Can I rent my garage space to people outside the community?

It is common for the owners of a property in a community of neighbours to have one or two parking spaces. It is also common for those who do not make use of one of them to consider renting it out without losing the use of the rest of the common areas.

If this is your case, it is important to know that you can rent your parking space to people who are not residents of the community.

What does the law say about renting to people from outside the community?

The Horizontal Property Law (LPH) establishes that owners of parking spaces have the right to use, enjoy and dispose of them in accordance with their destination. This means that they can rent them to anyone, regardless of whether they are residents or not.

However, it is important to bear in mind that the statutes of the residents' association may contain clauses limiting this right. For example, the bylaws may prohibit the rental of parking spaces to non-residents or persons who do not meet certain requirements.

Therefore, it is essential to check the statutes of the community before renting your parking space. If the statutes do not contain any restrictions, then you can rent it to anyone who meets the legal requirements.

Limitations on the rental of parking spaces to non-residents of the owner's association

The LPH (Ley de la Propiedad Horizontal) states that owners of parking spaces have the right to use, enjoy and dispose of them according to their purpose. Taking this into account, an owner can rent his parking space to anyone, even if he is not a resident of the community. In any case, it is important to take into account other legal provisions and the statutes of the community.

Limitations

1. Limitations set out in the community statutes 

It is possible that the bylaws of the community may establish some restrictions related to the rental of parking spaces to persons who do not belong to the community. A community's bylaws may require that the tenant be a resident of the community or that certain additional conditions be met.

2. Prior need for approval by the Board 

It should be borne in mind that, although there is no specific restriction in the community statutes, it may be required in order to rent the parking space to a non-resident. This approval must be made at the owners' meeting. Approval of such a proposal is subject to a specific and qualified majority vote, but it is best to request the intervention of the administrator to carry it out in accordance with the law.

3. Obligations and responsibilities contained in a contract

If the necessary authorisation is obtained, it is essential to draw up a contract for the rental of the parking space that specifies the terms and conditions of the rental, as well as the responsibilities of the tenant and the owner. If there are specific community rules on the use of the garage, it is recommended to incorporate them into the agreement or to mention that they exist and are given to you.

4. Compliance with municipal regulations

It should be noted that some autonomous communities or municipalities may have their own regulations regarding the rental of parking spaces. It is therefore advisable to seek advice, through the administrator for example, on the local regulations that could affect the rental of the parking space in question.

How much tax is levied on leased parking spaces? 

When a parking space is rented individually and without it being associated with the rental of a dwelling, the lessor will have to make the invoice with 21% VAT. If it is rented together with a dwelling, it will be included in the general contract.

However, in the case of personal income tax, you will have to pay tax on the income from real estate capital, in addition to the expenses derived from the time that the parking space has been rented.

So can I rent my parking space to non-residents of my community?

The law in Spain allows owners of parking spaces in neighbouring communities the right to rent out their property to persons who do not reside in the community. However, it is necessary to review the statutes of the community, obtain the approval of the board of owners and comply with applicable local regulations. 

It is advisable to contact the property administrator of your community to obtain more precise information tailored to your particular situation.

It is essential to have the authorisation of the community, as it is still a common space to which someone from outside is being allowed access, even if it is only the garage rental, but they have to circulate and enter and leave the building or the space.

In this type of situation, it is very important to be respectful of the rest of the community and to have permissions in place and to give the tenant appropriate warnings if any out-of-place behaviour is observed. 

The ideal is to maintain open and transparent communication with the whole community, so that a respectful and trusting relationship with all neighbours and owners is maintained. In addition, it is essential to be informed of the regulations not only internal to the community but also municipal and even autonomous community regulations so as not to infringe any legal regulations and expose yourself to problems with the law.

We would like to insist on the need to have an administrator who can solve all these doubts and help you with the whole rental process. At Meridional we have a legal and fiscal service that can give you a comprehensive coverage to solve all the problems that may arise.

If you would like to know the best options for insuring your parking space or what you need to demand from your tenant in terms of insurance, do not hesitate to contact us.