Long-term rentals in Spain are an option that is gaining ground, especially in a market where it is increasingly difficult to find available housing. If you are concerned about having stability without having to worry about unexpected rent increases, or if you are a property owner and prefer to avoid having to look for new tenants every few months, this option may be the solution. In this article we explain in a simple way how long-term contracts work, what rights you have as a tenant or owner according to the Urban Leasing Law, and why this type of contract can make your life easier, whether you are looking for a stable home or want to secure your property.
How long does my rental contract have to last?
It’s normal for doubts to arise when we talk about the duration of a rental contract. The first thing you should know is that, according to the Urban Leasing Law (LAU), if you rent a home, the contract has to last at least 5 years if the owner is a natural person (an individual), or 7 years if it is a company. However, contracts are often signed for one year, and this is where confusion usually arises. These one-year contracts are automatically renewed until they reach those minimum 5 or 7 years, as long as both parties agree. Although it may seem complicated, this structure is completely legal and is designed to offer flexibility to both the tenant and the owner. In the end, these types of contracts give you stability as a tenant, and allow the owner to have more options if they need the home later.
The one-year extendable clause: Flexibility for all
In many rental contracts, there is a clause that establishes an initial duration of one year, but that is automatically extended. This, which may seem like an unimportant detail, is actually a great advantage for both parties. If you are a tenant, this type of contract allows you to make decisions without feeling trapped. After six months, you have the option to leave the property if your circumstances change, without fear of being charged an excessive penalty. You would only have to pay the proportional part of the time left on your contract, as stated in the Urban Leasing Law. On the other hand, if you are a property owner, this clause gives you the peace of mind of knowing that after the first year, if the need arises to recover the property, you can do so, as long as it is for personal or family use, and in compliance with the legal requirements. Thus, both you and your tenant have the necessary flexibility to adapt to any change.
Rights of the long-term tenant
If you have a long-term rental contract, there are several rights that protect you and guarantee you a peaceful stay.
Right to privacy
Your home is your space, and the owner cannot just come in whenever he wants. The law is clear: the owner can only enter if he gives you advance notice, or in emergency situations. So if one day he shows up unannounced, you can remind him that your privacy is protected.
Right to adapt housing for people with disabilities
If you or someone in your family has a disability, you can make the necessary changes to the property to adapt it to those needs. All you have to do is notify the owner and cover the costs. However, when the contract ends, you will have to leave the house as it was.
How can you leave before the agreed time?
One of the advantages of long-term contracts is that if after the first six months you decide to move, you can do so without being tied to the full 5 or 7 years. You just have to give the landlord 30 days’ notice, so you can leave the property without any problems. Of course, if you decide to leave early, you may have to pay a penalty, which is usually the equivalent of one month’s rent for each year left on your contract. But if your contract is for one year and can be extended, this penalty is much lower, which is a relief if you have a job change or have to move for any other personal reason.
What obligations does the owner have?
Just as you as a tenant have rights, the landlord also has responsibilities that must be fulfilled. The most important one is to make sure that the property is always in good condition to live in. If a problem arises, such as a plumbing fault or a structural defect that affects your daily life, the landlord is obliged to fix it. If he doesn’t, you can ask for compensation or even a reduction in rent while the problem is not fixed. In the end, the law protects your right to live in a house that is in good condition.
What happens to the contract if the tenant dies?
One of the lesser-known but very important rights is the right to subrogate the contract. If the tenant dies while the contract is still in force, a close relative such as a spouse, children or parents can take over the property and continue renting it under the same conditions. This ensures that the family does not have to worry about losing their home at such a delicate time. For this right to be valid, it is important that the person interested in subrogation notifies the owner within three months of the death.
Recovery of the home due to the owner’s needs
Sometimes, the landlord may need the property back before the 5 or 7 years of the contract are up. This can happen if he or a close relative needs it to live in. In these cases, as long as the deadlines are respected and the need is well justified, the landlord can get the property back. This right can only be exercised after the first year of renting, and it is key that the contract includes a one-year renewable clause. If you signed a fixed contract of 5 or 7 years, the landlord could not ask you for the property before time.
Conclusions and recommendations
Opting for a long-term rental contract has clear advantages for both tenants and landlords. On the one hand, it gives you the peace of mind of knowing that you will have stability without unexpected changes in rent. On the other hand, the landlord can count on the security of constant income for a longer period of time. The key is in the flexibility offered by the one-year renewable clause, which allows the contract to be adjusted to the needs of both parties. If you are a tenant, knowing your rights will help you make the most of the benefits offered by the law and protect your quality of life. If you are a landlord, ensuring that your contracts comply with current regulations will avoid problems in the long term. At 1mast, we work to ensure that both landlords and tenants have access to fair solutions that are well adapted to their needs, offering clear and up-to-date contracts according to the latest regulations.
