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 a further three years, with rent increases at 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”. 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 essential to get specific and clearly identifiable receipts for all monies handed over, whether deposit or monthly rental payments.
Some rentals include a certain amount for utilities usage, often up to around €50 or so per month, with the tenant paying any extra when the bill arrives. Apart from electricity and water, however, landlords themselves normally pay the rates (IBIs) and the community charge if the rented property is on a complex. Clearly it is important to know in advance what commitments there will be for ongoing expenses in addition to the rent, and these should be clearly detailed in the contract. Generally, however, the landlord should be expected to cover the IBIs (rates), community fees, basura (rubbish), house insurance and maintenance costs, whereas the tenant should anticipate paying metred amounts for utilities such as water, electricity, gas and telephone. In the event of breakdowns, the landlord is usually responsible for washing machines, boilers, etc. (unless the breakdown is very minor or the result of damage caused by the tenant), and the tenant for any damage s/he has caused or which has resulted from general usage (e.g. a broken window or a blown lightbulb), and tenants are recommended to take out their own contents/accidental damage insurance for such eventualities, as well as for cover of their own possessions. While speaking of utilities and the like, it is worth mentioning that from 1 June 2013, owners are obliged by law to provide a copy of an energy certificate for the property to all new tenants – existing rental contracts are exempt from the law (see HERE).
When leaving a rented property, tenants are required to give the period of notice stipulated in the vivienda contract. Under legislation which came into force on 6 June 2013, however, they will be able to terminate a contract by giving just one month’s notice, and no longer having to pay compensation, providing that they have had the contract for at least six months. Similarly, once the property has been let for a full year and the contract has been renewed, the owner of the property will only be able to recover it from that point for use as a main home with notice of two months. Legally this means that the owner must move into it and stay in it for at least three months, and cannot just say they want to live in it in order to get the tenant to move out for a different reason.
Tenants can also be evicted, of course, and the usual reason is for non-payment of rent. It is important to be aware that even if you feel justified in withholding payment, e.g. for requested repairs that have not been carried out, the law expects payment to be made and for the claim then to be dealt with separately. To date, tenants have been able to avoid eviction by paying rental arrears just before a Court hearing, at least on the first occasion, but under the 2013 legislation I mentioned above, landlords will be able to apply for eviction in just ten days if rent is outstanding. The Courts will grant the order unless the tenant can present satisfactory argument for non-payment – which would be difficult to do, evidently. Apart from non-payment of rent, a tenant may be evicted for sub-letting, using the property for a purpose other than living in it, intentionally damaging the property, or carrying out noisy, dangerous or illegal activities. Anyone who is evicted under these terms of the new law will, moreover, be recorded in a new rent debtors’ register which will be made available to landlords to check prospective tenants, so clearly it is to the tenant’s advantage to leave on good terms and with no outstanding issues if at all possible.
Please use the comments box below to ask any questions relating to the above, but please do not use it to seek or offer rentals, or ask for recommendations for agents. There are more agents here than one could begin to list, and I would think that in the main they are pretty much as good and effective as each other. All due caution is necessary, as always, in any transaction here, and independent advice on contracts signed and monies handed over is essential.
Finally, please see THIS page which details the specific letting framework for owners in the Canaries.