Your rental contract in Madrid: tenant's lawyer

The law overrides the contract

For a main residence lease, much of the Spanish Urban Leases Act (LAU) is mandatory: anything agreed against what the law grants the tenant is void, even if it has been signed.

That means there are rights you do not lose just because you signed the template the agency or the landlord gave you. Our job is to tell you what they are, which clauses in your contract are not valid and what you can demand.

Short-term (seasonal) rentals follow a different regime, governed mainly by what is agreed. That is why it should be reviewed before signing, to check that it really is a seasonal rental and not a disguised main residence lease.

What the law decides and you should know

The term
For a main residence, the tenant is entitled to extend up to five years, or seven if the landlord is a company. Writing «one year» does not prevent that extension.
Tacit renewal
If nobody gives notice when the limit is reached, the contract keeps renewing for a further period. Notices have deadlines and must be given.
The deposit
One month's rent for a home and two for other uses. It is mandatory and is lodged with the regional authority.
Additional guarantees
Bank guarantee or extra deposit, with limits for a main residence.
Rent updates
Only if agreed, and within the limits in force each year.

The clauses that cause the most problems

Three, and all three should be reviewed before signing.

Expenses. Who pays the community fees, property tax (IBI), refuse collection and utilities. For a main residence, general expenses can only be passed on to you if this is agreed in writing with the annual amount specified. A bare «expenses are paid by the tenant» is not enough to charge them to you.

Condition at handover. Make an inventory with photos when you move in and have both parties sign it: it is what protects you when, on leaving, they want to keep the deposit.

Additional guarantees. On top of the deposit, for a main residence the extra guarantee or deposit is legally capped at two months' rent. If they ask for more, it can be negotiated or claimed back.

Questions about renting

Can they evict me early?

For a main residence you are entitled to extend up to five years (seven if the landlord is a company), even if the contract says one. There are only specific exceptions, such as the landlord needing the home and having provided for this in the contract.

Can they raise the rent?

Only if the update is agreed in the contract, and within the limits in force that year. If it is not agreed, they cannot raise it while the contract lasts.

Can they keep my deposit?

Only for damage beyond normal wear and tear and for unpaid rent or expenses. Not for the ordinary wear of living there. If it is not returned within a month of handing back the keys, it accrues interest.

Will you review my contract before I sign?

Yes. We review it before you sign and tell you which clauses are not valid, what should be changed and what you can negotiate with the landlord or the agency.

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