MALLORCA ACCOMMODATION

Please read the following Information in relation to you rental contract before signing your contract.

1. Rental contract

1.1. Legal provisions

The following provisions shall be contained in the rental contract:

Details of landlord and tenant

Description of the property

The contract term

Amount of rent and payment terms

Any other legal provisions that the parties agree

1.2. The contract time period

Both parties agree the term for which the property will be rented. You may rent the property for a long or a short term. The distinction is very important as Spanish law provides with less rights to short-term tenants

1.2.1. Short term rental contracts

Short-term rental contracts (contrato de arrendamiento de temporada) require that the tenant vacate the property when the contract ends. This type of contract is normally used for short term letting.

The short-term condition must be specified in the contract, which duration may run for up to 1 year.

1.2.2. Long-term rental contracts

You can settle a long-term rental contract, which duration exceeds 1 year.

If the contract does not exceed 5 years duration, it will be renewed automatically upon its expiration for periods of 1 up to a 5 years term, unless the tenant is not willing to renew it. The landlord is obliged to accept these renewals, except when he had previously stated in the contract that he needs to recover the property for his own use before running the 5-year period.

After the 5 years' term, the owner may rescind the contract, provided that he had given the tenant

30 days' notice before the end of the contract, otherwise the contract will be automatically renewed for 3 years, unless the tenant refuse this renewal.

When the contract does not provide its duration, rental contract will run for 1 year.

2. The deposit

Upon signature of the rental contract, tenants are required to pay the landlord a deposit (fianza) equal to 1 month rents or in some cases 2 months’ rent, payment, in order to guarantee that the property will be returned to the owner in the same state as before the occupation.

This deposit cannot be used to pay the rent to the landlord.

This deposit will be returned as the tenant moves out, assuming that the property is in good conditions.

After 5 years of rental contract, rental increase will require an increase of the deposit.

3. The rent

The amount of rent is agreed between both parties. Normally rent is monthly paid within a period of 5 days of the opening date of the contract, or by agreement by both parties on or before the first of the month if you have occupied the property in the middle of one month and paid a percentage of that month’s rental amount at the opening of the contract.

On no account must the landlord ask for more than 1 month rent to be paid in advance. Payments should be made as stated in the contract.

Tenant shall receive a written receipt justifying that the rent has been paid, unless it is accredited by other means; e.g. proof of payment through bank transfer. Make sure you get these receipts or any proof of payment as these constitute an implicit contract. (Please keep any details of transfers which you have made and always either give the address of the property or the reference number when making a transfer or deposit)

During the first 5 years of a long term contract, rent will be increased or reduced according to the consumer price (inflation) index (Índice de precios al Consumo - IPC). After that period, rent will increase according to what both parties agreed when signing the contract.

4. About the expenses

Although expenses produced for daily use of the property, such as community fees, or real estate tax (IBI), must be paid by the landlord, tenants may be required to pay them when it had been expressly agreed by both parties in the rental contract.

Tenants must pay gas, electricity and telephone bills, or any other outstanding bills unless otherwise is agreed. If you are renting for a period of less than 6 months, information about meter reading on the date that the contract is opened is recorded in the contract, and you will receive a copy of a bill from the property as proof that the details record are applicable to the property which you are renting and a copy of any calculations made from the reading.

5. Inventory

Tenants will be required to sign an inventory of the property contents (furnishing, fixtures and fittings…) and the state of them.

It is important to check this carefully, as every item outlined on the list shall be returned when you move out in the same order as listed, otherwise you will lose your deposit, unless there are conditions in which this is not possible, damage from fire or water for example, not coursed by either the tenant of landlords actions, in which case, both parties will agree a suitable course of action to return the property to the landlord.

6. Repairs in the house

The landlord must make all necessary repairs to keep the property in a fit and habitable condition; however landlord is not responsible for repairing any damage caused by the tenant.

Tenant shall make those small repairs on account of the property daily use.

Urgent maintenance repairs may be undertaken by the tenant in order to avoid serious and immediate damages in the property, these must be made previous notice to the landlord, repair costs will be returned to tenant.

The landlord must give the tenant three-months notice of the landlord's intent to undertake repairs affecting to health, hygiene and comfort in the property. In this case tenant may renounce the rental contract within 1 month from the notice. If the tenant decides to stay, he may get a reduced rental rate in relation to the dwelling rooms that cannot be used because of the repairs.

These are only general guidelines, should a situation arise in which the tenant is unable to occupy the property for safety reason or lack of basic amenities, water, or power, the landlord will provide assistance to the tenant in the short term at a rate of no more than the monthly rental amount ÷ 30 days, for up to 10 days, after which, by mutual agreement between the tenant and the landlord, all or part of the deposit will be returned and the contract closed.

7. Having the rental contract rescinded

a) The landlord may rescind the rental contract when the tenant:

Does not pay the rent or deposit.

Rent the property to a third party without the landlord's consent.

Deliberately causes damages to the property.

Undertake repairs without landlords' consent.

Causes serious nuisance to the neighbours.

b) The Tenant may rescind the rental contract when the landlord:”

Fails to make the necessary repairs to keep the property in a fit and habitable condition

Disturb the tenant's dwelling use, by their actions.  

8. Taking action before the Spanish courts

Disputes regarding to rental are processed through ordinary civil proceeding (procedimiento civil ordinario).