The Housing Act guarantees stability for tenants, even when property owners refuse to renew tenancy agreements
Did you know that under Act 12/2023, you can remain in your home for up to 7 years even if your landlord doesn’t wish to renew your contract? Discover how this legislation protects you and what rights you have as a tenant.
In a context of growing tension within Spain’s rental market, Act 12/2023, known as the Right to Housing Act, has introduced significant changes to protect tenants’ rights. One of the most notable modifications is the obligation for property owners to extend rental contracts, even when they don’t wish to renew them, provided certain conditions are met.
Up to 5 or 7 Years
Act 12/2023 amends the Urban Leases Act (LAU) to guarantee greater stability for tenants. According to Article 10 of the LAU, if a rental contract has a duration of less than five years (or seven if the landlord is a legal entity), the contract will be automatically extended for annual periods until reaching a minimum duration of five or seven years respectively. This means that even if the property owner doesn’t wish to renew the contract, the tenant has the right to remain in the property during this minimum period, provided they are up to date with payments and comply with the contract conditions.
Furthermore, the law establishes that for contracts with a duration equal to or exceeding these periods, if neither party notifies their intention not to renew at least four months in advance (in the case of the landlord) or two months (in the case of the tenant), the contract will also be automatically extended for a maximum of three additional years.
What Rights Do Tenants Have When Contracts Aren’t Renewed?
- Right to automatic extension: As mentioned previously, if the property owner doesn’t communicate their intention not to renew the contract within the established timeframes, the contract will be automatically extended.
- Right to rental price stability: The law limits rent increases, establishing a system of reference price indices to prevent disproportionate rises.
- Right to protection against arbitrary evictions: The law establishes more rigorous procedures for evictions, protecting tenants from unjustified expulsions.
Minimum 4-Month Notice Required from Property Owners
If the property owner doesn’t wish to renew the contract, they must notify the tenant of their decision with a minimum of four months’ notice before the contract’s expiry date or any of its extensions. In the notification, they must prove that renovations are necessary and that they prevent normal use of the property during their execution, detailing the scope of works, their estimated duration, and how they will affect the property’s use.
In conclusion, Act 12/2023 strengthens tenants’ position in the rental market, granting them greater stability and protection against unilateral decisions by property owners, who feel somewhat disadvantaged. It’s essential that both tenants and property owners understand their rights and obligations to ensure harmonious coexistence and avoid legal conflicts.
