Renting in Mallorca
Whether you are looking to rent an apartment in Palma or a Finca in the countryside, it helps to understand the process and, more importantly, your rights.
Below are the main things you need to know about the rental process and the rights of both tenants and landlords.
With house prices on the Island rising, renting is becoming increasingly popular for people looking for a long term home on the Island. However, with increased demand comes unscrupulous parties. To help you navigate the local rental market, we have provided some of the key information and processes below. We always recommend getting support from a fully vetted professional to assist you.
Where to look
Whilst some landlords may simply hang a sign outside the apartment they are wishing to rent, the easiest place to look for rentals is through either real estate agents (immobiliaria) or online. There are numerous popular bi-lingual English and Spanish language online platforms to rent or buy property. Most non-exclusive properties can be found on the platforms below or contact us for vetted agents.
Applying for a rental
When you find the property right for you, contact the relevant estate agent to close the contract. For this, you will usually require:
Evidence of employment or ability to pay the rent (bank statement or credit check)
Tax identification number (NIE)
Passport or ID
Deposits & fees
Real estate agents will generally charge 1 months rent as a fee.
One month's rent will be paid as a deposit to the landlord
An additional one month's rent (sometimes two) may be requested to be paid into a third-party escrow account
These deposits, cannot be used to pay the monthly rent. They are used to ensure the house is returned in the same condition it was rented out. We recommend both landlord and tenant make a thorough inventory with photographs to reduce the chance of conflict over the returning of deposits. Take pictures upon entering and leaving for good measure.
The tenancy agreement
In Spain, a tenancy agreement (Contrato de arrendamiento) will have to be signed by both parties before it takes effect. Unless you are a fluent Spanish speaker we recommend that you have a translated copy on hand and signed in addition to the Spanish one.
There are two types of contracts:
Short term contract (less than 12 months)
Long term contract (more than 12 months)
For long term contracts, the contract can be made for up to 5 years for a private rental or 7 years if renting from a company. This represents the minimum period of time a tenant can stay in the property. If no duration is stated in the contract, it defaults for a year, however the tenant has the right to renew for a period of 5-7 years (as above)
At the end of a long term contract, the landlord must give 4 months notice to the tenant or the contract is automatically renewed for an additional three years (rolling), unless the tenant does not wish to extend. The tenant must communicate this in writing.
For private landlords after one year, the landlord can request the tenant leave the property if they or a relative or spouse intent to live in it, but must give the tenant at least 2 months notice. This clause however, must be included in the initial rental contract for it to be valid.
If after three months of leaving the landlord or spouse has not moved in, the tenant can re-occupy the property on the previous contract terms for up to 5 years within 30 days of the 3 month deadline and claim moving expenses unless the Landlord is able to show a valid reason why this wasn't the case.
A tenant may choose to terminate the rental agreement after 6 months and must provide a 30 day notice period in writing.
Rent is paid monthly, the exact date can be agreed upon by tenant and landlord; however, it is usually within the first 7 days of the month.
For the duration of a long term contract, rent can increase or decrease yearly, based on the consumer price inflation index (IPC).
After the initial contract period expires, rental changes are not linked to the IPC, but have to be agreed upon by both parties and new contract must be drawn.
Who pays what?
Below is a guide to who is generally responsible for costs when renting a property. However, these can change as long as they are stipulated and agreed to by both parties in the rental contract.
Real estare tax (I.B.I)
All utility bills (water, gas, electricity, internet)
The tenant has a huge amount of rights in Spain - even non-payment of rent does not allow immediate eviction - and all grievances must be taken through the courts. It is also illegal for a landlord to cut off a tenants utilities or access to a property without prior written request. Below are the main reasons for either party to take legal action
The Landlord can take action if the Tenant:
Does not pay the rent or deposit
Rent the property to a third party without the landlord’s consent
Deliberately causes damages to the property
Undertake repairs without landlords’ consent
Causes serious nuisance to the neighbours
The Tenant can take action if the Landlord:
Fails to keep the property in a fit and habitable condition
The tenant’s dwelling use is disturbed