Luxury property rental
Renting out properties in Mallorca is all the rage. Many customers are looking for that certain something and are opting for luxury offers. What makes them special: The alquileres suntuarios are not subject to the Spanish rental law LAU.
No one who wants to rent out their house or apartment long-term can avoid the Spanish rental law LAU. However, there are exceptions. Certain rental contracts do not fall within the scope of the LAU. These include vacation or seasonal rentals as well as luxury rentals. These must meet the following conditions:
- greater than 300 sqm
- monthly rent exceeds 5.5 times the average minimum wage (equivalent to EUR 6,416.70 per month in 2022)
If one of the above conditions already applies to the rental property, the LAU no longer applies.
Contractual freedom
This means that rental contracts for luxury properties are exclusively subject to the will of the parties, i.e. the written agreements between tenant and landlord. The reason for this is that the Spanish legislator presupposes that the landlord of luxury properties is either a prudent businessman or a prudent investor. This puts landlords in particular in a special position.
Alegal advice
He can set the deposit (fianza) completely freely. It is not uncommon for a full year's rent to be required in advance. A luxury rental contract can be terminated at any time with certain consequences. These consequences may include a contractual penalty, for example. Or a tenant may be held liable for all remaining rent in the event of early termination.
So if you want to rent a luxury property, you should seek legal advice in advance to understand the relevant contract and recognize pitfalls in good time.
