LAU - the Spanish renting law

LAU is the new spanish renting law. It protects the tenant and as well as the hirer. On this page, we will give you some hints for the following terms which are determined in LAU.

Duration of the rental agreement

clause II, chapter I, article 6 bis 16

1. The parties can agree on the term of lease freely. However, if it is less than 5 years the hiring contract renews automatically every year up to five years after the end of the contract.
2. After the expiration of the first five years the owner is allowed to cancel the contract. If he doesn´t cancel the tenancy, it annualy renews automatically every year for max. 3 more years.
3. On the other hand the tenant may cancel the contract within the first five years unless the contract is set for 5 years from the beginning.
4. If the owner heralds before the conclusion of the contract, because he wants to live in the hiring object himself, the contract will end at this date. After that, he himself has to move in, otherwise the tenant can claim for compensation.
5. If the tenant dies before the end of the contract the direct relatives, the partner and also other relatives, can take over the hiring contract. But this person has to have been living in the property for the last two years.The person, who wants to assert one's claim to the object, has to hand in a written note to the owner within three months after the dead of the tenant. If nobody reports, or if the tenant had been living alone, the rental agreement expires.