6 Month Rental Request - Advice Please!

We have rented our townhouse out for holidays for the past 2 years but have just been asked (via email from holiday rental site we advertise on) whether we would rent it out for 6 months - the people want to spend the Winter in Spain!  This seems like an ideal situation as we normally only get rentals in over the Summer but I was wondering how to get the money from them for the monthly rental and the electric and water bills?  I know I should ask for a security deposit and 3 months rental in advance but then what?  I can tell from my bank statements how much the electric and water is costing me but I know it will be a lot during the Winter months and am not happy about giving them my bank details and trusting them to pay money in!

Also, what sort of references should I request?  They are obviously not working - just holidaying (although they state it would be two adults and one child).

I am tempted to put it in the hands of a rental management company?  (Was considering this anyway even before being approached).  Any recommendations?

Any advice would be gratefully received!

You don't need to put it in the hands of a rental management company, as they will charge you more for doing the same thing you can do yourself.

We used to rent out apartment for long term rents, but are now trying the holiday rentals. It is easy to rent long term, however even with glowing references, which I would still ask for, getting the money on time is another thing. Make sure you get a Bank Reference stating that they can afford the monthly rent and bills, in addition to any personal and/or employment references. 

You need to see a local, reputable lawyer, who can draw up a rental contract for you, which would stipulate how much is to be paid, on what date, what will happen should either party wish to cancel the agreement and mode of arbitration for both parties (rent arrears, failure of owner to rectify faults, etc.). Your lawyer will read the contract out in the presence of both parties, make sure both parties agree and then sign the contract, and can even hold the deposit for you should you wish (that way the renter has to go through your lawyer to get their money back).

The cost for this is met by the owner, and needs to have all the details of the owner and renter, including full passport and NIE number (needed in Spain by the renter if they wish to long term rent, and all costs payable by them). The cost is around 250€ for the contract but covers all the legal aspects of both parties, and includes length of contract, monthly rent and payment date, amount of refundable deposit less costs for any agreed damages, and length of notice to end contract from either party.

You can also stipulate how the electricity and water charges are to be paid, as I would suggest it would be easier to keep both contracts in your name, as non-payment would mean disconnection of services, and you would have a heck of a job getting them reconnected after the tenant leaves. An easy option is to overestimate the cost for both for a period of one month, and have this paid in advance, then any payments there after can be done in advance, and any discrepancy with over payment at the end of rental term can be given back to the renter.

Lastly, it may well  be worth you while taking out a bank guarantee, as this will ensure that the rent is paid for the duration the renter is in your property, however this usually costs about what you would get for one months rent!

Thank you so much for all your advice - very much appreciated!   (I see you are in Duquesa - that's where our townhouse is!). Good luck with the holiday rentals - we are averaging around 13 weeks booked out per year, although could do with more outside of the school holidays!

In that case, as you are also in Duquesa, may I recommend my Lawyers Mateo Abogados in Sabinillas.

Their office is in the same building as the Notaria, behind La Caixa bank on the main roundabout.

Hi Lesley

When we were in a long term rental our Landlord simply e-mailed an invoice to us every month for the electric and water and we paid the money into her account. Alternatively you could add an amount to the rent to cover the costs and make that the monthly rent., although it may be difficult to know how much the bills are likely to be through the winter and it depends on how the property is heated. Although it is standard in the UK that the utilities are put in the name of the tenant, we were toldby our solicitor that in Spain the utilities have to stay in the name of the owner and be paid by the owner.

Also, ensure that any rental agreement refers to it being a seasonal rental, something your solicitor should know about and be able to advise you on.

Hi Lesley

We have taken winter lets a couple of times and the first time we were charged an 'all in' rent, ie including utility bills. We paid a month in advance and put the rent each month into the landlord's bank account.  It was great that they trusted us to do this (and with no holding deposit!).  Last winter 2009/10 we got a great deal on a villa through an agent by paying up front for all of the 4 months we wanted the place (plus a month's rent by way of a deposit).  As soon as a utility bill arrived for the owner of the property..we took the cash to the agent who paid it into the owner's account to cover his direct debit payment.

There really is so much out there for rent...we refuse to pay any more than a month's deposit on hold in lieu of any possible breakages...and we have always managed to get a good deal.  Having said that..we always insist on talking to the landlord (and meeting him/her if possible) so that we all know each other a little before taking on a property. We insist on knowing their address in the UK/Spain and we make sure they have ours too.  Not only are there unscrupulous tenants out there, there are quite a few 'bogus' landlords!  We only provided the 4 months up front when we had seen the property for ourselves...and knew that it really existed and was available.  You have to be so careful these days.

Also, sorry to mention it...but references are almost useless.  They can so easily be 'aquired'.  Contracts mean very little too in Spain....as anyone can see by looking through the number of posts on this site referring to contracts that have been ignored by Spanish Companies when it comes to getting what you've paid for!  It really is a case of getting to know as best you can just who it is that's taking on your property.  I doubt if any solicitor in Spain is going to do this for you. 

Meggie,

"Contracts mean very little too in Spain....as anyone can see by looking through the number of posts on this site referring to contracts that have been ignored by Spanish Companies when it comes to getting what you've paid for!"

I assume you are referring to purchase contracts.

It is law in Spain that anyone renting a property on long or short term is required to have a rental contract.

Also, when dealing with problems that arise from property rental, then one attends the court of arbitration, and not the high courts, thus things are dealt with within 3 or 4 months, if they take that long!

If there is no rental contract, then the owner can do as they please, and also so can the renter. For example, you may find out that your tenant sub-contracts the property, and if so, then you will have one heck of a problem getting rid of tenants tenant!

Please, don't tell people that rental contracts mean very little, as it is the reverse! I would have thought that you, as a tenant, would know the law with regards to renting property, and that a rental contract protects the owner and the tenant.