Legal provisions concerning rentals and purchases in Spain are listed under the Tenancies Act 1994, which governs the contracts issued on or after January 1, 1995. The earlier contracts meet specific regulations that are modified within the existing Urban Leases Act.

Lease

The lease must include the following specifications:

- Name and contact details of the owner and the tenant

- Property Description

- Duration of the contract term or

- Rent agreed price and payment terms

- The conditions or stipulations agreed to by both parties

A property can be rented for seasonal periods or for the long term.

Seasonal contracts have a duration of 1-11 months. The owner has the option to renew the contract or ask the tenant to leave the property at the end of it. This type of contract is used mostly for vacation or business travel. The rental time specified must appear in the contract.

A normal or standard contract term lasts for 1-5 years. The first year is mandatory. After the first year, the contract will be renewed automatically up to the fifth year, unless the tenant decides to terminate earlier.

At the end of the five-years term, the tenant may terminate the contract, but must provide the owner this decision in writing before the end of the contract. Otherwise, the contract will be renewed for three additional years, if the tenant does not communicate their desire to cancel the contract or other arrangement requests.

In the event that a contract does not specify duration, it will be valid for 1 year.

The contracts must be registered with the Chamber of Property of Barcelona.

 

Deposit and bond

The interested customer must make a reservation in order to remove the property from the market. This reservoir is called a deposit and booking act, and the reservation should correspond to the sum of 1 month rent. The owner or agency shall issue a receipt to the party to confirm the reservation. If the rent were to be complete, this amount will be applied to the expenses required for the transaction. If the owner decides not to rent the property or rent it to another candidate, customer must return the full amount of the booking. However, if the applicant chooses not rent the proeprty, the owner will keep the reservation deposit.

The tenant must pay the landlord a deposit equivalent to one months rent for unfurnished property, and 2 months for a furnished property. This deposit will be returned to the tenant at the end of the contract, but only if the property is in the same condition as it was at the beginning of the contract.

The tenant can not use the deposit to pay the rent. He/She may only have access to it at the end of the contract if the property is in acceptable conditions. If there is damage or outstanding repairs following an inspection by the owner, the amount of the repairs shall be deducted from the deposit. The remaining amount or the full bail amount will be returned to the tenant within the next 30 days of the return of the keys.

The deposit may be increased from the first 5 years of rent.

 

Bank guarantee

Sometimes property owners require tenants an additional deposit to ensure compliance with the lease. This deposit is known as a bank guarantee by which a tenant must deposit a certain amount into a special bank account (in national bank) where it will remain until the completion of the contract. The official document of the guarantee must be certified and registered by a notary before being delivered to the owner.

The amount of endorsement required varies between 3 and 12 months rent. The money shall be available to the owner if the tenant fails to pay rent or cause further damage to the property. This warranty may cover the expenses incurred by any legal action or eviction proceedings initiated by the owner. The money of the guarantee will be returned to the tenant at the end of the contract.

Occasionally, some owners accept a Letter of the Company as an endorsement, where the company remains liable in case of default. Similarly, a company can also manage the bank guarantee in lieu of the employee who rents the property.

 

Rental

The rent must be paid within the first 5-7 days of each month, depending on the terms of the contract.

The owner shall produce a receipt to be sent to the tenant as evidence. The rental price may increase during the term of the contract in accordance with the CPI (Consumer Price Index - CPI).

 

Other expenses

The owner shall pay any cost resulting from normal use of property, costs of community and property tax (IBI). However, the tenant must pay to stay if agreed by both parties and specified in the contract.

The tenant must pay for the cost of gas, electricity, water and telephone unless the contract states otherwise. These expenses will be charged directly to the tenant's account by direct debit, as agreed in the contract.

 

Inventory

For the rent of a furnished apartment, the tenant must sign an inventory of the furniture, equipment and accessories contained on the property. You should take note of the status of each item and any other observations, since it will deliver in the same condition at the end of the contract. Repairs or missing items will be charged to the tenant.

 

Repairs

The owner must deliver the property as clean and habitable. Structural damage or damage related to the property and its operation will be the responsibility of the owner. The tenant must cover the costs of repair caused by normal daily use of the equipment, appliances or furniture.

The tenant must inform the landlord of any urgent repair. Normally, the same tenant must pay for the service to prevent further damage or emergency. The costs will be reimbursed by the owner.

If the owner decides to do work or repairs affecting health, hygiene or enjoyment of the property, the tenant must be informed within a month in advance. The tenant has the right to terminate the contract until a month after receiving notification. If you chose to stay in the property, you are entitled to a reduction in the rental rate proportional to the space affected by the works.

Reasons to cancel a contract

The owner may terminate the lease if the tenant:

- Do not pay the rent or deposit

- Rent the property to third parties without permission from the owner

- Cause intentional damage to property

- Performs work or repairs without the owner's consent

- Causes serious nuisance to neighbors

The tenant may terminate the contract if the owner:

- Does not take the actions necessary to maintain the property in proper condition and habitable

 

For more information visit the following link:

http://www.bcn.es/habitatge/esp/llog_leg_com.shtml