Rental Booking Information

If you as a property owner would like to generate an income from your property whilst you are not using it or whilst it is for sale and need correct up to date information EV North Real Estate SL is your agency par excellence!

We will be happy to fill you in on all the current legal requirements and will talk you through the pros and cons of different kinds of rental.

Advantages of renting a home

General advantages:

• Maintaining the condition of your property.
• Putting your property up for rental is easy and does not require too much work.
• The property will not remain empty with the risk that over time its condition may deteriorate and in turn the property devalues.

Economic benefits:

• In addition to the property becoming an asset that will appreciate in value, it will also become an asset that provides a monthly return
• Enables the property costs to be covered
• If the property is mortgaged, rental income can pay for part or all of this

• Rental income can serve as collateral for bank loans
• The property can always be sold if required.

The regulation of housing leases has developed significantly, especially when concerning the duration of a rental contract.  It was established that a contract with a maximum duration of three years would be the norm, taking into consideration that a contract of this kind of time frame allows a certain stability for households contemplating leasing as a valid alternative to ownership. At the same time, it is not so long that it could constitute as an obstacle to both private owners and business promoters who in turn choose to place their homes on the rental market.

The minimum rental term is freely agreed upon between both parties, consisting of an initial contract, plus a system of mandatory annual extensions to this contract reaching the minimum legal period of three years, if the original contract had been for a shorter period.

The law also introduces a mechanism for renewal, after at least three years have passed, in which a new contract may be drawn up yearly, for an extra year, and so on.

The recognition that situations exist in which rental contracts for shorter periods of time are required has meant that the law has also provides for this possibility, but at the same time respecting the owners desire to recover the use of his own property meaning that a precise contract duration will be stipulated.

This is a rental contract specifically for non-residential use. It differs from other contracts in that the property being rented is not the main residence of the tenant but is a temporary residence required for as a second home, a seasonal home, student house, recreation, work etc ) . These contracts can be drawn up as both parties deem fit establishing the terms and conditions required by each, as long as these are not contrary to law, are immoral or disturb public order. What is not expressly stated in the contract will then fall under the LAU and the Civil Code.

The contract is governed by the LAU . In the regulation of lease contracts for use as something other than as a primary residence, the law chooses to leave the parties free to agree on the clauses of such contracts.

They are regulated in this manner, with supplementary additions which have been expressly requested by the tenant and property owner, from Title III of the Tenancies Act (conservation obligations, transfer, right of first refusal etc).

Rentals to tourists in the Balearic islands is regulated by Law 8/2012 , of July 19 tourism in the Balearic Islands. An owners or representative who decides to utilise a property originally designated as a main residence as a tourist residence for periods of time less than 2 months, alternating this with their own use of the property, is considered to be a “holiday or marketing company”. 

Renting out individual rooms or renting out individual rooms to persons having separate contracts is not permitted. Properties rented out must allow the tenant the use of the property in its entirety for the duration of the contract.

The holiday or marketing company shall ensure, in order to facilitate the tenants stay the direct or indirect provision of the following services:

• a) Regular cleaning of the house.

• b ) Bedding, linen, general household goods and replacement of these when necessary

• c ) Maintenance of facilities.

• d ) Customer service available during business hours and a 24hr out of hours emergency helpline for tourists, or similar contracted service.

It is not possible to rent out a property this way without first taking the appropriate administrative steps required to do so and by presenting a Quality Plan.