Contracts after 6 June 2013

1.- DURATION OF CONTRACTS

The Urban Leasing Act (LAU) Act 29/1994, of 24 November 1994, underwent a major modification in June 2013, with the entry into force of Act 4/2013, of 4 June, on measures to make the housing rental market more flexible and more competitive, which affected the duration of the housing lease contracts, among other issues.
Therefore, Article 9 of the LAU, in its point 1, states:
The duration of the lease shall be freely agreed by the parties. If the lease is for less than three years, on expiry of the contract, it must be extended by annual instalments until the lease reaches a minimum of three years’ duration, unless the lessee declares to the lessor, at least 30 days before the termination of the contract or any of the extensions, that he or she is unwilling to renew it “.

In addition, Article 10 of the LAU, point 1, states:
If, on the expiry of the contract, or any of its extensions, at least three years after the expiration of the term of the contract, neither party has notified the other party, at least thirty days before that date, of its intention not to renew it, the contract shall necessarily be extended for a further year.

If the duration of the lease is agreed for a period of more than three years, the contract will last for the agreed period of time and when it expires, without either party informing the other of its willingness to terminate the contract, it will tacitly be renewed (*).
If the duration of the lease has been agreed for a period of three years or less, the lease shall be extended optionally for the lessor until it reaches a minimum of three years and, if the termination has not been notified, the lease shall be extended for a further year and, upon termination of the lease, it shall be tacitly renewed.

(*) The tacit reconduction is established in Art. 1566 of the Civil Code:
If, at the end of the contract, the tenant remains enjoying fifteen days of the leased property with the landlord’s consent, it is understood that there is tacit renewal for the time established in articles 1.577 and 1.581, unless it has preceded the request “.

The duration of the tacit renewal shall be as provided for in Article 1581 of the Civil Code:

Years shall be understood to have been made when an annual rent has been fixed in the original contract.
For months when a monthly rent has been fixed.
And for days when it’s every day.