Majorca Property News

Long term rentals Mallorca: Minimum requirements for the Spanish rental contract on long-term rental

In his article 2 of the LAU, the legislature defined the concept of housing rent. Accordingly, there is a housing rental agreement if a contract is concluded for a habitable building whose primary purpose is to serve the tenants as a permanent residence. The rules on housing rent also apply only if they are rented together with the dwelling place for the furniture, storage rooms, garage, in rented rooms or other outbuildings, however.
1. Form of the lease
The lease is basically free form, i.e. it can be verbal. For reasons of legal certainty, this will still be made in writing. Each Contracting Party may insist on a written lease.
2. Contents of the lease
Generally in the Spanish rental law freedom of contract. However, the mandatory rules are respected by the Spanish lease law on bail and writing of the contract. The contract with respect to the housing rent is regulated in the LAU, the law allows for detailed contents of a different agreement.
a) Parties
Landlord of a dwelling may be any natural or legal person. As a tenant in housing rent only any natural person shall be eligible. In addition, people are majorities (tenant in an apartment, couples, partners) party to a lease.
b) Description of the rental property
The rented dwelling must be designated in the contract detail (street, number, square meters, gate, apartment number, etc.), the register number should be shown so the dwelling can be precisely identified.
c) The amount and payment of rent
The rent is negotiable. The parties may also agree any of payment (daily, weekly, monthly, etc.).
If the parties have not agreed is that the rent be paid monthly in advance within the first 7 days of the month must. Be lacking in the contract a provision of payment of rent, is that the rent be paid in cash and in rented accommodation must, where the landlord is obliged to give the tenant a receipt.
d) Deposit
The payment of a cash deposit of one month's rent is mandatory. In many cases, a payment is agreed to two months' rent, especially if it is a furnished apartment. During the first five years of the contract period, the deposit is not adapted. The parties may negotiate the adaptation of the bail.
The deposit must be the tenant on termination of the lease will be returned. If the landlord retains a month after these keys, in addition to falling interest.
In addition, the landlord has the option to require additional security. Nowadays it is common that the owner requires a bank guarantee for an amount equivalent to several months' rent. He wants to ensure the payment of all rent and any repairs.
e) Adaptation and increase the rent
There is no legal requirement to adjust the rent. The law gives the owner only agreed to the possibility of this. In the first five years of the contract period, the landlord can make the adjustment only once a year. Here, the valid during the previous year, rent is adjusted by the percentage by which has the consumer price index (IPC) during the twelve months preceding the adjustment changed. The reference month is the first adaptation of this one in which the index published prior to closing, and for subsequent adjustments to that in which the last-used index was published.
From the sixth year of the contract period is complete freedom of contract regarding the arrangements for the adjustment of the rent. Failing such agreement, subject to the same rules as for contracts with up to five years duration.
f) costs
In Spain, subject to the charges, the "general expenses" (gastos generales) and the "individual performance" (servicios individuales). In general the cost is the cost of maintaining the building, charges for waste collection, expenditure for the gardener, the cost of maintenance of a swimming pool, cost of insurance, etc., where it is in contrast to individual performance power , is gas and water costs, the consumption by each individual meters can be read.
often discussed the possibility of passing on the payment of annual property tax (impuesto sobre bienes inmuebles, IBI) on the tenant. For tenancies that have been closed until May 1985, is that the property tax can only be passed on to the tenant unless otherwise agreed between the parties. For tenancies starting from 01.01.1995 is that the property tax can be passed on to tenants, which are then explicitly stated in the lease must.
The agreed rent may include the amount for the costs or are reported separately in the contract. For buildings which are subject to the condominium law, the charges correspond to the percentage share of the cost of the homeowners association. In other buildings, the costs are calculated according t has o the living space. The imposition of charges to the tenant is only possible if this been expressly agreed in the lease Sun In the absence of such written agreement, the tenant must not pay the costs.