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All about apartment rentals

My rental agreement is expiring soon, and now what?

Written by Anna

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If you are reading this, your rental agreement is coming to an end, and want to know what your options are.

You may be wondering how you can renew your contract and for how long or what do you have to do to terminate it.

Well you are in luck, in this ShBarcelona article, we explain what your options are when a rental agreement is coming to an end.

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Renew your rental agreement

First, it is very important to keep in mind the date on which the contract was signed as this is how you will know which legislation applies. Indeed, it all depends on when the agreement was made.

We remind you that the latest legislation, and therefore the current one, is that of March 5, 2019, which establishes that contracts have a duration of 5 years plus another 3 extension. For companies will be 7 years plus 3 extension.

In order to renew your contract, it is essential that the two parties, lessor and lessee, reach an agreement. This is because it is possible to modify the conditions agreed in the first rental agreement.

In the event that there are amendments to the original contract, it is necessary to put them in writing as an annex and have to be signed by both parties. Once done, the contract is again in force and active with the new clauses established.

Finally, please note that if neither party previously communicates anything about the termination of the rental agreement, an automatic renewal of one year will be made under the same conditions.

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If you decide to terminate the rental agreement

If, on the other hand, you have decided to terminate the rental agreement before the agreed date, you should be aware that in accordance with article 11 of the urban rentals act, you can terminate the contract six months after its start and it is imperative that you communicate your decision at least 30 days in advance.

It should be noted that it is the legislation in force at the time of signing the contract is the one determining the legal period within which you may communicate this termination.

For example, in contracts signed before the publication of the last royal decree of 5 March 2019, tenants will have to respect a 2 months notice and owners a 4 months notice.

Finally, in Spain, it is likely that your contract includes a clause stating that the tenant will have to pay compensation to the lessor if he had to leave before the end of the contract. In general, the compensation is around 1 month’s rent for each year of contract that is not executed. If the duration of the contract is less than 1 year, then the compensation will be calculated accordingly.

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Steps to follow after the end of the rental agreement

If neither party wants to extend the contract, it’s time to end it. For this, the property will be inspected to ensure that it is in good condition before the return of the deposit and the security deposit, as well as the document justifying the delivery of the keys to the owner.

In the case where the property is returned in worse condition and with damages, the amount equivalent to the cost of the repair will be deducted from the deposit.

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In any case, it is advisable to consult an expert before taking any action to avoid mistakes.

If you are looking for a rental agreement adapted to suit your needs, consult our offers on our website.

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