José Miguel Artieda, president of the API association of estate agents in the Balearics, says there are property owners who are demanding up to two years' rent in advance. "It's an illegal practice, but like many others it occurs all too frequently."
In the case of residential rentals, the tenancy act requires a month's deposit to be paid to the relevant housing authority, IBAVI in the Balearics. Up to two additional months security can be asked for by the landlord.
Artieda suggests that people who have paid more months than these speak to their landlords and say they will not pay rent for the months covered by advance payments. He again stresses that demands for more months in advance is illegal.
"A problem we are experiencing is that many residential rentals are made through seasonal contracts, which are for purposes other than residential use, as they are not the tenant's habitual and permanent residence. Consequently, the rules are not as protective for the tenants, with almost everything being negotiable between the parties. In this case, a two-month deposit with IBAVI is mandatory, while there are no limits on the amount of the additional guarantee."
Artieda warns that tenants run the risk of having abusive and illegal practices introduced into their contracts by using untrained intermediaries. "Housing is one of the most important issues we face in our lives, especially given the complex situation we are facing in Mallorca, so it is essential to put yourself in the hands of a qualified professional."