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Advice please about long term rental rules

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Advice please about long term rental rules

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Old Nov 29th 2012 | 9:39 pm
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Default Advice please about long term rental rules

Hi All
Apologies...have searched and can't find an answer to this, so sorry if this has been answered before. I would REALLY appreciate some advice. Briefly, I'm renting a holiday apartment for 2 weeks from early Jan in Torrox area, to give me time to find a long term rental. (Will be doing voluntary work, not seeking employment). Have been in touch with several agents to view long term but getting some conflicting info!!

One agent said...rent for 11 months (to get the best price). When I asked "what happens if I want to move before the 11 months is up" she replied "that's fine, you'd just loose your deposit of 1 months rent but you'd still have benefitted from the cheaper rate"! Is this correct? Seems very unfair on the landlord if it's true. To confirm...I'm certainly not planning on leaving before the end of the contract, but simply wanted to know what would happen if I did.

A second agent has said when I sign the contract, I need to pay 1 months rent in advance (fine), but also 2 months rent as deposit. I've seen on here legally it's just a month rent up front and 1 month as a deposit. Assuming that's correct, does this agent sound dodgy to you? I also asked this agent about "what if I leave before the end of 11 months" and she said (in writing, via email)..."if you move on I'll get you your deposit back"!!??

I am SO confused about all this. Again, sincere apologies if this is covered somewhere but please can you help me out here? Thank you in advance.
 
Old Nov 29th 2012 | 9:58 pm
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Default Re: Advice please about long term rental rules

Originally Posted by Caroline777
Hi All
Apologies...have searched and can't find an answer to this, so sorry if this has been answered before. I would REALLY appreciate some advice. Briefly, I'm renting a holiday apartment for 2 weeks from early Jan in Torrox area, to give me time to find a long term rental. (Will be doing voluntary work, not seeking employment). Have been in touch with several agents to view long term but getting some conflicting info!!

One agent said...rent for 11 months (to get the best price). When I asked "what happens if I want to move before the 11 months is up" she replied "that's fine, you'd just loose your deposit of 1 months rent but you'd still have benefitted from the cheaper rate"! Is this correct? Seems very unfair on the landlord if it's true. To confirm...I'm certainly not planning on leaving before the end of the contract, but simply wanted to know what would happen if I did.

A second agent has said when I sign the contract, I need to pay 1 months rent in advance (fine), but also 2 months rent as deposit. I've seen on here legally it's just a month rent up front and 1 month as a deposit. Assuming that's correct, does this agent sound dodgy to you? I also asked this agent about "what if I leave before the end of 11 months" and she said (in writing, via email)..."if you move on I'll get you your deposit back"!!??

I am SO confused about all this. Again, sincere apologies if this is covered somewhere but please can you help me out here? Thank you in advance.
1 month in advance and 2 months deposit (fianza) is the norm outside of the tourist areas. I have done this 3 times in Spain now. And got the full deposit back at the end of the term

Be aware that the only legal long term rental contract is one that lasts at least a year and up to 5 years

The 11 month contract is for people renting the property short term as a second home. It is completely illegal for people using it as a first home, but it used a lot on the Costas. If you sign one like this then dont give them more than 1 months deposit as it will be riskier to sort out any disagreements
 
Old Nov 29th 2012 | 10:06 pm
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Default Re: Advice please about long term rental rules

As a landlord, I can probably advise a little better.

Contract should be for a year - the 11 month contracts that people quote and use are no good at all. The landlords believe that it is beneficial to them, but they're not! Also make sure that the contract is in Spanish and clearly details who is responsible for paying what (gas, water, electric, IBI etc) and also, who is responsible for the maintenance of everything.

Regarding the up-front costs - You will always pay one months rent in advance. The norm is then to only pay 1 month's deposit (fianza) - here I disagree with CMan. Some landlords/agents will ask for two or more months but it's not the norm and can always be negotiated in the current market.

You may also be asked to pay a 'fee' to the agent. They will either call it a finders fee, a contract fee or whatever. Our agents always charge this and it's paid between the landlord and the tenant (6% each in our case). I personally think this is fair for the work the agent does - others on here will argue that it's wrong (illegal) and that you shouldn't have to pay it .....

Best of luck .
 
Old Nov 29th 2012 | 10:21 pm
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Default Re: Advice please about long term rental rules

OK, thanks both of you. So, I'd go for a 12 month contract. But..can anyone advise about what would happen if I did leave before end of the 12 months. To confirm, I'm not planning on doing this....but simply want to understand where I'd be legally if circumstances changed? Thank you.
 
Old Nov 29th 2012 | 10:58 pm
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Default Re: Advice please about long term rental rules

Originally Posted by snikpoh
As a landlord, I can probably advise a little better.

