Before signing a rental, it is essential to understand what the current leasing law is and how the lease contract is extended. Unfortunately, it is common to find irregular contracts and that is why we always advise you to inquire before starting with the search for a rental apartment , in this way there will be no surprises and you will be prepared when you see something that does not fit you.

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Urban leasing law and extension of the rental contract

In 2019, a new law on Urban Leases came out in which the rights of the tenant are protected. But in many cases, the rental agreement is signed prior to this date and, therefore, the regulations are those that were imposed by the LAU of 2013.

Contract period

In the new LAU, the contract has a duration of 5 years and in the case of a company of 7 years. In the event that the tenant wants to leave the apartment before the half year has passed, he would lose the deposit as a penalty.

If neither of the two parties says anything before the end of the contract, it will be automatically extended for annual terms of 3 years. In any of its extensions, both the tenant and the lessor may give advance notice to terminate the contract, as we will see below.

Previously, with the urban leasing law of 2013, the contract had a duration of 3 years and in the event that the owner wanted to recover the apartment, he had to give one month's notice, while now it is 4 months .

If it is the tenant who wants to leave the apartment, he will have to notify the owner thirty days in advance. As long as the tenant expresses to the landlord with 1 month in advance the will not to renew the contract and 6 months have passed from the signing, there will be no problem to leave the property.

Deposit and payments

One of the big changes is the regularization of the deposit , now it is only allowed to request a one-month deposit that will go to the corresponding body of the autonomous community and, in addition, the owner may request as an additional guarantee up to 2 months of deposit.

Once you have moved out of the house, the owner will have 30 days to return the deposit, after having checked if there is any damage to the house.

In addition, the landlord can only raise the rent once the contract ends, and the CPI will be updated annually.

In the case of companies, not only will the contract have a longer duration, but the tenant is also exempted from having to pay the real estate agency.

Regularization of prices in Catalonia

With the entry into force of the price regularization law, the aim is to control the problem of prices in rental flats. Basically, if the owner sets a price much higher than the index for the area, established by the Generalitat, he will have to face a fine.

Extension of the rental agreement

Depending on the date of the contract, the extension of the contract will vary:

Lease contract extension June 6, 2013 - March 6, 2019

Contracts that have been signed before the new urban leasing law and signed during these dates, will have these requirements for the extension. As long as, both parties have not decided to sign a new contract with the current regulations.

In this case, the extension would be automatic once the 3 years have ended and would be updated for one year. The contract would be automatically renewed annually until one of the two parties decided to end the rental.

Lease contract extension: March 6, 2019-present

Once the expiration date of the contract arrives, after 5 or 7 years, the tenant is entitled to extend the contract and the landlord could not object. In addition, for the contract to be extended for another 3 years, there is no need for any communication between both parties, the renewal will be done automatically.

In the event that the contract is to be terminated once the 5 years are over, the tenant will have to give the lessor a month's notice and the lessor 4 months in advance.

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