Housing Law: what expenses and clauses must appear in rental contracts

The Housing Law, in force since May 26, establishes new features such as caps on the rental price and the fact that it is the landlord who is responsible for agency fees. Therefore, it is mandatory that all this information already appears in an updated form in the new lease contracts.    
The following is a reminder of the information that must be included in property rental contracts since the entry into force of the new Law.

Management costs

The management and formalization costs of the contract are borne by the lessor. However, the regulation also establishes that the landlord may be responsible for certain expenses, such as IBI or garbage tax, as long as they have been agreed beforehand. 

Updating of prices

The law establishes limits on rent increases. For the year 2023, the reference continues to be the CPI until a new index is created to update the rent.
Contracts renewed this year, with a contract date in 2022 or previous years, may not increase the price by more than 2%. However, contracts signed now could be updated with a limit of 3%, as established by law, in 2025. Thereafter, a new index will be created on these terms.

Payment of rent

The Housing Law also provides that the payment of rent must be made by electronic means. However, although the rule provides more details, an exception has been specified to be able to pay in cash when electronic means are not available.

Contract extensions

Regarding contract extensions, the law states the following: "If the expiration date of the contract, or of any of its extensions, arrives after at least five years of the duration of the contract, or seven years if the lessor is a legal entity, and neither party has notified the other of its will not to renew it at least four months in advance in the case of the lessor, or at least two months in advance in the case of the lessee, the contract shall be mandatorily extended for annual periods up to a maximum of three more years."
The law establishes that the lessor may include a clause in the contract stating that, after one year from the signing of the contract, he may again dispose of the dwelling if he needs it for himself or for his first-degree blood relatives.
For more information on how this new rule affects lease contracts, you can contact CINC Asesoría:
933 030 060 (Barcelona)
972 940 940 (Girona)
972 505 100 (Figueres)

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