REAL ESTATE PURCHASE & SALE WILLS AND INHERITANCE TAXATION CORPORATE LAW

Letting in Spain

– How I can file a claim against my tenant?

If your tenant has stopped paying rent, we recommend you to contact your lawyers and grant a power for litigation. Let them have a copy of the lease and of any outstanding utility bills. Firstly, a demand for immediate payment will be sent to the tenant by registered mail. Should the tenant fail to comply with this requirement, next step will be to start the legal eviction process.

 – Does a tenant have the right to renew automatically the contract?

According to Article 9 of the Urban Tenancies Act, contracts have the duration that the parties agree freely. However, those long-term contracts in which the term is agreed for a period lesser than three years will be automatically renewed each year unless the tenant waives renewal with at least one month before the expiration of each annuity. Upon expiration of each agreed extension and after the three year period has passed the contracts will be renewed for yearly periods unless one of the parties notifies their intention not to do it. This right to extend automatically the leases does not apply to seasonal or short-term rental agreements, or to those properties that, because of their high surface area or of their considerably high rent agreed, can be considered sumptuary.

 – My tenant does not pay the rent, can I have the electricity and water supplies cut off to force him/her to leave the property?

No. The tenant might claim against you in Court for coercion and the situation would worsen.

 – My lease contract ends in two months. As at the time I paid a security deposit equivalent to two months’ rent, can I stop paying rent and offset the amounts?

No. You must pay the remaining monthly rents. Once the landlord checks that the property has not suffered any damage and that there are no bills due, you may request the return of the deposit. The deposit is not considered a payment on account of future rent, so if you do not pay the last monthly amounts, the landlord might claim them judicially.

 – If extend the contract to my tenant, can I raise the rent?

Yes, but only after each year has completed and according to whatever the parties have agreed to such effect. If there is not any specific agreement it can only be done by the percentage produced by the Consumers Price index (CPI).