unless it is clearly stated |
| The extensive number of English speaking expats | | | | otherwise in the rental contract. If the contract |
| along the coastal resort areas has lead many | | | | implies that the tenant is required to pay the |
| tenants and landlord creating contracts in English. It | | | | community fees, it is usually negotiable. |
| should be noted that difficulties may be faced | | | | References and Guarantees |
| when using an English language contract, especially | | | | Prior to entering into a rental contract, the owner |
| if any issues need to be bought to the attention | | | | of the property may request some references to |
| of lawyers or the courts. Requesting a Spanish | | | | ensure the person intending to rent their property |
| language contract is highly advisable and if the | | | | is of a good character. The owner may also ask |
| tenant or owner does not understand what is in | | | | for copies of employment contracts to ensure |
| the contract, going through the details with a | | | | the tenant is capable of paying the rent and bills |
| lawyer, hired translator or trusted friend fluent in | | | | for the term of the contract. While character |
| Spanish, will assist with full comprehension of the | | | | references are often overlooked, proof of |
| details. | | | | employment is often requested from potential |
| Details that all contracts need to cover include the | | | | long term rental tenants. |
| full names of the property owners and the | | | | Repairs |
| tenant, along with their identification numbers and | | | | All repairs to ensure the property is suitable for |
| the address of the property. The contract will also | | | | habitation are a necessary requirement of the |
| need to include the length of the agreement and | | | | owner. Any damages caused by the tenant during |
| the amount of the rental payments. There are | | | | their rental of the property are the responsibility |
| many other areas that both landlords and tenants | | | | of the tenant who is required to notify to the |
| should ensure are covered in the contracts to | | | | owner. The only time when the tenant is |
| avoid future issues, rather than agree upon | | | | permitted to carry out any repairs on the |
| verbally. In fact, verbal agreements tend to cause | | | | property is when they have prior consent from |
| the majority of problems which can be avoided | | | | the owner, when the repairs a minor or when |
| by considering everything that may affect each | | | | they are urgent. If the tenant is required to pay |
| party in the short and long term. | | | | for urgent repairs to the property, the payment |
| Understanding the content contained in Spanish | | | | must be refunded by the owner. |
| rental contracts can assist tenants to know their | | | | Subletting the Property |
| rights. Variations exist between long and short | | | | Subletting is only permissible with consent from |
| term contracts as the tenancy conditions are | | | | the owner of the property. Any rental income |
| distinctive. Although the law in Spain is | | | | obtained by subletting must be lower than the |
| predominantly pro-tenant, fewer rights are | | | | monthly amount stated in the original rental |
| provided to short term tenants in comparison to | | | | contract. |
| long term tenants. | | | | Selling the Property |
| Short Term Contracts | | | | If the owner of the property decides to place the |
| These contracts are most commonly used for | | | | property for sale during the course of a rental |
| holiday lettings for a number of weeks to a few | | | | contract, the tenants of the property have the |
| months. The short term contracts can be | | | | first refusal option for purchasing. If the tenant |
| renewed for up to a maximum of 1 year before | | | | refuses the option to purchase the property, they |
| the tenants are to be removed from the | | | | still maintain the rights to their current rental |
| property. Short term rentals are usually more | | | | contract. The contract cannot be terminated until |
| expensive, benefitting the owners, yet in some | | | | its original expiry term, meaning that although the |
| locations creating difficulties for tenants searching | | | | owner of the property may change, the tenant |
| for long term rentals during the summer months. | | | | maintains their original rights to reside. In the |
| Long Term Contracts | | | | event of the death of a tenant, the tenancy can |
| The length of a long term contract in Spain is | | | | be substituted for an immediate family member |
| normally for a renewable term of 11 months. | | | | until the termination of the contract. |
| These contracts are automatically renewable for | | | | Rescinding Contracts |
| up to 5 years, unless the owner of the property | | | | In the event of the property not being maintained |
| informs the tenant that the property will be | | | | to a habitable standard or if the landlord causes |
| required for personal use. At the end of the 5 | | | | disturbances, the tenant may cancel the contract. |
| year term, if the owner has not provided the | | | | The owner can cancel the contract in the event |
| tenant with one month’s prior notification to | | | | of non payment of rent, the deposit is not paid, |
| vacate the property, the contract is automatically | | | | when deliberate damage is caused to the |
| renewed for up to 3 years. Due to the rent | | | | property by the tenants, if repairs carried out |
| control laws in Spain, the payments can only | | | | without the landlord’s consent, or if the |
| changed to accommodate inflation and not at the | | | | tenants are a serious nuisance to neighbours. In |
| owner’s discretion. | | | | this case, the landlord is required to obtain a court |
| Deposits | | | | order through a lawyer to have the tenants |
| The deposits will be paid directly to the owner of | | | | evicted. As evictions can be time consuming in |
| the property upon signing the contract and is held | | | | Spain, carrying out correct vetting through |
| in lieu of damages and non payment of rent, to | | | | references and guarantees prior to singing |
| be returned at the termination of the contract. | | | | contracts is an important step. |
| According to the law for urban letting, deposits | | | | General Considerations |
| should be kept to a minimum, such as the | | | | Most rental contracts will be made in the real |
| equivalent of one month’s payment. If the | | | | estate agents office, where they will follow a |
| property is unfurnished, only one month’s | | | | basic template that can be negotiated to ensure |
| rent for the deposit can be requested, although | | | | that the tenant and owner come to full agree |
| for commercial and furnished properties, up to | | | | over the details it contains. The contract may be |
| two months can be requested. For the first five | | | | accompanied by an inventory of items belonging |
| years of a contract, the rent can be reviewed on | | | | to the property and will need to be checked by |
| an annual basis and these updates should be in | | | | the tenant and either the owner or the real |
| accordance with the variations of the Consumer | | | | estate agent to ensure the items are all correctly |
| Price Index. | | | | mentioned on the inventory prior to being signed. |
| Payments | | | | When renting a property through a real estate |
| When paying rentals, the owner is expected to | | | | agent, the company will act as an intermediary |
| provide a receipt for payment, unless the | | | | between the owner and tenant. Any issues |
| payments are made through direct bank | | | | relating to the rental contracts during the course |
| transfers. The monthly payments of rent should | | | | of the tenancy should be bought to attention at |
| be paid in accordance with the stipulations in the | | | | the earliest moment. Calmly discussing any issues |
| rental contract. The rental contract should clearly | | | | that have emerged will assist in a fast resolution |
| state the time frame of the due date for the | | | | and in maintaining a good ambience between the |
| payments, such as between the 1st and the 5th | | | | tenant, owner and representing agent. |