New model of rental contract with the latest reform of the LAU
The new rental law that has come into effect on March 5, 2019 has partially modified the Urban Rental Law (LAU). After Congress overthrew the first reform last January, the Government of Pedro Sanchez has again intervened in the leasing market before the general elections of April 28.
From now on, the leases that are signed must be based on the reform of the Urban Leasing Law (LAU) carried out by the Government of Pedro Sánchez through Royal Decree-Law 7/2019, of March 1. Here you can download the correct rental agreement model prepared by Lexperta Abogados.
The period of mandatory extension of rental contracts from three (3) to five (5) years is extended, and the tacit extension of one (1) to three (3) years for natural persons will be extended, in the case that the landlord or the tenant does not express his will not to renew it.
In the event that the leasing party is a legal entity, it will be seven (7) years of mandatory contract and three (3) years of implied contract.
The increase in annual rent will be linked to the CPI for the duration of the contract (5 years).
It is limited to two (2) months of rent the additional guarantees to the deposit (one month), except in the case of long-term contracts.
In the event that the landlord or the tenant manifests its will not to renew it, the landlord must notify the tenant four (4) months in advance. If the tenant wants to leave, he must give two (2) months notice.
The power of recovery of the home by the owner to terminate the contract in advance must be expressly included in the contract – as you need it for your usual home, your children or spouse if family circumstances change.
The buyer of a rental property must respect the current contract, whether or not it is registered in the Property Registry.
If there is an agreement between the owner and the tenant, improvements to the house can be made without signing a new contract.
The cost of real estate management and formalization of the contract will be borne by the lessor, provided it is a legal entity.
The models we provide are prepared by expert advisors, however, they should not replace the recommendations of your own advisors. idealist assumes no responsibility for the use made of them or intermediate in the relationships or discrepancies that arise between the parties as a result of the use of the models.
Article written by Álvaro del Coso, partner of Lexperta Abogados.
