More and more owners are offering their property for rent in Mallorca. Regardless of whether it's a short or long-term rental: You should follow a few tips in order to fulfill your new role as a landlord without any worries.
As beautiful as your property may be, a so-called certificate of habitability (cédula de habitabilidad) is mandatory in Spain before renting it out. It not only states whether the property can actually be rented out, but also shows how many people or beds it is suitable for.
License to occupy
With a valid certificate of habitability, you can be sure that your property meets the necessary requirements for letting. Above all, the document also represents a form of security: If the tenant leaves your property in a poor condition, you will have proof of its original condition.
Everything in view
An inventory list of your property is closely linked to the certificate of habitability. Make a note of all the items that are included in the property and that you are renting out. This list is attached to the rental agreement and is used to claim any damage to the relevant items when you move out. The pure overview can be supplemented with photos.
Regulate additional costs
Create clarity about the service charge regulations. As the landlord, you can remain the contractual partner of the basic supplier for water, electricity, gas etc.. Then you take over the costs and pass them on to the tenant. An alternative is to provide the tenant's bank details to the utilities company so that the amounts due can be debited from there.
Other cost regulations
The landlord and tenant should come to a contractual agreement in advance regarding the payment of property tax and the service charge. The arrangement must be recorded in the tenancy agreement. Bear in mind that, depending on your status as a landlord, you may be liable for non-resident tax, regardless of whether the property is rented out or not.
Think about prohibition clauses
The tenancy agreement should also include any prohibition clauses, such as a ban on keeping pets. A subletting clause is often forgotten. However, this is important to ensure that the tenant does not simply sublet your property to third parties for full or partial use.
Insert the tenant
In many cases, the tenant requires a cashier to pay the rent. The rental agreement must stipulate that the tenant pays the rent for the entire duration of the rental agreement - even in the event that the agreement is extended beyond the originally agreed term.
Designing the deposit
Long-term rental contracts require a statutory deposit of one month's rent. For short-term contracts, this is two months' rent. Other forms of security are also possible in order to obtain a guarantee. There is freedom of contract here, but it must be within the statutory amount of the deposit.
Communication and deadlines
To ensure communication between landlord and tenant, you should include an email contact in the rental agreement.
The Spanish Tenancy Act (LAU) contains clear deadlines for tenancy agreements. These concern, for example, the basic fulfillment of the contract, the minimum rental period or the rental payments.
Tax benefits for landlords
As a landlord, you can deduct rental income from your taxes. Up to 60 percent is possible. Deductible are expenses for improving the property, such as new household appliances, property tax (IBI) or even mill charges.
Marc Fischer
