Originally Posted by jordan

The tenant's entitlement to a compulsory extension of five years is provided by section 9 of the Urban Lease Act 29/1994 only to housing tenancies defined by s. 2 (1) of the mentioned Act, which provides that it is deemed housing tenancy that lease that rests on a habitable dwelling whose paramount purpose is to satisfy the tenant’s need of permanent housing.

Therefore, regardless of what has been stated in the rental agreement the tenant is entitled to the extension of the lease if he or she is using the leased house as a permanent abode or main residence.
One may think that terms of a rental agreement have any effect in the legal regulation of the lease but the law is clear; the fact of whether the tenant is using the property as main residence is the only ground to being entitled to this extension.

Some landlords have been dissuaded from letting properties because of what they consider to be penal or unfair Act. The Government has responded to the decline in tenancies by amending section 9 (3) of the Act, although it is still not easy to tell what effect this switch will have in the long term
Before 19/2009 Act ‘the mandatory renewal of the lease did not operate if at the time of its formalization, it was expressly stated in the agreement the need for the landlord to occupy the rented house before the expiration of the five years term to use it as permanent abode for himself’ By the amendment of this subsection the statutory extension will not operate if the landlord need the rented property for himself or for his or her relatives within the first degree of consanguinity or adoption or for his or her spouse, on the assumption of decree absolute or null marriage.In order to exercise this option the agreement shall provide that exception and the landlord shall serve a notice informing about the relative who will occupy the property and the reasons for it .

Originally Posted by cricketman

Yes that is true. However, many people will be asked to sign a short-term 11 month contract where it clearly states that you will not be using the property as your main residence. If you then do use the property as your main residence you will be breaking the contract.

If you're worried about your rights as a tenant, insist on a proper rental contract as described above. In this market, they'd be stupid not to agree

Originally Posted by cricketman

Yes that is true. However, many people will be asked to sign a short-term 11 month contract where it clearly states that you will not be using the property as your main residence. If you then do use the property as your main residence you will be breaking the contract.