Landlords in Majorca are conducting “illegal practices” by demanding “up to two years” rent in advance. Many locals in Majorca are already in disrepair over the state of the housing market with prices shooting up by another 15% in the last year alone.

The Balearics, including holiday hotspots Majorca and Ibiza, are one of two places – the other being the capital, Madrid – where the price of each square metre extends past €3. And now greedy landlords are demanding exorbitant prices. Although it is illegal to demand two years rent in advance, José Miguel Artieda, president of the API association of estate agents in the Balearics says 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.

Mr Artieda is urging people who have paid more than a couple of months to speak to their landlords and say they will not pay rent for the months covered by advance payments. 

Stressing that demands for more months in advance are illegal, the expert highlights that  the increasing number of “residential rentals” are part of the growing problem.

Mr Artieda said: “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.”

Spain is in the midst of a significant housing shortage, which is driving up prices and making it increasingly difficult for both buyers and renters to find affordable housing.

The situation is now so dire that it has been described as a “social emergency” by the Spanish government, who estimate that between 600,000 and a million new homes must be built in the next four years to meet demand.