Legal Framework for Rental Housing
In recent years, renting property in Spain has become a key issue for locals. Matters related to security deposits often spark disputes between owners and tenants. Spanish law, specifically the Urban Leases Act (Ley de Arrendamientos Urbanos, LAU), clearly outlines the procedures for payment, adjustment, and return of deposits in Article 36.
Deposit Amount and Purpose
According to the LAU, when signing a rental agreement, a deposit equivalent to one month’s rent is mandatory. For commercial properties, the amount increases to the equivalent of two months’ rent. This deposit serves as a financial guarantee for the owner, ensuring that the tenant fulfills their obligations.
Adjusting the Deposit Amount
During the first five years of the contract, the deposit amount cannot be changed. If the landlord is a legal entity, this period extends to seven years. After this period, the parties may agree to adjust the deposit to match the current rent.
Procedure for Deposit Return
Upon termination of the lease, the LAU sets a clear procedure for returning the deposit. After the keys are handed over, the owner has one month to return the money. If the funds are not returned within this period and there are no valid grounds for withholding, the landlord must also pay the legal interest.
Grounds for Withholding the Deposit
The property owner can withhold the deposit only if there are valid reasons. These include property damage, excessive dirtiness, or unauthorized work in the apartment. However, wear and tear resulting from normal use is not grounds for withholding funds.
Evidence and dispute resolution
In case of disagreements, it is recommended to keep photo and video records documenting the condition of the apartment at move-in and move-out. This can help protect the tenant’s interests in court, should legal action become necessary.
Specifics for temporary and joint agreements
LAU does not contain special provisions regarding temporary contracts or the rental of rooms. In such cases, terms are determined by mutual agreement. However, the period for returning the deposit should also not exceed one month, unless there are debts or damages.
