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Renting or Letting

Renting or Letting

2. The prolongation for 5 years

If a shorter period of letting has been agreed in the contract for a dwelling, but the tenant wants to extend it, he has the right to do so by staying put. If he wants to move out as agreed, he should notify the owner in writing 30 days before the agreed letting period ends. The 5 years starts from the day the tenant took posession of the dwelling.

The owner can refuse the automatic prolongation of a letting contract, if he needs the dwelling himself for permanent residency, and if this has been stated clearly in the letting contract. This only refers to the owner himself, not to his family, unless they live there with him.

Even after the 5 year period, the owner has to communicate in writing to the tenant that the contract will be terminated. If not, the tenant may stay for another year and so on for up to 3 additional years. If the tenant wants to move before the end of the letting period agreed in the contract, he must communicate this to the owner and pay part of the rent for the remaining time, if this has been agreed in the contract. If the tenant only leaves the dwelling and stops paying, the owner has the right to sue him for damages. In case of a prolongation of the letting, the rent can be adjusted in accordance with an inflation index published by the Government each year. The owner can only demand the higher rent after he has communicated the increase to the tenant in proper form.

You should also be aware that if you want to sell the dwelling while you have a sitting tenant in it, the tenant has a "derecho de tanteo", the right to buy the dwelling on the same conditions you offer to another buyer.

 

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