Renting a property in Tenerife
Many people who want to live in Tenerife long-term rent a property here before buying. This is good practice, because there are so many variables in terms of dwellings and areas, and many people commit to a purchase only to find that they are homesick, or their circumstances change, within a year or two and they are then left with a property to sell in what, particularly at present, might be a difficult market.
If you are using an agency, view the widest range of properties. There will inevitably be much doubling up of properties, with owners putting their properties on the books of as many agents as possible to secure a tenant. Check that the property you are considering isn’t on other agents’ books: it might be available at a lower rent. You can also rent privately, and should look out for signs saying se alquila, which means “for let”. Don’t be afraid to ring these numbers thinking the landlord is going to be Spanish. Many English owners will use them too because they will be hoping to attract the widest possible range of enquiries, from prospective Spanish tenants as well as English.
When renting, you should be aware that there are two types of rental contracts here – short and long term – and the length of a rental contract will vary depending on which it is. Long-term contracts (contrato de arrendamiento de vivienda) are the only residential lets properly speaking, and are for a minimum of one year. The tenant is protected by law to a very high degree, including having the right to renew the contract for up to five years, with a further renewal period available under agreement of up to another three years. Rent increases too may be no more than the rate of inflation. Some owners do not relish the prospect of having a tenant with such highly protected rights, however, and so short term contracts (contrato de arrendamiento por temporada) are common, running normally for three or six months, but can be up to a year. Whatever length of time the contract covers, its terms are binding on both sides, and it will not have a period of notice because each side must honour the full contracted period.
It is important to note, however, that temporada contracts are not in any case intended for habitual residential purposes. Indeed they are contracts for a specific purpose, e.g. temporary work placement, study, etc., and not for habitual residence. Indeed, the tenant’s primary habitual home address must be detailed on the contract. They also cannot be for tourism purposes, and Turismo says that any such contract under three months will be deemed as touristic by the Government, and fines issued against owners where they are offering such lets illegally. Put simply, specific purpose temporada contracts are perfectly legal if issued for a genuine short-term purpose, and not for holidays or permanent living, and any tenant who is given one for residential purposes, and is then fobbed off with repeated temporadas instead of being given the vivienda contract they should have by law can appeal to the Courts on the grounds that this is an habitual home where the owner is trying to avoid providing full legal rights. The Courts are very sympathetic to tenants in these circumstances, and can require the owner to provide a long-term residential vivienda contract.
To be fully legal, contracts must be signed by landlord and tenant, and contain ID numbers (NIE for foreigners) of both. Strictly speaking, rental contracts should be signed before a notary and registered at the Spanish Land Registry (Registro de la Propiedad), but the reality is often much more informal. Along with the contract you should get an inventory of items in the property, and the condition they are in. Check these thoroughly, because if there is any discrepancy, it is likely to involve a deduction from your deposit when you leave. If there are any marks or damages, particularly if these are not specified in the inventory, take photographs, and resolve the issue as early as possible rather than waiting until you vacate.
You can expect to pay your rent in advance, and therefore the first month’s rent will be payable when you take possession. I am sometimes asked about agents putting up rent in the middle of contracts, or “at renewal”, and as should be clear from the above, it is only in long-term vivienda contracts that the issue arises because temporada contracts are for a single set period, and a vivienda contract will have the legally-allowable increases already written into it. There cannot actually be any reason for an agent or owner to increase the amounts agreed to and written into a contract.
Apart from paying rent in advance, you will also almost certainly be asked to pay a deposit which will be held against any damage or debt incurred during your tenancy – note that landlords may not keep deposits or make deductions from them for cleaning or redecorating after a tenant leaves, and any deductions made must be detailed in writing, with justification, and must be agreed by the tenant. Equally, if repairs or justifiable expenses exceed a deposit, then the tenant must pay immediately. If either side fails to comply with these requirements it is a matter for legal action and the courts. If all is well, however, then the deposit should be returned immediately, and if not repaid within a month, will attract legal interest. The deposit may be called a deposit or a bond, or in Spanish, fianza: article 36 of urban letting legislation says that a deposit equivalent to one month’s rent is a legal minimum for long-term rentals (the requirement is two months’ deposit for uso distinto, i.e. other than for living in, e.g. a business), so the landlord is required by law to ask for this, as is the tenant to pay it.
Sometimes prospective tenants are asked for a deposit of more than the equivalent of one month’s rent, but this is uncommon, and if you are prepared to consider it, make very sure that it is in fact for a refundable deposit, rather than a non-refundable charge imposed by an agent, perhaps called a contract fee, or “finder’s fee”. If the landlord is a legal entity or business, indeed, such administration or contract fees must be paid by them rather than the tenant, though this is not the case where an owner is a private individual. Note too that some landlords ask for a bond as a security guarantee in addition to a deposit, and under the law this bond may not be of a value greater than two months’ rent. Be aware that although many agents are honourable, some are not, so it is only safe to proceed on the grounds that your agent may not be so. What fees are “fair” or acceptable is naturally for each prospective tenant to decide for themself, but in any case, it is essential to determine the nature of all monies handed over, and for the amounts to be specifically identified in the contract, along with the fact that they are refundable. Needless to say, it is imperative to get specific and clearly identifiable receipts for all monies handed over, whether deposit or monthly rental payments.