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August 08, 2009 - Posted By (Admin) in (Home Staging)
Posted by Lynsay Doel in cooperation with Home Exposure Marbella
Renting Property in Spain
This section is a detailed and up-to-date guide to the important aspects of renting a home in Spain.
When moving to a new country, there are many new adjustments that you need to make and it can seem overwhelming. A key step in feeling at home in a foreign country is organizing a suitable place to stay: a space to call your own. Every country has its own accepted practices when it comes to finding accommodation or arranging a rental contract: without information, it is easy to be daunted when you need to find a place to stay.
This guide includes information on types of accommodation available, finding accommodation, understanding rental contracts and formalities when moving to Spain.
The conditions of the property market are liable to fluctuate at any time and prices can rise or fall from month to month; there is no substitute for doing your own careful research when you are moving to Spain. However, living in another country, whether for work, education or personal reasons is always a challenge, and we aim to assist you in one of the most important areas of setting up your life in Spain: finding a place to live.
If you wish to live in Spain, you will need to ensure that you are legally entitled to do so. Citizens of the European Union are able to move to other EU countries unrestricted, as long as they are able to support themselves financially. If you are not an EU citizen but wish to live in Spain you may need a visa.
EU Citizens
If you are an EU citizen, you are entitled to live and work in Spain. Upon arrival you will need to present a passport or an ID card to prove your identity. If you will be staying for more than three months, you are required to register at the Central Registration Office for Foreigners (the 'Registro Central de extranjeros'), located in your local immigration bureau. If there is no immigration bureau in your area, you are able to register at the police station.
Non-EU Citizens
If you are not a citizen of an EU country, you will need a visa to live, work or study in Spain. Your spouse and any dependants will also need visas if they wish to accompany you. These visas are available at Spanish consulates around the world. You will need to apply for a visa before travelling to Spain, and usually in person to prove your identity. There are different types of visa, including ones for business, study and tourism. For each visa you will require documents to prove the purpose of your trip.
The European Union / the EU
The European Union represents the political and economic unification of its twenty-seven member States. Each member must abide by certain rules and conditions to continue to qualify as an EU state. One of the main benefits of the EU is that it enables free movement of its citizens from one member state to another. This means, for example, that a British citizen is free to live and work in Spain.
Understanding the Rental Contract
When you rent a property you will be required to sign a rental contract. This details the terms and conditions of the rental agreement and protects the rights of both the landlord and the tenant. Failure to comply with the conditions or obligations set out in the contract will typically result in problems, and even the start of legal proceedings.
It is important to read the rental contract thoroughly before signing it! The rental contract gives details of the property in which you are allowed to stay, and the rent you will pay to the landlord in exchange. The property may include furniture, a garage, storage rooms or other features. The contract will detail the agreement reached between tenant and landlord and specify any obligations that apply.
In Spain, a rental contract does not need to be an official document, although if you wish it can be drawn up before a notary and registered with the Land Registry. It is important however that the rental contract is a formal, written document agreed on by both landlord and tenant: this avoids any future misunderstandings. The contract should also be in accordance with the Urban Leases Act; a model of the standard rental contract is easily available, typically stocked by tobacconists, which outlines the basic details of the agreement.
It is important to ensure that you are given a written contract to read and sign. Should you have a disagreement with your landlord it will be very difficult to defend your rights without a written agreement to which both parties can refer?
The rental contract should include:
Date and place where contract is created and signed
Details of the landlord
Details of the tenant
Details of property being rented, including location, size and layout
Length of the rental term
Rent payable to landlord by tenant
Signature of both landlord and tenant
The rental term may be any length up to five years. When the agreed term is shorter, the tenant can extend the contract to last five years if they wish to do so. If they choose not to extend the term they must give at least one month's notice that they do wish to terminate the contract as agreed. After five years, the rental agreement can be further extended for terms of up to three years.
The tenant is required to pay rent to the landlord in exchange for living at the property. The rent can be negotiated by both parties, and will usually be paid in the last or the first week of the month. The landlord should send the tenant a receipt to show that the rent has been paid, in order to avoid any future disagreements. Once the initial rental term is over, the rent will typically be renegotiated to take increases in inflation into account. Some landlords will increase rent annually, after the initial rental term, in line with the Consumer Price Index (CPI).
