Long-term rental contracts
A long term contract is for a minimum of 12 months, if the contract does not exceed 5 years duration (or 7 years duration in case landlord is a company), it will be renewed automatically upon its expiration for periods of up to a 5 years term (7 years if landlord is a company), unless the tenant is not willing to renew it. The landlord is obliged to accept these renewals, except when he had previously stated in the contract that he needs to recover the property for his own use.
After the 5 years’ (or 7) the owner may terminate the contract, as long as he has given the tenant a minimum of 2 months’ notice from the end of the contract, otherwise the contract will be automatically renewed for 1 year, unless the tenant refuses this renewal.
These are only general guidelines and not definitive statements of the law, all questions about the law’s applications to individual cases shall be directed to a Spanish lawyer, I can recommend lawyers to you
The Deposits
Once you decide you like the property you will be asked to pay a holding deposit, this takes the property “off market” so no other viewings can be arranged. This will be deducted from the deposit.
Upon signature of the rental contract, tenants are required to pay the landlord a deposit, in order to guarantee that the property will be returned to the owner in the same state as before the occupation.
This deposit cannot be used to pay the rent to the landlord.
This deposit should be returned as the tenant moves out, assuming that the property is in good condition and all utilities bills have been paid.
The Rent
The amount of rent is agreed between both parties. Payment terms should be stated in the contract. It is advisable that you keep proof of payments.
Within the term of the contract (5 or 7 years) the rent can be increased or reduced according to the consumer price (inflation) index. If you agree to continue renting after this period the rent will need to be agreed between the owner and the tenant and a new contract will be signed.
It is advisable to get a lawyer to review any legal documents before you sign.
In case your tenant stops paying you for the rent, you may immediately proceed through courts to evict them from your property.
Further expenses
The landlord must pay the IBI, Basura and community fees unless agreed otherwise in the contract.
The tenant must pay all utility bills unless agreed otherwise in the contract.
Repairs in the House
The landlord is required to make all repairs to maintain a habitable living conditions for the tenant(s), unless the damage has been caused by the tenant, then the responsibility falls on the tenant.
Any urgent maintenance repairs may be undertaken by the tenant in order to ordoer to prevent serious and immediate damages in the property, the landlord must be given prior notice and any repair costs returned to the tenant.
Inventory
Tenants may be asked to sign an inventory of the furniture and fittings and the condition they are in. You must check this before signing as you may lose your deposit.
Termination of the contract
The landlord may terminate the contract for the following reasons,
- The tenant does not pay the rent or deposit.
- The tenant sublets the property without prior permission
- Deliberately damages the property.
- Undertakes repairs or changes to the property without the landlord’s permission.
- Is a nuisance to neighbours
The Tenant may terminate the contract for the following reasons,
- The owner fails to make the necessary repairs to keep the property in a fit and habitable condition
- The owner disturbs the tenant’s dwelling use
In any of these cases you probably need the services of a lawyer to obtain a court order against the tenant.
Sol Homes 