Tenancy agreements

1. The Bedrock: Essential Contract Components

2. Rent: The Financial Lifeline

• Monthly Rent: The agreed-upon monthly rent amount should be clearly stated in Euros (€). Be sure to understand if utilities (water, electricity, gas) are included in the rent or if you’ll be responsible for additional payments. Ask for a breakdown of any additional costs associated with the rental.
• Payment Method and Frequency: The agreement should specify the preferred method of rent payment (electronic means; under article 17.3 the LAU allows cash only exceptionally, when a party has no bank account or access to electronic payment and asks for it) and the frequency (typically monthly, on the first of each month or another agreed-upon date).
• Rent Updates: For Arrendamiento de Vivienda contracts (standard residential leases), the agreement should reference the applicable LAU version (1994, 2013, the 2019 reform or the 2023 Housing Law) and the agreed update clause. Annual updates on residential lets follow the IRAV reference index published by the INE, not CPI, as they have since January 2025. Article 18.1, now worded to name the IRAV (Royal Decree-law 29/2026, 08-10-26), allows an update only as the parties expressly agree and never above the change in the IRAV; with no express agreement there is no update. The decree still has to be validated by Congress. Checked against the BOE on 08-10-26. For updates that fall due between 08-10-26 and 31-12-27, the same decree says no increase applies if the rent is above the applicable maximum price limit (the decree does not say how this limit works for homes outside a declared stressed zone); otherwise the increase is whatever the parties agree, or at most 2% if they agree nothing (sixth final provision). The decree does not say how this fits with article 18.1, under which there is no update without an express agreement and none above the IRAV. The decree does not say whether the new article 18.1 reaches leases signed before 08-10-26, and leases signed before 26-05-23 keep the rules in force when they were signed (transitional provision 4 of Ley 12/2023, as rewritten). The agreement should also specify the frequency of rent updates (e.g., annually).

3. Deposits and Guarantees: Safeguarding the Agreement

4. The Crucial Notice Periods: Knowing When to Leave

5. Additional Clauses and Your Rights: 

A Deeper Dive Beyond the core components, tenancy agreements can include various additional clauses.

Here are some to be mindful of:

• Maintenance and Repairs: The agreement should clarify the responsibilities of both landlord and tenant regarding property maintenance and repairs. Typically, the landlord is responsible for structural repairs and major issues, while the tenant is responsible for minor upkeep and maintaining the general condition of the property. Since 08-10-26 the LAU adds a route for repairs the landlord does not do: the tenant asks in writing for the necessary repair, attaching a reasonable quote, and the landlord has 15 calendar days from receiving the request to accept the quote, propose an alternative or do the repair; if the landlord does not answer, or refuses without good reason, the tenant may do the work and deduct its documented cost from future rent (article 21.5, as amended by Royal Decree-law 29/2026). The decree still has to be validated by Congress. Checked against the BOE on 08-10-26. The decree does not say whether this reaches leases signed before 08-10-26, and leases signed before 26-05-23 keep the rules in force when they were signed (transitional provision 4 of Ley 12/2023, as rewritten).
• Improvements and Modifications: The agreement might specify whether tenants are allowed to make modifications to the property and, if so, under what conditions and with prior landlord approval.
• Subletting: The agreement should clarify whether subletting the property is permitted and under what conditions. In some cases, subletting might require the landlord’s written consent.
• Pet Policy: Be sure to understand the landlord’s policy on pets in the property. Some agreements might have restrictions on pet types or numbers.
• Utilities and Bills: The agreement should specify which utilities are included in the rent and which are the tenant’s responsibility. It’s also advisable to inquire about the average utility costs to budget effectively.
• Inventory: It’s highly recommended to attach a detailed inventory of the property’s condition and contents to the agreement. This inventory serves as a reference point during the handover at the end of the tenancy, helping to avoid disputes regarding potential damages. Since 08-10-26 the LAU also requires the parties to record the state of the home in writing when possession is handed back, in an end-of-lease document signed by both (article 36.7, as amended by Royal Decree-law 29/2026). Without that document, or if it records no damage, the home is presumed, unless proven otherwise, to have been handed back in adequate condition. The decree still has to be validated by Congress. Checked against the BOE on 08-10-26. The decree does not say whether this reaches leases signed before 08-10-26, and leases signed before 26-05-23 keep the rules in force when they were signed (transitional provision 4 of Ley 12/2023, as rewritten).

