Why you should not rent your home without a contract

More and more people are choosing to rent a vacation home. The intention is to obtain extra income to help the family economy. Maybe this is also your case. Or maybe, recently you have found that because of an inheritance or a real estate investment, you have an empty property and you have thought about renting it. We have already talked about the advantages of renting versus selling a property. There are many advantages in the vacation rental sector, and the proof is that there are more and more travelers interested in this type of accommodation; but these advantages can become problems if we do not do the marketing well. In this sense, the most important thing you should never do is to rent without a contract.

By Alquilair 

Why you should not rent without a contract

You may be tempted to rent without a contract, in "black". But you should know that this is very dangerous, as well as illegal. Not declaring the rent is among the most common frauds. You can get into trouble with the tax authorities and with the tenant, because, even if there is nothing signed, there is a verbal lease contract.

It is a common mistake among many landlords to think that when renting the apartment without a contract, and despite the fact that the tenant pays, the tenant has no rights as a tenant. But it is not so, because a lease contract exists from the very moment that two or more people reach an agreement when assigning a property. It is best to put everything in writing: rights and obligations of both the tenant and your rights as landlord.

Conflict resolution

Think about how you will be able to resolve any kind of conflict with the tenant if you have rented without a contract. This is a serious problem. There are studies that indicate that in 80% of the cases the verbal agreements of an undeclared rent are broken by the tenant. In this case, and as they say, words are carried by the wind and you never know what can happen. That is why from Alquilair we advise you to put the agreement in writing with a good contract for your security and peace of mind.

Home defects

Another possible problem you may face when renting without a contract is that you will have no way of defending your claims against the tenant in case of possible damages due to misuse of the property or even non-payment of rent. Without a contract, it is much more difficult to prove these issues. Think that your home is part of your family patrimony, therefore, protect it as it should be.

Without a contract, all rights belong to the tenant

As the lease exists even if it is verbal. Tenants without a written lease will have a number of rights over and above yours. But what are these rights? Basically, the right to the use and enjoyment of the dwelling, the right to maintenance repairs. 

Do you need help in the management of your holiday home in Mallorca? Write to us!