Every rental agreement can have a jurisdiction clause by which the parties expressly submitt the resolution of conflicts arising from the same to an specific Court. They can also submitt the contract life to arbitration. This has been our advise always.
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According to the leading company in rental arbitrations in Spain, Arrenta, "20% of rental contracts have arbitration clauses to prevent and resolve conflicts between landlords and tenants, representing an increase of about seven points compared to the rate of last year, when it stood at 13%" . In addition, Arrenta notes that this year one of four leases agreement are submitted to arbitration rarther than Courts.
Good for tenants, landlords and good for Judges and Court officers too. Good for all.
This increase in arbitration clauses is attributed to the crisis, which has "triggered distrust of the owners." According to Arrenta, "85% of homeowners fear not collect income or suffer damage in the house" so that they do not risk to sign a lease unless there is additional coverage for their peace of mind. In addition to arbitration, contracts include guarantees for the cashing of rental debts and insurance against vandalism.
Arbitration is an alternative way ( we all love alternative ways here in Costaluz) to the ordinary justice system whereby, in case of dispute between the rental parties, a third, neutral and impartial person will resolve the dispute with a decision which is mandatory, non-appealable and enforceable.
A final decision is obtained within a faster timeframe. This allows an average saving of six months compared to going to courts.
When you are renting with the aim of living in the house permanently, make special attention to sign a " contrato de arrendamiento de vivienda" regardless timeframes expressed in the contract.
Zahora ( Cadiz Province) beach by Basilievich at Flickr.com
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