By Raymundo Larraín Nesbitt
Lawyer - Abogado
19th of March 2020
Well, well, well how things change in only a matter of ten days.
Only a few days ago we lived in a young Democracy, now, a week on, we live in a Police State, locked in our own houses, with drones overflying giving us orders.
I was planning to write a new article titled ‘8 Tips to Avoid Virus Contagion’, but I thought it through better and it would make for depressive reading. So, I’ll just publish one on good old rental agreements.
This short concise article will help me put my mind off the post-apocalyptic virus-ridden world we now live in. So much for saving the planet; it’s now save ourselves!
A question we frequently get asked is if a landlord can increase the rental from one year to the next in line with inflation. The short answers is no, you may not, unless you worded it into the contract previously.
As a general rule, you can only update rentals, year on year, if the lease agreement you sign with your tenant includes a specific provision whereby the lease is automatically updated annually. If you neglect to include such a clause, you cannot raise the rental afterwards, sorry. The only exception is if your tenant agrees to sign an addendum including it, but they are not forced to.
Pro-tip: On drafting a rental contract in Spain you should ensure to include a clause updating the monthly rental from one year to the next. You can either set a fixed amount i.e. 3.5% or else link it to a benchmark index that tracks inflation i.e. Spain’s popular Consumer Price Index (or IPC, for short).
You are welcome.
"So this is how liberty dies... with thunderous applause." – Senator Padme Amidala (as played by Natalie Portman).
At Larraín Nesbitt Lawyers we can draft rental agreements, whether long-term, seasonal or commercial ones for a very competitive fee. For a mark-up, we also offer contracts in double barrel, English and Spanish. All lease contracts completed within 72 working hours, as from the time we receive all the required information.
We can also put you in touch with other reputed professionals that will assist you to choose properties and make the most out of your property portfolio, maximizing your ROI.
Larraín Nesbitt Lawyers, small on fees, big on service.
Larraín Nesbitt Lawyers is a law firm specialized in taxation, inheritance, conveyancing, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at email@example.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.
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Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.
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