Property owners in Spain cannot simply adjust their rents. This is only possible if the rental agreement contains a clause to this effect or if the tenant agrees. Rental agreements should therefore always be drawn up with foresight.
The regulations for any tenancy agreements are set out in Article 18 of the Spanish Tenancy Act (LAU). When drawing up the tenancy agreement, the lawyer should ask the landlord whether a clause on rent increases should be included. Normally, the rent is adjusted annually, usually in line with inflation. As a rule, rent increases are linked to a generally valid reference value, such as the consumer price index (IPC). However, freedom of contract also allows landlords and tenants to reach other agreements.
Priority of the term in the absence of a clause
During the term of a rental agreement and without a corresponding clause, the rent may not and cannot be increased. This should be taken into account, not least in view of the regulation on long-term rental agreements that has been in force since March 6, 2019: The term is at least five years. A legal extension of up to ten years is possible, for example, in the event of silence or depending on the respective legally defined person of the landlord (natural or legal person). In the worst-case scenario, a landlord who does not plan ahead cannot adjust or increase the rent for ten years.
Observe upper limits
The Rent Act of 2019 also contains upper limits for rent increases. These may not exceed the aforementioned consumer price index; otherwise a rent increase is legally null and void.
Some autonomous communities have provided for substantial fines in the event of violations.
Our tip: If you want to rent out a property, you should have the rental agreement drawn up by a lawyer. This will save you hassle and additional costs later on.
