Rent out property in Tenerife
Do you want to rent out property in Tenerife? Then you should be aware that it is somewhat complicated in Tenerife. The type of rental allowed depends on the duration of the rental and the location of the property.
Duration of the rental period
Renting out property in Tenerife with short-term contracts: (contrato de arrendamiento por temporada) normally run for three or six months, up to a maximum of one year. Whatever the duration of the contract, the conditions are binding for both parties and there is no notice period because both parties have to respect the entire contract period.
However, it is important to note that short-term contracts are in no way intended for ordinary residential purposes. They are contracts for a specific purpose, e.g. temporary traineeships, study, etc., and not for the usual habitual principal place of residence. The tenant’s main residence must be specified in the contract (e.g. home address in the UK). Nor can they be used for tourism purposes. The government (Turismo) says that such a contract of less than three months will be considered by the government as touristic, and fines are imposed on owners for offering such illegal contracts.
Renting out property in Tenerife with long-term contracts: (contrato de arrendamiento de vivienda) are valid for a minimum of one year and are broadly similar to a classic lease. The tenant is highly protected by law, including the right to extend the contract for 5 years, and then again for 3 years, with rent increases less than or equal to the inflation rate. Also read our blog article on long-term rentals in Tenerife.
Location of the property
The legal and registered location of the property is determined by its location in an area and not by the regulations of a complex, the view or your own interpretation. The knowledge of the exact legal location is decisive to know whether the property is coloured residential, touristic or both.
If your property is coloured as Residential-Touristic, we cannot give you an answer. The law is unclear as to what you may or may not do…