Renting in Tenerife: Practical Tips for Landlords and Tenants

Renting property in Tenerife can feel like stepping into paradise: sunshine, palm trees, and a steady stream of people looking for a place to stay. Whether you’re a landlord hoping to make your investment pay off, or a tenant dreaming of life near the beaches of Costa Adeje, renting here is big business.

But behind the Instagram-perfect sunsets lies a reality: misunderstandings, risky shortcuts, or “it’ll be fine” attitudes can turn your renting experience into a headache. The good news? With the right preparation, renting in Tenerife is safe, legal, and rewarding—for both sides.

Let’s break it down, step by step.

Why Tenerife Is a Hotspot for Rentals

• Tourism capital: Tenerife attracts over 5 million visitors a year, many staying in short-term rentals.
• Expat magnet: Thousands of Europeans relocate here each year, often starting with a rental before buying.
• Diverse demand: From luxury villas in Costa Adeje to city apartments in Santa Cruz, there’s something for every budget.

That popularity also means competition, regulations, and the occasional pitfall. A little knowledge goes a long way.

For Tenants: How to Rent Safely in Tenerife

1. Make Sure It’s Legal

Not every property is authorised for short-term rentals. In tourist areas like Costa Adeje, the law requires a VV license (Vivienda Vacacional) for holiday lets. Always ask your landlord or agency to show proof. If they don’t have it, you could face unpleasant surprises (including fines).

2. Put Everything in Writing

A friendly handshake isn’t enough. Always demand a written contract, even for seasonal rentals. The contract should specify:

• Length of stay
• Monthly rent and payment method
• Deposit (fianza)
• Utilities (included or separate)
• Inventory list

3. Say No to Cash Envelopes

It may sound convenient, but paying rent in cash is a recipe for trouble. Use bank transfers—it gives you a traceable record. In Spain, transfers are the norm, and landlords should never insist otherwise.

4. Inventory and Meters

Before moving in, take photos of the property (yes, including the dodgy tiles in the bathroom). Ask the landlord to read utility meters with you on the handover day. This prevents “mystery bills” landing in your lap.

5. Insurance for Peace of Mind

As a tenant, you can take out home contents insurance (seguro de hogar) to cover your personal belongings against theft, fire, or water damage. Costs are low compared to the peace of mind.

For Landlords: Protecting Your Investment

1. Screen Your Tenants

Nice smiles don’t pay rent. Ask for:

• Proof of employment or regular income
• Bank statements if possible
• References from previous landlords

Agencies in Tenerife often handle this, but private landlords should adopt the same discipline.

2. Build a Strong Contract

A proper Spanish rental contract should include:

• Rent amount and payment dates
• Deposit (fianza)—by law, usually 1 month
• Duration of the contract (short- or long-term)
• Clauses against subletting
• Clear penalties for late payments
• Detailed photo inventory

Pro tip: Contracts must be in Spanish to be legally enforceable. English translations are fine for understanding, but only the Spanish version holds up in court.

3. Understand Deposits and Guarantees

By law, landlords can ask for one month’s deposit (fianza) for residential rentals. Some ask for an additional guarantee (aval), especially in long-term contracts. Just keep it reasonable—Spanish law limits excessive deposits.

4. Rent Default Insurance (Seguro de Impago)

This is your safety net. For a modest fee (often less than one month’s rent per year), insurance covers unpaid rent and includes legal assistance for eviction if needed. Important: tenants must be pre-approved by the insurer before signing.

5. Only Traceable Payments

Like we told tenants: no cash, no excuses. Bank transfers are the safest. Keys should only change hands once the contract is signed and the first payment clears.

Common Mistakes (and How to Avoid Them)

• Verbal agreements. They don’t hold up in court. Always sign a contract.
• Handing over keys before payment. Big no-no.
• Not reading the small print. Contracts can include clauses about who pays for community fees, rubbish collection, or even minor repairs. Read everything.
• Skipping the inventory list. Without it, good luck proving that broken sofa wasn’t your fault.
• Mixing short-term and long-term rules. Holiday lets and residential contracts are governed by different laws in Spain. Don’t confuse the two.

What If Things Go Wrong?

• For tenants: If the landlord doesn’t respect the contract (illegal eviction attempts, cutting utilities), call the police or a lawyer immediately. Spanish law protects tenants strongly in these cases.
• For landlords: If a tenant stops paying, don’t take matters into your own hands (changing locks, turning off water). Follow legal eviction steps via a lawyer—acting rashly can backfire legally.

How Renting Links to the Okupas Issue

While okupas (squatters) are a different problem, they’re connected to renting. Poor tenant screening, weak contracts, or lack of insurance can blur the line between a late-paying tenant and a full-blown okupa case.

Renting in Tenerife: A Win-Win When Done Right

With clear contracts, proper screening, and a bit of common sense, renting in Tenerife is a straightforward and profitable experience. Tenants get security and transparency, landlords get reliable income and peace of mind.

Forget the horror stories—those make for great headlines but poor reality checks. The truth? Tenerife is one of the safest and most rewarding places in Spain to rent or let a home.