• Always request a copy of the tenancy agreement in Spanish and a translated version in your preferred language if available. Don’t hesitate to ask for clarification on any clauses you find unclear. A tenancy agreement is a legally binding document, so ensuring you fully understand its contents is crucial.
• Consider consulting with a lawyer specializing in Spanish property law if you have any doubts or require in-depth legal advice regarding the specific terms of your tenancy agreement.

Status of the 2026 rental decrees (checked 08-10-26)

Royal Decree-law 8/2026, which briefly capped annual increases at 2% and gave tenants a two-year extension option, was rejected by Congress on 28-04-26 and repealed on 30-04-26. Royal Decree-laws 26/2026 and 27/2026 were repealed by Congress on 02-10-26. Royal Decree-law 29/2026 has been in force since 08-10-26; the decree still has to be validated by Congress. Royal Decree-law 28/2026 is due to take effect on 15-11-26, if it is validated. Checked against the BOE on 08-10-26. Some rules of Royal Decree-law 29/2026 are written expressly for existing contracts: extension requests that tenants made under Royal Decree-law 8/2026 count as validly made (first transitional provision), and the fifth final provision creates an extraordinary extension. It covers leases in force on 08-10-26 whose mandatory term ends before 31-12-28, and leases in a tacit extension or tacit renewal. The date limit is attached to the first case; take advice if your lease is in the second. The tenant can ask for an extraordinary extension, in yearly periods, of up to two more years, if the rent was paid in each of the previous eight months. It does not apply if the parties renew or sign a new contract at a rent at least 5% lower. The landlord must accept unless the landlord needs the home for self or family. The decree sets no transitional rule for its other LAU changes for leases signed between 26-05-23 and 07-10-26, so whether they reach those leases is not stated. For leases signed before 26-05-23, the rewritten transitional provision 4 of Ley 12/2023 applies article 10 as introduced by the 2023 law (and as Royal Decree-law 28/2026 would rewrite it from 15-11-26), the update limit in that law’s additional provision 11, and article 18.1 as now worded, and otherwise keeps the rules in force when the lease was signed. Temporary lets signed before 08-10-26 follow transitional provision 8.

Article 18.1, now worded to name the IRAV (Royal Decree-law 29/2026, 08-10-26), allows an update only as the parties expressly agree and never above the change in the IRAV; section 2 above covers the updates that fall due before 31-12-27. Since 26-05-23 (Housing Law 12/2023) the landlord pays the agency and formalisation costs. Since 08-10-26 article 20.2 (as amended by Royal Decree-law 29/2026) adds that they cannot be passed on to the tenant directly or indirectly, under any name, and that an optional service can be charged only if the tenant asked for it expressly and in writing, after being told it is optional and what it costs. The decree does not say whether this reaches leases signed before 08-10-26, and leases signed before 26-05-23 keep the rules in force when they were signed (transitional provision 4 of Ley 12/2023, as rewritten). Note that Andalucia has not declared any stressed market zones, so the stressed-zone rent controls of Law 12/2023 do not currently operate here. Since 08-10-26 some limits in Royal Decree-law 29/2026 do not depend on a declared stressed zone: the update rule in article 18.1 is not limited to stressed zones; for temporary lets the LAU caps the annual increase on successive contracts at the change in the IRAV (article 17.8); for any let of separate rooms it limits the combined rent to the rent of the whole home (article 17.9). The decree does not say whether the new article 18.1 reaches leases signed before 08-10-26, and leases signed before 26-05-23 keep the rules in force when they were signed (transitional provision 4 of Ley 12/2023, as rewritten).