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Points to consider before signing the rental contract

Updated: Jun 24, 2023

  • The Law. Within the Law there is certain independent mandatory content in what the landlord and tenant agree to. The Law that regulates urban leases is Law 29/1994 of November 25 LAU. Articles 6 to 28 and 36 of the LAU.

  • Duration of the lease. The lease must establish its duration. but the tenant may continue with the lease, at his will and according to the latest LAU version, up to a maximum of 5 years if the landlord is a natural person and 7 years if this is a company, extensions separately.

  • Mandatory compliance. The law requires the tenant to comply with the first 6 months of the lease. In this case of wanting to withdraw earlier, he must pay the remaining income until the 6 months are covered.

  • Withdrawal and penalty. After those 6 months, the tenant may withdraw from the contract with a 30-day notice. This is not penalized, unless the contract is agreed otherwise, in which case it would be a monthly rent for each year of the breached contract.

  • Extension. Upon the end of the contract, if none of the parties notifies of their wish not to renew, with 4 months the landlord and 2 months the tenant, the contract will be obligatorily extended, for annual terms, up to a maximum of 3 years.

  • The update of the rent. The most common is the application of the IPC. This not only acts for the benefit of the lessor, but also of the tenant. attention must be paid not to impose limiting clauses on its application. what would prevent the tenant to benefit from its application.

  • Bail. It is delivered to the landlord to guarantee the correct condition of the property. Only one monthly rent is required and must be deposited in the corresponding body of the autonomous community. otherwise it could be sanctioned. At the end of the contract, it must be returned to the tenant within a period of one month.

  • Additional warranty. Contrary to the bond. This warranty is not mandatory. Responsible for the fulfillment of contractual obligations. It is limited to 2 monthly payments and cannot demand a higher one. This guarantee does not require that it be deposited by the lessor.

  • Lessee works. The tenant may not carry out, without the written consent of the landlord, works that modify the configuration of the house. Works that diminish the stability or security of the home may not be carried out.

  • Repairs. The landlord must carry out the necessary repairs to keep the house in habitability conditions to serve its use, except when the deterioration is attributable to the tenant. Small repairs for wear and tear of ordinary use are the tenant.

  • Waiver of preferential acquisition rights. The waiver of articles 25 and 31 of the LAU. It is the right of first refusal. This allows the tenant to acquire the property if the landlord wants to sell it.

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