These are the notice periods for the termination of the rental agreement

The National Institute of Statistics (INE) published, in February 2023, a housing census that reveals an increase of 19.25% in the number of households in leasehold in our country during the period between 2011 and 2021.

A figure that leads – both landlords and tenants – to ask themselves some questions. Among them? Everything you need to know about the termination of rental agreement and the notice periods that must be met.

We’ll tell you all about it!

How long does a lease last?

Lease agreements can extend up to a maximum of five years – or seven in the case of legal entities – and have the possibility of being renewed for up to three additional years in the event that neither party complies with the established notice periods.

What is the notice period from the tenant to the landlord?

After six months have elapsed from the commencement of the tenancy, the tenant may terminate the agreement at any time, provided that the tenant gives the landlord a notice period of:

1. Thirty days after the expiration of six months.
2. Thirty days prior to the annual renewal.

According to Article 11 of the Urban Leases Law (LAU):

• “The tenant may withdraw from the lease, once at least six months have elapsed and provided that the landlord is notified at least thirty days in advance. The parties may agree in the agreement that, in the event of termination, the tenant must compensate the landlord with an amount equivalent to one month’s rent for each year of the contract that remains to be fulfilled. Periods of time of less than one year shall give rise to the proportional part of the indemnity.”

Thus, if the tenant wishes to leave the dwelling without fulfilling the notice period, he/she will have to face the compensation stipulated in the contract and pay the remaining months until reaching that period. In the case of periods of less than one year, the proportional part of the compensation will be calculated.

What about the term of notice by the landlord to the tenant?

After the first year, the landlord may terminate the agreement if he has expressed his intention to occupy the rented property within a term not exceeding five years, using it as a residence for:

• Himself.
• His relatives in first degree of consanguinity or by adoption.
• Your spouse in cases of firm sentence of separation, divorce or matrimonial nullity.

However, to recover the property, the lessor must notify the tenant at least two months in advance.

How is the notice for the termination of the lease made?

The most effective way to issue the notice is by means of a burofax, as it provides conclusive evidence of the communication and avoids possible misunderstandings regarding the date of notice.

Do you want to rent an apartment in Barcelona or Madrid? Would you like to rent your property? Do you want to know more information of the termination of rental agreement? From KM2 Real Estate Services we want to help you.

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