Renting out a shared property is an increasingly popular option in Spain, especially in high-demand housing markets such as Madrid, Barcelona, or Valencia. As a property owner, properly managing a shared rental can maximize profitability and minimize issues with tenants.

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From drafting the contract to dividing responsibilities and ensuring compliance with current regulations, it is crucial to establish clear rules and ensure efficient management to avoid non-payment, disputes, and potential property deterioration. In this blog, we outline key aspects every property owner should consider before renting out a shared property.

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Choosing the right type of rental agreement

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In Spain, shared property rentals can be structured in different ways:

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• Single Contract: one contract signed by all tenants, making them jointly responsible for rent payments and compliance with the rental terms.
• Individual Contracts: each tenant signs their own lease agreement with the landlord, allowing for easier management of tenant turnover and reducing the risk of non-payment.
• Subletting: if a tenant wishes to sublet a room, explicit authorization from the property owner is required.

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To minimize risks, individual contracts are often the best option, as they prevent a single tenant’s non-payment from affecting the others.

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Setting up an efficient payment system

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To avoid delays or missed payments, it is advisable to:

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• Require Deposits and Guarantees: request a security deposit (as per the Urban Leasing Law) and, if possible, a bank guarantee or rent default insurance.
• Automate Payments: implement direct debit payments or use digital payment platforms.
• Divide Utility Costs: define how expenses such as water, electricity, gas, and internet will be paid, whether included in the rent or paid separately by tenants.

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Establishing rules and regulations for tenants

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To ensure the proper use of the property, it is recommended to set:

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• Clear rules on the use of common areas.
• Guidelines regarding guests and extended stays.
• Cleaning and maintenance responsibilities for tenants.

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Including these rules in the rental contract or an additional signed document can help prevent conflicts.

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Maintenance and repairs

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As a property owner, ensuring that the property remains in good condition is essential. To achieve this, it is important to:

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• Conduct periodic inspections: check the condition of the property and its furnishings.
• Define responsibilities: clarify in the contract which repairs are the tenants' responsibility and which are the landlord’s.
• Maintain a reserve fund: set aside a budget for urgent repairs and preventive maintenance.

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Ensuring compliance with regulations

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It is essential that any rental agreement complies with the law:

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• Urban Leasing Law (LAU): defines the rights and obligations of landlords and tenants.
• Municipal Regulations: some cities have specific regulations for room rentals.
• Income Declaration: rental income must be reported in tax filings.

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A well-drafted contract and compliance with legal requirements will help avoid legal issues and ensure the landlord’s legal security.

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Efficiently managing the rental of a shared property can maximize profitability and minimize risks. Defining the right type of contract, establishing clear rules, and maintaining strict control over payments and maintenance will allow for a smooth and worry-free rental experience. To simplify the management of mid-term rentals, tools like Arrento help streamline the process efficiently and effectively. With Arrento, property owners can manage their rentals with greater control, reducing administrative time and ensuring a seamless experience for both themselves and their tenants.