# Rental Contract Question.



## jonoiv (Dec 16, 2015)

Hi all. 

Me and my wife have been in Spain for almost 3 years and our rental contract just outside Barcelona is due to expire in November. Our intension is to sell our flat in the UK and buy in Spain, however it is very doubful that we will have a property in Spain before the end of the 3 year contract. 

Our landlord has stated that the rent will increase from 680 EUR to 800 EUR if we intend to stay on. 

So my questions are:

1. Can we remain on a rolling 30 day contract after it expires? Or will we be forced to sign a new contract?

2. Can they increase the rent by this amount, it's doesn't seem reasonable seen as I have only had a 1% wage increase in 3 years. There has been no improvments to the property in this time.

I read on the link below, that 30 days notice can be given after 6 months, but does this apply if we are forced to renew for a further year? Or is an additional year counted as a continuation of the original contract, thus allowing us to give 30 days notice after 2 or 3 months into the 1 year renewal? 

https://www.spanishpropertyinsight....agreements-ley-de-arrendamientos-urbanos-lau/

We have been good tennants and maintained the property well. 

Any advice is appreciated, thanks


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## snikpoh (Nov 19, 2007)

As far as I am aware, the contract expires after 3 years unless you both decide and agree to extend it for another year. After that you need a new contract.


The rent can ONLY be increased in line with the IPC (about 1.5% in 2017) and only annually. So, if the landlord hasn't increased the rent for the last two years, I don't see how he can back date it. This means the increase can only be 1.5% now which, sort of, gets to 800.

If you don't accept this, then you must leave.


At any time after 6 months, you can give just 30 days notice.


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## jonoiv (Dec 16, 2015)

I make it that if he was able to back date a 1.5% increase per year it would be, 

Year 1 @ 1.5% 690.2

Year 2: 700.55 
Year 3: 711.06 
Year 4: 721.22

Not sure where 800 comes from, unless it was tongue in cheek, or im missing something 

Also if thats true that I either leave, or fully commit to another full year, that is pretty draconian. No renter could possibly have that level of flexibility or funds, that law is geared so heavily to the landlord. Assuming it will be 690 a month, that's like having to commit 8300 euros for 1 or 2 extra months rent. If thats true then surely the EU would have already stepped in, in Spain, to protect tennants from being liable for such huge amounts. 

Thanks for your help, given me something to think about.


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## snikpoh (Nov 19, 2007)

jonoiv said:


> I make it that if he was able to back date a 1.5% increase per year it would be,
> 
> Year 1 @ 1.5% 690.2
> 
> ...


It was my mistake - you wouldn't believe I have a Maths degree. I added 15% and not 1.5% - doh!!!

He certainly can NOT back date it.

If you commit to another year, you can still leave with 30 days notice (and NO penalty).


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## jonoiv (Dec 16, 2015)

snikpoh said:


> It was my mistake - you wouldn't believe I have a Maths degree. I added 15% and not 1.5% - doh!!!
> 
> He certainly can NOT back date it.
> 
> If you commit to another year, you can still leave with 30 days notice (and NO penalty).


Thanks that makes me feel a lot better... thank you for your help.


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## Overandout (Nov 10, 2012)

The IPC indexed rent increase applies only if the existing contract is extended under mutual agreement.

If there is no mutual agreement, the landlord, upon expiry of the contract, can do what he likes. Sell it, live in it, or rent it out for double the price. If you, as current tenant, want to be the next tenant under the new contract, you will have to pay whatever he asks or leave.

He is quite within his rights to do this I'm afraid.


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