- July 22, 2009 at 4:26 pm #55121
has anyone a ‘worst scene scenario’ when renting out an unfurnished property, and is it true in spanish law that one is more vulnerable in doing so – even with an eleven month contract?
- August 2, 2009 at 6:19 pm #93771
There is a risk associated with a rental which is basically what happens if tennant stops paying and / or damages the property
You can reduce / prevent this situation by asking the tennant for a 2 month deposit or a bank guarantee, and you can also attach a “rental guarantee” that ensures an Arbitration decision within 30 days in case there are problems with the rental. You can find info (in spanish) in pnag . es
11 month contracts are only good if you ensure to notify the tennant prior to the expiration of the contract that you no longer want the contract to continue after its expiry.
- August 10, 2009 at 3:09 pm #93834
You can also get rental insurance (it costs a bit but you can just up the price per month accordingly).
Rental insurance will cover damages, chase your tenants for payment and pay you up to several months rent if your tenant doesn’t.
Well worth it.
- August 10, 2009 at 3:16 pm #93835
Hmmm. Check the small print before you take out the Insurance…and the Company!
- December 22, 2009 at 3:10 pm #95764
- January 20, 2010 at 9:05 am #96068
Section 36 of the Urban Tenancies Act provides:
36 (1) At the entering into the agreement it shall be mandatory to require and provide a deposit in cash in an amount equivalent to a monthly rent in tenancies for housing and two in the lease for uses other than housing.
Tenancies for housing are those in which the tenant is using the property as a permanent residence
- February 3, 2010 at 2:49 pm #96483
Article 36 is the general rule but, of course, both parties can agree something different.
I suggest not to sign a rental contract without, at least, 3 months deposit… some people even ask for a bank guarantee to cover 1 year rent.
- February 3, 2010 at 3:10 pm #96486
Trouble is most tenants wont do that or pay 3 months in advance unless is something spectacuar!
- February 3, 2010 at 3:25 pm #96488
I agree… but today most owners consider whether it is worth renting without sufficient guarantee.
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