The Mallorcan rental property market presents important changes to the rental commission in 2024

The concept of real estate commission for rental properties in Mallorca is an issue of great importance for both landlords and tenants in the real estate market. The year 2023 has marked a turning point in this issue, with significant legal changes that redefine the dynamics between real estate agencies in Mallorca, landlords and tenants. Discover the key changes in this article!

What does the real estate commission for rental properties in Mallorca mean under the new law?

The real estate commission for rental properties in Mallorca traditionally refers to the fee charged by real estate agencies when brokering a rental transaction. Until now, tenants or landlords have borne these costs depending on the case. With the new housing law, which was passed at the end of May 2023, there is a fundamental change: tenants are no longer responsible for these fees. The burden now lies with landlords, a change that promotes a fairer distribution of the costs associated with renting.

Important details of the new regulations: Who pays the commission?

According to the Federal Law Gazette (BOE), the costs of the real estate commission are borne by the landlords, which can amount to a full month's rent or a percentage (3% - 5%) of an annual rent. The final provision of the first section of the 1994 Residential Tenancy Act ensures that the costs of property management and contractual formalities are the responsibility of the landlord, i.e. the owner of the property. Although there was initial uncertainty regarding the applicability of this law in all autonomous communities, all real estate agencies are now subject to these provisions.

Specific cases: When can the commission be charged to the tenant?

The new Housing Act has introduced changes to Article 20 of the Residential Tenancy Act that apply specifically to rental apartments. However, there are still situations in which the tenant can be charged a commission. These include:

1. Temporary rentals: Such as for students or people who have been relocated for work. Caution is advised, as some tend to circumvent the law by pretending to be a temporary rental when it is actually a permanent living situation.
2. Room rentals: Contracts for the rental of rooms still allow the calculation of commission for the tenant.
3. Letting of commercial real estate, offices, garages, industrial buildings: In these cases, the real estate commission remains the responsibility of the tenant.
4. Exception for long-term rental agreements: These are rental contracts for properties with a constructed area of more than 300 m2 or a rent of more than 5.5 times the minimum wage, to which, if the parties so agree, the provisions of Article 20 of the LAU do not apply.

The legal changes in 2023 redefine the dynamics of real estate commission for rental properties in Mallorca, offering more clarity and fairness in the real estate market. At One Mallorca we strive to keep you up to date with these changes so you can make informed and informed real estate decisions!

One Mallorca is your trusted partner for exclusive real estate in Mallorca. Would you like to find out more about the latest developments on the Mallorcan real estate market? Subscribe to our newsletter to stay informed! If you are thinking about buying or selling a property in Mallorca, we are at your disposal. Contact us today and discover how we can help you with your real estate needs.