The government has amended its initial draft so that for lets of less than one month there will have to be a two months' deposit. This is targeted at the national tenancy act, Ley de Arrendamientos Urbanos, and at "non-tourist" rentals. While they may not, under strict application of the tenancy act, be touristic, most of them are precisely that.
Housing minister Marc Pons says that the measure would mean that "false holiday rentals" would not elude the law and would, moreover, make it easier to check data, though this checking may well assume that deposits are lodged in bank accounts.
A different aspect of the housing legislation tackles property that is unoccupied for a lengthy period. The government wants to set this at a minimum of six months and to also have a census of unoccupied properties. It envisages letting town halls decide what to do about such properties.
Pons insists that this would not be a coercive measure but a persuasive one backed up with incentives. He wants to enable more renting (presumably of the long-term variety). Properties could come under the management of the Ibavi housing agency for a period of two years; owners would get returns from the rent.
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I have long term tenants that transfer 6 months rental in advance to my bank account. One even once paid 12 months rental. They negotiate beforehand for a reduced monthly rental price. Many times I have large sums arriving to my bank account. Many owners never wish to rent out their properties. My personal experience is that many rentees leave the property in a poor state and that if they stop paying rent it is an extremely costly and lengthy process to evict here in Spain.
I think it's a DNA thing, and why/how Spain lost the new world.
That would mean that anyone would need at least 1 month rent, 2 months deposit, and 1 month agents fee. That comes to around €2000 to be able to rent the cheapest apartment, without the moving costs. This is their solution to the problem of affordable rents ?* This is for all residential tenants by the way, not just those on short-term contracts as reported here. "Otra medida incluida en el proyecto final de la Ley de Vivienda es la fijación de una fianza equivalente a dos meses de renta a depositar en casos de alquileres residenciales, no los vacacionales, que están regulados por otra vía y sujetos a una autorización específica".
Last week they were reporting that people increasingly couldn't afford to pay the high cost of property rents, and now they want tenants to pay an even bigger deposit on top. It won't happen of course, people don't have the money to tie up left in deposits for years, but it does serve to show the true intelligence of the people in authority here. All they can think of is maybe they would be able collect millions in deposited funds.
More proof that these mnisters don't have the brains they were born with. Nothing's broken here, but they're all scurrying around trying to fix it, Mallorca has too much to lose to leave the whole future of the property economy in the hands of these chumps.
That is a great way to insure that you have another housing market crash,many foreign buyers buy for investment and use the property for their own use for a short period during the year,the thought that they might be forced to rent out their property against their will will insure that many seek to invest elsewhere and current owners to sell their property. If this does become law,presumably every estate agent will have to inform potential buyers that they could be forced to rent out their property. Just watch the housing market crash yet again.