The latest news on the rental law in Spain - Chapter 3
How are the extensions?
You rent homes and know that in certain cases the tenant has the right to extend the contract at the end of the legal term. New extensions have now been approved; see how it affects you based on contract date and circumstances.
Previous considerations
Application. First of all, know that these new extensions affect contracts signed as of May 26, 2023 . Attention! In addition, the law establishes criteria to determine its application, which are not yet defined. Therefore, the new extensions are not applicable in the short term.
Key criteria. The law speaks of some concepts that either do not delimit, or indicate that they may change in the future, so each case will have to be examined in due course. Note. These are:
What should be understood by situation of vulnerability . This concept is at the discretion of the regional or municipal social services.
What are the stressed residential market areas . They will be determined by the competent administrations, will be published in the Ministry and will be valid for three years, so they will change.
What is a great fork . Although it is specified that it is any person who owns more than ten urban properties for residential use or with a constructed area of more than 1,500 square meters, excluding in any case garages and storage rooms, it also indicates that this criterion may vary in the "stressed areas". ”, each administration can modify it for its territory.
The minimum duration remains the same
extensions. In contracts of less than five years (seven if the landlord is a legal entity), the lessee is entitled to successive one-year extensions until reaching the minimum duration (five or seven years). Note. Such extensions are mandatory for the owner, unless he is a natural person and the right not to extend it after the first year has been expressly reserved in the contract, due to needing the home for himself or for his first degree relatives.
Three additional years. Once the previous minimum duration has ended, the lessee has the right to annually extend the contract up to a maximum of three more years. Note. Well, the new housing law adds two more extensions to what had been up to now. See how they work.
New extensions
One more year. After the five or seven years of minimum duration or after the three-year extension indicated above, the lessee may request an extraordinary one-year extension . Attention! Of course, only if the following requirements are met:
That the tenant is in a situation of vulnerability , which must be proven with a report from the social services.
That the owner is a great fork; otherwise, you are not required to agree to the extension.
Up to three years. If the home is in a "stressed area", the tenant may request annual extensions -with a maximum of three and regardless of whether they are in a vulnerable situation or not-, which will be mandatory for the owner. Attention! The following exceptions apply:
If the parties reach a different agreement or sign a new contract.
When the owner needs the home for himself or his relatives (provided it was provided for in the contract).
Conclusion. This will affect you depending on where the property is, if it is a large holder and if your tenant is a vulnerable person. Attention! The first thing is beyond your control, but you can find out the solvency of your tenant before hiring.
"These extensions are a right of the lessee and he can decide whether to request them or not. They only apply to new contracts and given the indicated requirements; In addition, it will be necessary to adhere to the concept of a "stressed area" that the administrations delimit."
