Model rental contract for homes in Madrid 2022
One of the first things you should know is that each country, and generally each city, has different laws and conditions in rental contracts. Many times foreigners or people from other cities in Spain come to us, mentioning that the rental contract model is very different from what they are used to in their countries or cities.
What should a lease contract include in Madrid, Spain? (2022)
Next, in this article we will explain step by step what a lease contract for a permanent or habitual residence in Madrid, Spain should have.
Address and owners:
One of the first requirements of a lease for a flat in Madrid is that the property’s cadastral number appears along with its full address and owner information . This is to clearly identify that you are talking about the same floor and clear up any doubts.
Purpose and possible loads:
When we talk about purpose, we refer to the type of use that will be given to the property . As we are talking about rental contracts, the objective is habitual residence. In the same way, it is necessary to check that it is free of charges or debts. This point is important since legally it must be delivered without any charge.
This point is very simple, but essential. The length of the lease must be specifically stipulated in the lease and what will be the duration for a possible renewal. Generally, the term to give advance notice must be stipulated at the time of the move. The legal thing is to notify one month in advance, in this way there will be no penalty.
It is important to stipulate the deadlines clearly, in this way there are no surprises for either of the two parties (owners and tenants). Remember that this is a people business and any sudden eviction or lack of payment affects the owner greatly.
In the event that the owner decides to recover his house, either for his own use of the home, for a family member or to make a possible sale of the property, the owner must give a longer notice of about 2 months.
In this step, only the lessee party (tenants) is stipulated with their personal documents. It should be noted that from now on we will talk about LESSOR (property) and LESSEE (tenants).
At this point the monthly and annual amount of the rental cost is stipulated. Not counting your supplies (depending on the floor). In the same way, the bank account number to which the amount must be transferred monthly is shown (which matches the name of the owner).
It is important to understand that in any case of non-payment. The landlord has the right to start the eviction process. Therefore, we always recommend having clear and concise communication with the property.
In the same way, it must be understood that in no case of non-payment. The money from the bond or deposit can be used as payment for that month.
Updating the CPI is a right of the owners. This tax is called the income update. This tax is calculated annually in each city. In other words, if your rent is raised at some point and suddenly, it must surely be due to the CPI.
It must be that the property notifies you of said increase in advance.
Deposit and Guarantees:
In a lease contract, the deposit or bond will always be present. These conditions help the property to sleep more peacefully. Since it is used as a kind of “insurance” in case the current tenant damages something during their stay. At the end of the contract, the property with this deposit ensures the repair of damages.
Services and Supplies:
It should be noted that we must establish the party responsible for the supplies and services. That is, if the property takes care of everything and it is included in the rent, this must be clearly reflected. In the event that the lessee must pay for the supplies. It must be reflected and they must give their bank account number with the name to make the change of ownership
Assignments and Subleases:
In Madrid and throughout Europe there have been problems with subletting, both long-term and short-term. This is because many people want to offer the airbnb experience and thus save money when you are not at home.
The problem with this is that, clearly, the tenants do not own the apartment. These actions and businesses can only be done by the owners.
Therefore, it is important to indicate in the lease that the apartment can under no circumstances be sublet or assigned by the lessor.
State of Conservation of the House:
This point is key. If the house is furnished, even more so if the apartment is furnished. This clause must establish that the tenant has seen the house and agrees to move into it. However, the tenant has 30 business days to collect information with photos or videos, about possible damages that may be in a flat. Let’s remember that this is normal and the important thing is to work with someone who is attentive and who can solve it for you.
If the apartment is furnished, an inventory type must be established with each thing that is in the apartment. In this way all the people involved know what is specifically on the floor.
Improvements and Works:
This point should only be authorized by the lessee. In other words, the owner is the one to confirm and carry out works to repair or improve the home. The tenant can always provide his point of view but in the end the confirmation will come from the property.
This point is the most basic of all, which basically indicates that the tenant must respect the laws and schedules for both noise and use of the home.
This section must establish the means of contact by which both the lessee and the lessor can communicate.
These would be the base points for a lease that protects both the property and the tenants. If you have any doubts, questions or stories about any unusual condition that you would like to share, we are happy to hear from you.