Long term rental Mallorca – all about the Spanish rental law
For many, the question arises whether they should buy or rent a property such as a finca (country house) on Mallorca. The reasons for such considerations in connection with a property search on Mallorca can be varied: first of all, there is a large group that considers its base to be on Mallorca, but is still not certain of its decision and wants to ” try Mallorca for a while” and without a great investment risk.
Others have sold their property on Mallorca after many years in order to return to their country of origin “with their children and grandchildren” but still want a foothold on Mallorca. There are others who, whilst building their own home on Mallorca, do not want to stay in a hotel for more than one year, but prefer to rent a house or apartment to feel more at home.
Minkner & Partner: real estate agent Mallorca
Minkner & Partner has also been working in the rental market on Mallorca for many years, especially in the particularly popular southwest area of the island. If you want to rent a house or apartment on Mallorca you are in good hands with Minkner & Partner and the following information should underline our commitment “Legal tips for the long-term rental of a property in Mallorca”.
Long term rental Mallorca - Seasonal rental contract vs. long-term rental
First of all, we would like to clarify some matters: Most of the rental agreements drawn up in Spain are subject to the statutory provisions of the LAU Lease Law. Art. 2 LAU accepts a housing lease if the purpose of the contract is primarily to provide the tenant with permanent housing (first residence).
Seasonal leases and leases of commercial premises also fall into this category. The distinction between a several month seasonal lease (also known as a non-resident contract) and a long-term lease, often seems difficult but it is not: A seasonal lease is always the case when the tenant has, and maintains his first residence elsewhere, and the reason for the specified time limit appears in the contract (e.g seasonal work contract, educational visit, rental awaiting completion of own house).
The details of a seasonal rental agreement may be negotiated individually between the parties (for example, waiver of periods of notice and obligation to pay the rent until the agreed end of the contract) because the legislature does not see any increased need for protection of the tenant in this form of contract.
Long-term rental Mallorca - contract period
Minkner & Partner does not deal with holiday rentals, but only with seasonal leases and long-term rentals with a contract for at least 6 months, and usually for a year. The rental parties are free to agree on the duration of the contract, and it is usually for a period of 1 year. However, the contract is automatically renewed, if requested by the tenant, for a further 1 year up to a maximum of 3 years. Another plus for the tenant is that once at least 6 months have passed, he can unilaterally terminate the contract with a period of notice of 30 days. In the contract however, a claim for damages from the landlord can be included. The landlord can only unilaterally terminate the contract before the three years are up if he needs the property for himself or close relatives (children, parents, siblings) and needs to give a period of notice of 2 months and the tenant must have been renting the property for at least 1 year.
The rent may be freely agreed between the contracting parties. Agreed rent increases take effect at the end of each year to the following year. The deposit is one to two months’ rent. Generally speaking interest is not paid on the deposit. The landlord may also require additional surety. A reduction of the rent due to defects in the leased property is not recognised by Spanish law, the lessee can only claim against the landlord for damages. If the tenant chooses to reduce the rent, he creates a reason for termination of the contract.
Purchase breaks the rental agreement
In German law we know the principle "purchase does not affect the rental", i.e. in the case of a sale of the property, the buyer enters into all rights and obligations under the lease instead of the previous owner/lessor and has no right of termination. Spanish law is different: provided that the lease has not been entered in the property register by a notarial deed, the new owner may request the tenant to leave the property within a reasonable period of time.
If you are interested in a long-term rental of a house or apartment on Mallorca, please contact our rental expert Oscar Chuctaya (971 - 671 250).