What to take into account to formalize a rental contract?

1. Duration

The most common is to sign a rental contract for one year, extendable up to 5, which is currently what the decree that regulates it indicates. In addition, if after these 5 or 7 years neither of the two parties states that they want to terminate it, it may be renewed again annually for up to 3 more years.

2. Guarantee against the sale of the property

In case of selling the property, the tenant's right to live in it must be guaranteed during the period of his contract (5 or 7 years).

3. Type of contract

We have to bear in mind that, if the tenant is going to use it as their main residence, this contract cannot be formalized as a temporary rental (lasting less than 12 months).

4. Deposit and deposits

After the entry into force of the new decree, it is foreseen that for the rental contracts the delivery of one month as a guarantee and a maximum of two monthly payments as a guarantee deposit will be established within the contract itself.

5. Rental price

It is clear that the price will depend on the owner, and the mutual agreement between him and the tenant. However, this price is expected to increase annually, although this increase can never be greater than the rise marked by the CPI. If this aspect is not specified by contract, the rent may not be modified during the term of this.

There are many concepts that must be taken into account when making contracts, whatever the type of contract, but these 5 basic points may be useful if you have to write or sign one.