How are the changes in the duration of the housing lease applied?

15/12/2021

 
 
Cambios en la duración del contrato de arrendamiento de vivienda
 
The different reforms of the Law have been introducing changes in the duration of the housing lease contract.
DECEMBER 2, 2021
14 minute read
 
What is the minimum time for renting a home?

The parties to the contract (landlord and tenant) are free to agree on the duration they consider.

Notwithstanding this freedom of agreements, the law establishes that if the agreed duration is less than a certain term, which is what has been changing with the reforms, the tenant may extend the contract at will until the lease reaches the minimum duration that at that time lay down the law.

The parties to the contract (landlord and tenant) are free to agree on the duration they consider.

Notwithstanding this freedom of agreements, the law establishes that if the agreed duration is less than a certain term, which is what has been changing with the reforms, the tenant may extend the contract at will until the lease reaches the minimum duration that at that time. set the le

In 2017, a housing lease agreement was signed and a term of one year was agreed upon. In this case, the tenant can leave on that date but if he does not want to leave, the urban lease law protects him and allows him to stay for up to a total of 3 years because the LAU in that year 2017 established a minimum duration of 3 years to will of the tenant even if a year had been agreed in the contract.

 

How long is a lease valid?

The validity will be the one agreed upon by the parties in the contract. If a duration of 8 years has been agreed in the lease, that will be the term.
Having said this and as we have just answered the previous question, the Law has provided that when the parties contract a duration shorter than that provided for in the LAU, the tenant has the power to continue leasing the home for the minimum duration period. that at that time is in force by law.

Summary:

If the duration agreed in the contract is greater than that provided by law as a minimum duration, it will be necessary to comply with the term agreed in the contract. On the other hand, if the duration agreed in the contract is less than the minimum legally established, the tenant may continue in the dwelling during the established legal term.

Example of a change in the duration of a contract:

A housing lease is signed in February 2021 for one year. As the LAU currently has a minimum duration of 5 years, the tenant, despite signing a year of validity, may be in the home at will until February 2026.

Below we will see the minimum duration of the lease contracts according to the changes that have occurred in the Urban Leasing Law

 

Changes in the duration of the housing lease contract according to the reforms of the LAU

 Contracts entered into from June 6, 2013 to December 18, 2018

For contracts that have been entered into between those dates, article 9 of the LAU provided the following for the minimum duration of the contract:

1º.- The duration of the contract will be that freely agreed by the parties.

2º.- In the event that the home lease contract states that the duration is less than 3 years, the tenant has the right to extend the contract and remain in the home for up to 3 years (3 years).

3º.- Once the 3 years have elapsed, if neither party has notified the other, at least thirty days in advance of that date, of their desire not to renew it, the contract will necessarily be extended for one more year.

4º.- After that fourth year, if the parties do not communicate anything, the relationship enters into tacit renewal.

 Contracts entered into from December 19, 2018 to January 23, 2019

All these changes were approved in Royal Decree-Law 21/2018 of December 14. The entry into force of this amendment to the Urban Leasing Law (LAU) occurred on December 19, 2018.

▷ Warning

Since Royal Decree-Law 21/2018 was not approved by the Congress of Deputies, its application will only serve for those housing lease contracts that were entered into from its entry into force on 12.19.2018 until 01.23.2019 , date its repeal.

Therefore, for housing leases held in this period, article 9 of the LAU established the following:

1º.- The duration of the contract will be that freely agreed by the parties.

2º.- When the landlord is a natural person, and the housing lease contract states that the duration is less than 5 years, the tenant has the right, if he wishes, to extend the contract and remain in the dwelling until 5 years.

If the landlord is a legal person (company), the tenant has the right, if he wants, to stay in the apartment for up to 7 years.

3º.- Once the 5 or 7 years have elapsed (if the lessor is a legal entity), if neither party has notified the other, at least thirty days prior to that date, of their desire not to renew it, The contract will be obligatorily extended for annual terms up to a maximum of three more years.

4º.- After these 8 years of duration (first 5 + 3 extensions) if the lessor is a natural person, or those 10 years of duration (first 7 + 3 extensions) if the lessor is a legal person, if the parties do not communicate anything the relationship enters into tacit renewal.

Contracts entered into from January 24, 2019 to March 5, 2019 

For contracts that have been concluded between those dates, article 9 of the LAU provided for the minimum duration of the contract as follows:

1º.- The duration of the contract will be that freely agreed by the parties.

2º.- In the event that the home lease contract states that the duration is less than 3 years, the tenant has the right to extend the contract and remain in the home for up to 3 years (3 years).

3º.- Once the 3 years have elapsed, if neither party has notified the other, at least thirty days prior to that date, of their desire not to renew it, the contract will necessarily be extended for one more year.

4º.- After that fourth year, if the parties do not communicate anything, the relationship enters into tacit renewal.

 Contracts entered into from March 6, 2019 to the present

On March 6, 2019, another reform of the LAU came into force that affected the minimum duration of housing leases, with article 9 being worded as follows:

» 1. The duration of the lease will be freely agreed by the parties. If this is less than five years, or less than seven years if the lessor is a legal entity, when the contract expires, it will be obligatorily extended for annual installments until the lease reaches a minimum duration of five years, or seven years. years if the lessor is a legal entity, unless the lessee informs the lessor, at least thirty days prior to the date of termination of the contract or any of the extensions, his desire not to renew it.

Therefore, for housing leases held from March 6, 2019 onwards, the following is established:

1º.- The duration of the contract will be that freely agreed by the parties.

