Are you the owner of an empty home ? Have you gotten tired of paying fixed expenses each month for an uninhabited property? If you have decided to rent your home, you must take into account all the legal procedures necessary to rent an apartment, thus avoiding setbacks with future tenants. Take notes to find out what is needed to rent an apartment. If what you want is to rent, we recommend that you go directly to the part of this article where
Documentation for owners
If you are an owner and you think that, just by writing and publishing your home ad, you are going to find a tenant you trust, you are very wrong. Therefore, there are a series of documents that are essential to legally rent your house. They are as follows:
It is also called the Energy Efficiency Certificate and it differs depending on the Autonomous Community in which the property to be rented is located.
On many occasions, if you decide to advertise your real estate in an agency or on an Internet portal dedicated to this task, you must also provide this document to include it along with its detailed description.
When you manage to rent an apartment, you are obliged to deliver a copy of this document to the tenant. However, there are exceptions. It is not mandatory for vacation rentals that occur for up to four months per year or for rentals of homes of less than 50 square meters in an isolated area.
Certificate of occupancy
It is another of the basic documents to rent a flat. It also receives the name of First Occupation License. In its development, it is guaranteed that the house has the necessary conditions to reside inside.
The third essential document must show the identity of the owner, while ensuring, legally, that he is the owner of the home in question.
The way to prove this fact is through a property deed. In addition, it is also very common for the owner to give the tenant copies of the last IBI receipt and the payment of the amount of the bills for the basic supplies of the apartment.
Although it is not a document as such, it is something that the owner should not forget. After renting the apartment, you must deliver all the sets of keys available that allow access to the house, not just one. During the term of the lease, the owner will not be able to have any key to the rented apartment.
How to rent an apartment
Are you moving to another city? Do you want to receive some extra income? Whatever the reason, many times you ask yourself: I want to rent my apartment. You know that with this you will receive an extra amount of money per month, especially in the larger cities, where the rent is higher. So that you have no doubts about it, we tell you all the details to do it legally and safely.
Once you say to yourself “I want to rent my apartment”, the first thing that comes to mind is how to do it to avoid problems. Comply with the law, that everything is registered and that what is a benefit today will not become a problem tomorrow. We could say that this is the most important thing when planning a rental and for this, we will have to take into account the rules that we must comply with.
When it comes to taking advantage of an income for your home there are some fundamental procedures that you must do so that everything follows the course of legality. These are as follows:
Obtain the property’s energy efficiency certificate. If your apartment is more than 50 square meters, you will have to have this certificate registered in the Autonomous Community where the house is located. In addition, you will have to show this label in any rental offer you publish and give the certificate to the future tenant before signing the contract.
Keep in mind that these certificates are valid for one year and doing without them can lead to a fine of between € 300 and € 6,000.
Prepare a personalized rental agreement. It is important that it complies with the Urban Leasing Law. If you don’t know where to start, on the Internet there are many websites that will help you create it.
Deposit the bond with the appropriate public body. You will have to require the tenant to pay a deposit, at least one month’s payment. Once this is done, each Autonomous Community sets a guideline with which body, when and how you have to deposit this amount.
Pay the Tax on Patrimonial Transmissions (ITP) . Once you formalize a rental contract, you are obliged to pay this tax in the Autonomous Community in which the property is located. You have a period of 30 days from the signing of the contract. In case of not complying with it, you should know that surcharges may be imposed on the initial amount.
Register the rental contract in the Property Registry. Although it is true that this procedure is not mandatory, it does offer some advantage, both to you and your tenant. As for you, it would allow you to simplify the process of evicting a tenant for non-payment. Of course, keep in mind that this procedure involves a series of expenses, such as taxes, fees, notaries, etc.
We return to the initial starting point, when you say to yourself convinced “I want to rent my apartment”, but you want to do it safely. It is true that renting your home carries some risk, but you can follow these tips to minimize it as much as possible.
Rent by real estate
By making arrangements through a real estate agency you make sure that the selection of the tenant will be very careful. In addition, it will be carried out by people with many years of experience in the field. This will give you some calm and confidence when it comes to having your home rented to you by experts for the first time.
Ask for guarantees
The law allows you to request different guarantees of compliance with the payment obligation. Thus, you can request more than one monthly deposit or even a guarantee, either personal or bank. With this you will have more security when it comes to paying off a possible debt left by your tenant.
Secure document of non-payment of rent
More and more owners are resorting to taking out non-payment or damage insurance. In fact, on many occasions it is paid by the tenant himself so that in the event of a problem of this type, the insurance covers the debt. Thus, the financial effort involved in paying several monthly deposit payments at the beginning of the rental is avoided.
Another of the increasingly frequent situations is to consider having your home rented only in the months when you are on vacation. Depending on the location of the property, it can be of great interest. This is so because those located in the coastal area, for example, in summer significantly increase their value. The same happens with those located in large cities, for example.
If this is your case, you should know that there are more and more web pages that put individuals in contact with these needs. Among them, Airbnb stands out, an American company that has grown like foam in recent years.
In any case, if you are one of those who prefer the traditional modus operandi, you can also have your apartment rented with these conditions through a real estate agency.
At this point, we can only give you some other advice to make the task of renting your house as easy as possible.
