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.

House rent and lease costs:

clause II, chapter III, article 17-20

1. The rent can be assessed freely by the two parties.
2. Increases of the rent during the first five years are based upon the consumer price index (IPC).
3. Not until after five years of duration or because of structural improvements of the property it is allowed to increase the rent, which was stipulated in the tenancy agreement.
4. Bailments for the safety of the owner's interest are necessary because of clause IV, article 36. Mostly, they are one or two rents. The bailment can be accounted every year according to the cost of living index (IPC), but it's not necessary.
5. The tenant has to pay the verheads, duties and ancumbrances. Taxes, dues like waste disposal and the IBI („Impuestos de bienes Inmuebles“ - local rates) can be funds on the new tenant. (according LAU, reason statement, preamble 6).
6. The community charges have to be paid by the tenant, as well. These charges are already included in the lease price mostly. Only the charges of the supply of electricity, water, gas etc. have to be paid separately.