LAU – the Spanish renting law

LAU is abbreviated for „Ley de Arrendamientos Urbanos“, which is the new spanish renting law. The revised form, which has been in existance since november 1994, also protects the hirer. In the old version this was hardly or not the case at all. This resulted in rare long-term rentings from private owners. The amendment now even facilitates the hirer to arrange all hiring contracts before May, 9th 1985, according to the new law.

In the amendment there are also changes concerning the term of lease: The minimum duration increased; now the tenant can count on a certain security regarding the contract-sustainment. But the renewal-period is restricted, so the owner has the access to the aproperty after a definite period of time.

Especially in the popular coastal regions and on the Spanish islands, the owners conclude longterm contracts only unwillinigly. In many cases they try to circumvent the rental law through catanerian – contracts. The term of lease is often restricted to summer – or winter months, because the owners can charge the tourists a much higher weekly rate during the few "holiday- months“. Consequently, they have the same (or even higher) revenue then renting out the whole year.

The LAU differs in long-term tenancies and other kinds of tenancies. The latter include seasonal hiring contracts (holiday or short-term rentings), hiring contracts for the second home or hiring contracts for luxury properties (more than 300 sqm living area), and with a house rent, respectively more than 5.5-times the statutory minimum wage (currently 451,20 Euro per month). Also included are tenancies, not refering to housing space, e.g. renting offices, garages, class rooms etc. The renting of furnitures, storerooms, garages, parking space, etc. also belong to the appartment tenancy.

The following terms are determined in LAU.

• Duration
• Change of Ownership
• Rent
• Maintenance
• Termination
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