Moving to Mallorca – Spanish Rental Contracts

When renting a flat in Mallorca, there are some special requirements with renting contracts as well as some terms you should be aware off. We’re going to explain what to watch out for!

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Renting contracts in Spain – contract length

Before June 2013, the minimum rental contract length in Spain was 12 months, but with Spain’s new rental laws, it’s not just 6 months minimum. However, most landlords still prefer 12 months.

In case you need to leave your accommodation before mandatory period, the law states you owe one month rent per mandatory year of the contract which you have not completed. But remember that doesn’t’0t mean you have to pay until the end of the initial contract! If your landlord asks you to sign a contract with a longer mandatory period, try to negotiate it.

You should also be aware of the rental contract deadlines.

Landlords cannot get their property’s back within the first three years after signing a rental agreement with you. The only legally permitted exception is if there is an emergency which enforces the landlord to take it back. After this period, the contract is renewed automatically. After four years, the rental contract is terminated automatically.

There are also some unique features… some landlords want to have a guarantor or a whole years rent in advance. We recommend you not to consider that, but to go for a normal 12 month contract including a deposit of one to three months.

Terms you need to know when renting a flat in Spain

Gastos de comunidad (utilities): Depending on the landlord, utility expenses and community fees may or may not be included in the rent. Community fees generally cover the costs of the doorman, general maintenance and trash collection and sometimes one or more of the utilities. Just be sure to ask which items you will have to pay for individually.

Fianza (deposit): Most landlords ask for a security deposit equivalent to 1 or 2 months rent if the flat is furnished. If they ask for anything more it’s best to avoid it. You may be able to negotiate the conditions concerning the return date of the deposit or ask them to keep it rather than paying the last months rent. Naturally, it is preferable to get any additional agreement in writing.

Garantías (guarantees): As Spain’s legal system does not offer strong protection to property owners, it is very common for landlords to ask for additional guarantees. If you are working, a copy of your payslip (nómina) is requested as proof that your monthly salary exceeds the rent. If you are a student, they may ask for a letter from your school to certify you have the necessary means.

Aval bancario (bank guarantee): As a further guarantee, landlords sometimes request a bank guarantee. This is just a letter of credit from a Spanish bank guaranteeing that if you default on your obligations, the bank will pay whatever is owed for the remainder of the contract.

If you are aware of those specialties there should be no more obstacles for you to find a perfect flat in Mallorca!

If you are planing to relocate to Mallorca, keep on reading our series about how to move to Mallorca – part one about how to get you NIE number!

In our ezebee mallorca magazine we also keep you posted about Lifestyle on Mallorca, Business on the island and other important news for expats living on Mallorca!

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