Posted in: Civil Law
Many people who are living in Spain or in other countries have a home in Spain and have decided to put it up for rent. Other people, on the contrary, decide to rent a house in Spain and make it their habitual or usual residence.
Through this article we will try to answer the most frequently asked questions by owners and tenants on the law on long term rentals. From when a rental agreement has been signed, for its duration.
The Urban Leasing Law (Ley de Arrendamientos Urbanos) establishes different terms for the duration of the contracts. This depends on the date on which the lease was signed.
We must state that this regulation applies whenever the lease is for the purpose of habitual residence. Not in other cases, such as vacation or weekly rental. So short term lets are not covered by this law.
This is according to Ley 29/1994 de 24 de noviembre, de Arrendamientos Urbanos.
The duration of the rental contract will be that agreed by the parties.
However, the tenant has the right to remain in the house for a maximum period of 5 years. That is, despite the fact that the rental lease might have been written as 1 year, or eleven months. We want to be clear that the tenant has the right to renew the contract up to a maximum of 5 years.
The owner would have the obligation to respect the maximum period of 5 years. They could not compel the tenant to leave the property.
Please note that this term would not apply in the event of default of payment of the lessee.
This is according to the Ley 4/2013, de 4 de junio, de medidas de flexibilización y fomento del mercado del alquiler de viviendas.
The duration of the rental contract will be that agreed by the parties.
However, the tenant has the right to remain in the house for a maximum period of 3 years. That is, despite the fact that the rental lease might have been written with a duration of 1 year or 11 months (as often used). Again, we wish to be clear that the tenant has the right to renew the contract up to a maximum of 3 years. The owner would have the obligation to respect the maximum period of 3 years They could not compel the tenant to leave the property.
Please note that the term would not apply in the event of default of payment of the lessee.
In 2018, the Government of Spain published a Royal Decree (Law) that affected contracts concluded between December 19, 2018 and March 5, 2019. (Real Decreto-ley 21/2018, de 14 de diciembre, de medidas urgentes en materia de vivienda y alquiler).
This regulation was in force for a few months. Its text is practically the same as the regulation that is in force today, and which is explained below.
(Real Decreto-ley 7/2019, de 1 de marzo, de medidas urgentes en materia de vivienda y alquiler).
The duration of the rental contract will be that agreed by the parties.
However, the tenant has the right to remain in the house for a maximum period of 5 years. That is, despite the fact that the lease was written for 1 year or eleven months. The tenant has the right to renew the contract up to a maximum of 5 years. The owner would have the obligation to respect the maximum period of 5 years. They could not compel the tenant to leave the property.
In the event that the owner is a company, the maximum term of said contract will be 7 years.
Please note again, the term would not apply in the event of default of payment of the lessee.
There are certain exceptional circumstances that would allow an owner to terminate the contract before the maximum terms established in the Law.
Such as the breach of the tenant’s obligations, by not paying. Or the need to use the house by the owner or close family members. Although these circumstances would need to be stated in the rental contract at the outset.
Please contact us to discuss any issues as a landlord or a tenant to do with long term rentals.