Reform of the Spanish rental law LAU shall enter into force this summer.

The reform of the Spanish rental law provides numerous changes for both long term rentals and for vacation rentals in Majorca.

To revive the rental market, the government has adopted a rental reform end of May 2012. The reform of the Spanish rental law (LAU), which will come into force this summer, includes a lot of new provisions those strengthen the rights of the landlord. Thus, the duration of a lease obligation is reduced from five to three years. The automatic renewal of the contract, the date was three years melts to one year.

Regardless of the duration of the contract the tenant may terminate at any time in the future. The notice period is one month. The landlord may make personal use submits the necessary but must announce two months earlier. Until now had to be held captive in a contractual arrangement.

The tenant has only a further period of 10 days to pay the rent. Rent increases, which so far were based on the rate of inflation, are now freely negotiated between the tenant and landlord.

The tourism framework law adopted last year provides for the reform of the Spanish rental law (LAU) the regulation of vacation rentals in the future is entirely up to the regions. The regional government of the Balearic viewed Holiday Apartments in contrast to LAU as unfair competition on hotels.

Approved for vacation rentals are therefore only detached houses (villas), row houses or granny flats. And for this there are strict criteria that are not easily met in any case. For apartments in multi-family houses, however nothing can be done. Unlike hotel-like apartment complexes, they cannot be registered.

The Tourism Framework Act, the application procedure for granting the license for vacation rentals significantly simplified and made more transparent. The relevant application forms we provide at the end of the article to download. Must be submitted by the applicant or a specialist appointed also ID copies and tax identification number (NIE) of the owner, copy of land registry entry, proof of payment of property tax (IBI) as well as plans or sketch to rent property with further information on the texture.

The Spanish rental has been a loophole, since it allows the daily rental. But as the holiday rentals in the future should be up to the regions, landlords can no longer rely on the LAU.

The fines will be raised with the new law by around 30 percent, as the Ministry confirmed. In the bill, the chapter on inspections and penalties extend over 13 pages, in severe cases, therefore threaten up to 400,000 euros fine. According to the Ministry, a total of 15 inspectors ready - but these are also responsible for other tourist accommodations. In the industry, it is estimated that up to 90 percent of the vacation rental companies have no official license