The
short term rentals
are for
families or individuals who wish to stay for a week or a little longer for a holiday. The accommodation is furnished and the location and standard
determines the cost, but there are basically three seasons called High (the most
expensive is June to September and the Christmas & Easter periods), Medium (April, May & October, November),
and Low (December, to March).
The
long term market is for
people who are working in Spain for a period of time, or who are having a house
built, or looking to buy without rushing into a sale. These are the
most difficult to satisfy as most owners prefer short term for the higher summer
holiday income, often as much for a week as a month for long-term, and especially if they
are used by the owner at certain times of the year. There is therefore almost
always a shortage of suitable long term rentals. Long term are
usually offered furnished but some can be supplied unfurnished by arrangement with the owner.
A maximum eleven month agreement
is usual, but it can be renewed if approved by the owner. This is to
legally avoid
the tenant staying in the property for up to five years under Spanish Law.
Avoid renting for the six months until June as the owner will want you either out so
the property can be rented at four times the cost during the holiday months, and
you will not find anywhere else at that time at a reasonable cost.
However, the market at this time is
overloaded with properties for rent, so it is a good time to ask for real long-term
(11 months plus, which can mean as much as five years),
and especially to haggle, as, for example, some villas have been reduced by as
much as half the asking rental a few months ago. So you are advised to
offer what you think is fair. You may be surprised to find the offer is
accepted, but read all the notes in this web-site to ensure you are not tricked
in anyway.
The properties are
(or should be) clean, and complete with linen.
They are usually equipped with all the usual appliances, and the more expensive
places may have Sky Digital TV. You need your own food and
you should open a local Bank account, necessary
for a long term stay. You will need about Eur. 800
to do this as a non-resident.
The costs vary as there are holiday seasons
here where in Summer (June to September) the Costa Del Sol is the holiday
destination of millions, including the Spanish of course, and many book months in advance.
It has been reported that in July each year, well over a million people arrive
at Malaga airport.
More Information, Based on Questions Asked.
Many of the people who let their accommodation
are retired or in need of the extra income, or are people who have bought
property here as an investment. As such, it is important to ensure that
the owner is a fair person, as the prospective tenant is checked to be the
same. Some owners are unfair to their tenants, only thinking of the
"profit", which is short-sighted as an unhappy tenant, who may otherwise be
a good one, then gets upset and becomes a bad tenant. Also, there are bad
tenants who cause owners to be very wary when letting.
The Law in Spain is
such that if you rent out accommodation for 12-plus months, the tenant can
stay in for five years (as long as the rent is paid and the property kept in
good order as described in the contract), with minimal annual increases in
rent based on official inflation rates. Therefore, the agreements which
must be in Spanish to be legal, are usually for a maximum of 11 months.
Also, many owners and agencies only issue the contract in Spanish. It is
very advisable to obtain a true translation into your language as it is no
excuse to say later that you did not understand the contract. We can
supply an English translation of the official contract approved by
the College of Lawyers in Spain, so there are no misunderstandings. Most
owners are reasonable people who attend to problems as they occur, as they
should according to the law in Spain.
The rentals amounts
are for the accommodation only unless otherwise stated. Short Term includes
water, electricity and gas where applicable. Long term does not and this is
to be paid separately as the tenant controls the consumption. Meters can be
read by the tenant, and bills are paid on presentation of the official
service provider's invoices. The owner pays council and other taxes which
are included in the rental amount unless otherwise agreed . The tenant,
because they can control consumption, pays for electricity, water, and gas
if applicable. Some owners will allow the use of the telephone including
installation of their own (there is usually a line: it just needs connecting
upand a contract signing with Telefonica) and with PC's and the Internet
being popular, this point can be important. In most cases, this applies
only to long term tenants, and most owners require the tenant to pay the
service provider Telefonica, who only accept payment by Bank (local)
debit order, and to take out the contract personally with them. However,
as the law in Spain allows any debts to be set against property, the final
payment amounts must be proven by the tenant to have been paid otherwise
this could delay repayment of the damage deposit called the fianza.
