Lorraine Williamson
Renting in Spain already stretches many household finances. The steady increase in rental costs across coastal regions and cities makes every euro count. This is especially in hotspots like the Costa del Sol. Amid this pressure, some practices by estate agencies are adding unseen layers of cost.
Even though the law clearly states that fees for drawing up a rental contract and mediation by real-estate agents must be borne by the landlord, not the tenant, the reality is messier. Many renters find themselves paying hundreds of euros in what feel like unavoidable “extras” just to secure a home.
What the law actually says
Since the implementation of Law 12/2023 of the Right to Housing (and updates to the Ley de Arrendamientos Urbanos), statutes clarify that real-estate mediators must charge landlords the agency commission, not tenants.
Extra services may only be charged to a tenant if they are genuinely optional, separately contracted, and clearly explained. For example, help with setting up utilities or optional insurance. Anything beyond that is unlawful.
How much can agents legally ask for?
Under Spain’s Ley de Arrendamientos Urbanos (LAU), landlords can only request one month’s rent as a legal deposit for long-term residential leases. This amount must be registered with the relevant regional authority and returned when the tenancy ends, provided there’s no damage to the property.
However, there’s a grey area that many agents exploit. The law allows for “additional guarantees” — such as a bank guarantee (aval bancario) or an extra month’s payment — but it does not define a clear upper limit. Some agencies use this loophole to demand several months’ rent in advance, or even payment for the full year.
Consumer groups, including the OCU, warn that such requests are not strictly illegal but can be considered abusive, especially when tenants have little choice due to housing shortages. The practice goes against the spirit of Law 12/2023, which was designed to reduce barriers to renting and prevent exploitation.
If a landlord or agent insists on large upfront payments, tenants have the right to challenge the clause as unfair and report it to their regional consumer authority.
Why the practice persists
Despite the legal clarity, consumer organisations such as OCU continue to document agencies passing on costs that should rest with the landlord. One high-profile investigation by Spain’s Ministry of Consumer Affairs targeted a major national agency suspected of charging tenants for contract formalisation and mediation services.
The reasons are varied. In a tight rental market, tenants often feel pressured to accept extra charges simply to secure accommodation. Agencies sometimes bundle “administration” or “service” fees alongside mandatory costs, blurring the line between optional and compulsory. And because regional enforcement differs across Spain, some agencies take the risk.
The cost to tenants now
When every euro matters, forced additional payments create real hardship. Imagine budgeting for rent, utilities, and deposit — then being asked for what amounts to another month’s rent in “contract” fees.
In many cases, the demands go even further. Some estate agents require several months’ rent upfront — sometimes even the entire year — before handing over the keys. These practices, while not strictly illegal, push affordability beyond reach for ordinary renters. They effectively exclude younger tenants, low-income families, and anyone without significant savings.
Such upfront payments are often justified as “security” or “guarantee” measures, but in practice, they shift financial risk away from landlords and onto tenants. In a market already defined by scarcity and competition, this imbalance makes finding a home feel more like winning a bid than signing a lease.
Given the lack of supply and the pressure to act fast, most tenants feel they have no choice but to comply — even when the request skirts the edges of legality or fairness. The result is a rental market where tenants not only overpay but are left with little financial safety net once the contract begins.
What tenants can do
If you believe you’ve been charged unlawfully, gather all documentation: the rental contract, invoices, bank transfers, and any communication with the agency. Consumer groups urge tenants to challenge the charge and request a refund.
Complaints can be filed through the OCU or your regional consumer protection office. Collective action strengthens the case for enforcement. In some cases, tenants may use a simplified legal process known as a proceso monitorio to reclaim what’s owed.
What this means for the rental market
These practices deepen Spain’s affordability crisis. While new housing laws aim to strengthen tenant protection, hidden or unlawful fees undermine those goals. Agencies that continue charging tenants distort competition by avoiding costs intended for landlords.
For landlords, absorbing agency fees was one of the most controversial aspects of the 2023 reform. Some may have quietly passed that cost back through higher rents — meaning tenants still end up paying indirectly.
Transparency, obligations, and vigilance
Regulators are starting to respond. The Ministry of Consumer Affairs has opened sanction proceedings against agencies found to be charging unlawful fees, with potential fines of up to hundreds of thousands of euros.
For tenants, vigilance is key: ask who pays what before signing. For agencies, transparency and compliance are not optional. And for landlords, understanding their legal obligations can prevent disputes and penalties later.
Time for fairer renting
Renters in Spain face not only rising rents but also the burden of illegal agency fees that should never have been theirs to pay. The law is on their side, but enforcement is still catching up. As awareness grows and more tenants take action, Spain’s housing market may finally start shifting toward fairness — where finding a home doesn’t mean footing someone else’s bill.
Source: OCU