As the owner of a home in Fuerteventura, you are interested in knowing how the Housing Law affects you, in the event that you want to make it profitable by renting it.
Depending on the type of rental, the regulations of the Housing Law are applied or not, which generally establishes that the management and formalization expenses of the rentals cannot be passed on to the tenants.
The Housing Law, which entered into force in Spain on Friday, May 26, 2023, modifies aspects of the Urban Leasing Law (LAU), specifically issues related to expenses that real estate companies can pass on to tenants.
A key aspect of the Law is the imposition of the limit on rental income, in stressed areas. Other legislative issues establish a new reference index to update rents, new tax incentives and the possibility of taxing empty homes.
Returning to the expenses that may or may not be charged to the tenant, the obligation is established that the expenses of real estate management and those of formalization of the contract are borne by the landlord.
In non-stressed market areas, the landlord and the tenant can agree that the general expenses for the maintenance of the property, as well as the services, taxes, charges and responsibilities that are not subject to individualization and that correspond to the leased dwelling or its accessories, whether by the lessee.
It is convenient to identify and categorize other expenses, by which we distinguish among the services of professionals:
- Real estate management fee expenses: these are the intermediation expenses received by real estate agents for search services, mediation, management of visits and rental offers to tenants.
- Expenses for formalizing lease contracts: fees charged by lawyers, notaries or other professionals who draw up the contracts to formalize the leases.
The general rule indicates that the real estate agency cannot pass on the fees to the tenants, since they are services requested by the owner, for the management of the rental of his home.
But there are exceptions, among which we highlight vacation home rentals, which are considered as seasonal leases in certain cases, as these are distinguished from regular residence rentals, with a permanent nature.
For a seasonal lease to be considered a tourist rental, the following conditions must be met:
- It affects the entirety of a furnished and equipped home, to be used immediately.
- It is marketed and advertised on tourism supply channels.
- It is for profit.
- It is subject to a specific sectoral regime and regulations.
In tourist leases, the owner incorporates complementary services, such as cleaning, reception, sheets, towels,…
If you are an owner who has your home for rent in Fuerteventura, we suggest that you consult with a real estate expert in the area, so that they can advise you, depending on the destination of the rental, so that you can benefit from the legal and tax regulations: