Guidelines to Help you Rent Your New Home in Spain
It is important you read this through and if you need any clarification please just contact us!!
Once you have chosen a home you like these are the guidelines to follow although they can differ slightly in each individual circumstance.
Down-payment: Reservation fee (Optional). The value of the down payment is equal to a months rent and becomes part of the deposit once the lease is signed. (This payment reserves an apartment or house normally for a period of up to ten days).
Payments required for the signature of rental contracts:
Current month: The first months rent. This is paid on signing the contract.
Deposit: Money paid to the owner as a guarantee. Any damage to the property at the end of the lease period will be discounted from the deposit. The deposit is the value of 2 months rent for furnished properties and 1 months rent for unfurnished properties.
A guarantee of payment may also be required:
Guarantees of payment:
Bank Guarantee: A sum that remains deposited in the bank during the entire rental period. The purpose of which is to guarantee the payment of the rent and to guarantee the payment of possible damage to the property (attributable exclusively to the tenant).
The sum of the bank guarantee can range between 2 – 6 months and will take into account factors such as the standard of the property, whether it is furnished or unfurnished and references and work contract details which can be provided by new tenants.
Tenants Company Payment Guarantee letter (provided that the company is recognised and an officially registered entity): this can be used in place of a bank guarantee. The company will be liable for the payment of the rent and in case of costs incurred in repairing damage to the property during the period of the contract. Occasionally the property owner may refuse to accept this document and will only accept a Bank Guarantee.
If the lease contract is signed on behalf of a company (I.E. NOT AN INDIVIDUAL), VAT will be added to the monthly rental payment value.
Agency Fees: Are between one months rent and 10% of the annual rental value + VAT. These fees must be paid by the tenant on signing the lease.
Contracts: Can range from one to six months, 11 months or a long-term contract, which is for a minimum of one year and can be increased to a maximum of 5 years (the 4 remaining years are optional for the tenant and obligatory to the owner). When the tenant wishes to leave the property and terminate the contract they are required to send written notification to the property owner, specifying the date of cancellation of the contract (the tenant must give at least 2 months notice in advance of the requested cancellation date). The value of the rental payments will increase annually inline with the percentage of the CPI see information on the attached link.
Documents & Payments You Will Need to Sign A Contract
It is important to open a bank account as soon as you arrive in Spain so that you can organize payments and set up the accounts for your utility bills. We recommend SabadellAtlantico or La Caixa.