You should know that the Internet puts before you endless online tools that allow you to calculate the appropriate rent to rent your house. By just covering some information about your property, these applications offer you all kinds of information of interest to you as the owner. Among them, we can highlight the application of Property news
Know your tenant
Establishing a comfortable and trusting relationship with your tenant is essential. The fact that you both know each other can greatly facilitate communication and therefore avoid problems. So our advice is that even if the rental is managed by a real estate agency, you know the person who will live in your house before formalizing the contract.
Confirm that the floor is in condition
Just as certain guarantees must be required from tenants, as a landlord you must also fulfill yours. So, make sure that everything is in order in your home. In case of detecting any fault or deficiency, correct it before the entrance of the tenant or if this is not possible, notify them.
We are sure that by following these simple tips, the relationship between you and your tenant will be very beneficial for both parties.
Documentation for tenants
In the other part, the person or persons interested in renting an apartment will also have to present documentation prior to the signature of the opposite.
With all these data, the owner will be able to check if the profile of potential tenants matches what they are looking for their property. The necessary documentation is the following:
Among the documents for renting an apartment, it is essential that the tenant or people who are going to live in the apartment can prove their identity through a valid legal document.
It is very common for the owner to demand the deposit of a guarantee in order to verify the economic solvency of his leased, thus having a greater support against possible defaults.
According to legal parameters, the bond must be equivalent to a single monthly payment, since this is how the Law of Urban Leases establishes it.
This last document is not mandatory, but optional. However, it is increasingly likely that the requirements to rent a flat and essential conditions include the need to present a bank guarantee.
In this way, the owner ensures that, if the renter does not meet his quotas, there is someone behind who will answer for him from an economic point of view.
Rent with option to buy
What is rent with option to buy? One of the most difficult decisions we have to make about our home is how to get hold of it. Rent, buy or rent with option to buy? The truth is that there is no correct answer, but it will depend enormously on the particular situationof each one. On this occasion, we will talk to you about the most unknown of them, the rent with option to buy.
Rent with the option to buy is a way of accessing a home through which you rent a property for a certain time and then you are allowed to buy it, discounting the monthly rent that you have already paid from the total price .
Until very recently, this alternative was very residual in Blue World City, but in recent years, with the stabilization of prices in the market, it has taken on special importance.
On a technical level, it consists of a double contract, so to speak, which in turn is divided into two other subcontracts. In the first, all the aspects related to the rental are detailed and in the second, everything related to the purchase option. Among the details provided, the mandatory time that the tenant has to spend on a lease must be found, which normally ranges from two to five years. In addition, an entry price is usually agreed that the tenant must pay with the signing of the contract, as well as the legal term to carry out the purchase after the rental period.
Advantages and disadvantages
Like any other type of contract, rent-to-own has its advantages and disadvantages. Therefore, it is important to analyze this alternative well before jumping into the pool. Here are some of its pros and cons.
The most important is that the money that the tenant invests monthly is not lost. On the contrary, when the time of purchase comes, it will be deducted from the total price of the property, which will be a future investment.
In addition, this option allows the tenant to gain savings time. That is, while you pay your monthly rent, you can set aside money to face the time of purchase in better conditions and, for example, be able to access a loan or mortgage . On the other hand, we must also emphasize that the tenant will be able to test the house and check if it suits their needs before deciding to buy it.
Finally, if we put ourselves in the landlord’s shoes, we can highlight as the main advantage that it keeps your home occupied, generating profitability and at the same time, the payment of the monthly payments is ensured. This is so because if the tenant does not comply with this obligation, the purchase option may be withdrawn.
Of course, there are also certain downsides to rent-to-own. The main one is that you have to make an initial outlay for entry, so you have to have some financial capacity to access this modality. In addition, if for whatever reason, after the specified time, the purchase cannot be accessed, all the investment made will have been lost. Therefore, it is advisable to be very sure before making this decision.
If you have already decided to access a rent with option to buy, there will be certain things that you will have to take into account before signing. Here are some tips:
– Check well all the clauses of the contract. Our recommendation is to enlist the help of a lawyer to ensure that all concepts are correctly written. This way you will avoid future problems.
– Define who will take care of community expenses and possible reforms. This can lead to conflicts between the landlord and the tenant. Therefore it is interesting to leave everything defined from the beginning.
– Clarify the purchase conditions well. This will be essential to be able to be clear about the terms you have to buy the apartment or the time that the rental of the house will last, etc.
In conclusion, the key will be to leave everything well tied to avoid generating conflicts in the future.
In the Community
In recent years, accessing a home in large cities has become mission impossible. That is precisely what is happening in Madrid. Rent prices have risen so much that the task of finding a flat in this modality has become very complicated. However, this also creates new opportunities, such as rent-to-own. Thus, if you have the opportunity to access it, we advise you not to miss the opportunity.
It does not matter if you are looking for a rental with option to buy in the South area of Madrid, in Torrejón de Ardoz or in Getafe. The important thing will be to find an alternative with good conditions, since this will probably become a very good investment for the future.
Of course, the same thing that happens in Property News is happening in other big cities, like Barcelona, Malaga, Valencia or Bilbao. Therefore, evaluating this option in any of these locations will not be a crazy idea.