9 keys points of law 2019 on property rentals in Marbella
27 Jan 2020 | News and Updates, Renting FAQIf you are thinking of renting out your property, in addition to other questions and after the continuous modifications of the law, you will be thinking about which aspects have been modified for the drafting of the contract and therefore stop asking if you know the current legislation applicable on property rentals in Marbella.
Well, the legislation applicable at this time to urban leases of habitual residence is contained in Real Decreto Ley 7/2019 of 1 March, which came into force on 6 March 2019.
Below, we will list and summarize the 9 keys points to be taken into account and of current application:
- Property rental contracts signed as of 6 March 2019 will be compulsorily extended year by year until reaching 5 years if the lessor is a individual person and up to 7 years if the lessor is a legal entity.
- After the 5 years (7 years in the case of a legal entity), if the landlord does not notify the tenant four months in advance of his intention not to renew the lease or the tenant does not notify the landlord two months in advance of his decision not to renew the lease, the lease will be extended annually for another three years.
- The owner has the option of recovering his rented property as long as the reason is reflected in the contract (for use as a habitual residence).
- The deposit required from the tenant is set at one monthly payment and the additional guarantees are set at a maximum of two monthly payments.
- When the landlord is a legal entity, the costs of property management and formalisation of the contract will be paid by the landlord.
- The landlord and the tenant may agree to renew or improve the property during the term of the contract.
- Possible annual rent reviews will be limited by the Consumer Price Index.
- The rent of the habitual dwelling is exempt from the Tax ITP y AJD that was levied on the tenant.
- If the rented property is sold, the new owner is obliged to respect the current rental contract, even if it is not registered in the Land Registry.
Benarroch Real Estate keeps you informed about the news of application to the housing rental market to help you in your decision knowing which is the current legislation applicable to the rental of habitual residence.
Article by Brice Benarroch Mennessons
27 Jan 2020