2º.- When the landlord is a natural person, and the housing lease contract states that the duration is less than 5 years, the tenant has the right, if he wishes, to extend the contract and remain in the dwelling until 5 years.

If the landlord is a legal person (company), the tenant has the right, if he wants, to stay in the apartment for up to 7 years.

3º.- Once 5 years or 7 years have elapsed (if the lessor is a legal entity), if neither party has notified the other, at least thirty days prior to that date, of their desire not to renew it, The contract will be obligatorily extended for annual terms up to a maximum of three more years.

4º.- After these 8 years of duration (first 5 + 3 extensions) if the lessor is a natural person, or those 10 years of duration (first 7 + 3 extensions) if the lessor is a legal person, if the parties do not communicate anything the relationship enters into tacit renewal.

 

Assumptions that may occur regarding the duration of the housing lease and its changes

 A) If the lessor is a natural person (article 9.1 LAU):

The duration of the lease will be freely agreed by the parties.

If this is less than five years, when the contract expires, it will be obligatorily extended for annual installments until the lease reaches a minimum duration of five years, unless the lessee informs the lessor, at least thirty days in advance. at the date of termination of the contract or any of the extensions, their will not to renew it.

This means that the tenant may remain if he so wishes with the housing rental contract for up to five years.

There is an Exception to the above rule (only when the landlord is a natural person): After the first year of the contract, the landlord may request that the home be delivered to him because he needs to occupy it, his spouse in case of separation or divorce, or one of your first degree relatives by consanguinity or adoption.

In order for the landlord to request housing out of necessity, he has to notify it two months in advance.

The duration of the lease will be freely agreed by the parties.

If this is less than seven years, when the contract expires, it will be obligatorily extended for annual installments until the lease reaches a minimum duration of seven years, unless the lessee informs the lessor, at least thirty days in advance. at the date of termination of the contract or any of the extensions, their will not to renew it.

This means that when the lessor is a company (a company), the tenant may remain, if they wish, with the housing rental contract for up to seven years.

When the lessor is a legal person, it is not possible to request housing due to the need for occupation.

 B) If the lessor is a legal person (article 9.1 LAU):

The duration of the lease will be freely agreed by the parties.

If this is less than seven years, when the contract expires, it will be obligatorily extended for annual installments until the lease reaches a minimum duration of seven years, unless the lessee informs the lessor, at least thirty days in advance. at the date of termination of the contract or any of the extensions, their will not to renew it.

This means that when the lessor is a company (a company), the tenant may remain, if they wish, with the housing rental contract for up to seven years.

When the lessor is a legal person, it is not possible to request housing due to the need for occupation.

 

What happens if the 5 years of duration elapse with the lessor being a natural person?

 The changes in the duration of the housing lease have provided for the following:

If the lessor is a natural person (article 10.1 LAU):

If the expiration date of the contract, or any of its extensions, after at least five years of its duration has elapsed, neither party has notified the other, at least four months in advance of that date in the In the case of the lessor and at least two months in advance in the case of the lessee, his/her wish not to renew it, the contract will be obligatorily extended for annual terms up to a maximum of three more years, unless the lessee informs the lessor with one month of prior to the termination date of any of the annuities, their willingness not to renew the contract.

That is to say, if before these 5 years of duration and within the indicated periods there have been no communications of "non-renewal" of the contract, the tenant may remain if he so wishes for another three years in the dwelling.

 

What happens if the 7 years of duration elapse while the lessor is a legal entity?

 If the lessor is a person or a legal person (article 10.1 LAU):

If the expiration date of the contract, or any of its extensions, after at least seven years has elapsed, neither party has notified the other, at least four months in advance of that date in the case of the lessor and at least two months in advance in the case of the lessee, his/her wish not to renew it, the contract will be obligatorily extended for annual terms up to a maximum of three more years, unless the lessee informs the lessor one month in advance of the date termination of any of the annuities, your will not to renew the contract.

That is to say, if before these 7 years of duration and within the indicated periods there have been no communications of "non-renewal" of the contract, the tenant may remain if he so wishes for another three years in the dwelling.

Can the landlord recover the home before the minimum term provided for in the Law?

 

The landlord may repossess the leased property before the minimum legal term has elapsed, provided that the following requirements are met:

1.- That the lessor is a natural person (lessor companies cannot).

2.- That the first year of the contract has elapsed.

3.- The need for the landlord to occupy the rented home within five years has been expressly stated in the contract in order to use it as a permanent home for himself or his relatives in the first degree of consanguinity or by adoption or for his spouse in cases of final judgment of separation, divorce or marriage annulment.

4.- The lessor must inform the lessee that they need the rented dwelling, specifying the cause or causes among those provided in the previous paragraph, at least two months before the date on which the dwelling is going to be needed and the tenant will be obliged to deliver the leased property within that period if the parties do not reach a different agreement.

 What happens if the lease expires?

When the rental contract expires because the minimum duration provided for in article 9 of the LAU has been reached and the landlord has not notified the tenant that he has to leave the house, the contract enters into the legal extension provided for in article 10 of the LAU. LAU.,

Currently and for housing leases entered into from March 6, 21019 onwards, the extension will allow the tenant to continue with the home for up to 3 more years.

After these 3 years of legal extension (also called voluntary), the contract will continue in tacit renewal.

▷ Conclusion on the duration of the housing lease:

To find out the minimum duration of our housing lease regardless of what is agreed, you must go to the Urban Leasing Law that was in force on the date of signing the contract.

 

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