22 Jul 2011 10:32 AM:
The agent explained to me that that is how rental contracts work here, and certainly all my colleagues with whom I discussed this have the same arrangement. I also got one of the company's lawyers to check over the contract, he told me it was a standard rental contract.
To be clear, after the first year the tenant can break at one month's notice, but the landlord cannot throw you out, nor increase the rent by more than inflation, until you have been there for five years (unless, of course, you misbehave, but only then with a court order). then there is an option to renew for a further two years, then at seven years you must commence a new contract.
One thing I do not know, however, is whether this is national or regional law (I'm in Madrid).
Thread:
Is It Better To Buy or Rent Property in Spain ??
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