In Spain, rental housing is regulated by strict rules, and moving out before your lease ends can have unexpected financial consequences. Many believe it’s enough to simply notify the landlord and pack up, but in reality, it’s not that simple. The issue of compensation for early termination of a lease concerns thousands of tenants each year, especially in major cities where housing demand remains high.
The law provides for different scenarios, and much depends on how the contract is drafted. It is important to understand when a tenant is truly required to pay compensation, and when you can avoid extra costs. We’ll explain how to correctly calculate the payout amount and what nuances to consider to avoid getting into an unpleasant situation.
This article explores real-life examples where tenants had to pay for moving out early, as well as situations where no compensation is needed. You’ll also learn what to do if you weren’t able to give the landlord advance notice, and why a well-prepared lease agreement can help both sides avoid conflicts.
Legal framework
The Spanish Ley de Arrendamientos Urbanos (LAU) sets out the key rules for tenants and property owners. According to Article 11, a tenant may terminate the contract after six months of residence, but must notify the owner at least 30 days in advance. However, things are not so simple: if the contract specifies compensation for early departure, the tenant will have to pay a stipulated amount.
The amount depends on the remaining rental term. Typically, it is one month’s rent for each full year left until the contract ends. If less than a year remains, the sum is calculated proportionally. If there is no such clause in the contract, the owner cannot demand compensation.
When payment is mandatory
The obligation to pay compensation arises only when three conditions are met: at least six months have passed since the start of the lease, the contract includes a clause about payment for early departure, and there are months left in the term that would result in lost income for the landlord. If any of these conditions are not met, the tenant cannot be required to pay.
Special attention should be paid when a tenant decides to move out before six months have elapsed. In such cases, the owner is entitled to claim payment for all remaining months up to six, if a new tenant cannot be found quickly. Sometimes, additional compensation is also required if stipulated by the contract.
Calculation formula
To calculate the exact compensation amount, simply use this formula: multiply the monthly rent by the number of remaining months and divide by 12. For example, if there are 8 months left on the lease and the monthly rent is 900 euros, the total amount will be 600 euros. If only 3 months remain at 750 euros per month, the compensation will be 187.50 euros.
If the contract does not specify compensation terms, the tenant is only required to notify the owner 30 days before moving out. Otherwise, the landlord may withhold part or all of the deposit to cover potential losses.
The role of the contract
The lease agreement is the key document in such disputes. It must clearly outline the conditions for early termination, the amount of compensation, the notification procedure, and the actions of both parties should the tenant leave early. A properly drafted contract helps avoid misunderstandings and court proceedings.
In recent years, more landlords and tenants have opted for standard contracts that take into account all the specifics of current legislation. This reduces risks for both owners and tenants, and also speeds up the process of finding a new tenant if needed.
The possibility to negotiate
In practice, both parties often reach a compromise. If the tenant helps find a new occupant or assists with arranging viewings, the owner may waive the compensation or reduce its amount. This is especially common in cities with high rental demand, where new tenants can be found within just a few days.
Sometimes landlords agree to early termination without penalties if they are confident they can quickly rent the apartment out again. In any case, it is best to put all agreements in writing to avoid disputes in the future.
