If you have decided to settle down in Spain, you should know what expenses owners and tenants must pay when they rent. Although the rental contract is marked under the criteria established by the Urban Leasing Law (Ley de Arrendamientos Urbanos or LAU), it is often unclear what the landlord and the tenant must pay. Certain concepts are set by the agreement between the parties (landlord and tenant) that must always be expressed in writing in a document, reviewed by a lawyer and signed by both parties.
Payments assumed by the owner
- The share of the owners’ community. According to the Organisation of consumers and users (Organización de Consumidores y Usuarios or OCU), the owner must assume the share of the owners’ community. And the buyer of the property must go to the neighbours’ meetings unless another person (the tenant for instance) is allowed to attend.
- Property Tax. Homeowners are required to pay it. It may vary if the landlord and tenant reach an agreement that the latter has to face this payment. In this case, it has to be specified in the rental agreement.
- Breakdowns and repairs. Under the LAU, the owner of the leased home is required to make necessary arrangements to keep the home in good condition for it to be rented and inhabited. And who pays for home repairs? It depends on their magnitude. Normally, the owner will be responsible for the costs of breakdowns that are worth more than 150 euros, (especially those breakdowns that occur due to habitual wear and tear on the home) as long as it is not proven that the tenant caused the damage. Also, the tenant has the right to require the landlord to make the repairs that are necessary to keep the house in habitable conditions and serve the agreed use, without increasing the surrender for it.
What does the tenant pay?
According to the OCU, the tenant must pay for everything that can be measured with individual meters (water, electricity, gas, telephone, Internet…). Some of which must be credited through payment receipts provided by the owner.
- Housing maintenance expenses. In this case, the tenant pays for small repairs or breakdowns which expenses are less than 150 euros.
- Damage. The Barcelona City Council establishes that the tenants must cover the expenses of the items they broke or damaged. They also must do improvement works that do not modify the configuration of the home and always with the consent of the owner.
- Usual maintenance. The tenants will pay for the usual maintenance tasks of the property. They must leave them under the same conditions in which they were initially found when the rental contract ends.
When it is unclear
As pointed out above, some concepts are not clear and many tenants do not know what payments they must make. This happens, for example, when we cannot differentiate between conservation or maintenance. If the boilers are damaged during the course of their useful life, their replacement or repair would correspond to the owner. But if the repair involves the replacement of a filter or a pilot, then the tenant pays.
In the case of having insurance
If the property is insured, the landlord should take care of the payment of the policy that covers the continent of the apartment. The tenants must have it for the content.
Read the lease agreement well
Always read the lease contract well before signing as what is established there is what really counts. The law imposes fewer and fewer rules, but it is applied in what the contract does not require.
It was ambiguous whether the tenant or the owner has to paid management fees. With the new royal decree of the rent, it is somewhat clearer. If the lessor is a company, he must bear the cost of real estate management and contract formalisation. While the new Rental Law establishes few changes regarding the payment of certain concepts. Housing lease contracts for stable and permanent use are exempt from the payment of the Patrimonial Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP), which the tenant had to pay until now.
Rent safely in Barcelona with us
Now you know everything what expenses owners and tenants share when they, you can come and live in Spain. ChicRoom Properties is a leading real estate agency in Barcelona focused on the luxury market. We are dedicated to make the rental and purchase process as easy as possible for its customers. Visit our website to browse the various options of quality dwellings we propose by clicking here.