Mortgages in Spain are currently out of reach for many people due to high interest rates. Therefore, many immigrants choose to rent a home in this country. Before signing a rental agreement, there are a few important things to know.
The first thing to consider is the lease term and whether it can be extended or shortened. The lease is usually for one year and can be extended for three years. After three years, the owner has the right to terminate the lease.
The tenant also has the right to terminate the contract, but only after six months with 30 days’ notice and provided that this is specified in the contract. There is another important condition – if the tenant decides to move out within the first six months, he must pay the owner a certain amount as compensation.
In addition, when concluding a lease agreement, the parties must agree on the notice period in the event of a change of residence. In Spain, the minimum notice period is 30 days.
When planning to rent a house in Spain, you need to be prepared to pay for all utilities, such as water, gas, electricity, telephone, Internet and possibly other additional payments. Before signing a lease agreement, it is recommended to ask the owner of the apartment to provide a full list of all expenses that will arise during your stay. It is important to consider that gas costs can increase significantly in winter, and water costs in summer, especially if we are talking about a house with a garden or a swimming pool.
Property taxes are usually paid by the owner of the property, although there are exceptions in Spanish law. However, the tenant usually pays the waste tax, which should also be taken into account when concluding the contract. It is worth noting that obtaining an energy performance certificate for the property in Spain is usually the responsibility of the property owner.
When entering into a rental agreement for a property in Spain, a deposit equal to one month’s rent is usually required. However, property owners may require additional guarantees due to frequent late payments by tenants. These guarantees may include several months’ payment in advance, a bank guarantee, or a written guarantee from the tenant’s employer.
Tenants can also take out insurance against non-payment, known as un seguro de impago. A common question that arises is that if a real estate agency has helped find a house or apartment, who will pay for the agency’s services? In Spain, this is usually included in the tenant’s responsibilities. The agency’s service fee is usually the same as the rent for the month, minus 21% VAT. This additional cost should be taken into account when planning to use a professional.
