Question regarding 11month rental

I have just been informed that an 11 month rental contract is in fact not a contract, but a rental agreement.

If a tenant refuses to move when the 11 months is up (the tenant not paying rent or utilities for 10 of those months) and is there for 12 months due to difficulties getting them removed, that they will then be granted 4 more years in your property by a court even if you did not want to renew the contract/agreement.

Can you tell me if this is true?

Also I am aware I can not ask for the electric or water to be disconnected because the tenant will not pay any utility bills, but if the bills are left unpaid and the company cuts them off would I be in trouble legally?

'm not totally sure of the law but yes, it's not strictly a long term agreement.  In fact, the reason it is 11 months is because if it is any longer then the tenant has rights.

I always recommend that everything is done in writing here.  So if you want your tennant to leave after 11 months make sure you give him/ her the notice in writing with enough time.

It is a tricky one, maybe Maria can clarify the actual law on this....although I'm sure there's something about it on the site already!

Justin 

Kernow24:

Some answers for you below in bold green ( same text of your email): 

I have just been informed that an 11 month rental contract is in fact not a contract, but a rental agreement. That is not correct, whatever the time agreed in a rental contract..it is of course a contract.

If a tenant refuses to move when the 11 months is up (the tenant not paying rent or utilities for 10 of those months) and is there for 12 months due to difficulties getting them removed, that they will then be granted 4 more years in your property by a court even if you did not want to renew the contract/agreement. Oh no! If he refuses to pay, he will evicted and of course will have a debt against you ( I always recomment rental contracts to be submitted to Arbitration Courts rather than Judicial Courts: cheaper and faster).

The only special point to pay attention to, in order to avoid the legal automatic extensions of the rental contracts, is that the agreement/ contract is explicitly made for NON RESIDENCY PURPOSES.  As law protects those having a rental for their home and tries to provide permanency to them.

Can you tell me if this is true?

Also I am aware I can not ask for the electric or water to be disconnected because the tenant will not pay any utility bills, but if the bills are left unpaid and the company cuts them off would I be in trouble legally? What you can do , is to change the bank for those charges so it will be the companies who will cut the supplies, not you.

Maria, i have been told by my lawyer today that arbitration can only take place if i have included this clause in the rental contract.  Please can you confirm.

Kind regards,

Joan

Yes, confirmed.

That is why I always encourage clients to submitt the contract to arbitration, which means to add a clause by which both parties agree so.

I am sorry if I did not make myself full explanatory!

Best,

Maria

Thank you Maria.

Can you confirm if this is the clause to add to the contracts, i thought to post it as it may be really usefull to others as well:

CONVENIO ARBITRAL
Las partes intervinientes, con renuncia expresa de su fuero propio o de cualquier otro que pudiera corresponderles, acuerdan que todo litigio, discrepancia o cuestión que pudiera surgir en la interpretación, aplicación o ejecución del presente contrato, se resolverá mediante arbitraje de la Asociación de Arbitraje Inmobiliario “ARBIN”, a la que se encomienda la administración del arbitraje y la designación de los árbitros, de acuerdo con la Ley de Arbitraje y con su Reglamento.
Asimismo, hacen constar expresamente su compromiso de cumplir el laudo arbitral que se dicte.
Para los procedimientos arbitrales que pudieran suscitarse, designan como domicilio, a efectos de notificaciones, los siguientes:
a) (indicar domicilio del arrendador/contratante, nº de fax, correo electrónico, en su caso, ...)
b) (indicar domicilio del arrendatario/contratante, nº de fax, correo electrónico, en su caso, ...)
Si los datos anteriores se modificaran durante la vigencia del presente contrato, los nuevos datos serán comunicados a la otra parte por cualquier medio que deje constancia expresa, quedando unidos al mismo, a modo de anexo.

Thanking you in advance,

Joan

Yes, that is a correct clause.

Anyhow, need to add that regarding entities to submitt the contract to, there are many of them, I mean this one you mentioned does not have exclusivity for arbitration for rental contracts.

I am no syaing it is better or worse than any other else.

Good luck!

Maria