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Buyer beware: UK issues Spain property warning

The UK's Foreign Office is warning people not to venture blindly into the minefield that is Spain's complicated property market.

Buyer beware: UK issues Spain property warning
In the worst case scenario, people have seen their expensive dream homes demolished because they were built without planning permission. File photo: James Bird

"Research, research, research," that's the message the Foreign Office wants to get across to prospective buyers of property in Spain.

Spain continues to be a hugely popular choice for Britons buying homes overseas, despite the economic crisis and well-publicized property scandals.

And most have bought properties without experiencing any issues, the Foreign office says.

But some buyers have been caught up in serious property problems leading to emotional distress and loss of personal and financial effects.
 
Poorly policed urban planning laws have resulted in some 300,000 illegal homes being built in Spain, expat property activist Maura Hillen has said.
 
The consequences can range from fines to difficulties in arranging connection to water and electricity to court proceedings..
 
In the worst case scenario, people have seen their expensive dream homes demolished.
 
British Ambassador to Spain, Giles Paxman, explained what the British Embassy has been doing: "Although we cannot take action on individual cases, we continue to engage with the Spanish authorities at all levels to encourage them to address property issues affecting British nationals." 
 
"We have seen the devastating effect property problems can have and we want to help prospective buyers avoid the potential pitfalls," the Ambassador said.
 
These would-be buyers can visit the very useful Spain-specific property advice pages on gov.uk and watch the FCO’s new video on YouTube.
 
Spain's British Ambassador also said people looking at buying in Spain could talk to embassy staff at the A Place in the Sun’ exhibition in Birmingham in the UK from September 27th to 29th. 
 
"One thing that just about everyone affected by property problems says is that they want to make sure other people don’t go through the same situation," said Paxman.
 
"People already living here can play an important role, by encouraging friends and family to do their research and get  impartial legal advice before moving abroad."

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RENTING

The rules and small print for a rental contract for a room in Spain

Renting a room in Spain can often be easier and cheaper than trying to rent a whole apartment or house for yourself, but there are still several things you need to look out for in your rental contract and small print clauses you need to be aware of.

The rules and small print for a rental contract for a room in Spain

Sharing a flat in Spain may of course not be your first choice; in 55 percent of cases people here do so because they can’t afford their own place. 

Renting a room is now almost 10 percent more expensive than a year ago, according to recent data published by property portal Idealista, costing almost double in 2024 than it did nine years ago.

The national average for renting a room is now €488 per month.

If you’ve come here to be a student or to learn Spanish though, renting a room can be excellent choice.

Due to Spain’s housing crisis and financial constraints, renting a room is no longer only an option for young people in Spain. In fact, in 2022 Idealista found that the average of a person sharing a home in Spain was 34. 

READ ALSO: Renting a room in Spain costs 90% more than in 2015

Renting a room is increasingly popular in Spain, especially in those cities where rent is very high, such as in regional capitals. 

While your contract for renting a room may not be extensive as renting a whole property, it’s still very important that you have one to make sure that you’re protected.

A room rental agreement not only ensures that both parties are clear about their rights and responsibilities, but also avoids potential misunderstandings and conflicts.

Typically, when you are renting una habitación, your room will be your space, but you will have shared access common areas such as the kitchen, living room and bathroom. 

READ ALSO – Aval: How to get a bank guarantee to rent a property in Spain

Factors to keep in mind when renting a room in Spain:

Tenants do not have the right to continue to live in the home beyond what is stipulated in the contract, so your landlord will have greater control over the property.

It is important that the room rental contract specifies the purpose of renting the room and how long it’s for. Generally, this type of rental is regulated by the Civil Code, but it could also be subject to the Urban Lease Law (LAU), even though the existence of this type of lease is not specified.

The room should include basic furniture, and the landlord is responsible for paying the bills initially, although they may be included in the rent.

There’s no minimum legal content that room rental contracts must contain, and it is not even mandatory for it to be in writing. But it is still advisable to get one in writing in order avoid future problems.

READ ALSO: The pros and cons of signing a temporary rental contract in Spain 

According to property website Idealista, room rental contracts should contain these following elements:

  • The duration of the contract.
  • A statement saying exactly which room is being rented out.
  • The rental price, as well as the payment method with which the tenant will pay the rent and when it will be due each month.
  • The services that are included, such as the use of the kitchen and being able to connect to the internet.
  • It’s also important that there’s a clause to say how payments should be divided in case of any unforeseen circumstances.
  • It must be indicated if subletting the room is allowed or not. As stated in the Civil Code this may be possible if your contract doesn’t specifically state that you can’t.
  • If the property is rented by several people, the contract must be formalised between all tenants through a single rental contract and tenants will appear in the same contract.

READ ALSO: Is subletting legal in Spain? 

How to tell if a room rental contract is legal in Spain

For a room rental agreement to be legal, it must contain the following information:

  • Full names, DNI or NIE number, address and telephone number of both the landlord and the tenant.
  • Specify the exact address of the home, the rented room and the common areas the tenant has access to.
  • The start and end date of the contract.
  • The amount of the deposit and the return conditions. It is not mandatory to provide a deposit, but landlords can request it.
  • The monthly rent, the payment method and how to make the payment.
  • It must state who is responsible for the necessary works and repairs in the home.
  • A clause must be included stating who responsible for community expenses, water, electricity, gas, etc.
  • The text must state the conditions for termination of the contract, such as non-payment of rent or failure to comply with the rules or the landlord selling the property.
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