In Spain the rental of flats has increased by around 19% in the last five years, where the most notable increases have occurred in the two major capitals: 47,5% in Barcelona and 38% in the city of Madrid, according to a report by Fotocasa. Where it becomes clear that there are five provinces —Baleares, Las Palmas, Salamanca, Barcelona and Madrid—, which have reached their historical maximum in this period. In either case, the price increase is much higher than 10% per year.
In any case, when a tenant is going to sign a rental contract for a house, he or she has to know very well what he is going to sign on the contrary between the two parties. Something that does not always happen due to the little understanding that exists in the tenants about the Law of Urban Leases (LAU). Where it is necessary to know what your rights are, obligations based on the current regulations in force that regulate the rental regime in housing in Spain.
One of the aspects where the controversy is greater is to differentiate what is actually a deposit and a surety. Because in effect, it is not the same thing despite its many coincidences. They are different concepts that you have to know how to differentiate at the time of formalizing the apartment rental contract. Not surprisingly, it can lead to serious discrepancies between the owner and the tenant himself. Because it is an amount that is delivered at the precise moment of carrying out the real estate transaction, just before entering to live by the second figure of this process.
Is deposit and bond the same?
Of course not despite the belief of some users who think it is the same concept. Although what they do agree on is that their amount is usually very similar, with transactions of almost the same amount or at least with small differences. In any case, we are going to explain what these two monetary concepts consist of. In order that you do not have any problem when you have to sign the contract for this kind of occupation in the home. Because with the new regulations, there is no doubt that you will have the odd surprise, as you will see below.
There is no doubt that one of the main issues that new tenants have when entering to live in a pio is the difference between deposit and deposit. It will not be very difficult to differentiate them from now on. So that you are more clear about what you are paying to the other party and what are the rights and obligations that you receive in both operations. In particular, after the changes that have occurred in the Urban Leasing Law (LAU). And that also affect the aspects related to the deposit and the guarantee in the process of renting the apartment or other real estate.
Deposit in the rent
It is the most acceptable term for users since it is very common for it to be asked when entering to live in a flat or apartment. In this sense, it must be clarified that the tenant is obliged to deliver to the other party the legal bond. Well, the amount stipulated by law is one month's rent, which will be delivered to the homeowner. It should be clarified that until the entry of the new regulations this payment could represent several monthly payments. It is an amount that serves as a guarantee against possible defaults by the tenant. Also to protect yourself from damage that may occur in the home.
If everything proceeds with complete normality, this amount (deposit) will be returned to the tenant in the days following the contract expiration. For which, the owner of the house will check that all the content is the same as at the time of entering to live. You will have a period of up to 15 days for your return and if it were not in this way, it would have to assume the payment of its corresponding interests, as it is collected by the Urban Leasing Law. In any case, it is a concept that does not offer too many doubts for owners and tenants.
Conditions to recover the deposit
In any case, a series of conditions must be produced for this operation to run smoothly for both parts of the process. This is very important to avoid certain incidents that can disturb this transaction at the time of leaving the house by the tenants. And that are basically the following that we expose you below:
- Notify the owner in time and form of the decision to leave the property.
- Return the home in the same state in which you met it for the first time after signing the contract
- Have no debts or pending payments in monthly rents or in contracted supplies.
If all these commitments are fulfilled, there is no doubt that the deposit will be recovered in a very few days. Because it is a very common operation and is exercised in almost all contracts. Although it is optional of the decision that the owner of the private property will owe. In this sense, you have to pay special attention to what is stated in the contract. Because you can include a clause stating that, yes after the first six months, the apartment is abandoned before the final date of the contract is reached, they have the right to keep the corresponding part of the deposit. It is a special case, but it usually happens with some frequency.
What are security deposits?
Although very similar to the previous one, it is not the same. If not, on the contrary, there are substantial differences that you should know from these precise moments. According to the current Urban Leasing Law (LAU), a homeowner can request a deposit of these characteristics, as an additional guarantee, from future tenants. Its purpose is protect yourself against possible defaults in the monthly payments or before problems in the house. In any case, it is a not so common concept than the previous one and it is less usual for it to be formalized between both parties.
In this general context, it is very important that you know from the first moment what you are paying in the operation. That is, if it is a deposit or on the contrary it is a guarantee. Because in the first case it is the amount that the tenant must deliver to the landlord. It is not how you can think of a monthly payment, but on the contrary it is a amount agreed between both parties. With the result that the amount equivalent to two monthly rent payments cannot be exceeded in any case. They will not be able to charge you higher amounts since the current regulations would be breached.
Another feature that differentiates the deposit from the bond is that the first of them should not delivered to the relevant body of the Autonomous Community. But on the contrary, it will remain in the custody of the owner. This is a subtle difference that must be taken into account so that the whole process runs smoothly. In any case, it is not very common at this time for homeowners to ask for the deposit. In most operations, they tend to opt for the deposit as it is a more comfortable and understandable movement for both parts of the process in the rental of an apartment.
Return of the deposit
This is another aspect that will have to be very pending since it has a different mechanism than that of the deposit. In this specific case, is returned at the end of the relationship. But as long as there are no outstanding debts on the part of the resident. Nor that a contractual breach of the contract has been generated. Just as there must be no damage or incidents on the floor, caused by misuse of it. If everything runs smoothly, the amount of the deposit must be returned a few days after the rental contract ends.
With these explanations from now on you will have more clear what one or the other concept is. So that in this way, no last minute surprises that may cause you some other problem with these payments in the rent of the house. Something that is understandable when these concepts that are written in the contract between both parties in the process of transfer of real estate are not clear.
And that in any case, they can serve so that any problem or conflict between the tenant and the owner can emerge. Something that should be avoided with the compression of these two terms. Beyond another series of more technical considerations that will be the subject of another treatment in different articles. But in summary, they are concepts that should not be confused in any way to avoid incidents in the formalization of payments.