Long Term Rental Contract (5-7 years)

[hiker]

I tried searching the forum for this subject but to no avail.

I'm seriously thinking of changing my plan, which was to buy a place here after a year or so of renting.

I think that I would prefer to rent a place but for a long term duration, say 5-7 years.

I know that this kind of renting, whilst common in northern europe, is rare enough here in Spain.

Anyone got any stories, theories or otherwise on this subject????

[Retro P]

I doubt any landlord would be prepared to offer a lease of that length, you'll be lucky to get an eleven month contract in Spain.

[hiker]

I thought it might be difficult.

I have a 12 month contract and I have offered to roll it over for another year. My landlord is not against the idea but I want a little bit more security of tenure.

A 5-7 year would be ideal because then I could refurbish the place and make some needed amendments which, of course, benefit the landlord.
I would do this in return for a fixed rent to be renegotiated after 5-7 years.
The landlord gets a fixed income and I get security of tenure. Its not that outlandish, its just not that common.

There must be a basis in law for such an arrangement.

[ken2]

ok ten years ago i had a 12 month rent contract, then i was ok to stay by law for five years,which i did,then the chap that lived under me ask if i wanted to live in his apartment in the same complex, which was grat because the Spanish landlard ask me if i would vocate the apartment when my five years was up,?so has the law changed ?? if not you are ok for five years,(i think) but don't take my word for it, but do look into it before you just let the landlord tell you whats what,

[julian]

the 5 year law is changing now

[DavidSearl]

FROM DAVID SEARL

FOR HIKER

As of this moment, after one year of renting your apartment, Hiker, you are entitled to one-year extensions of your contract up to a total of five years. The rent can rise each year by a percentage related to the cost of living index, which at this time is not very high. The landlord cannot, by law, refuse these one-year extensions.

So you are assured of the next four years even if they change the rental laws. And if you are a good tenant, the landlord will almost certainly be glad to renew your contract even after that. Make sure you and the landlord are absolutely in agreement on any modifications you intend to make in the flat.

See Chapter of Renting and Letting in You and the Law in Spain for more details.

Good luck with it, David Searl

[ken2]

Thank you David for this, i thought this was still ok, i did forget to say about rent can go up with inflation, thanks

[hiker]

Thanks for the reply.

i'm lucky because i have a very decent landlord and have agreed a 1 year renewal for next year at the same price as this year.
I would not like to force the issue if I wanted to extend again against his wishes. Life is too short for that nonsense and there a LOADS of houses and apartments in Spain i could choose to live in if it came to it.

For me its more a psychological thing something akin to wanting to own your own place. If I know for sure I can live in a place for 5 years,say, I could think about commiting much more in the area I choose to live in a relatively stress-free way. If I am always on edge every year wondering if I will be here next year, then it takes a little away.

I'll probably get used to it anyway over time.

Thanks for the info on the legal status. Its nice to know its there even if I probably would never use it.

[Retro P]

Ok Hiker, now I get your plan, it's actually a very good Idea, I'd be willing to bet that if you're prepared to be out in the sticks a bit some of em would bite your hand of for that deal.
Going back to my original response nobody has yet commented on the fact that many landlords will not offer more than an eleven month contract because of the 12 month roll over clause, or am I out of date, no doubt someone will be along soon to chasten me, good luck though with your quest for a deal.

[julian]

http://www.elmundo.es/elmundo/2009/10/2 ... 1257195555

the laws seem to be changing regarding the 5 year minimun rent

"El propietario no estará obligado a prorrogar el contrato un mínimo de cinco años "

[fljordan]

Hiker

In addition to what has been posted in this thread you should bear in mind section 9 (3) of the Urban Lease Act 29/1994

The mandatory renewal of the lease will not operate when at the time of its formalization, it is expressly stated the need for the landlord to occupy the rented house to use it as permanent abode for himself before the expiry of five years.

Therefore it is crucial to check if this covenant is included in the agreement in order to guarantee a long term rental

If you think that the landlord is cheating you because he or she eventually does not occupy the house last paragraph of section 9 (3) would be applied

If within three months since the termination of the contract, the landlord would not have proceeded to occupy the house itself, he must reinstate the tenant in the use and enjoyment of the house rented for a further period of up to five years with compensation for expenses that the eviction of the house would have involved until the reoccupation or compensate, at the option of the lessee, an amount equal to the amount of the rent for the years to stay till completing five

[masterob]

hiker, very interested to read that you are seeking a 4-5 year rental contract. As you will see from the "Living in Andalucia" thread we would welcome the chance to rent out our property for such a period of time so that we could return to the UK and use that rental income to rent for ourselves in the UK with a degree of certainty. For us, renting out here would not be a business but a means of packing up and returning to the UK in the present housing market!

[DavidSearl]

FROM DAVID SEARL

FOR RETR0 P AND HIKER AND JULIAN

Yes, Retro P, before fljordan crushes you under a full steamroller of law, be advised that there is no 11-month rule about long-term renting, never has been, and never will be, in spite of so many people "knowing" what simply is not true.

The rental law distinguishes between "contrato de vivienda" and "por temporada" contracts. The "vivienda" is the long-term contract renewable basically for a total of five years, even under the new law. Those with vivienda contracts are protected tenants as the dwelling is considered their real home.

Those with "por temporada" contracts are considered short-term, such as holidaymakers.

The titles of the contracts are key to knowing which is which.

There is no fixed term of time involved. It is perfectly possible that a person could rent a place for six months and then declare that the apartment is now his real home, as he lives and works in the area and has installed his family here.

He declares that he only signed the six-month contract because it was forced on him by the unscrupulous and greedy landlord. A court may well rule in his favour and the landlord now has a protected tenant.

No law mentions an 11-month period. The new law mainly makes it easier for a landlord to evict a non-paying tenant.

And thanks again to fljordan, and thanks to Julian for the El Mundo link.

Best Regards, David Searl

[julian]

that matches what my lawyer has told me several times, that the 11 month rule is an urban myth...so strange that so many people quote it when in law there is no refernce to it

[Retro P]

Thanks David Searle for that clarification, I must admit that I have long been under the impression that a landlord was better protected from what I'll term opportunist tenants (for want of a better description) if he lets for under one year, to be honest I have a flat in Alfaz del Pi that I have been renting to the same tenant for a number of years although my wife who speaks fluent Spanish deals with that!!