FAQ - Renting a property in Mallorca


Why should we let your property?

One of the most important things when it comes to successfully leasing a property is to find potential and solvent tenants. Our strength is our broad network as well as our well-founded knowledge in marketing and communication.

We know the local market situation very well and can provide you with a reasonable price estimate of your property.

With us you have an objective mediator at your side, which takes care of you and the tenant even after successful completion of the lease - because our service philosophy goes beyond mediation and lease.

Furthermore, we check exactly the tenant’s reason for renting and the solvency of our customers for you.


Discussion and Pricing

At a first meeting we visit your property and take care of professional photos for our online marketing. Based on factors such as amenities, square meters, location, view, terrace, condition of the property, etc., we will propose a rental price that corresponds to the market value. This service is free.


Who is going to pay us and what are the costs?

Our brokerage fee is 1.5 months’ rent plus VAT (21%) for real estate with a rental price above 1,000 EUR. Properties below 1.000,00 EUR will be charged with a brokerage fee of one month's rent plus VAT. Our conditions can also be found online in every object Exposé.

An exception to this rule is if the landlord is a legal person (a Spanish S.L. for example). In this case, according to the law, the landlord has to pay the brokerage fee.


Property presentation and publication

Your property will be presented with professional photos and a comprehensive description on our website in four languages. We will always send you a link to your property in advance, before we publish it. Furthermore, we cooperate with various major national and international real estate portals as well as various cooperation partners.
To reach as many potential customers as possible, we also regularly publish our objects on various social media channels, such as Facebook, Instagram, LinkedIn and GoogleMyBusiness. Through online advertising and social media, many of our customers find us through search engines, because there we are visible and always present.
Moreover, through our regular newsletter we reach more than three thousand interested parties.


Visits

After a visit and meeting with a potential tenant, you will of course be kept up to date and be given a feedback on the result of the visit. Providing us with your key makes it easier for us to respond quickly to inquiries and appointments, and you do not have to be always present.


Rental contract

If a customer wants to rent your property, the rental period and inventory details will be agreed upon. The next step is then the written agreement in the form of a lease. This should always be taken down in writing and include relevant contractual points such as the personal data of landlords and tenants (name, address, card number), start of lease and duration, rental price, deposit, utilities, etc.


Duration of Contract

Basically, the minimum rental period is 12 months. The lease is automatically extended by twelve months and to a maximum of five years, unless otherwise agreed in the contract or either of the two parties terminates the contract with a lead time of one month to its end.
If you only want to rent for a few months, instead of signing a lease, you must sign a temporary contract for the house or apartment. You are entitled to rent an accommodation without a license for a short period of time, minimum one month, but in order to do so you must be able to prove that the reason for your stay is something other than tourism. It may be that you are on a longer job assignment, studying abroad or have another valid reason why you need somewhere to stay.


Obligations of a Landlord

The landlord is basically responsible for the habitability of the property. He is obliged to take over all repairs related to it. Minor repairs due to wear and tear have to be taken over by the renter.


Additional Costs

Additional costs such as garbage collection, electricity, water, gas or heating oil and costs for telephone / Internet connection are usually borne by the tenant. The Spanish property tax and the community costs for housing complexes such as the maintenance of communal facilities as well as pool or garden maintenance should normally be included in the monthly rent and thus not be additionally allocated to the tenant.


Deposit

After the contract has ended, the tenant must return the property and the inventory in the same condition as he received them minus the "normal" wear and tear. Since the rental property is swept clean and insofar everything is in perfect condition, the landlord is then obliged to refund the security deposit immediately to the tenant.



Longterm Rental or Holiday rental - Which model suits me?

Anyone who owns or wants to buy a property in the Balearic Islands often asks which rental model is more suitable.

Basically, both models can be considered. Here you should deal with the following questions in advance:

- Do I want to partially use my property in Mallorca myself or is it just an investment project?

- Does my property have the statutory vacation rental license or what are the prerequisites for the purchase of such a license?

- Do I have the necessary infrastructure for vacation rental or can I organize it on site (cleaning, garden and pool maintenance, check-in and customer care on site)


Which model is more lucrative?

There are various variables to be taken into account when considering short term holiday lettings (holiday rental prices, occupancy, agency and marketing costs, personnel, ancillary costs, etc.), which means that you can only estimate expected annual income and costs based on experience.

In the case of long-term rentals, on the other hand, the monthly rent is agreed for a year or longer and a contract is concluded with the tenant. After handing over the keys, there are usually no further costs, apart from the usual maintenance and repair expenses.

 


Tax differences

In the case of long-term letting, the owner of the property - if it is a private individual - can deduct 60% of the rental income (i.e. all income minus deductible expenses such as taxes, equipment, maintenance, etc.).

As with long-term leases, the owner can also deduct the cost of a holiday home from tax. The cost of electricity, water, gas and other utilities, interest and other financial expenses related to the purchase of the property, the cost of repairs and maintenance of the property and insurance premiums can be deducted from the tax - but only for the periods in which the property was let. In this case, however, the owners do not benefit from the 60% discount.

 


Comparing additional costs

In the case of long-term rental, the tenant generally bears the following costs: Electricity, water, community costs in residential complexes, pool and garden maintenance.

In the case of short-term or vacation rentals, all costs must be included in the accommodation price for the tenant and the owner of the vacation property is responsible for paying the additional costs such as electricity, water, heating, cleaning, garden maintenance, check-in, etc.


What to do in the event of loss of rent or property damage?

As a rule, the holiday guest pays his stay in advance so that there is no loss of rent here. As the owner of a holiday property, you can insure yourself against property damage from the holiday guest. Here it is important to state the commercial holiday rental for household contents insurance and to take out additional insurance.

If you want to cover long-term rentals against loss of rent and damage to the property, you should also take out additional insurance for this, which covers loss of rent for up to one year and also damages up to EUR 20,000, however, also court fees and lawyer expenses.

We are happy to help you arrange the service.


5 valuable tips for landlords before photo shoots and visits

1. The first impression counts!
Cleaning counts! During the photo shoot and during every visit you should make sure that everything looks neat and clean. The outdoor area / garden should look well maintained, the pool is clean, the beds should be made, and the windows cleaned, bathroom and kitchen clean and tidy. Make a little more effort - because the first impression is always the most important!

2. Take care of interior decoration!
Create a welcoming home, e.g. fresh flowers, fruit baskets, herbs and nicely arranged towels create a homely atmosphere.

3. Less is more!
Personal decoration and things like family photos, children's pictures and clothing should find a different place on the day of the photo session as well as during visits. It's easier for someone to imagine their new home when there are fewer things in the way.

4. Cover up your tracks
If you have a pet, we recommend that you keep the four-legged friend hidden away during the visit. Most people love animals, but not everyone loves them at home. Remove beds, bowls and toys and make sure that no dog or cat hair is visible.

5. Let there be light!
Open shutters and curtains and turn on the lights in the rooms. Even though it's a bright apartment, the pictures will look even better, because one of the most important things about a welcoming home is the light.


Favourite added
Favourite removed
Favourite added
Favourite removed