Contract should be for a year - the 11 month contracts that people quote and use are no good at all. The landlords believe that it is beneficial to them, but they're not! Also make sure that the contract is in Spanish and clearly details who is responsible for paying what (gas, water, electric, IBI etc) and also, who is responsible for the maintenance of everything.

Regarding the up-front costs - You will always pay one months rent in advance. The norm is then to only pay 1 month's deposit (fianza) - here I disagree with CMan. Some landlords/agents will ask for two or more months but it's not the norm and can always be negotiated in the current market.

You may also be asked to pay a 'fee' to the agent. They will either call it a finders fee, a contract fee or whatever. Our agents always charge this and it's paid between the landlord and the tenant (6% each in our case). I personally think this is fair for the work the agent does - others on here will argue that it's wrong (illegal) and that you shouldn't have to pay it .....

Best of luck .
It depends where you are renting

You will not find a place to rent in Madrid or Barcelona with just 1 month's deposit, there is no way. They used to ask for a 6 month aval bancario. But now you can get away with a 3 month deposit

But in the Costas with lots of foreigners and casual renters, you can normally get away with a 1 month deposit

Finders fees, again depends on the location, the landlord and the estate agent, but normally the tenant pays in Spain, but you can negotiate this. We had to pay it in Barcelona/Oviedo, but got it split 50:50 on the CDS, where it is easier to negotiate with these things
 
Old Nov 29th 2012 | 11:44 pm
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Default Re: Advice please about long term rental rules

Originally Posted by Caroline777
OK, thanks both of you. So, I'd go for a 12 month contract. But..can anyone advise about what would happen if I did leave before end of the 12 months. To confirm, I'm not planning on doing this....but simply want to understand where I'd be legally if circumstances changed? Thank you.
if the property is your home, it doesn't really matter what 'term' the contract is for - as Cricketman says, on the costas you'll be very unlikely to be offered longer than an 11 month contract - as both he & snikpoh say, for some reason some agents & landlords think that means you're 'on holiday' so they can treat you as a temporary tenant

the bottom line is - if it's your home then the LAU (the rental law) applies, so they can't refuse to return your deposit (unless you wreck the place & they need it to put things right, of course) - I've even heard of agents saying that you have to pay to the end of the 11 months if you want to leave early!!

also - they can't force you to move at the end of the 11 months either, unless you have broken other terms of the contract, such as non-payment of rent

just make sure that the agent / owner knows that the property is your home & that a 'temporary' contract isn't what you want
 
Old Nov 30th 2012 | 2:39 am
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Default Re: Advice please about long term rental rules

To answer the specific question "what if I were to leave before the contract expires?" - the answer is that the contract should state these terms, for BOTH parties.

However, the law is that you only need give one months notice.


By the way CMan, we live in a Spanish town far enough away from the 'Costas' yet still the practice is to only have to pay one months deposit - this is the legal minimum although I can understand in big cities the landlords needing more security.
 
Old Nov 30th 2012 | 2:53 am
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Default Re: Advice please about long term rental rules

Originally Posted by snikpoh
To answer the specific question "what if I were to leave before the contract expires?" - the answer is that the contract should state these terms, for BOTH parties.

However, the law is that you only need give one months notice.


By the way CMan, we live in a Spanish town far enough away from the 'Costas' yet still the practice is to only have to pay one months deposit - this is the legal minimum although I can understand in big cities the landlords needing more security.
Its important to note that it varies around Spain then. I have to say that we only got 3 months because we have proof of nomina, if not then they may ask for 6 or 12 months up front (or for a costly aval bancario)

The city and business parts of Spain are different to the villages and tourist areas where often the landlord feels lucky to have a tenant at all
 
Old Nov 30th 2012 | 3:51 am
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Default Re: Advice please about long term rental rules

2 months is the standard here.

I have been told it's illegal (here, anyway) to demand more than 2 mos rent as a deposit. Also have been advised that if the landlord takes more than 2 mos as a deposit, and the contract ever goes into a legal dispute, it's a big strike against the landlord in court.

but I know some will demand as much as 6 months' deposit... if they think they can get it.

Deposits are rarely returned at the end of the contract anyway. It's apparently regarded as a "gift" around here.
 
Old Nov 30th 2012 | 3:54 am
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Default Re: Advice please about long term rental rules

Originally Posted by amideislas
2 months is the standard here.

I have been told it's illegal (here, anyway) to demand more than 2 mos rent as a deposit. Also have been advised that if the landlord takes more than 2 mos as a deposit, and the contract ever goes into a legal dispute, it's a big strike against the landlord in court.

but I know some will demand as much as 6 months' deposit... if they think they can get it.

Deposits are rarely returned at the end of the contract anyway. It's apparently regarded as a "gift" around here.
it's not illegal to ask for more - but it's not a legal requirement that you have to pay it - it's up to you if you agree to it

true about deposits rarely being returned though
 

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