Repairs on the property are the landlord's responsibility, and will typically be done once the rental term has come to an end. Should urgent repairs be necessary, the landlord must inform the tenant in advance that there will be building work; if this disruption lasts longer than twenty days the landlord must reduce the rent that month. The tenant can make small repairs, especially if these are needed to fix damage caused by general wear and tear. Should the tenant wish to make large-scale alterations to the property, they will need the landlord's consent.
Other Costs
In addition to paying the rent, a rental agreement will typically result in other costs. Before moving into the property you will be required to pay the landlord a security deposit, and during your tenancy you will be expected to pay utility bills for the services you use such as gas, water and electricity.
Security deposit
The tenant is legally required to pay the landlord at least one month's rent as a security deposit, before they move into the property. This money acts as insurance for the landlord: in the case of damage to the property or breach of contract, the landlord is entitled to keep this deposit as compensation. If there are no problems during the rental term, the landlord must return this security deposit to the tenant when they move out. After five years, the value of this security deposit can be increased in line with the Consumer Price Index (CPI) (and the tenant must pay the difference), to counteract the effects of inflation.
Service Costs
As a general rule, expenses related to the building itself (including property maintenance and property tax) must be paid by the landlord. Individual service costs such as water, electricity, gas, telephone and internet must be paid by the tenant. If you share an apartment with other people, these service costs will either be included in your monthly rent or you will be expected to contribute to communal bills. It is important that you check with the landlord as to which service costs are included in your rent, if any. If you are required to pay all service costs extra, ask for an estimate of these costs to help you plan your financial outgoings.
Termination of the Rental Contract
It is possible that at some point either the landlord or the tenant will wish to cancel the rental contract. There is a set protocol to follow if you wish to end a rental agreement. You will usually be able to find details of the procedure that you need to follow in the terms and conditions of your rental contract.
Cancellation by the tenant
The tenant is legally entitled to terminate the rental contract if the contract has a term of five years or more. Cancellation is possible when:
The rental term was five years or longer
The tenant gives the landlord at least two months' notice that they wish to cancel the agreement
You may find that you are required to pay the landlord a penalty fee to end the contract ahead of time, if there is a clause to this effect in the contract. This may be as much as one month's rent for each year that the contract still has to run.
The tenant is also entitled to terminate the contract if:
The landlord refuses to make necessary repairs to the property
The landlord disturbs the tenant on a regular basis without good reason
Should a tenant wish to cancel the rental agreement but a co-tenant wish to continue living in the property, this is possible as long as the tenants have been living together for at least two years. If one tenant moves out of the property without notifying the landlord, the other tenants must tell the landlord within one month.
Cancellation by the landlord
The landlord is entitled to suspend the rental contract if the tenant fails to comply with the agreed terms and conditions. Common causes of suspension include:
Failure to pay the rent
Subletting the property without the landlord's consent
Making changes to the property without the landlord's consent
Causing large-scale damage to the property
It may be that at some time during the rental term, special circumstances arise which affect your tenancy. These might include: sale of the property, subrogation (substitution of one person for another), transfer of the lease or subletting of the property.
Sale of rental property
If a landlord wishes to sell a property which is currently rented out to a tenant, they are required to first give the tenant a chance to buy the property. The tenant has a maximum of thirty days in which to make their decision. If the landlord goes on to offer the property for sale at a lower price than the tenant was quoted, or fails to inform the tenant of the details of the sale, the sale of the property can be cancelled. Whoever buys the property also acquires the rights and obligations of the previous landlord. They are required to act as a landlord until the end of the agreed rental term. Once the contract has run for five years or more, the new landlord is then entitled to terminate the rental agreement, in line with the terms and conditions of the contract.
Subrogation
Subrogation is the replacement of one person by another in the rental contract. Both landlord and tenant can subrogate; the new landlord or tenant inherits the rights and obligations of the previous one. Landlord subrogation occurs when the current landlord sells or transfers his interest in the property to another person. The new owner must abide by the terms of any existing rental agreements until their rental term ends. Tenant subrogation may occur in several situations:
Death of tenant: the tenant's spouse or civil partner, their children or dependants can subrogate and become the new tenant. Whoever subrogates the previous tenant must have lived with him/her for at least the past two years.
