Rent rise.

Old Jul 9th 2019, 8:53 pm
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Default Rent rise.

Hi everybody

What is the maximum rent rise % a landlord can apply to a yearly rental contract?

Thanks in advance.
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Old Jul 10th 2019, 6:59 am
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Default Re: Rent rise.

Originally Posted by Golffish23
Hi everybody

What is the maximum rent rise % a landlord can apply to a yearly rental contract?

Thanks in advance.
It has to be in line with consumer price index (ICG) if no other index is mentioned in the contract.

April 2018 to April 2019, this fell by about 1.32% so an increase in rent is unlikely

Last edited by snikpoh; Jul 10th 2019 at 8:31 am.
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Old Jul 10th 2019, 7:09 am
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Default Re: Rent rise.

Originally Posted by Golffish23
Hi everybody

What is the maximum rent rise % a landlord can apply to a yearly rental contract?

Thanks in advance.
According to information below it would be based on the Consumer Price Index. Then again it depends on the factors in contract:

The Spanish Council of Ministers has approved new legislation with a royal decree law reforming the rental market. The new text includes practically all the measures of the previous decree, such as the increase in the duration of lease contracts, plus the fact that the increase in annual income is anchored to the Consumer Price Index (CPI) and the creation of a new housing price index.


For the part of the reform of the Law on Urban Leases (Ley de Arrendamientos Urbanos or LAU) that affects contracts:
  • The mandatory extension period for rental contracts is being extended from three (3) to five (5) years, and the tacit renewal is extended from one (1) to three (3) years for natural persons, as long as neither the landlord nor the tenant express the will not to renew it.
  • If the lessor is a legal entity, the compulsory contract shall be seven (7) years and the tacit renewal period of the contract three (3) years.
  • Annual rental increases will be linked to the CPI for the duration of the contract (5 years).
  • Additional down payments apart from the deposit (which is equal to one month’s rent) will be limited to two (2) months of rent, except in the case of long-term contracts.
  • If the landlord or tenant expresses their will not to renew the contract, the landlord must notify the tenant four (4) months in advance. If it is the tenant who wants to leave, they must give two (2) months' notice.
  • The right of the landlord to recover the property and terminate the contract in advance – such as if they need it for their own residence, their children's or spouse's, or if family circumstances change – must be expressly included in the contract.
  • The buyer of a property that is currently being rented must respect the lease contract, whether it is registered in the Land Registry or not.
  • If there is an agreement between the owner and the tenant, renovation work can be carried out on the property without the need to sign a new contract.
  • The landlord is responsible for the costs of estate agency management and formalisation of the contract, provided that they are a legal person.
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Old Jul 10th 2019, 7:38 am
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Default Re: Rent rise.

Originally Posted by snikpoh
It has to be in line with inflation (ICG) if no other index is mentioned in the contract. April 2018 to April 2019, this fell by about 1.32% so an increase in rent is unlikely
Unless of course the following applies:
It is limited during the term of the contract to what the Consumer Price Index goes up in that year. The owner may establish an additional increase in rent, if agreed with the tenant, in the case of carrying out improvement works on the house during the contract, provided that the duration of the same is longer than 5/7 years.
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Old Jul 10th 2019, 7:50 am
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Default Re: Rent rise.

Originally Posted by Moses2013
Unless of course the following applies:
It is limited during the term of the contract to what the Consumer Price Index goes up in that year. The owner may establish an additional increase in rent, if agreed with the tenant, in the case of carrying out improvement works on the house during the contract, provided that the duration of the same is longer than 5/7 years.
Thanks both for your replies.
The contract is a yearly contract which has rolled over for the last three years.
The proposed rent rise is from €500 to €800.

Last edited by Rosemary; Jul 10th 2019 at 8:40 am. Reason: corrected quote
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Old Jul 10th 2019, 8:31 am
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Default Re: Rent rise.

