The Process of Renting Property in Spain

Unlike some parts of the world, a tenancy agreement between a potential tenant and a homeowner can be binding either if written or only an oral agreement sealed with a handshake. Of course, generally speaking, an oral agreement may not be the best idea, especially when arriving in Spain, unless you are already a fluent speaker, there can be a great deal of misunderstanding. On the other hand, having a rental agreement (in Spain a contrato de arrendamiento) is a written contract that spells out exactly what each party’s responsibilities and rights are and the terms of rental payment. As in many countries, at least a 30-day notice should be given before returning the owner’s keys.

In most cases, if you rent on a one year or more basis, you as the tenant, have the right to renew annually for three years unless the owner chooses to personally occupy the dwelling on a given date. In this case, the lessee must be given at least a 60-day notice.

If at any time, the owner makes any improvements on the property, an increase in rent may also be implemented, although there are certain standards regarding this that must be met.

Normally, in Spain, a rental contract will be for one year and renewed each year. In this case, notice to move would include your having to continue to pay rent until the end of the rental period. However, in June of 2013, a new law changed this requirement and rental periods can be for only six months and further followed by a 30-day month-to-month contract. It may still be a good idea to include any possible extra expenses in your budget in the event that you have to leave before the end of a rental period. Sometimes it is possible to have an escape clause incorporated into the rental agreement.

Rental Prices in Spain

This varies greatly from town to town. For example, a property in the resort of Javea, will cost on average 500€ for a two bedroom apartment, but a similar size property just 20km inland will cost up to 200€ less. Prices depend on how close you are to the sea, major cities and earning potential in the area.

In Spain, a security deposit is normally one or to month’s rent and, as in most rental situations worldwide, cannot be used to pay your rent. In Spain, a third party normally holds it. The property owner cannot require more than one month’s rent in advance and it must normally be paid on the first of each month. Many property owners in Spain will require a bank guarantee, particularly when you are a foreigner. In this case, failing to pay your rent as agreed allows the property owner to apply to your bank for recovery of the monies owed.

The tenant normally pays utilities and minor repairs. This however, should be spelled out in the rental agreement. In Spain, utilities for bedroom apartment may run around 50€to as much as 150€ per month. There may also be annual or monthly fees for common area maintenance and other charges such as garbage collection.

Renting for a Short Term

Temporary rentals such as a rental for less than one year or even shorter-term holiday rents are strictly regulated in Spain and property owners must have a license for this type of rental business.

Since Spain is a very popular destination for holidays, properties of all prices and categories abound. Prices too can vary greatly. Of course, during high seasons rental prices may increase somewhat and it must be remembered that renting on a short term basis means that you must vacate the property promptly because others may be waiting to move in.

Moving in or Out of Your Rental

It is incumbent on tenants to care for the property reasonably and the new tenant should, together with the property owner, carefully inventory the property and sign off on its condition. A good move also is to have the property owner inspect the property a few weeks before you move out which allows time for any questions or problems to be resolved rather than waiting until the last minute. Done in this fashion, you may be able to have your deposit returned upon rendering the keys. Failing to do this could cause you to have to wait at least a month. If the proprietor holds onto your deposit longer than 30 days, he must pay interest.

Rights of a Tenant in Spain

In Spain, as in many parts of the modern world, the law is heavily weighted in favor of tenants. For a property owner to evict a tenant, even for non-payment of rent, the owner must begin court proceedings, this can be slow, and during the wait, the tenant no longer has to pay rent until the court allows the landlord to proceed with the eviction. Presently the property owner may start the eviction process in as little as six weeks, but the process can still drag on for long periods.

Unfortunately, any action taken by the landlord, such as shutting off utilities, changing locks or restricting in any way the tenant’s use of the property is considered harassment and the property owner could actually face a fine or even a jail sentence. A property owner can be charged with trespassing for entering a property without the tenant’s permission

The only real concern tenants may want to bear in mind is that if the property owner should default on the mortgage, the bank may foreclose. While theoretically, you have the right to remain on the property until it is sold, you may be asked to leave early by the new owner. You do not have to agree, however, and may be able to hold out for a financial incentive to encourage your imminent departure. You don’t have to accept the offer, but often that is the best way to conclude a rental.