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Legal advice for seasonal or long-term rent a Mallorca property

For many, the question arises whether to buy a house or an apartment in Majorca or rent a house or apartment. The reasons for such considerations can be many: First, there is a large group who is considering the possibility of becoming residents on Mallorca, however, are still uncertain of their decision and want “to sample Mallorca” without a large investment risk. Others have sold their property after many years on Mallorca preferring to live in their homeland in old age in order to be “with the children and grandchildren", but still want a foothold in Mallorca. Others want to build their homes on Mallorca and do not want to live in a hotel during the one-year construction phase but prefer to rent a house or apartment, to begin to feel at home. Minkner & Partner have worked for many years in Mallorca’s rental market especially in the more popular southwest of the island. So if you want to rent a house or apartment in Mallorca, with Minkner & Partner you are in good hands. In order to emphasise this point to follow you will find points relating to long term rental “legal advice for long term rent of a property on Mallorca”.

1. Definitions - Seasonal lease and long term rental
Firstly we want to clarify some terms: Most contracts signed in Spain which are subject to the laws LAU Art 2 are considered to be rental of a property whose primary target is to satisfy the continuing need for housing tenants (1 resident). Seasonal rentals and commercial rentals are excluded from this definition. The demarcation between several months seasonal lease (also called non-resident lease) and a long-term lease often seems difficult, but it is not: A seasonal rental contract always exists when the tenant has his primary residence elsewhere and still maintains it, and the reason for the limitation is specified in the contract (e.g seasonal work, studies, completion of one's home). The details of a seasonal rental contract can be individually negotiated between the parties (for example, waiving notice periods and the obligation to pay the rent until the agreed end of the contract), because in this case the legislature sees no need for greater protection of the tenant.

2. Contract Period
Minkner & Partner does not deal with vacation rentals, but exclusively with seasonal rentals and long-term rentals with a rental period of at least 6 months, usually one year. The parties to the contract can agree the contract period dates but most are signed for a period of 1 year. However, the contract is automatically extended according to the wishes of the lessee by 1 year up to a maximum of 3 years. Another plus for the tenant: After a period of at least 6 months, he may unilaterally terminate the contract with 30 days’ notice. However, a claim for damages by the landlord can be made in this case. The landlord may terminate the rental contract before the three year expiry date unilaterally if he contends that he needs it for immediate relatives (children, parents, siblings), gives two months’ notice and the present rental contract has been in existence for at least a year.

3. Rental
The rent can be freely agreed between the Parties. Any rent increases are agreed for the following year. The deposit is one to two months. Normally speaking the deposit is not subject to interest. The owner may also require additional collateral. The right to a reduction in the rental fee due to defects is not recognized in Spanish law, and as such the tenant can only claim for damages against the lessor. However if the lessee reduces the rent he pays, he then causes a reason for termination of the contract.

4. Sale ends the rental contract
In German law, we know the principle "sale of a property does not mean termination of rental agreement", that is, upon sale of the property, the buyer, in lieu of of the previous owner / landlord takes over all rights and obligations resulting from the contract and has no right to cancel. Unlike Spanish law: under the condition that the lease was not registered in the Land Registry by means of a notarial act, the new owner may demand the tenant to vacate the property within a reasonable time.

If you are interested in long term rental of a house or an apartment in Mallorca, please contact our rental experts Oscar Chuctaya (971-671250) and Ivana del Toro - responsible for commercial real estate (971 69 52 55).