The rental contract in Spain

Under the LAU if you agree a duration of less than five years the contract is extended automatically year by year up to five years unless you inform the owner of your wish to end it, and it becomes seven years if the owner is a legal entity (a company).

• After the statutory period ends it extends three additional years annually unless one party gives notice of non-renewal before a set period.
• The owner cannot end the contract before five years unless he needs the flat for himself or first-degree relatives provided the contract states that.
• And you remain protected by the law.
• If the contract is for a season or non-residential use its rules are different, so check the type of contract.

The contract sets the monthly rent and its payment date and method, and bank transfer is preferable to cash to have proof.

• The annual rent increase is set by an index determined by the law, which was the IPC and then a special index (IRAV) with a certain cap, and the owner may not impose a bigger increase during the contract term.
• In stressed zones (zonas tensionadas) declared by the autonomous communities there are rent caps for new contracts.
• Ask for an invoice or receipt every month.
• If the owner raises the rent contrary to the contract or law you may object and ask for help.
• Check the rent update clause before signing, and make sure it refers to the statutory index.

The legal deposit (fianza) is one month's rent for housing, and the owner may request additional guarantees (garantía adicional) of no more than two further months.

• The owner must deposit the deposit with the competent body in your region, and must return it within a month of handing over the flat otherwise interest accumulates.
• The owner bears the property tax (IBI) and building fees for major repairs, and sometimes the contract requires the tenant to pay ordinary building expenses (comunidad) and the waste tax.
• An agency commission may not be charged to you.
• Read precisely the clauses on who pays what, and check the utility subscriptions and in whose name they are.
• And a written contract must be drawn up and signed by both parties with a copy for each.

The owner must keep the flat habitable and carry out necessary repairs that are not due to your misuse such as water leaks, faulty heating and structural damp, while you bear small maintenance resulting from ordinary use such as bulbs and keys.

• Notify the owner of the defect in writing (burofax or email with receipt) with photos, and give him a reasonable time.
• If he does not repair, in urgent cases you can repair it and ask for reimbursement.
• Do not stop paying rent because of a defect without advice, since you might breach your contract.
• Keep the flat clean and ventilated to avoid damp.
• And do not make major changes without permission.
• Keep all invoices and maintenance correspondence.

You have the right to leave after six months from the start of the contract with written notice at least thirty days in advance, and the contract may include compensation for the owner equal to a month for each remaining year provided it is stated.

• On leaving agree with the owner a handover inspection, repair what you damaged, return the keys, sign the handover report and ask for return of the deposit.
• If a dispute occurs try written dialogue first, then mediation (mediación) through a tenants' association or the region, then litigation in court.
• Institutions offer free or reduced advice such as tenants' unions, legal aid offices and consumer offices (OMIC).
• And do not leave the flat in a dispute before advice.

What is the usual maximum for the basic deposit?