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Updates on The New Tenancy Law

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Updates on The New Tenancy Law

The new Spanish Tenancy Law took effect in December 2018, the changes aim to promote affordable rental in Ibiza and offer extra security for tenants. Bear in mind that the law is not retroactive, which means that if you have signed a contract with us before December 2018, your contract will not be affected, unless you and your landlord, agree differently, in this case you will be able to adapt your contract to the amended regulation. Here are the main changes:

Longer length of contracts

With the new law, the extension of the rental agreements is extended from 3 to 5 years. There’s an exception if you will sign a contract with us, in this case as we are an estate agency, the new law provides for a minimum term of 7 years, with a tacit extension of three.

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Maximum two-month’s deposit

Landlords will no longer be able to ask to their tenants for anything more than two months of rent as a deposit, unless the tenancy contract is longer than the now five years standard length. By law we are now responsible to pay for all agency and contract costs by law (gastos de gestión inmobiliaria y de formalización del contrato).

Easy to renew

According to the new law it will now also be easier for landlord and tenant to reach an agreement to renew or improve the contract before the end of the tenancy contract.
Want to know more about rental contract in Ibiza? Check out our previous blog: 5 basics every rental contract must include.

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