Originally Posted by Moses2013
Unless of course the following applies:
It is limited during the term of the contract to what the Consumer Price Index goes up in that year. The owner may establish an additional increase in rent, if agreed with the tenant, in the case of carrying out improvement works on the house during the contract, provided that the duration of the same is longer than 5/7

Thanks both for your replies.
The contract is a yearly contract which has rolled over for the last three years.
The proposed rent rise is from €500 to €800.
Absolutely no way.

The problem is that when you signed the contract, it automatically rolled over for 3 further years. (The law has now changed and it's now 5 years.)

At the start of a new contract (year 4 for you), the rent CAN be increased above the CPI (ICG in Spanish ISTR).

At least, that's how I interpret the law.

Last edited by Rosemary; Jul 10th 2019 at 8:41 am.
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Old Jul 10th 2019, 8:53 am
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Default Re: Rent rise.

Originally Posted by Moses2013
Unless of course the following applies:
It is limited during the term of the contract to what the Consumer Price Index goes up in that year. The owner may establish an additional increase in rent, if agreed with the tenant, in the case of carrying out improvement works on the house during the contract, provided that the duration of the same is longer than 5/7

Thanks both for your replies.
The contract is a yearly contract which has rolled over for the last three years.
The proposed rent rise is from €500 to €800.
  1. The tenants protection period is now the same as before June 2013 when the current LAU came into force. Rental now 5 years instead of three (7 in case the landlord is a juridical person). During this period only the tenant can cancel the rental agreement, if he doesn’t give notice with at least 2 months before the renewal date of the contract, automatic renewals will take place up until 5 years total have been reached.
  2. Silent renewal after the first 5 years will go up to a three year period, instead of renewals of one year when neither party has expressed their desire to end the contract before the 5 years were up.
  3. Rent revisions by either tenant or landlord can only occur if agreed in the contract and on the renewal date. If no specific percentage is mentioned in the contract, a national index will be applied. A different one for rents under and over the amount that would meet the requisites for rent subsidies, as mentioned in the Plan de Vivienda of the National Government.
  4. Unless the contract states otherwise, after 5 or 7 years, if the landlord has made improvements to the property, exceeding those considered as regular maintenance, a rent increase can take place in the month after the works have been completed and the landlord has informed the tenant. The landlord needs to inform the tenant in writing, providing details of the costs involved (copies invoices) and calculation of new rent to pay, never increased by more than 20%. The obligatory renewals and silent renewal period remain unchanged.
I'm not a lawyer but since you signed a one year contract before the new laws came into place, the landlord has the right to ask for an increase or can terminate the contract. Once you sign the new contract, then the above regulations will come into force (CPI).

Last edited by Rosemary; Jul 10th 2019 at 9:16 am.
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Old Jul 11th 2019, 2:14 pm
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Default Re: Rent rise.

Originally Posted by Golffish23
The proposed rent rise is from €500 to €800.
Sounds like a non Spanish landlord who either has no idea of the law or has but thinks it doesn't apply to him (or her) and therefore they can do what the hell they like!

Whats the betting they are not properly declaring it for tax?

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Old Jul 12th 2019, 7:00 am
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Default Re: Rent rise.

Originally Posted by Notdunroamin
Sounds like a non Spanish landlord who either has no idea of the law or has but thinks it doesn't apply to him (or her) and therefore they can do what the hell they like!

Whats the betting they are not properly declaring it for tax?
But if the three years are up, a new contract is required and they can then charge what they like - no issue with the law at all.

The other points I probably agree with. Wonder if the deposit is held in an approved scheme as well?
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Old Jul 13th 2019, 8:49 pm
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Default Re: Rent rise.

or its a "cash" rental like ours, and the landlord is spanish and wants more money cos all his friends have told him its too cheap. nothing is declared and he just wants to take advantage of the foreigners.
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Old Jul 13th 2019, 9:05 pm
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Default Re: Rent rise.

or.. the OP could be a land lord.. who is renting out a property and wants to know how much he can raise it by....
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