Separation or divorce of tenant: a spouse who had been living with the tenant for at least the past two years, or who was living with their children, can subrogate. He/she must inform the landlord within two months.
If several people would theoretically be entitled to subrogate, the spouse has precedence, followed by the civil partner and then any children. If the tenant's parents are seventy years old or older, they have precedence to subrogate above anyone else: even the tenant's spouse. If no one is eligible to subrogate, or those who are do not wish to do so, the rental contract will be cancelled automatically.
Transfer of lease
The rental contract can be transferred if the tenant agrees that a third party can replace them in the contract and inherit their agreed rights and obligations. The former tenant is removed from the contract, and the new tenant is written in. However, it is not possible for the rental contract to be transferred unless the landlord's written consent has been obtained.
Subletting
If the tenant wishes to rent the property out to a third person, perhaps for a period of time when they will be out of town, this is known as subletting. The rent paid to the tenant by the subtenant cannot exceed that paid to the landlord. Subletting is usually only possible for short periods of time, and the written consent of the landlord is required. If the rental contract between landlord and tenant comes to an end, the contract between tenant and subtenant also ends.
In Spain there is no compulsory rental or home insurance. You are required only to follow the terms and conditions of your rental contract, and abide by the typical rights and responsibilities of a landlord or tenant laid out in the 'Ley de Arrendamientos urbanos': urban rental law.
There are some optional insurance available, which will protect the building or the contents of the rental property. You may wish to consider purchasing contents insurance to protect your belongings, but the landlord will usually have an insurance policy to cover the building itself. Contents insurance covers your possessions in the event of damage, fire, flood or theft.
Personal liability insurance is also available, covering you in the event that you injure a member of the public, or damage their property. Check with the landlord to ascertain whether or not they have insurance, and if so, what exactly is covered by the policy; you may find that your possessions are already covered and there is no need to purchase an extra insurance.
It is a good idea to check with friends or colleagues whether they have purchased insurances, and if so, which ones. You may find that certain insurance providers offer cheap deals for students, or for those staying in Spain for a short time. Make sure that you compare policies and prices to find the best deal.
Tips for Successful Rental
When you decide to move to another country, there are many important considerations. One of the most important aspects of settling into your new life is finding suitable accommodation. It can be bewildering, but there are several things to consider before renting a property:
Decide what kind of accommodation you are looking for: do you want to share the property with others? Where do you want to live? How much can you afford to pay? Developing clear ideas helps to speed up the property search, so long as you remember to be flexible and consider properties that do not match all of your requirements.
Ascertain whether or not you are entitled to state support with rental costs.
If you wish for a third party to search for a property on your behalf, ensure that the fee you will pay is fixed and agreed on in advance.
Once you have found the perfect home, check that any relevant documents are in order, including licenses, certificates and the rental contract.
Verify that the characteristics of the building correspond with those described in the rental contract.
Read the rental contract carefully and ensure that you understand your rights and your obligations.
Request a receipt from the landlord to prove that you have paid the security deposit, and monthly receipts to confirm that you have paid the rent.
Resolving Problems and Lodging Complaints
If you have difficulty finding a place to rent in Spain, or need assistance when you have already rented a property, there are several places to turn to. In order to enable an advisor to help you, make sure that you have as much useful information and documentation as possible, before requesting assistance. The following organisations are available for help and guidance:
Contact the Consumer Protection Office, 'Oficina del consumidor', an institution that deals with violations of consumer rights. They can assist with problems arising from rent increases, but not with complaints related to evictions or disagreements between landlords and tenants.
Contact FACUA, the Federation of Consumers in Action, a non-governmental and non-profit organization that actively fights for the rights of consumers.
Hire a lawyer and press charges against the other party. Any lawsuit related to a rental contract will be conducted according to the usual civil proceedings. Cases requesting eviction, or termination of the contract for missed rental payments, will usually result in an oral trial. Oral trials can be cancelled if the tenant pays their debt and the landlord retracts their demand for eviction. However, the tenant will not be able to stop the trial if he is a repeated offender.
To avoid problems, the best option is to encourage good communication with the landlord, and ensure that the terms and conditions of the rental contract are clear. Make sure that the contract contains detailed clauses describing the rights and obligations of both landlord and tenant. If there is a disagreement which goes to court this rental contract will be used to settle the dispute.
