Dissecting a Typical Spanish Rental Agreement
Posted: Wednesday, December 16, 2009
by David Brydon
BCN Rentals
If you've decided to move into a new property in Spain , you'll likely be asked to sign a rental agreement, or contract, and it's likely that this will be in Spanish, too. Here are the important things to know.
You've made the leap to move into a rental home or apartment in Spain and are ready to collect keys to your new home, but there's the small matter of signing your rental agreement first. It's estimated that almost 60% of rentals in Spain during 2009 were not declared for tax purposes, and this also means that most will not have had a contract. As the renter in the situation, it's always beneficial to have a legal document with the rights and details clearly displayed in case of any discrepancies especially if you're a foreigner. Here's what a typical document should contain.
The following part of the document is the legal jargon, and is often common sense, but in lawyer-speak. Things such as the tenants cannot sub-let the property, that the landlord rents the property with no outstanding bills or previous tenants, and it also stipulates the duration of the contract, which is normally either 1 year or 5 years, renewable. It is then normal to stipulate the monthly rental which will be deposited automatically by bank transfer into the landlord's account which will also be detailed.
It is commonplace for a month's rent to be given as a deposit, which will be returned to the tenant no later than one month after the contract has been terminated, and this deposit does not serve as a last month's rent although it is also common for this to happen if both parties agree to do so. This monthly rental can either be given in cash, or as a banker's guarantee, which often needs to be registered in the local authority's Institute of Living Quarters (Instituto de vivienda).
The bills and maintenance will either be charged directly to the tenant, or will be included in the monthly rental, being more common the former, and it is the tenant's obligation to maintain the living space in good repair. Any reparations which need to be carried out during the tenancy, apart from general wear and tear, will be charged to the tenant. Similarly, the tenant cannot modify or construct within the dwelling anything which will change the current status of the dwelling. Things such as painting, and decorating are normally exempt from this clause, but it is always best to ask permission for any kind of work which needs to be carried out.
The final parts of the contract relate to the registry of the document in the civil register, so that it becomes a legal document and the permission from the landlord for the tenant to register themselves as their official address for any further documents that may be needed for example, in council taxes, contracting of utility bills, etc. This last section also often details any increase annually of the rent, and how it would be calculated (by tax increases, and such). It is important to note any further clauses, such as the time needed by either party to terminate the contract, for example. The signing of the contract is in the best interest of both parties, and ensures the tenant will have legal backing in case of any possible problems. Also, the landlord is obliged to declare the rental for tax purposes, and if the tenant files tax returns in Spain , then this also figures for them, too.
David Brydon has been living in Barcelona, Spain for 10 years and writes for Luxury Barcelona Real Estate Agents Modus Vivendi, who have a wide portfolio of Loft Rentals in Barcelona too.
This Article has been viewed 289 times. (Not updated in real-time.)
No comments yet.We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.