For part 1 in this series visit Renting Your Property - Part 1

For part 2 in the series visit Renting Your Property - Part 2

For part 3 in the series visit Renting Your Property - Part 3

For part 4 in the series visit Renting Your Property - Part 4

For part 5 in the series visit Renting Your Property - Part 5

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As a final article within the series on rentals, we are explaining today how to claim and we are advising to use arbitration system for these kind of conflicts.

Judicial Claim

Basically all judicial actions relating to tenancy agreements (lease duration, rental rate’s increase or increase of utilities - water, electricity, gas- etc.) are carried out by the common civil procedure with the exception of the following cases which are detailed below and which are carried out by the so-called juicio verbal, which is a  faster trial expedited at a verbal hearing.

• If eviction (desahucio) of the tenant is sought due to default in payment of the rent;
• If the tenancy period has completed and the contract has therefore expired;
• If it is a claim for failure to pay the rent or associated payments regardless of its amount.

On special occasions the landlord can in a verbal hearing seek eviction of the tenant and claim for outstanding payment of rent and associated payments due, for as long as the total amount claimed does not exceed 30.050,61 €. If it does exceed this amount then common civil procedure would be applicable.

It should be borne in mind that cases seeking an eviction order for failure to pay (or late payment) of the rent (or associated costs) can be filed before the trial, if the tenant pays the landlord, deposits in a Notary office or in the Court the amount claimed plus what is owed to that moment. With this payment the claim for an eviction order would be stopped. 

However, the tenant will not be able to stop the claim for an eviction order this way if he has previously used this method before, or if the landlord had previously claimed the rent in writing (ensuring that there is a legal copy of the correspondence with a reception date, for example by  way of a Notarised demand or by certified fax) at least 4 months before he or she presents a judicial claim.

Lease and Arbitration

Taking into consideration the slowness and   financial disadvantage of the judicial procedures for the landlord, it is highly recommended to resolve rental problems with the help of arbitration. By continuing we highlight the advantages that this gives to both parties: landlords and tenants. 

The main advantage for the landlord is an efficient and speedy settlement of the failure to comply with the contract. The arbitration is a good alternative to the common justice, because if the dispute is between two or more parties a third neutral and impartial party known as arbitrator resolves the dispute and dictates a sentence which is obligatory. The average time to resolve such disputes is between 20 to 30 days. 

The main advantage for the tenant is reduced financial demand and requirements at the time of renting. It’s a flexible product that facilitates an access to rent for everybody. No bank guarantee are required.