Aval Bancario?

Question

Hi,

I am about to rent an apartment in Spain the landlord has requested a aval bancario.

Am I understanding it correctly that the bank will hold 6 months worth of rent incase there is damage to the property?

This seems ludicurious as this is a lot of money that I dont have just to handover for the bank to look after.

Is this how it actually works or do I take some sort of insurance with the bank rather than handing over all the money??

Please someone who has been through this advise?

Thanks,

Kris

Answer 1

Don´t fall for this extortion, some owners think us foreigners are loaded and want to tie up our money with b.s like this. Find yourself a more sympathetic owner and rent somewhere else. We have lived in Spain 17 years and have NEVER given in to this (only ever been asked for this twice, and walked away each time) If a legally binding contract, one month security deposit, plus the normal rent up front isn´t enough plus my signature on the contract to boot, then sorry I would always go elsewhere. Of course it is legal for them to try and get it, but I would never fall for it. It is usually only some very old fashioned owners who ask for this. But there are plenty of owners who are only to happy to rent under normal conditions. Go somewhere else and let the owner find some other mug!! I used to sell and rent properties for owners and have experience outside of my own.

I think now the laws are on the renters side more than the owners now, then some want to rent but are terrified of problems down the line. Good luck.

Answer 2

I'm Sedish and are renting a place in south of Spain. I just payed one rent in advance and one rent in deposit. E-mail me if you wonder anything. I know some people take out many deposits..