Welex lawyer in Marbella can advise you on all you need to know to understand the rental law in Spain
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The Urban Rental Law, modified by the Law 4/2013 of June 4th, regulates the rental market in Spain in order to make this market more flexible and more dynamic. These rules do not have a retroactive effect. Thus, they only apply to rental agreements signed after the date in which the law was entered into force.
If you are thinking of renting out, consider the legal aspects presented below.
Minimum duration of the rental contract in Spain
There are no specific terms stipulated in the law. The law sets forth that the duration of the rental agreement shall be freely agreed upon between the tenant and the landlord. If the duration is less than three years, the contract may be extended by periods of one year, until the renal contract has reached the minimum of three years.
If there is no term set forth in the contract, then it is understood to be for one year. No extension will be made if, after one year, the landlord gives the tenant two months’ notice that he/she needs the house as permanent dwelling for himself/herself or his/her family.
Reasons to rescind or terminate a rental contract in Spain
The termination of a rental agreement may be due to:
- Non-payment of rent. The parties may specify in the contract the number of times that failure to pay the rent would result in termination of the contract.
- Non-payment of the rent guarantees or not updating the sum of the rent guarantee.
- Subletting the property
- Damages to the property or engaging in work that is not allowed
- Use of the property other than the use agreed upon to live there, for example engaging in a professional activity on the property.
- Death of the tenant, if no other person with the right to become a tenant communicates this fact to the landlord. These may be direct relatives of the deceased person or any person who was living with the deceased at least two years prior to his/her death.
Furthermore, the tenant may terminate the contract if the landlord does not make the necessary repairs for the correct use of the property and/or interrupts the right of use of the property.
Rental fee agreement
The rental fee will be agreed upon by both parties. Except when otherwise decided, the rental fee will be paid monthly within the first seven days of the month.
The updating of the rental fee shall be done by express agreement by both parties. If not agreed upon, the rental fee will be updated by applying the Consumer Price Index (IPC).
Maintenance costs of the dwelling in Spain
Payment of maintenance costs may be agreed upon by the parties. In general, the landlord has the obligation to pay for repairs to the property to conserve its inhabitability, except in the following cases: the tenant caused the damages and/or small repairs are needed due to normal wear and tear. Utility expenses, such as electricity, water or gas, will be the responsibility of the tenant.