Urban Leasing Law for 2021

Ley de Arrendamientos UrbanosWhether we’re tenants or owners, it’s important to know the law and to know our rights and obligations when managing a rental contract.

What is the Urban Leasing Law?

The Urban Leasing Law or LAU in Spanish is the set of laws that regulate the rental property market in Spain. To read it in depth you can click on this link that will take you directly to the Official State Gazette (BOE).

As this document shows, there is a difference in treatment between residential leases and leases for any use other than housing (it is understood that the economic circumstances are different for those cases).

If you have any questions throughout this article, we encourage you to contact Mediterráneo Homes. Our specialists can not only manage the rental of your property, but also assess your circumstances and offer you the solutions you need.

Amendments to the Urban Leasing Law

The new Rental Law came into force on 6 March 2019. The lease contracts signed from that moment on (and of course contracts for 2021, as long as there are no new modifications to the Law) will be affected by both the Leasing Law (Law 29/1994, of 24 November) and its subsequent modifications: Law 4/2013 of 4 June and Royal Decree Law 7/2019 of 1 March.

The amendments to the Law aim to make the rental market more flexible by seeking a balance “between the needs of tenants and landlords”.

What is the duration of a lease according to the law?

The latest amendment to the Law extended the duration of a rental contract to 5 years. However, the lease is agreed between the 2 parties and they may reach a different agreement.

What costs are covered by the landlord under the LAU?

The landlord must take care of the utilities such as water, electricity and gas. The tenant will pay the monthly cost of each utility.

Who pays for repairs according to the Law?

The owner is responsible for covering repairs to household appliances caused over time or those repairs necessary to keep the property in good condition. However, it’s the landlord who has to pay the bills for breakdowns caused by misuse or general maintenance of the property.

This issue of who pays the bills can certainly cause controversy, but at Mediterráneo we always appeal to common sense and we do our bit to ensure seamless communication between landlords and tenants.

Holiday rentals and the Urban Leasing Law

Holiday rentals are not regulated by the LAU as it is considered an economic activity. In Spain, each Autonomous Community has its own authority regarding tourism and will regulate the tourism activity and the legislation of the holiday home rental business.

Given that the regulations on rentals are very wide-ranging, we encourage you once again to ask all your questions to our colleagues at Mediterráneo Homes through this link.

And lastly, if you want to read the latest updates on measures to prevent squatting, you can click on this link to another news item on our Mediterráneo blog.





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