Beware of Abusive Rental Clauses

RENTING property in Spain comes with its own challenges. Aside from skyrocketing prices for rentals across the country, prospective tenants should pay special attention to clauses in rental contracts that can end up costing more than they bargained for.

The price of housing has increased steadily since 2021, making it difficult for many citizens to purchase their own properties without the necessary savings of 20 per cent of a property value for the down payment.

Abusive Clauses

ASUFIN, the association of consumers in Spain, have warned that landlords cannot include waivers of mandatory extensions in their rental agreements. A contract can be extended up to five years, and the lessee cannot be forced to renounce this right. They also state that the minimum stay of a tenant cannot be extended, and is established at 6 months. And though a tenant may leave and break the contract before the minimum period is over, they may have to “compensate the owner with the rent payments that remain until completing that period “. However, ASUFIN warns that landlords demanding a year’s worth of rent for non-compliance with the minimum period is “abusive.”

Furthermore, a deposit for a rental property cannot exceed one month’s rent, and should never exceed two months’ rent. Extortionate demands for three to six months of deposit for rentals can be commonly seen around Spain.

Renovation and Property Damage

Another common abusive clause in rental contracts refers to renovations and improvements in the property, an increase in the cost of rent due to these works cannot be applied. “The landlord can only apply increases in the rental price for reforms or improvements made to the property from the fifth year of the contract unless otherwise agreed between the parties,” according to the association. Furthermore, the tenant can demand compensation if the works mean that they have to seek alternative accommodation while it is being carried out.

“As a general rule, it is the landlord who is obliged to carry out and pay for the repairs to the home, but this requirement only applies to works that are not a consequence of normal daily use or misuse by the tenant.” Therefore, if a tenant has broken the television because their child has knocked it over, they still bear the responsibility for replacing the television.