Majorca Property News

Real Estate Spain: Long-term rentals in Mallorca and the Spanish rental law LAU

 

It was only amended in November 1994, the Spanish rental law (Ley de Arrendamiento Urbano - LAU) allowed for a development of the Spanish rental market. A let before that date, often resembled an expropriation of the owner. Many Spaniards are therefore compared with a rental of their property remain skeptical - especially so stand empty on the Spanish mainland, many homes.

It is therefore important to yourself before a long-term rentals in Mallorca some peculiarities in the Spanish rental law decide to know. AM Inmobiliaria y Promociones Real Estate Mallorca SL real estate here explains the main points:

Lease terms
A Spanish standard contract is for a period of one year
closed. It can - if the tenant is not this a
30-day period for its annual meeting announced - a year on
up to four additional years be extended. If after the expiry of the
total five-year lease, the landlord is not the contract also
terminate the contract is up to a maximum of three years
renewable. Then you need a new contract between the parties
be closed.
The mandatory renewal of the lease to a total of five years is
but not to apply to all homes. So-called
Luxury real estate can be excluded, and inform the parties
can freely determine the rental period. Also special clauses or choice
a seasonal lease may, under certain conditions,
which must be carefully examined, an automatic
Extension of the contract to prevent.

Rent deposits and guarantees
The Spanish rental law provides for rental of residential premises only
one months rent before. In practice, however, are usually two
Months' rent as security against damage to the property demanded.
For luxury properties, this amount may be much higher.
Interest on the amount is rather unusual. A "Abwohnen" of
Deposit in the last months of the rental period is the Spanish
Rental law not to. The Tenant hereby makes itself a punishable offense, and it even
can have serious consequences. However, the tenant is not
powerless, he was concerned that the security deposit from the landlord improperly
withheld. An attorney can provide the right assistance,
is then often a notary, under the prior notice when
Landlord, any outstanding rent payments deposited until the Parties
have agreed on a solution.
In many cases, the owners also Aval is (spanish
Bank guarantee) to cover the monthly rent of the
Tenant demand. For nonresidents, the History at any bank
demonstrate the local institutions can, it means that the relevant
Amount is frozen in the account. Only advantage of this procedure
is that the amount is interest. Since the establishment in
Creation Aval fee accrues monthly costs and this also
caused many tenants to agree to an advance payment of
Rent to avoid the costs and bureaucracy.
Often enough, a conciliation agreement, in addition to the lease
is closed to the contractual arrangements on both sides
to guarantee. With this settlement agreement, both parties agree
accept the verdict of a tribunal. That has a huge
Cost and time advantage, since the courts are at times very congested and
lost up to a trial date valuable time is. Important for
the tenant is that he has as much right to the benefits of
Claim to arbitration as the landlord.


Rent increase - reduction in rent
Unlike in many European countries see the Spanish rental law
Standard contracts just prior to the rent annually at the rate of inflation
To increase (IPC). This is held every year by the National Statistics Institute
published on the Internet and can be easily researched. The
Rent increases will require a written notice to the landlord.
A very big difference on the subject of
Rent reduction. The rent can only be reduced when a part
of the rented object can no longer be used. The rent may
then be reduced by the percentage surface portion - but only
after 21 Day and only with prior written notice.
If the renter to reduce the rent yet, he brings in a risk that
submitted the lease shall be terminated without notice, as it due to the
Mietminderung a gross breach of the contractual agreement
commits. If a prevailing shortage and the landlord, despite these
not resolve written request, then the meter must be a separate
Procedures apply to eliminate the defect.
Legal advice is
important here, and to recommend