Important facts you should know about rentals in Tenerife

Santa Cruz de Tenerife

Rental contracts: everything you need to know. June, in addition to officially marking the beginning of summer, kicks off the peak rental season. According to idealista data, the interest and supply of flats for rent increases progressively from that month until the peak, which takes place in the second and third week of September, coinciding with the return of summer and the new school year.

Rental contracts: everything you need to know. What you need to know about rental agreements

So that both those who are thinking of renting an apartment and those who want to become tenants have all the information available, we have selected all the information related to rental contracts:

For owners

Rental contract model adapted to the latest changes in the leasing law

With the entry into force of the changes affecting rents, variations are imposed on the rental contract models that had been used in the leases.

Guarantee vs rental insurance, keys to choosing the best protection against a delinquent tenant

Default is one of the issues that most worries owners when it comes to putting up a house for rent, a market that, although growing, is still scarce in Spain. To try to solve this barrier there are different products such as bank guarantee or rental insurance that offer a guarantee to the landlord in case of non-payment of rent.

What are the penalties for not declaring the rental of a home?

Historically rented flats have generated a great underground economy. Now the Hacienda has started a campaign to “hunt down” those who rent in black. If it catches you, the Tax Agency will send you a settlement proposal, better known as ‘parallel’. In addition, you may impose a penalty of between 50% and 150% of what has not been declared.

When and why can the rent of the rent of an apartment be updated

As soon as the new measures of flexibility and promotion of the housing rental market were approved, the rental price can be freely updated by the tenant or the owner. However, it can only be updated by the lessor or the lessee on the date on which each year of the contract is in force, under the terms agreed by the parties.

When updating the rental income: which index is better to use, the CPI or the IGC?

Owner and tenant are free to agree on the rate by which they will review the rental price. The Government has changed the law so that this type of contract does not suffer the ups and downs of the economy and since April 1, 2015 the Competitiveness Guarantee Index (IGC) has been applied, more stable, in case of no explicit agreement . However, experts confirm that the CPI is still the main reference to review incomes.

What to do when you have a delinquent tenant?

The great fear of any owner who thinks about renting a home is that his tenant will stop paying. First of all, experts recommend reaching an out-of-court settlement. It is usually faster, although it is rarely achieved. If it fails, only the judicial route remains. There are two options: the tenant ends up paying or there is an eviction. The entire process can take between 3 and 8 months depending on the court in question.

For tenants

ITP of the rent: what is it and how much are you going to pay

Taxpayers who have recently been renting in Madrid, Andalusia or Catalonia and have declared it to the Treasury have little chance of avoiding paying the Property Transfer Tax (ITP) on leases. Now, experts insist that they have been lucky: failing to comply with the tax law, even if it is due to ignorance, is subject to sanctions of up to 75%, but both lawyers and autonomies rule out fines and opening files.

The most frequent void clauses in housing rental contracts

When a housing lease is formalized, it must be taken into account if it contains null clauses, that is, those clauses that establish limitations on the rights of the tenant. Check out the most common mistakes in housing leasing.

These are two models of termination of a rental contract in a legal way

When the end of the rental contract comes to an end, it is important to sign an agreement between the tenant and the owner to terminate the contract. It is the formula to ensure compliance with the obligations that remain pending at the end of the contract. Thus, there are two main models for terminating the lease: a “termination agreement with liquidation” and a “termination agreement with retention of the bond.”

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