Porth

This might be of interest to 'Fred' but we have taken legal advice in relation to the two months holding bond.

Our lawyers advice is simply this that the bond should be held independently from the owner and with the Valencia Community.

In the UK and Spain is not the UK all bonds are held by an independent body and at the end and when inspection takes place and everything is fine it is returned to the tenants. However if more than fair wear and tear takes place a dialogue is entered into. It has provision for arbitration and in the final analysis legal action.

I have always worried about unaccountable funds going into the hands of owners and then at the end being stuffed which is what happened last year in Javea.

Then conversely tenants aware of this approach just leave two months early and not pay the remaining rental. This too is unacceptable but what does one do.

In our case and if the money does not go independently you will not see us folks.

France is almost similar in its approach but slightly (not much) better

thanks

snikpoh

It's just the same here (Spain) as it is in UK.

There is what should be done legally, and what is actually done.

Sometimes in Spain, the deposit (fianza) is lodged with the appropriate, independent, authority but usually it isn't.

Friends of ours rented a place via an agent. In the contract which was drawn up by the agent, it clearly states that the deposit will be held independently. When they asked for the registration number of this holding, they were told (by the agent) that they should take this up with the owner as it was nothing to do with the agent. The owners said they couldn't 'afford' to do it.

So, even though it's in the contract, it hasn't happened.

Porth

Thanks for that and here and on the basis that either the owner or the agent is reading this we have absolutely no doubt as to their integrity!

Before the new law came in I think in 2013 we had already entered into a contract for a Javea rental and the then (emphasis) agent convinced us to pay not only her fees but equally two months for the owner direct into his bank account.

Subsequent events proved that he then used some 3000 euros for his day to day expenses and cometh the hour there was a total inability to repay the funds. I am old fashioned (very) but the funds were not his to use and yes held independently not a problem.

When push came to shove the agent sloped shoulders and said ' nothing to do with us - we just shared the commission with another agent who was wholesaling the property Take it up with her.

So this time thought logically and instructed an Abogado and again just in case I had it wrong the contract does say two months to the owner and who is not Spanish resident.

Everyone has to make a living but you will excuse me if I have at the moment a somewhat jaundiced view of the 2013 agent. Still we shall see. If the other side agree then funds applied independently not a problem.

snikpoh

FYI - there have been no changes in the rental law with regard to the fianza for the last 10 or more years.

It has always been the case that it should be held by the independent authority.

I agree, some agents/owners work illegally and I further agree that some will NOT give this fianza back.


Choose your agent/owner carefully!

Porth

Thus when someone looks into your eyes and say pay this there they are either 1)lacking knowledge of the system/law or 2)deliberately not complying with the system/law and for an easy life and commission.

best wishes

mikelincs

we always assumed that the money was unlikely to be repaid, so always didn't pay the rent for the last month, and told the agent/owner they already had the money as a bond.

Porth

Yes I suppose we were too trusting? However without wishing to be sanctimonious withholding cash at the end causes us some problems. However reality of now knowing the system and protection of your assets? If we do not have the contract changed we will not go through with it.

Simple fact of life.

la mancha

When in Castilla-La Mancha, albeit some 8 years ago, I rented a property through a Spanish agent with no problems. He told me his commission was 2 weeks rental and the 1 month deposit was held by the owner of the property, and thereafter all transactions were to go through the owner. I had a legal contract drawn up by the agent and everything worked out okay. Can anyone tell me if anything has changed because I would like to know. What I am asking is, does the law now stipulate 2 months deposit, 1 month, or is this deposit a negotiation between agent/owner and the renter?

snikpoh

This is really quite wrong and unlawful as well (but I do understand why some will try and do it). The fianza is specifically to be used against repairs and damages caused by the tenant.



Yes. The new law stipulates that the fianza should be a maximum of 1 month for unfurnished and 2 months for furnished property. However, some agents/owners will try and get more.

la mancha

Thanks for that. One last point. Does this mean the deposit for furnished could be 1 month?

Porth

Hi Snikpoh the agent has come back and said unless two months paid directly to the owner then it is a deal breaker. We agree that the owners are highly reputable (and we would like to think we are too) but equally it makes sense for money to be held separately.

The agent says done hundreds of these deposit must go to the owner.

I will contact the abogado if I can get hold of them but Snikpoh is there a law or something that I can use to clobber the agent with?

At the moment it looks like a deal breaker. Also they are asking for one not two months?

Porth

sorry two months not one month deposit

snikpoh

The deposit can go to the owner but, legally, the owner must then deposit it with the authorities. Take a look at the law - "Deposits are regulated by the law for urban lettings (LAU) under article 36"


Thw owner can ask for whatever fianza he thinks he can get away with - does he really want to rent it out? How far can he be pushed.

Perhaps you could say something like "if you pay it to the appropriate authorities and give me the registration number, then I'll pay 2 months. Otherwise it will be just one". Plus, quote the law to the agent!

Porth

Have quoted the law and my Abogado has given me chapter and verse. Trust must come into all of this and an argument just an argument - money in a Spanish Govt bank account.

If I may is it possible please I can email pm wise later?

best wishes

Fredbargate

I trust no one with my money.

I got burnt when a bank folded with all my personal money and that of my business.