These last few years the Spanish rentals have experienced a notorious rise. Some factors such as holiday rentals have contributed to this.
As we know, Spain has always been considered one of the most suitable countries to move in or to start a business. Influenced by good weather, charming people and many facilities, company owners or property seekers who decide to make a change have always well recognized it.
Notwithstanding, there has always existed a small difference between renting and buying in Spain. Now the situation is even more obvious. Nowadays it’s more advisable to buy than to rent. Since the rentals prices have increased, banks are offering facilities at the time of grating a mortgage which also includes lower taxation.
Why Spanish Rentals have changed?
During the last few years, there’s been a huge increase in the price of the rentals. This phenomenon has happened in part due to the high number of holiday properties that have emerged. This has happened especially in some Autonomous Communities such as Barcelona, Madrid or the Balearic Islands.
The holiday properties issue has been on the spotlight daily. Buying a property and renting it after could also be an interesting business. We all know Spain as one of the main countries when talking about tourism. If you have a nice holiday villa in Spain you’ll be able to get a profit from it.
It is also necessary to highlight the Socialist government’s drive to reform the current Urban Leases Act. The text is somehow more egalitarian than the previous one, yet without achieving an equalization of the rights and obligations of both parties. It is important to highlight the main amendments which are as follows:
- The mandatory extension period for rental contracts shall be extended from three to five years. The tacit extension shall be extended from one to three years for natural persons. In the event that the lessor or the lessee does not express his will not to renew it.
- If the lessor is a legal entity, it shall be seven years of a compulsory contract. Three years of a tacit contract.
- It is established that no additional guarantees to the deposit may be agreed up to a maximum of two months’ rent, except in the case of long-term contracts.
- The costs of property management and the formalization of the contract will be borne by the lessor (in cases where a lessor is a legal person). There’s the exception of costs incurred on the direct initiative of the lessee.
Need more information on 2019 Spanish Rentals?
In conclusion, if you’re interested in renting a property in Spain and are willing to find out about the actual rental situation, please do not hesitate to ask us. We will help you with any doubt you may have regarding this.