Have you just decided to rent out your property to earn some extra money? Surely, this process seems daunting, and you might have many questions about where to start. That’s why we have decided to help you by sharing all the
aspects you need to consider before putting your apartment up for rent in this blog.
1. Procedures to Start Renting
Before you can rent out your property, you need to complete a series of mandatory procedures:
Habitability Certificate
This is a document that certifies that a property meets all the requirements to be inhabited. To obtain this certificate, the property must meet
optimal sanitary conditions, have a
minimum area of 36 m2, be structurally
sound, and have basic
water and electricity supplies.
Energy Efficiency Certificate
The Ministry of Industry requires an
energy efficiency certificate that provides information on the energy characteristics of the property. This report is based on the annual consumption of the property and classifies it from A to G (from highest to lowest efficiency). If you want to know some
tips and advice to improve your property’s energy consumption, you can read our blog on the subject.
In the case of Catalonia, both the habitability certificate and the energy efficiency certificate are mandatory, just like in the rest of Spain.
2. Study the Market and Set a Price
An essential part of renting your property is to
set a fair and competitive price. To do this, it is highly recommended to look at rental prices and conduct a
rental market study in your area. Many factors can determine the final rental price, such as location, size, season, etc. During the term of the contract, the rental price can only be updated by the owner or the tenant on the annual renewal date of the contract, according to the terms agreed upon by both parties.
3. Rental Regulations
The
Urban Lease Law (LAU) has undergone some changes in recent times, so it is important to stay up to date with any new regulations that may arise. Here are some of the most relevant points established by this law:
Contract Duration
One of the latest changes introduced by the LAU is the reduction in the minimum contract duration. If the property owner is an individual, the
contract duration has been reduced from 5 to 3 years, extendable for another year if both parties agree. If, after three years, neither party notifies the other (at least 30 days in advance) of their intention not to renew, the contract will be automatically extended for another year.
However, if the property owner is a legal entity, the
minimum duration will be 7 years, and extendable for a minimum of three more years.
Contract Compliance
The
mandatory contract compliance period is 6 months, and you can request compensation if the tenant does not comply.
Rental Payment
The law states that the
rental payment must be made monthly within the
first 7 days of the month, unless otherwise agreed between the landlord and the tenant.
4. Find the Ideal Tenant
Selecting the ideal tenant is not as simple as it seems. It is a crucial factor, as it will determine whether the property is well-maintained and whether you receive all payments on time. To make the right choice of the perfect tenant, you should primarily assess their
financial stability. We recommend asking for a
contract or payslip to verify that they have a regular income. You can also check their history with other landlords to see if they have ever had any payment issues.
If you want to avoid being caught off guard in this situation, we recommend purchasing
rent insurance.
5. Make an Inventory
It is important to create an
inventory of everything you have in the property (appliances, furniture, decorative items…), unless you rent it completely empty. When formalizing the
rental contract, the tenant should carefully read this inventory and sign it if they agree and commit to returning the property in the same condition. This document will serve as a reference in case of any damage or theft.
6. Expert Agency in Apartment Rentals
The last and best advice we can offer is to seek support for managing your rental from a
specialized property rental agency.
As we have already mentioned, managing your property on your own can be complicated, which is why, with the help of the
AB Apartment Barcelona team, you won’t have to worry about anything—we do it all for you!
We assure you that, if you follow our advice, the process of renting out your apartment will be much easier!
