Renting a House in Spain

When renting a house in another country, it is important that you know and understand the laws that go with it. In Spain, rental houses are more common than staying in a hotel for a month or a few years. Hence, there are important things you need to consider when renting a house in the region.

Spain has legal provisions when it comes to letting and renting houses, in accordance with Law of Urban Lettings of 1994. This law particularly applies to the rental contracts dated from January 1, 1995 up to the present. Contracts settled prior to that date are not covered by the amendment.

The rental contract should contain provisions such as the property description, details about the tenant and landlord, the term of the contract, payment terms and the amount, as well as other legalities and provisions set and agreed upon by both parties. This contract should be made in the presence of a notarian and then recorded at the Registro de la Propiedad or Spanish Property Registry.

It is important that both parties actually agree to the terms stipulated. It can either be long term or short term, which should be emphasized on the rental contract because the Spanish law gives lesser rights to tenants of short term rentals.

Long term rental contracts have a duration that exceeds one year. If it is not exceeding 5 years, it is automatically renewed upon expiration of 1 up to a few years, except for cases wherein the tenant refuses to renew. However, in usual cases, the landlord must accept the renewal, unless it is emphasized in the rental contract that he will be recovering the property after the 5-year period so that he can use it personally. In this case, the owner can rescind the rental contract but he should give the tenant a 30-day notice prior to the end of the rental contract. Failure to do so will result to the renewal of the rental contract for another 3 years, except if the tenant refuses this renewal.

Short term rental contracts, on the other hand, are usually utilized for holiday letting. It requires the tenant, upon the end of the contract, to vacate his property. Hence, the contract should indicate and specify the short term conditions of the landlord.

Note that if the rental contract does not have a duration stipulated, it only runs for 1 year.

When the rental contract has been signed, the tenant should pay the deposit to the landlord. It is equal to at least one month rental fee. It guarantees the return of the regarded property in a similar state as when it was initially occupied. Deposits are not the actual rental fee. Hence, it will be returned to the tenant when he vacates the property, given the fact that it is still in perfect condition.

The rental fee is agreed upon by the 2 parties. The rent is usually paid about 7 days prior to the month's end. The landlord cannot ask the tenant for any advanced rental exceeding one month. The tenant is obliged to pay according to the terms in the contract. The tenant should also get either a receipt or a written copy stating the amount and date the rent was paid.

For long term rentals, in the initial 5 year period, the rent will either increase or decrease, according to the inflation or consumer price index. After this period, the rent will increase again, depending the price agreed upon by both partied during the contract signing.

The landlord is responsible in paying the real estate taxes, community fees and the like, except if it is stated in the rental contract and the tenant has agreed to shoulder it. As for the tenant, he pays for his consumption of electricity, telephone and other utilities.

There are instances wherein the house rented is already furnished. In such case, the tenants are obliged to sign a property content inventory listing everything inside the property when it was initially occupied. It is important that you read and verify everything that is accounted for.

It is the landlord's responsibility to repair and keep the property in a habitable and fit condition. However, if the damage is caused by the tenant due to daily usage of the noted property, the latter should be the one fixing the problem. For urgent repairs, this can be initially shouldered by the tenant so as not to damage the property even more. Before repairing, the tenant should notify the landlord so that the cost of repairs would be returned to the tenant.

For major repairs, the landlord should notify the tenant for about 3 months ahead. It is then up to the tenant if he wants to renounce his rental contract. However, if he wants to stay, they can agree upon a reduced rental rate.

The landlord has every right to rescind the contract when the tenant fails to pay the deposit or rent, deliberately caused damage to the noted property, is reported as a serious nuisance to neighbors, and when the tenant rents it to a third party without getting consent from the landlord.

The tenant, on the other hand, can rescind the contract if the landlord disturbs the dwelling use of tenant, as well as if he fails to repair and maintain the property to habitable and fit conditions.

For rent disputes, it is processed via an ordinary civil proceeding. You need to initially state your complaints with a Spanish lawyer. The lawyer will, in turn, conduct a formal complaint. It is the lawyer's job to go to court for you, if necessary.