Along several posts we are walking through Spain Rental Law in simple words….
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We are explaining applicable rules for the renting of urban properties intended for housing or uses other than housing.
Previous chapters:
Chapter one
Chapter two
Chapter three
16. Determination of the rent
Rent will be the one freely decided by the parties
Unless there is an opposite agreement, the payment of the rent will have to be done monthly during the first seven days of the month. In no case the landlord will be allowed to require the prepayment of more than one month's rent.
The payment will be done at the place and by the procedure agreed by the parties or, failing it, in cash and in the rented housing.
The landlord is obliged to give to the tenant a receipt of the payment, unless it was agreed that it is carried out by proceedings that prove the effective fulfillment of the payment obligation by the tenant.
The receipt or proving document that replaces it will have to contain separately the amounts paid by the different items that form the entire payment and, specifically, the rent in force.
In the renting contracts it will be allowed to be freely agreed by the parties that, during a specified period, the obligation of the payment of the rent can be replaced wholly or partially by the tenant’s commitment to reform or rehabilitate the property under the terms and conditions agreed.
At the end of the renting, the tenant will not be allowed to ask for in any case an additional compensation for the cost of the works done in the building.
The breach by the tenant of the fulfillment of the work under the terms and conditions agreed will be allowed to be a cause for termination of the renting and it will be applicable the provisions of paragraph 2 of Article 23.
17. Updating of the rent
During the validity of the contract, the rent will be allowed to be updated by the landlord or the tenant after every period of one year, under the terms agreed by the parties.
In the absence of an express agreement, the contract will be updated applying to the preceding annual rent, the percentage change of the Competitiveness Guarantee Index in a period of twelve months immediately previous to the date of each update, taking as reference month for the first update the one corresponding to the last index that was published at the date of the conclusion of the contract, and successively ,the one that corresponds to the last one applied.
The updated rent will be required to the tenant since the month after the one in which the interested party notifies it to the other party by writing, stating the percentage of applied change and accompanying it , if the tenant so requires, with the appropriate certification from the National Institute of Statistics. It will be valid the notification done by a note in the monthly receipt of the previous payment.
18 . Increase of the rent because of improvements
The carrying out by the landlord of improvement works, within three years of the contract will entitle him, unless there is an opposite agreement, to increase the annual rent in the amount that results from applying the capital invested in the improving work, the legal interest rate of the money at the time of the end of works plus three points, without exceeding the increase twenty percent of the current rent at that time.
For the calculation of the invested capital, the public subsidies obtained for the realization of the work will have to be discounted
When the improvement affects to several properties of a building in horizontal property regime, the landlord will have to distribute proportionally among them all the invested capital, applying, for this purpose, the installments of participation that corresponds to each one of them. In the case of buildings that are not in horizontal property regime, the invested capital will be distributed proportionally among the affected properties by agreement between landlord and tenant. In the absence of agreement, it will be distributed proportionally according to the surface of the rented property.
3. The increase of the rent will take place since the month following to that in which, the works already finished, the landlord notifies by writing to the tenant the amount of it, detailing the calculations leading to its determination and providing copies of documents from which the cost of the works can be confirmed
19. General and individual services expenses
The parties will be allowed to agree that the general expenses for the proper maintenance of the property, its services, taxes, charges and liabilities that cannot be individually allocated and correspond to the renting housing or its accessories, are paid by the tenant.
In buildings under horizontal property regime such expenses will be those corresponding to the renting property based on its share of participation
In buildings that are not under horizontal property regime, such costs will be those assigned to the rented property based on its surface.
To be valid, this agreement will have to be written and to determine the annual amount of such expenses to the date of the contract. The agreement that refers to taxes will not affect the Administration.
During the first three years of validity of the contract, the amount that the tenant has to pay for the item referred to in the previous section, with the exception of taxes, it will only be allowed to be increased by an agreement of the parties, annually, and never in a percentage superior to double than that in which the rent can be increased as provided in point 17.
The expenses because of services that the rented property has, individualized by using counters equipment will be paid in all cases by the tenant.
4. The payment of the expenses referred to in this Article, will be proved as provided in point 16.
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El Gastor (named "The Balcony of the White Villages"), Cádiz, South of Spain