The mandatory deposit “fianza” and the security deposit “depósito” are legal figures included in the rental contract to minimise the two main concerns that most landlords have when renting a property: that the rent is paid by the tenant on time and that the tenant preserves the property in good condition for the duration of the rental contract.

 

Differences between mandatory deposit and security deposit

Both the traditional or permanent rental and the temporary rental contract distinguish and make use of the figures for the mandatory deposit “fianza” and the security deposit “depósito.” Although both are used to protect the owner in the event of non-payment, damages, or repairs, the security deposit covers even more in the event of a breach of contract.

The main differences between the two are the mandatory or obligatory nature, the custody, and the amount to be paid for these concepts.

Mandatory

While the “fianza” is mandatory (1 month for permanent housing and 2 months for other rentals types), the “deposito” or security deposit, is optional and in addition to the mandatory deposit.

Custody

The “fianza” must be deposited at the IVIMA (Community of Madrid). The “deposito” is safeguarded by the owner or landlord.

Amount

The “fianza” consists of one monthly payment for permanent housing rental and two monthly payments for non-residential use.
“Depósito” amounts are agreed upon by both parties, with no minimum or maximum amount.

Tips for tenants

Before signing a rental contract, it is advisable to read it carefully so that you know exactly what clauses it contains: its validity, the amount of the monthly rent and the expenses to be paid by the landlord and the tenant, among others. If you have any doubts, do not sign until you have clarified them.

You also may need to familiarise yourself with rental property maintenance.


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