The long-term rental or leasing conditions in Tenerife were adjusted at the end of December 2018 to better safeguard the rights of the tenants, as there is greater demand than supply for long-term rentals in Tenerife.
With long term rentals we talk about a contract of at least 1 year. After this initial year, the contract is automatically extended to a period of 5 years, where previously it was only possible up to 3 years. Each subsequent extension is automatically for a period of 3 years. This gives you, as a landlord, only the possibility to break the contract with your tenant after 1 year, or after the full period of 5 years. (exceptions not taken into account).
If you want to rent out a property, the legal deposit is set at 1 month’s rent.
On top of that, in a number of cases you can agree to an additional deposit equivalent to a maximum of 2 months’ rent. But the legal deposit is 1 month’s rent.
The rental contract must be signed by both the landlord and the tenant and must contain both identity numbers. Strictly speaking, a rental contract must be signed with the notary and registered in the Spanish land register (Registro de la Propiedad), but this is rarely the case in reality.
In the event of non-payment, a homeowner must go to court to get the tenant out of his home. This can be avoided by the tenants if they pay the overdue rent immediately in court, if it is the first time. In case of prolonged non-payment, the owner can ask for an eviction within 10 days.
The change in the new legislation is aimed at the socially weaker members of society. They can now only be removed from their homes if the court or the social authorities have provided them with new accommodation.
If the owner of the property is a legal person, he must pay the administration and drafting costs of the contract. This is not the case if the owner is a private person.
Monthly costs such as water, electricity and internet have to be paid by the tenant and can be charged by the owner on top of the rent. Garbage, community and IBI should normally be paid by the landlord.
For the tourist rental we are still waiting for a decision of the government to see what will change.