Everything you need to know about the deposit in rental agreements

Did you know that, according to the Tax Agency, there are approximately two million rented homes in Spain?

One of the aspects directly related to rental contracts are the deposits. Whether you are a landlord or a tenant, you will be interested in knowing everything related to this deposit. We will tell you all about it!

What is the rental deposit?

It refers to the amount of money that the tenant gives to the landlord at the time of signing the lease as a guarantee.

What obligations does the rental deposit cover?

It is used as a form of security for the landlord, covering the following responsibilities:

• The fulfillment of the conditions established in the contract.
• The expenses derived from repairs or damages that may occur during the rental period.
• Non-payment of rent or accumulation of debts.

How much is the deposit to be paid in a rental?

According to article 36.1 of the Law of Urban Leases (LAU), the tenant must pay:

• One month’s rent if the property is destined to habitual residence.
• Two months’ rent in the case of a different use: commercial, professional or tourist, among others.

After the payment of the deposit by the tenant, the owner has two months from the signing of the contract to deposit it at the Institut Catalá del Sol. As of February 1, 2023, this procedure can now be carried out online as long as digital identification is provided.

Is it necessary to update the rental deposit?

During the first five or seven years – depending on whether the owner is an individual or a legal entity – the security deposit cannot increase in price.

After this period, the update will be subject to an agreement between both parties. In the absence of an agreement, the same indicator will be used as for the update of the rental income.

Return of the rental deposit

At the end of the contract and in the event that the tenant has fulfilled his obligations, the deposit will be returned.

It will be necessary for both parties to sign a document certifying the termination of the contract. Subsequently, the corresponding refund will be requested from the Institut Catalá del Sol in the case of Catalonia.

Do you want to rent an apartment in Barcelona or Madrid? Would you like to rent your property? From KM2 Real Estate Services we want to help you.

Visit our website to see the available properties or contact our sales advisors so they can guide you through the whole process. We are waiting for you!