property experts
Renting a house In Spain D
ue to the fact that the rental fees have been increasing over the last
few years resulting in a “rental bubble”, the Spanish government recently published a new law with the intention to protect the interest of the tenants. Te constant increase of the long term rental prices is a consequence of a great demand as well as the fact that many landlords prefer to rent their properties for vocational short term only. In this context, With the intention to compensate the unbalanced rental market, the Spanish Government published a Decree on 14 December and came into force on the 19th December 2018, changing some previous regulations and specifically the Rental Law. However, for the first time in the Spanish legal History with refernce to property leases, this new Law, although it was in force the aſter publication, did not pass the final vote on the 22nd January 2019 and it was eliminated and with no effect aſter the vote. In this scenario, with a general confusion and legal uncertainty created by this situation, we thought that it is important to review the most relevant aspects and regulations for rental contracts in Spain
THE MINIMUM RENTAL PERIOD AS THE TENANT’S RIGHT Although the parties are free to make any arrangements between them, the main law regarding tenancy agreement has always established a minimum rental period for long term contracts. Even if they agree a shorter term, the tenant is entitled to apply for the extension of the contract through annual periods until they reach the minimum period imposed by law. Tis is known as a forced or mandatory extension /proroga forzosa. Tis minimum rental period is 3 years
THE TACIT EXTENSION When the contract is going to terminate, if there is no communication between the parties within the 30 days prior to the termination date according to the contract, the contract will be automatically renewed for another year.
THE DEPOSIT Te landlord can require a deposit equivalent to 1 month rental fee or two when the rental contract is not for housing. Other additional guarantees can be requested by the landord, i.e. a bank guarantee or even the total annual rental fee paid up front. When renting a property, it is normal that the tenant must provide
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the evidence of employment or financial meanings to pay the rent, the Identity number and passport and, in many cases, personal references. Please note that in some cases this is causing some abusive guarantee requests to the tenant, making quite difficult the access to the rental market. Please note that the deposit should be paid to the public administration and not to be kept by the landlord. In Andalucia it is the Andalucian government (Junta de Andalucia) the public institution the one that receives the deposit through the 806 form. Te Administration has the obligation to refund the deposit (less damages) to the tenant within 1 month aſter the rental contract is terminated.
THE RENTAL PAYMENT Te rental monthly fee should be pay within the first 7 days every month. When the rent is not paid, the landlord will start a court proceeding against the tenant, asking for all rental payments overdue. Tis could also be a reason to terminate the contract. If the amount overdue is less than 2.000 euros, the landlord can claim in court without the need of a lawyer.
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