Renting Your Property - The Legal Aspects Part 2

Published on 9/3/2007 in Renting Your Property

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


Legal period extension on home rentals. Five years

What is that of the five year extension? 

Simple: A protection for home rentals in order to make them extendable in time.  I explain:  If the renting period is under five years, once the period expires, this will be obligatorily and legally extended for year periods till reaching those 5 years, unless the tenant stated to the landlord (at least 30 days before the annual  automatic and legal extension) he does not want to stay in the property for longer. The exception to this general rule is that the owner can set an express mention in the contract regarding his need to use the property for personal use before those 5 years time’s period. Therefore the exception to the continuation of the renting for personal use of the tenant is just the justified need of personal use of the owner.

Once the 5 years are reached, the landlord can cancel or oppose the renovation of the rental contract with a one month’s notice to the tenant. If this previous notice is not formalized, the rental contract is extended for three years unless tenant communicates to landlord a will for not staying. This extension cannot be turned down by the landlord.

If there is no mention of specific time period in the renting contract, this will be of one year. 

Rental guarantee deposit

When signing the contract and by legal imperative, the tenant needs to hand over to the landlord a cash rental deposit of one month’s rent in order to guarantee any damage caused in the property by the tenant. The damage needs to be proved as not being the consequence of the habitual use of the house.

This cash will be given back to the tenant once the house is given back in perfect state after the renting period. If damages have been caused, the cost of the repair of these will be deducted from the deposit amount. This deposit cannot be used to pay rental instalments. The deposit can be asked back if not given to the tenant after the letting, interests will be charged. The updating of the deposit amounts and rents can be done after the first five years of renting.


Rent is freely agreed by parties. Unless a different thing is accepted by the parties, the rent is paid in a monthly basis and must be done within the first 7 days of each month. The landlord can never ask for advanced payments of more than one month.

Rent payment can be done where and how the parties agree. If nothing is stated in the contract regarding this, the payment must be done in cash and at the rented house.  A receipt must be given to the tenant, unless the payment can be proved by a different means (i.e. Bank transference receipt).

During the first 5 years of contract, the rent will be updated according to the Consumer Price Index (IPC) published by the National Institute for Statistics. After those first five years, the updating can be done in a different way, but generally this IPC index is used after the first 5-years period.

The updated rent needs  to be communicated to the tenant and will be requirable one month after this communication.


Written by: Maria de Castro

About the author:

Maria de Castro is a Spanish Lawyer and the Director of the Law Firm

Costa Luz Lawyers are contract and consumer real estate law specialists covering all parts of Spain. You can contact Maria at

Right arrow icon Send to friends   Right arrow icon Printer friendly version    Right arrow icon Submit your own article


Only registered users can comment on this article. Please Sign In or Register now.

Comment Using Facebook:

Related articles in this category

“The Five Biggest Mistakes to Avoid” when renting out a holiday rental

Evicting Tenants In Spain - Changes In The Law

Good News For Spanish Holiday Home Owners!

Holiday Rentals - The Market is Growing and People are Looking for Something Special

How the New Andalusia Tourist Rental Law Affects You

How To Decide Where To Advertise Your Holiday Home Online

Just Weeks To Go Until Peak Holiday Bookings Season

Making Your Holiday Home Advert Search Engine Friendly

Photographing Your Holiday Home

Regulations Governing Holiday Rentals

Renting Your Property - The Legal Aspects Part 1

Renting Your Property - The Legal Aspects Part 2

Renting Your Property - The Legal Aspects Part 3

Renting Your Property - The Legal Aspects Part 4

Renting Your Property - The Legal Aspects Part 5

Renting Your Property - The Legal Aspects Part 6

Secrets Of Successful Holiday Rentals

September Reflection for Holiday Property Owners

Spanish Properties Must be of a Suitable Standard

Sustainable Tourism And The Rental Property Market

The Myths of Buy-To-Let Property

The Rules for Evicting Tenants in Spain

Top 5 Insider Tips To Optimising Your Rental Adverts To Generate More Enquiries

Top 5 Tips For Writing An Effective Rental Property Description

Top 5 Ways To Use Facebook To Promote Your Holiday Home

Touristic apartments in Valencia region

Click here for a list of all the articles from our magazine 

Spain insurance services

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x