FRANK FELDMEIER It's not only when it's time to terminate the tenancy agreement that tenants have to deal with Spanish tenancy law. Foreigners also regularly stumble across Spanish tenancy law when it comes to repair costs, rent increases or ancillary costs, says Steffen Döhne from Mallorca Mietbörse. Magda Pajor from Atlas International refers above all to misunderstandings regarding deposit repayments. However, practically all problems can usually be resolved out of court.

Tenancy law is regulated in Ley 29/1994 de arrendamientos urbanos. No form is prescribed for the contract, "but either party can insist on a written rental agreement", says lawyer Martina Dyllong from Dortmund, who also looks after clients in Mallorca(www.kanzlei-dyllong.de). The apartment or house should not only be specified with the exact address and number of square meters, but also with the cadastral number.

If the method of payment is not specified in the contract, the following rule applies: The rent is due monthly in advance within the first seven days of the month and must be paid in cash in the rented apartment, unless otherwise agreed. The landlord is obliged to issue a receipt.

Tenants cannot avoid paying a deposit, and bank guarantees amounting to several months' rent are also common in Mallorca, which landlords use to secure payments for rent and any necessary repairs. Deposits of two months' rent are usually required, especially if the apartment is furnished.

If the landlord withholds repayment of the deposit for longer than one month after the end of the rental agreement, interest on arrears will also be charged. Conversely, tenants may not, for example, stop paying the rest of the rent two months before the end of the contract with reference to deposit payments made to the landlord at the beginning, warns Pajor. "The deposit cannot be offset against the rent."

Spanish tenancy law does not recognize tenancies for an indefinite period. This would restrict the owner's right of ownership too much, explains expert Dyllong. Open-ended contracts are considered to be concluded for one year; a distinction is made between contracts of more than five years and up to five years.

The parties are free to agree on the duration of the lease. However, if it is less than five years, the contract is automatically extended annually after the end of the term - i.e. one year - up to the five years. "It is not possible to terminate the contract after one year and two months, for example," says Döhne, who has also summarized information on tenancy law at www.mallorca-mietboerse.com. "The first year is fixed," Pajor also emphasizes: if you give notice, you forfeit the deposit. After the first year, however, many landlords also agree to terminate the lease with notice during the year.

According to the law, anyone wishing to give notice of termination in the event of an annual renewal must observe a notice period of at least 30 days. "The tenant is required to provide proof of receipt of the notice of termination," says Dyllong. "That's why they should make sure they get a receipt for the notice of termination."

However, if a contract has already existed for at least five years, the tenant can terminate it by giving at least two months' notice, says Dyllong. However, she refers to a compensation clause that can be included in the contract for this case and provides for one month's rent for each remaining rental year.

In contrast to Germany, there is usually no distinction between cold and warm rent - the tenant pays the servicios individuales such as electricity, gas and water according to consumption. A distinction is made between the gastos generales such as maintenance costs, gardener, swimming pool or insurance. The garbage fee also varies depending on where you live: Döhne refers to a fee for waste incineration (incineración) that is due depending on the municipality.

Service charges can only be passed on to the tenant if this is expressly agreed in the tenancy agreement. "If there is no such written agreement, the tenant does not have to pay the service charges," says Dyllong. The annual property tax (Impuesto sobre bienes inmuebles, IBI) can also be passed on to the tenant if this is expressly stipulated in the contract. According to Döhne, this is common practice in 95 percent of cases. The rent payment is often simply topped up by the amount of the tax, reports Pajor.

Rent increases can sometimes cause trouble. The law stipulates that the landlord can stipulate an annual adjustment in the contract for the first five years of the contract term. The basis for this is the most recently published annual consumer price index (IPC). Tenants repeatedly protest against such an adjustment, says Döhne. However, it is clearly covered by Spanish rental law. However, in Pajor's experience, landlords sometimes waive the adjustment in the interests of a good relationship with the tenant, especially if it is low.

Repairs also cause conflicts. Unlike in Germany, in Spain a distinction is not usually made according to the amount of the repair costs, but rather according to whether a repair serves to maintain the property or to keep it habitable, says Döhne. In the latter case, the landlord is liable. In practice, however, the regulation is not clear if, for example, the boiler breaks down. Then the tenant and landlord would have to come to an agreement. A tenant is in a bad position if, for example, the fridge breaks down after the warranty period has expired or pets scratch the doors, emphasizes Pajor.

Dyllong warns tenants against reducing rent payments due to damage without consultation. According to Spanish law, the tenant is entitled to compensation. "However, if the tenant reduces the rent independently or even stops paying the rent completely, they run the risk of the landlord filing an action for eviction in addition to claiming the outstanding rent."

According to the law, the landlord can terminate the lease prematurely if the rent, ancillary costs or deposit are not paid, if the apartment is sublet without permission, or if it is damaged or used unlawfully. The landlord, in turn, can terminate the lease prematurely if the owner fails to carry out repairs to maintain the apartment or disrupts the usability of the apartment.

The landlord can also insist on personal use, not only for himself, but also for first-degree relatives and spouses in the event of a divorce. However, as Dyllong emphasizes, this clause must be expressly included in the tenancy agreement.