This article is written in conjunction with the IE Law Society.By Amélie Bergvall
For many IE students, the thought of finding a new apartment may seem daunting. If it is your first time entering a rental contract, it’s normal to worry about being sufficiently protected. Fortunately, Spanish housing laws are designed to protect tenants and provide clear legal frameworks to follow in order to prevent future conflicts. Here is a comprehensive guide to understanding your rights in order to avoid common pitfalls and navigate the rental process smoothly and diligently.
Key Elements of the Lease Agreement
The lease agreement (or “contrato de arrendamiento”) is a legally binding document which serves as the fundamental basis of the rental relationship. There are a few inherent aspects that should be included in the lease such as the monthly rent, rental duration, conditions for termination and deposit amounts. The owner is within their rights to request a deposit of one month’s rent if the apartment is unfinished and two-months’ if furnished. However, they are legally bound to return the full amount unless there are any tenant-induced damages.
Understanding Deposits and Damages
Such damages caused by the tenant are different from simple wear and tear, the reason being the latter falls under the responsibility of the owner. To understand this distinction, “wear and tear” refers to natural deterioration of items that occur through normal use, and is generally outside the tenants control. Examples of this include the dishwasher breaking, the showerhead needing replacement, or a cupboard door coming loose from its hinges. On the other hand, “damages” result from tenant negligence or improper use such as breaking the washing machine door or staining or damaging walls after hosting a party. This differentiation is crucial because it determines responsibility– as to whether the tenant or the property owner is liable for repairs or replacements.
Your Right to Extend the Contract
One important feature of Spanish rental law is that tenants have the right to extend their contract for up to five years. This is beneficial for students who wish to carry out the entirety of their studies at IE in the same accommodation. Nevertheless, keep in mind that the owner reserves the right to adjust the rent annually and this typically follows inflation or any significant market changes.
Recent Housing Law Reforms: What’s New for Tenants?
In general, Spanish housing laws tend to be more favorable to the tenant. This was emphasized by the recent 2024 housing law reforms. Tenants received further protections due to the 3% cap on annual rent increases, a change that particularly benefits students in cities and sought-after areas like Madrid. Additionally, the law includes stricter regulations concerning fees and deposits. The stricter regulations lead to greater transparency and security, for example, new regulations establish that property management and the formalization of the contract fall under the responsibility of the landlord instead of the tenant. This law has contributed to greater financial stability and predictability in the rental market for students. The only downside to this law is that the owners might get more selective with who they rent their property to.
How to Avoid Common Rental Scams as an International Student
What unsettles most students is the fear of being scammed, and scammers often exploit students’ lack of knowledge about their legal rights. One of the most common scams involves international students using Idealista and local rental companies, where they are charged excessively high agency fees in addition to an already expensive deposit. The simplest thing to do to avoid this is visiting the apartment before signing the lease to ensure it’s legitimacy, however as the majority of IE students are international this may not always be a possibility. There are also certain rental companies such as Blueground and Homeclub which cater to international students and do not allow you to visit the apartment before signing the lease. This lack of opportunity to inspect the property beforehand can pose significant risk for renters. In that case requesting a video call with the agency or the landlord would be the optimal thing to do. Perhaps the most crucial step to remember is that the contract is signed and legally binding before transferring any large sum of money.
Overall, renting in Madrid doesn’t have to be an overwhelming experience. The Spanish housing laws, especially after the 2024 reforms, are designed to protect tenants and ensure a smooth rental experience. By following these guidelines above, you should be able to navigate the process smoothly and be able to enjoy Madrid without any added stresses.
Featured image courtesy of Unsplash.com
