Renting in Mallorca. Your decision has been made! Mallorca will become the centre of your life! A long-term rental is a good alternative to get to know the living on the island. It is great in order to possibly decide in the second step for a real estate purchase. Or in general, only renting is an option for you.
You are the owner of a property on Mallorca and are considering renting it out? This ensures that the property is used and maintained. It is also a wonderful option as an additional source of income.
What has to be considered in the rental contract?
At CCC Real Estate we draw up rental contracts in accordance with Spanish tenancy law. This is regulated in the rental law “Ley de arrandamientos urbanas” (LAU for short). Your ad-vantage, with us you will get the tenancy agreement in your language: Spanish, German or English.
Contract duration for long-term rentals
In principle, the duration of a long-term tenancy agreement can be freely agreed upon by both parties. However, the tenant has the unilateral right to extend the contract for a further year after the first year of the contract has expired. This is possible up to a total of five years. After the expiry of the fifth year, the landlord has the right to terminate the tenancy. Or he can agree on a new tenancy agreement with the current tenant.
Rent and additional costs
In Spain, the rent can be set at any level, there are no legal requirements. The settlement of additional costs and taxes is determined individually by the owner. Costs such as house pay-ments and property tax are usually borne by the landlord. Others include these costs directly in the rent.
The personal consumption of electricity, water, gas and the annual waste disposal charges are usually borne by the tenant as extra costs.
A clear regulation in the tenancy agreement as to who bears which costs ensures a pleasant tenancy relationship.
Termination
After the first six months of the tenancy agreement, the tenant always has the right to termi-nate the tenancy agreement unilaterally. He has to observe the agreed period of notice. The law provides a notice period of at least 30 days. However, the tenancy agreement may stipu-late that the tenant has to pay compensation to the landlord if the tenancy agreement is ter-minated prematurely.
The landlord, on the other hand, has the right to terminate the tenancy at any time after the end of the first year of the contract due to direct personal need (family in the first degree). He must be able to justify this adequately and notify the tenant at least 2 months before the date on which he will need the property.
Both parties also have the right to terminate the tenancy agreement without notice if certain conditions are met (e.g. non-payment of rent/deposit, landlord refuses to carry out repairs).
Deposit and other security payments
In Spain, and also in Mallorca, it is normally customary for the tenant to pay a security deposit of one month’s rent to the landlord when entering into a tenancy agreement, as a guarantee that he will fulfil his obligations of the tenancy agreement and to be liable for any damage to the property. The landlord is further entitled to demand additional guarantees. After the end of the tenancy agreement, the landlord has 30 days under Spanish tenancy law to inspect the property before returning the deposit
Would you like to tackle renting in Mallorca? Then feel free to contact us!