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Long Term Rental

Long term rentals in Spain

While holiday and short-term lets legally require a Tourist licence, long-term lets don’t. As a result, properties vary in quality and the descriptions vary in accuracy. Property portals that offer languages other than Spanish sometimes use automatic computer translations, so be sure to confirm that the key features exist when you view the property.

As in many European countries, Spanish properties are typically advertised with a monthly rent plus bills and a living space in square metres. The advert should also indicate whether the property is furnished, part furnished or unfurnished. However, as there are no clear standards for this, unfurnished properties may be completely bare, have no kitchen appliances, or include a few pieces of furniture left by the landlord. Likewise, furnished properties can be either comprehensive, including kitchen items, or very basic – so if you view the property while the previous tenant is still in residence, make sure you’re very clear about which pieces of furniture are staying. One option is to email the estate agent to confirm this, getting the answer in writing.

Since 1 June 2013, all properties for long-term lets (rather than holiday lets) are required to have an energy efficiency certificate. This will often help you spot houses that will be expensive to heat or which are older, as new properties will typically have a good energy rating.

Applying for a property in Spain

If going via an estate agent for a property, then expect to put down the first months rent, plus one month as a security deposit, some owners will ask the agent to add additional amounts as additional securoty which could be equivalent to one month’s rent or more. This is usually rolled into your deposit when the contract is signed and before moving in is complete.

You will typically be asked to provide:

  • Evidence of employment by a contract of employment
  • or your ability to pay the rent – proof of income, pension or other income
  • tax identification number (if you are working);
  • NIE number
  • photocopy of passport or ID;
  • personal references
  • proof of address, via a utility bill in your name

Tenancy agreement

In Spain, a tenancy agreement (contrato de arrendamiento) is valid whether verbal or written. Verbal contracts are generally a bad idea, particularly if you don’t speak the language fluently. Insist on having everything in writing so you ensure you fully understand what you’re signing. To break a contract, the lessee must give at least 30 days’ notice before the end date.

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 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 percent overall.

Typically, a contract will be for 12 months, renewed annually, and if you give notice to quit during this period, you will have to pay rent until the end of the contract. However, as of June 2013, this is no longer legally required – rental periods can be as little as six months followed by a rolling one month contract. Still, if you expect to have to leave suddenly and in a way that is out of your control – for example being recalled by your company – you should budget for this or have an escape clause written into the contract.

The full details of rental law in Spain are provided on the government website (in Spanish).

Cost of renting a home in Spain

The deposit is equivalent to a minimum of one, typically two months of rent and cannot be used to pay your rent. It should be held by a third party. The landlord cannot ask to be paid more than one month’s rent in advance, and payment is usually at the beginning of the month. The landlord may 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.

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. Utilities for a two bedroom apartment in Spain are typically around EUR 100–200 per month, depending on energy efficiency, usage and type of utilities. On top of this, there may be annual or monthly fees for maintenance of communal areas and local charges, such as garbage collection. Though, in most cases, these are paid by the Landlord. Services like, internet, Telephone and Sat TV are all at the expense of the Tenant.

Moving in and out

Tenants must maintain the property to a reasonable standard so it’s important to ensure that an inventory is done at the start of your tenancy and is accurate. In addition, it’s advisable to request an inspection two to four weeks before you actually leave, to give you time to put any quibbles right and thus regain as much of your deposit as possible. If you do this, you may be able to get the landlord to give you your deposit back when you return the keys. Otherwise, they have the right to keep it for one month. Any longer and they must pay interest on the funds.

Tenant’s rights

Spanish law is, at present, strongly pro-tenant, though there are changes in the pipeline to change this. It is difficult for a landlord to evict a tenant, even if they stop paying rent, as court proceedings are slow and rent must remain unpaid for an extended period before the landlord can arrange an eviction. In 2013, the period was reduced from six months to six weeks, making it easier for landlords to start the eviction process, although court cases tend to still be drawn out over several months.

Shutting off utilities, changing the locks or otherwise restricting the tenant’s use of the property is likely to be considered harassment, and landlords who do so may face a fine or a jail sentence. Landlords may even be charged with trespassing if they enter their own property without the permission of the tenant.

One concern for tenants in the current market is that the landlord may go bankrupt and the property be repossessed by the bank. In this case, the tenant continues to have the right to occupy the property as though it had been sold in the usual way. In practice, you will often be asked to leave by the former or new owner. You do not have to agree. If you are offered a financial settlement to encourage you to leave, you may accept it but you don’t have to.