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.

Langzeitmiete Mallorca

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”.

Excerpt of current offers – long term rental:

Bedrooms: 2 Bathrooms: 2 Living Area: 150 m²
Bedrooms: 2 Bathrooms: 2 Living Area: 150 m² Terrace: 78 m² Heating: Central Heating
Bedrooms: 4 Bathrooms: 2 Plot Size: 700 m² Living Area: 198 m²
Bedrooms: 4 Bathrooms: 2 Plot Size: 700 m² Living Area: 198 m² Heating: Central Heating
Bedrooms: 4 Bathrooms: 2 Living Area: 200 m²
Bedrooms: 4 Bathrooms: 2 Living Area: 200 m² Terrace: 320 m²
Bedrooms: 4 Bathrooms: 2 Living Area: 140 m²
Bedrooms: 4 Bathrooms: 2 Living Area: 140 m² Terrace: 24 m² Built in: 1994
Bedrooms: 3 Bathrooms: 2
Bedrooms: 3 Bathrooms: 2 Terrace: 15 m² Built in: 2017
Bedrooms: 2 Bathrooms: 1 Living Area: 100 m²
Bedrooms: 2 Bathrooms: 1 Living Area: 100 m² Terrace: 12 m² Built in: 2006
Bedrooms: 8 Bathrooms: 8 Plot Size: 4.500 m² Living Area: 2.043 m²
Bedrooms: 8 Bathrooms: 8 Plot Size: 4.500 m² Living Area: 2.043 m²
Bedrooms: 5 Bathrooms: 5 Plot Size: 6.527 m² Living Area: 1.646 m²
Bedrooms: 5 Bathrooms: 5 Plot Size: 6.527 m² Living Area: 1.646 m² Heating: Underfloor Heating
Bedrooms: 6 Bathrooms: 8 Plot Size: 2.700 m² Living Area: 1.028 m²
Bedrooms: 6 Bathrooms: 8 Plot Size: 2.700 m² Living Area: 1.028 m² Terrace: 400 m² Heating: Underfloor Heating
Bedrooms: 8 Bathrooms: 9 Plot Size: 3.000 m² Living Area: 1.500 m²
Bedrooms: 8 Bathrooms: 9 Plot Size: 3.000 m² Living Area: 1.500 m² Heating: Underfloor Heating Built in: 2013
Bedrooms: 9 Bathrooms: 9 Plot Size: 1.950 m² Living Area: 1.060 m²
Bedrooms: 9 Bathrooms: 9 Plot Size: 1.950 m² Living Area: 1.060 m² Heating: Underfloor Heating Built in: 2012
Bedrooms: 4 Bathrooms: 5 Plot Size: 1.864 m² Living Area: 713 m²
Bedrooms: 4 Bathrooms: 5 Plot Size: 1.864 m² Living Area: 713 m² Heating: Underfloor Heating Built in: 2002
Bedrooms: 6 Bathrooms: 6 Plot Size: 2.362 m² Living Area: 953 m²
Bedrooms: 6 Bathrooms: 6 Plot Size: 2.362 m² Living Area: 953 m² Heating: Underfloor Heating Built in: 2018
Bedrooms: 8 Bathrooms: 8 Plot Size: 3.250 m² Living Area: 1.501 m²
Bedrooms: 8 Bathrooms: 8 Plot Size: 3.250 m² Living Area: 1.501 m²
Bedrooms: 8 Bathrooms: 9 Living Area: 882 m²
Bedrooms: 8 Bathrooms: 9 Living Area: 882 m² Terrace: 23 m² Built in: 1900

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.

Rent

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).