As the Marbella summer approaches many owners begin to prepare their properties for short term rental holidays and many others begin to think about renting out their property for either short or long term rentals. An idea that given the amount of achievable income offered by growing tourism of the Costa del Sol and its quality of life, is becoming increasingly attractive for second home owners in the area. Today we would like to point out one of the most relevant parts of a rental, which is the contract that seeks the protection of the rights and interests of both parties enabling and building the relationship between the landlord and the tenant, most importantly is making sure the document is as complete as possible and as clear as possible.
In our opinion the first thing to establish is what type of contract we are talking about, with regard to the duration and purpose, from that we can then add various clauses, expenses, obligations etc. for example; on a short term rental costs such as electric, water etc are included in the rental price. We explain in one of our previous blogs ‘Short term rentals and property compliances’ the conditions that the property must comply with and fulfil when used by our guests, when renting for short term periods. Clearly identifying the three parties present in the contract (owner, tenant and property).
Reference will also be made to the state of property. The property must be handed over in a good condition which will be noted and checked also by the tenant, and attach photos to be able to compare the condition of the property upon check-in and check-out of the rental. Marbella Unique Properties takes a photographic inventory of the property and checks it a few days prior to the start of the rental, in order to remedy any possible damages that the property may have and give the owner who may not be in Marbella at the time a complete service. By the same manor, our full rental service means we are present at the end of the rental, to check the return status of the property. The use of a refundable deposit, if the property has been delivered in perfect condition is one of the best ways to make sure the property is taken care of during the stay.
The most delicate points that the contract seeks to cover, is how to resolve issues of non-payment or occupation of the property. It is advisable to include the possibility of requesting an eviction claim in case the tenant fails to pay the rent, for example, to be executed from the 10th of the month if the tenant has already defaulted on the payment. The law allows applying the eviction from the first month, although it does not specify from what start day therefore the courts are pleased if this point is clarified in the contract before the rental begins. The contract can also include an interest clause for each day that passes from the termination of the contract without the tenant having handed back the property. This would stipulate that the tenant must pay the owners daily compensation from that date until the complete eviction day, equivalent to twice the daily rent.
A fact that is often overlooked is the sensitive issue of pets. For pet friendly tenants, it is important to make clear in the agreement whether or not pets are accepted during the rental. It would also be very useful to have clear if the owner was to accept pets in the property, the rules that have to be fulfilled in the community with regard to them.
In addition to the contractual points that have to be taken into account as we have mentioned above, another key to renting your home safely is to carefully select the tenant. Documents that certify their stability and ability to pay can be requested. This point is easier if you manage the rental through a professional company, as the potential tenant may be reluctant to give their personal and financial data to a private individual, whereas they tend to be happier to deal with a professional real estate company for these delicate matters. To submit the contract to arbitration is also very useful, to speed up any judicial situation.
We hope our advice has been useful and clarifies how rentals contracts work before both parties decide to go ahead with renting a property. We continue to recommend the help of our specialised team to resolve any doubts or queries you may still have; Marbella Unique Properties are at your service, contact us.