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What to have in mind when making a lease contract

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A rental contract is a document in which the landlord and the tenant sign an agreement in which it is specified that the landlord assigns the use and enjoyment of a property to the tenant for a period of time and in exchange for a payment. The duration of this contract is established at the beginning of the contract and is decided by mutual agreement between the two affected parties.

The contracts can be shorter or longer than 5 years. In the first case, the contract may be extended annually up to 5 years with the option of canceling the extension at any time by notifying the lessor one month in advance. In the event that the contract is longer than 5 years, when that date is reached, the lease will end on the day indicated in the contract.

But what should be included in the contract? Generally, the contracts must include the following information:

  • Personal data of the landlord and the tenant (name, surname, ID, contact telephone, e-mail and address).
  • Identification of the property that is rented (address, use, etc.).
  • Duration of the lease.
  • Amount to be paid monthly and initial payment.
  • Specific clauses that have been previously agreed between both parties.

Finally, in the event that a deposit must be paid, it cannot be increased during the first 5 years, but after this time, if the contract is extended, the landlord may request a higher amount.

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