Differences between Fianza and Depósito when you rent in Marbella27 May 2014 | Renting FAQ
At Benarroch Real Estate, through our specialist Peace of Mind Rentals service, we can manage the entire process to help you formalise your security deposits when you rent a property in Marbella. Spanish law differentiates between what it calls the fianza and the depósito. The two are security deposits, but the concepts are very different, which can be confusing. It’s important to make sure you understand them clearly when you rent.
- Fianza: Refers to the damage deposit the tenant pays when they sign the lease agreement, this is mandatory in accordance with the Spanish Law on Urban Lettings (known in Spain as the Ley de Arrendamientos Urbanos or the LAU). This deposit will be two months’ rent for commercial lease agreements (contrato de uso distinto a vivienda habitual), and one month’s rent for residential lease agreements (contrato por vivienda habitual).With residential lease agreements, this deposit will be used to cover any possible damage that may be caused to the property while it’s in rent.
It’s important to note that, according to Law 8/1997 of 23 December of the Andalusian Parliament, the owner has to deposit the fianza payment arising from the lease agreement with the Regional Government of Andalusia during the rental period.
- Depósito: On the other hand, while legal, isn’t mandatory. It’s a payment-guarantee deposit and it can be freely agreed between the parties. It’ll be used to cover any failure to pay the rent. At Benarroch Real Estate, this payment-guarantee deposit can be anything from one to six month’s rent, depending on the type of property. It’s considered an alternative to a bank guarantee.
When our clients engage our specialist Peace of Mind Rentals service, the damage deposit (fianza) is passed to the owner, who has to deposit it with the Regional Government of Andalusia. The payment-guarantee deposit (depósito) is kept by Benarroch Real Estate, so it can be used to cover any failure by the tenant to pay the rent.
We hope this short article has clarified the difference between the two terms. Remember that we are here to help you with any queries you may have.
Article by Brice Benarroch Mennessons27 May 2014