Rental law in Mallorca - what's in the rental agreement and what you should pay attention to
The Spanish tenancy law is not particularly different from the legal requirements in other European countries.
Nevertheless, there are certain peculiarities for both tenants and landlords when it comes to long-term rentals in Mallorca
. to be observed
.The most important thing first: Before concluding a tenancy agreement, you should make sure that the provider of the accommodation is also the legal owner or has been authorized by the owner. In principle, it is advisable to put the rental agreement in writing in the interests of both parties. In addition to the terms – i.e. the rental price, term and notice periods – the personal details of the contracting parties and the details of the property should also be entered, recommends Elena Tameish from the law firm Gerboth & Partner in Palma. In addition, a valid energy certificate must be included.
Landlord pays for major maintenance work
Whether renting or letting - the Código Civil (Civil Code) and the Ley de Arrendamientos Urbanos (Tenancy Law) regulate tenancy agreements in Spanish. For example, the landlord must ensure that the property is habitable during the rental period and guarantee the associated maintenance. On the other hand, the tenant is obliged to make the property available for appropriate measures (Art .22 LAU) and otherwise to treat it „like a careful family man“ (Art .1555 CC). In plain language: The tenant is responsible for minor repairs caused by use or negligence, while major repairs such as a new heating system are the responsibility of the owner.
In Germany, it is common practice to reduce the rent on one's own initiative because of defects that have not been remedied, which has become a sport in some cases. Caution should also be exercised when making alterations: If you want to paint the fitted wardrobes pink or replace the floor coverings, the landlord's consent is required, as is for any planned subletting or interim letting.
Renting is not regulated by law
As a rule, a rental period of one year is provided for. After six months, the tenant can terminate the lease with 30 days' notice. If no notice is given, the rental agreement is automatically extended every year until a rental period of three years has been reached. After that, the contract is renewed, which usually entails an adjustment of the rent.
The amount of rent is not regulated by law and is freely negotiated between the contracting parties. Some landlords require an annual advance payment or proof of creditworthiness. If the landlord registers personal requirements, he can only enforce this after one year with a notice period of two months. However, he must then actually move in within the next three months. In addition, a tenancy agreement can also be entered in the land register – this protects the long-term tenant when the property is sold. In the event of a sale, the tenant has a right of first refusal within 30 days.Paying the rent alone is not enough – further costs are incurred when a tenancy agreement is concluded: The payment of a deposit, usually one or two months' rent, is stipulated by law and must be deposited by the owner in a public institution. At the end of the tenancy agreement, the tenant receives the sum back without interest within one month.The common practice of offsetting the deposit against the last rent payment is not permitted. Anyone renting the apartment through an estate agent also pays a commission, the amount of which is not regulated by law. However, it is usually one month's rent. Some agencies offer services over and above pure brokerage, such as registering with the energy supplier; a relief, especially if you are renting an apartment in Spain for the first time.
Can the landlord register „personal use“ at any time?
Yes. The right to own use no longer has to be stipulated in the contract. After the first year, the landlord can terminate the contract for owner occupation with at least two months' notice.
Can the landlord terminate prematurely?
The landlord can terminate as soon as one or more clauses of the tenancy agreement are not complied with, e.g. if the rent or other bills (electricity, water, gas, etc.) that the tenant has to pay are not paid on time.The landlord may terminate the tenancy agreement if, for example, the rent or other bills (electricity, water, gas, etc.) payable by the tenant are not paid, the deposit or its adjustment is not paid, the contract is sublet or assigned without the landlord's consent, the tenant carries out deliberate damage to the building, or structural work is carried out on the apartment that has not been approved by the authorities or the landlord.
Can the landlord increase the rent at will every year?
No. Rent increases during the first three years are based on the consumer price index (IPC).
The rent agreed in the contract may only be increased after three years or due to structural improvements to the rental property.
Which ancillary costs must be paid by the tenant?
All „operating costs“ of the rented property, taxes and charges are to be paid by the tenant. Taxes, charges such as waste disposal and the so-called IBI („Impuestos de bienes Inmuebles“ – property tax) may be passed on to the tenant in accordance with the new Spanish Tenancy Act.
What about the common charges in an apartment building?
The community costs (comunidad) must also be paid by the tenant. These costs are usually already included in the rent by the owner. Only the costs of utilities, such as electricity, water, gas, etc. are to be paid separately.
How long does an action for eviction take?If the tenant violates one or more clauses of the rental agreement, the landlord can apply to the court for an action for eviction. In contrast to previous years, actions for eviction are enforced within a relatively short time in Mallorca. Even in the case of an action for repossession, outstanding rents must be paid by the day the property is actually handed over, without the need for a further action for the claims.
If the tenant fails to appear at the court hearing of the action for eviction, the action shall be deemed to have been won and the tenant must vacate within thirty days without any further notice being required.
The presence of a single official is sufficient at an eviction hearing. The tenant will be asked to collect the items left behind; if they fail to do so, the items will become the property of the landlord.
