My husband and I are intending to rent a property near Malaga, and have found an ideal townhouse in Torre del Mar through what appears to be a reputable estate agency. However they are insisting we pay the security deposit (€500) in cash, which seems rather dodgy to us. Is this standard practice in Spain?

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Please let me know if you need any further help.

Rosemary

It depends what you mean by "security deposit"

There are a number of fees and deposits that need to be paid when entering a property.

1. The estate agents' commission. This is usual 1 month's rent. Traditionally it is paid by the people taking out the rental agreement, although this is negotiable with the landlord, but it needs to be paid by someone. This attracts 21% IVA, so paying is cash may avoid that
2. A traditional fully legal rental contract also normally includes 2-3 months deposit/fianza. Although in the South they normally dont ask for that (because your rental contract probably isnt fully legal!) so will probably just take 1 month's deposit

In any case, pay any deposit through bank transfers so that you have record of what was paid to whom. Make sure you pay this to the landlord not the estate agent

I have always been told never to pay anything to an estate agent, or anyone purporting to represent someone selling or renting out.

Then you will have a limited choice of properties.

It is usual for the renters to pay the estate agent's commission, though in this market it is something you could probably negotiate with the landlord about

With the recent changes in rental law (June 2013) this is not the case.

The LEGAL maximum is 1 month's deposit for unfurnished and 2 months deposit for a furnished property.

You may be asked to pay more but that is then between you and the landlord/agent.

Agents fees (finders fee) will always have to be paid by someone. This may be by the landlord, the tenant of by a combination of both - not unreasonable as they don't work for nothing!


What ever you pay, insist on a receipt with the agent's DNI/NIF details on it - perhaps even mention that you need it for tax purposes.

So your advice in your previous post must be wrong then.

Thats why I deliberately put "deposit/fianza"

The amount of "fianza" is defined by law, the amount of "deposito" is not. The deposito often you will have to pay if you don't want the hassle and costs of an "aval bancario"

In the costas where most expats live, you dont have to worry about most of this, but a standard legal rental contract will usually contain all such terms.

The key is to check your contract. So far I have rented out three properties in three different parts of Spain and never had a problem with deposits and fianzas being returned at the end of tenancy, and estate agents have been very professional throughout. I have had to pay a commission to the estate agent in all cases though

So, for the OP;

• Make sure any contract is written in Spanish
• Make sure the duration is for 6 or 12 months (anything else isn't worth the paper it's written on)
• make sure it says 'fianza' and that it is 1 or 2 months as I said previously
• make sure it clearly states who is responsible for repairs
• Make sure you get receipts or pay by transfer - noting the DNI/NIF number

I rent a place near Malaga but before doing so, I was shown many! So much tat
Anyway, I only paid the agent once a contract was signed. The agents fee was a percentage of the rent.
The rest of the money was paid directly to the house owner.

Thanks for all the comments, we are the getting the contract re-worded before we are anywhere near to signing, to make sure we know what we are responsible for, as the first contract was very vague in that respect.

Also it is for 11 months (not 6 or 12) which I have been told is usual? The agent told me the reason for this is that if a tenant is in a property for even one day more that 11 months they have a legal right to remain there for 3 years?

11 month contracts are illegal and not worth the paper they are written on - PLEASE be warned about this!

Many people seem to believe that they are more protected with an 11 month contract - this is simply not the case. The law is very clear on this and was updated just this year. The landlord cannot get his property back within the first three years after signing a rental agreement with you. The only legally permitted exception is when an emergency forces the landlord to take the property back. This can happen if landlords gets divorced, for example, or if their children find themselves homeless. After the first three years, the contract is renewed automatically. After four years, though, the rental contract is terminated automatically.

Hi snikpoh,

As a long time lurker who might be interested in renting in Spain in the near future, could you please be more clear.

Why is the 11 month contract worthless ? Is it because the tenant has no security of tenure inside the contract period or because the landlord can't enforce vacant possession at the end of the 11 month contract ?

No, it's because it is not legal! If you had a need to go to court in relation to your rental agreement, then the case would be dismissed on the grounds of not having a valid rental agreement.

See hear for some good info; renting in spain

Thank you !