What Owners need to know about Long Term Letting

Long Term Rental, long term letting

Since 1 June 2013, all properties which are used for long term letting, rather than holiday lets, are required to have an energy efficiency certificate.

Contracts must be written in Spanish, with a proper inventory when rented fully furnished.

As standard, a tenant with a long term contract (more than one year) has the right to renew annually for three years, unless the landlord states after one year that they intend to occupy the property personally on a given date.  Two months’ notice to quit must be given to the Lessee.  The Landlord is permitted to increase the rent if improvements are made, as long as the increase meets certain standards and is less than 20% overall*

(*English translation for information purposes only)

Agents typically make the long term letting’s contract for 11 months in an attempt to overcome this rule – please note this doesn’t make a difference to the contract and the law still applies.

The deposit is equivalent to a minimum of one, typically two, months of rent and cannot be used to pay your rent. The deposit should be held by the Junta, which acts as protection for both parties. The landlord cannot ask to be paid more than one month’s rent in advance for a long term letting, and payment is usually at the beginning of the month.

The landlord can ask for a bank guarantee. This means that if the tenant fails to pay the rent, the landlord can apply directly to the Tenant’s bank for the funds.

The Landlord can also ask for references (both employer and from previous Landlords)

In addition to the rent, the tenant will be expected to pay for utilities and minor repairs due to wear and tear. This should be made clear in the contract.  As utility bills can be issued monthly, by-month or trimester, it is advisable to contract these service in the tenants name.  This again is a protection for the owners as it will prevent serial non-payers from contracting services again, without paying previous bills.

With regards to other monthly or annual fees for pool, garden maintenance etc. this must be included in the contract.

Thinking of renting?  Contact Marcia now…..

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