10 Helpful Tips for Renting a Finca in Mallorca
If you want to rent a finca (long-term rental), you should consider the following 10 points before signing the general rental agreement to avoid mistakes and eliminate errors.
Contents:
- Get to know the finca owner
- Find out about your rights and responsibilities as a finca tenant
- Special responsibilities as a finca tenant
- Does the landlord actually own the finca?
- Rental agreement: Only sign and pay for what you understand
- Who pays the real estate agent for a rental?
- Look carefully when viewing a finca
- Negotiate with the finca landlord
- Put all agreements in the rental agreement in writing
- If in doubt about renting a finca, consult a specialized lawyer
1. Get to know the finca owner
A rental agreement is a long-term arrangement with obligations and rights on both sides throughout the entire term of the rental agreement. Therefore, you should form a realistic impression of your landlord and absolutely trust your personal instincts and your judgment. If, at the first meeting, you get the gut feeling that the landlord is pretending, not entirely "kosher," "sly," or untrustworthy, then reconsider the whole thing.
You do have the right to live in the finca for a full three years from the contract date. However, it occasionally happens, especially when renting a finca, that the landlord declares personal use after one year and the tenant has to move out – of course, after enthusiastically clearing out, partially renovating, and tidying up the garden. We don't want to put you off here, but we do know of isolated cases like this – and every affected person said in retrospect that they should have listened to their instincts in the beginning. If you have a good impression of your landlord, there shouldn't be any problems at all.
2. Inform yourself about your rights and responsibilities as a finca tenant
Just like a landlord, you should be familiar with the legal regulations stipulated in the Spanish Tenancy Act (LAU - Ley de Arrendamientos Urbanos) when renting a finca long-term. Don't necessarily believe your friends and colleagues – even if they have lived in Mallorca for a long time and consider themselves Mallorca experts. There are many untruths and misconceptions circulating about the rights and responsibilities of renting a finca – even among Spaniards and Mallorcans. Make sure that both you and the landlord are aware of the underlying legal regulations. It doesn't hurt to list all these regulations again in the rental agreement.
Are you perhaps considering buying a finca?
Buying a finca can certainly make sense if you pay a (very) high rent and could also use it to pay off a mortgage. You may also be able to rent it first and then (or even beforehand) see if the rented finca is also available for sale. In our article "Tips for Buying a Finca" we have interesting and current offers and information. Just take a look!
In addition to paying the rental agreement, the tenant is obligated to keep the finca in good condition and maintain it. They must also take care of repairs and defects (especially if they were caused by the tenant). Renting a finca is therefore not like staying in a country hotel: Damage caused by the tenant or resulting from their own negligence must be repaired and paid for by the tenant. However, for significant improvements to the finca, the landlord is usually willing to cover, if not the entire cost, then at least half of the investment.
4. Does the landlord actually own the finca?
Before signing the rental agreement, you should ensure that the landlord is actually authorized to rent the finca to you. If, for example, you don't know the owner and are negotiating with an agent who will also sign the rental agreement, make sure they have the authorization. Even if it's the owner's son or daughter.
You can find out who the actual owner is by inquiring with the Spanish Property Registry, the "Registro de la Propiedad." The informative extract is called a "Nota simple informativa" and can be obtained from lawyers, notaries, or real estate agents. If you speak Spanish, you can also obtain the Nota Simple online at sede.registradores.org for around €15. In addition to the true owner, this extract also states whether the finca has any financial encumbrances that could affect the rental (mortgages, attachments, etc.).
5. Rental Agreement: Only sign and pay for what you understand
On Mallorca, only Spanish documents are legally binding, so rental agreements in German are effectively invalid. If you don't speak or read Spanish well, or don't speak it well enough, get someone to accompany you. You can find out everything about Spanish rental agreements in our article "Renting in Mallorca: Your Rights and Responsibilities as a Tenant."
6. Who pays the real estate agent when renting?
If you found a finca through a real estate agent, be aware of the associated costs. Typically, the tenant pays the real estate agency's expenses. When renting a finca in Mallorca, reputable real estate agents charge commissions between one and a half and a maximum of two months' rent.
Avoid so-called "cell phone agents" who are just trying to earn a little extra cash on the side, as well as those real estate agents who make you feel like you're just trying to get the rental done as quickly as possible. These agents won't provide you with reliable and up-to-date information, nor will they support you after signing the rental agreement with important matters that arise in the initial phase (such as dealing with authorities or setting up internet access).
7. Look closely when viewing a finca
Especially when renting a finca, it goes without saying that you can't rely on photos; you have to inspect the property. It's best to do this with the owner and look for damage and things that need to be renovated. If there are things you want to change, renovate, or remove, inform the landlord and make it a condition listed in the contract that must be met when signing the contract.
8. Negotiate with the finca landlord
It's human nature to want to get as much as possible out of your property or in business in general. Naturally, monthly rents are initially set as high as possible, and only reputable real estate agencies strive to negotiate a market-based price with the landlord. In most cases, there's room for improvement—the landlord is only human.
But rents aren't the only thing negotiable. The law certainly allows for some flexibility in individual contractual arrangements, such as determining compensation in the event of cancellation, cost allocation, tax issues, or conditions for returning the finca.
10. Consult a specialized lawyer if you have any doubts about renting a finca
If you have any doubts or uncertainties before signing, it's best to consult a lawyer. In such cases, legal assistance is not expensive, and you know exactly what you're getting into and can avoid future problems from the outset.
When renting a finca, which costs a considerable amount each month and ultimately becomes the center of your life, it's naturally best to have a customized rental agreement drawn up by a lawyer. This way, you can protect your own interests within the legal framework. This is definitely better than downloading a rental agreement from the internet, as is often the case, especially when renting apartments (the minimum rental period).
We hope this advice on buying a finca has been helpful to you or has drawn your attention to aspects you may not have considered before. It's always better to be prepared than to face problems later on that could prevent you from enjoying the dream life in a finca in Mallorca - "mejor prevenir que curar."
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