At Llach Serra & Associats we regularly work with property owners who want to rent out their homes and who, before formalizing the transaction, have doubts about what they should review in the rental contract. In an increasingly demanding real estate market, signing a contract without a prior review can entail legal, financial, and management consequences for the owner in the medium and long term.
Although it is often perceived as an administrative formality, the rental contract establishes the conditions that will govern the relationship with the tenant for months or years. For this reason, reviewing it carefully before signing is key to protecting the property and ensuring proper management. In this guide we explain the 6 main aspects that any owner should review before signing a rental contract.
1. Tenant identity and complete details of the property
The first step before signing a rental contract is to make sure that the details of all parties are correct. As a property owner, it is important to verify the tenant’s identity and ensure that their details are correctly stated in the contract, as this document will be the legal basis of the contractual relationship.
As for the property, the contract must describe it precisely: full address, surface area, intended use, and all elements included in the rental, such as parking spaces, storage rooms, or furniture. A clear description avoids future conflicts and protects the owner’s rights.
2. Duration of the contract and renewal conditions
The duration of the contract is a key aspect for the owner. Before signing, it is necessary to be clear about the initial term of the lease, what renewals are established by current regulations, and what options exist to recover the property in the future.
It is also important to review the clauses related to early termination of the contract, especially those that may affect the owner’s ability to make use of the property in certain situations. Knowing the notice periods and the applicable conditions allows for better planning of the property’s management and helps reduce risks.
3. Rent amount, payment method, and updates
As a property owner, it is essential to correctly define the rent amount and the payment conditions. The contract must clearly state the monthly rent, the payment deadline, and the agreed method, usually a bank transfer.
It is also necessary to review how the rent will be updated during the term of the contract and according to which index these updates will be made. In addition, it is important to clearly specify which expenses are borne by the tenant and which correspond to the owner. A clear definition contributes to a more stable rental relationship and allows for better control of income.
4. Deposit and additional guarantees
The deposit is mandatory in any rental contract, but as an owner, additional guarantees can also be established within the current legal framework. Before signing, it is necessary to review the total amount to be delivered initially and ensure that it is correctly reflected in the contract.
It is equally important to define under what conditions the deposit will be returned at the end of the contract and which situations may justify withholdings. This point is particularly sensitive, and clear wording helps to avoid conflicts when the rental period ends.
5. Condition of the property, inventory, and maintenance responsibilities
Before signing the contract, the owner must record the actual condition of the property. It is advisable to carry out a detailed inspection of the property and, if applicable, prepare an inventory that reflects the state of conservation of the home, the installations, and the furniture.
This inventory, attached to the contract, is a key tool to protect the owner against possible damage. It is also important to clearly define which maintenance tasks correspond to the owner and which to the tenant during the term of the contract.
6. Use of the property and contractual obligations
Finally, the contract may include specific clauses that regulate the use of the property, pet ownership, carrying out works, subletting, or rules of coexistence. As a property owner, it is important to review these clauses and ensure that they adequately protect the property and the agreed use.
At this point, it is necessary to differentiate the review of the contract from the prior management of the rental. When an owner wants to put their property up for rent, having good advice is key to correctly defining the conditions, the price, and the market exit strategy. Through its sales and rental management service, Llach Serra supports owners in the valuation of the property and in its marketing.
Professional advice for property owners who want to rent out their home
Renting out a property with guarantees requires market knowledge, sound judgment, and planning. At Llach Serra & Associats we accompany property owners throughout the entire process of putting their property up for rent, helping them define appropriate conditions and make decisions with confidence.
As a real estate agency in Barcelona, we provide a comprehensive view of the market and adapt our advice to the reality of each property. If you are considering renting out your home or want to ensure that the process is managed correctly, you can contact our team of experts to receive clear and personalized guidance.