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Who pays the IBI on a rent?

Posted by Michel B. on 27/11/2019

Probably, whether you are a tenant or a homeowner, discrepancies may arise between both parties for certain points and clauses of the contract. Among them, it stands out who has to pay each part. In all leases, the Property Tax (IBI) must be paid. However, you may have doubts about who is responsible for paying it, whether the tenant or the owner of the home. In this post we tell you who usually pays this tax so that you can be free of any doubt about it. Pay attention!

Who pays the taxes? And the IBI?

In most rental agreements, it is the landlord who is responsible for dealing with the taxes that fall on housing. Among them, is the Property Tax (IBI). Despite this, you should keep in mind that the expenses that exist in a leased property have to be agreed between the tenant and the owner at the time of signing the contract.

The Law of Urban Leases (LAU) explains in its article 20 that “the parties may agree on the general expenses for the adequate maintenance of the property, its services, taxes, charges and responsibilities”. Therefore, although it is usually the owner who costs these expenses, it must be made clear before and during the signing of the contract so that all obligations of both parties are met. In this way, thanks to the rental contract we can see who is responsible for paying taxes and who is not.

What does the owner pay?

As we have explained before, all expenses must be agreed between the two parties that sign the rental contract, but usually it is the owner who is responsible for addressing some costs, such as those already mentioned taxes or the community of owners . Likewise, the owner of the home discharges the supplies (water, electricity, gas) and assumes the expense that this activation entails. However, it is recommended that the supplies be in the name of the tenant so as not to assume responsibility in case of default.

In addition, the landlord is responsible for maintaining the home in the optimal living conditions. Therefore, you have to bear all the costs of repairing the breakdowns that have not arisen due to their misuse.

And the tenant that costs?

As we have mentioned before, although in most rental homes it is the owner who is responsible for starting up the supplies, it is the tenant who has to pay the monthly consumption expenses. Therefore, it is very important that the owners worry that the lessee changes their ownership to their name, when the contract is signed.

Another aspect that the tenant has to face is the payment of the garbage fee, in the municipalities where it still exists. The General Tax Law sets out in articles 2 and 36 that corresponds to the lessee, as long as it has not reached a previous agreement with the ownership of the property.

In addition, the tenant is the one who has to bear the costs of maintenance repairs for the habitual use of the house: for example, if a light bulb burns out, the tenant is responsible for buying a new one and replacing it. On the other hand, those breakdowns arising from the misuse of housing, appliances, etc. they will be solely and exclusively the responsibility of the tenant.

On the other hand, in the signing of the contract, the lessee must pay the legal deposit (corresponding to one month’s rent), the security deposit, if any, and the first month’s rent. The tenant also agrees to pay the rent month by month within the stipulated period and not leave any month of default. Otherwise, there will be a breach of contract and the contract may be canceled and, if necessary, take the relevant legal actions.

In short, the Property Tax (IBI) is usually paid by the owner, although an agreement can always be reached between both parties. The rest of the expenses involved in renting a home, and living in it, are usually distributed as indicated in the post.

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