As accommodation can
be rented out in July and August and Christmas/Easter per week for the same
amount per month in low periods, the rent reflects this point, although we
have justified with many owners that it is far better (with good tenants who
look after the property and pay the rent) to have a long term rental at a
reasonable price than for the property to be empty for several months a
year. Many owners on the coast (usually not Spanish) do not agree because
they are either thinking of the profit, or they have had bad experiences
with the five year rule, usually because of bad management, or tenants who
cause a lot of damage.
The deposit for a long
term rental is usually two months damage security plus one month's rent,
all in advance. The legal amount for the damage deposit (fianza)
is one month, but some tenants have caused damage in excess of even two
month's rental amount. It depends on the owners. If it is a rental for
example, six months beginning at the start of the summer season, then
you may be asked for the full rental for that period, or at least
three months in advance (plus the damage deposit) because tenants have been
know to get a the cheaper long term rate, and then leave after the two month
summer period, thus cheating the owner out of the higher summer rates.
The Fianza
or deposit. If you are renting long term and will leave the
property in good condition, I recommend that you stop paying the rent
for the amounts that form the deposit i.e. two months, stop paying two
months before you leave. WHY? Because many owners have no
intention of paying you back the deposit and they know it will take you
months and costs of legal advice to do so in the Spanish Courts.
So avoid the stress.
Water & electricity
accounts are usually paid on presentation of the original bill for the periods as
applicable. Some properties have the rented accommodation in the
same building as the owner on the same meters, and then a fair split is
discussed and agreed, but this is usually cheaper for the tenants as long as
they do not leave, for example, especially air-conditioning or heaters on
all day. Gas where applicable, is supplied in cylinders, and these are
renewed when empty, usually by a delivery service. Current cost is
about €11 exchange and the cost is governed by Spanish law.
Electricity and
water (long term only) can add about
€15 to €70 a month, depending on the size of the property and if there is a
private pool, air-conditioning, etc.. If it is shared with the owner, it
will be less if due care is taken by the tenant.
Note: never take the owner's word
for the amounts owing as it is an easy matter form them to double or triple
the actual bills. Make sure that the rental contract says either the
original bills must be presented, or if a long term rental pay the bills
yourself through a stop order on your Spanish Bank account (recommended).
There is currently drought in Andalucia and the Costa Blanca, so fresh water is to be
conserved.
If there is
air-conditioning, it will often include heating for the Winter, very
necessary here on the coast with the cool winds. It is not the
temperatures that chill, but the winds and marble floors in houses that are
designed to be cool for the summer. Any property chosen
must have draught-proof doors and windows and any town-houses with a
staircase to an underground garage without a well-sealed door should be
avoided. . In
the second to last month before the end of the rental period, notice to quit
will be issued to the tenant, but a separate offer may be made verbally to
continue the lease if the owner is happy with the tenant and both wish to
continue. A new contract for up to eleven months can then be signed, with a
small increase to cover inflation, currently about 2 - 3% pa, or, if the
owner lets you carry on with the current contract, you are OK then legally
for up to five years..
Some owners
have their own gardener, and the contract will specify who pays for this
service. This could add another €70 to €200 a month depending on
the size of the garden, so get someone
who understands Spanish to clarify this and all the other points. Usually, if the
accommodation is shared with the owner in a separate accommodation, this is included in the rental
amount.
Tenants should read
and understand, in detail, the contract so there are no nasty surprises at a
later date. If possible, ask for a copy in English which is
noted as being a true translation.
(Trust nobody?)
Finally, in the past,
the rental broker would ask for 50% of the first month's rental as a
"finders fee" company, this being to cover the costs of his advertising,
web-site, offices and transport, etc. As there is a great excess of
long term rental property available now, this has been stopped but check
before you sign, and object if you wish to.
Check what is to be paid before agreeing to accept the rental.
Updated 31 May 2007
HOME