Rent a flat in Mallorca: The minimum rental period
Following the tenancy law reform of 6 June 2013, it is still unclear how long a tenant is allowed to stay in a flat. On the other hand, many landlords also do not know when they can legally terminate the tenancy agreement. There is a lot of different and confusing information about this on the internet, which is why we want to clarify the current situation (2023) here.
Many tenants of flats and fincas still believe that with a fixed-term tenancy agreement of 11 months, they have to move out after this period if the landlord wants them to. Others believe that they would have to enter into a new tenancy agreement every year.
Well, this is not the case. The tenancy agreement can state what it wants – for example, 6, 11 or 24 months' duration. The fact is that the tenant has the right enshrined in the Spanish Tenancy Law (LAU - ley de arrendamientos urbanos) to stay in the rented property for a full 3 years if it is their primary residence and they fulfil all their obligations. For the (example) rental periods of 6, 11 or 24 months stated in tenancy agreements, this means that after they have elapsed, the rental period is extended automatically and bindingly for the landlord to the full 3 years.
The following are 6 questions and answers on the most important points of this topic:
1. how long can a tenant stay in a rented flat?
Tenants and landlords can contractually agree on any tenancy term. However, if this is less than 3 years, the contract is extended annually automatically and mandatorily until the total tenancy period amounts to 3 years.
In simple terms: Once the tenancy agreement is signed, the tenant can always stay in the property for a full 3 years (from the tenancy agreement date or date of access) provided they fulfil their obligations.
(Article 9.1 of the Spanish Tenancy Law LAU of 1994)
2. What happens if no rental period is specified in the rental agreement?
If no tenancy term is specified, a contract duration of one year is assumed, and the contract is automatically renewed each year for a further year until the total tenancy period amounts to 3 years.
(Article 9.2 of the Spanish Tenancy Law)
3. Is a rental agreement with a contract period of 11 months not a fixed-term contract or holiday rental agreement?
Many landlords believe that a contract of only 11 months is already a fixed-term (temporary) contract and is therefore not affected by the automatic extension to 3 years under Article 9.1 of Spanish tenancy law. However, this is a misconception because for a contract to be considered temporary, it must be expressly stated and justified in the contract (e.g. holiday letting, storage, study, etc.): Holiday rental, storage, study visit, short-term accommodation for workers). This is clearly stated in a judgement of the Soria Criminal Court of 22 June 2005.
4. Can the landlord/owner terminate the tenancy?
Yes, if they give notice of the need for the property for personal use no earlier than after the first year of the tenancy. They can do this if they need the rented property for themselves, first-degree relatives or for their spouse after a divorce. In any case, however, the landlord must give the tenant at least 2 months' notice and, after the tenant's mandatory eviction, use the property exactly as they stated to the tenant.
If the property is not used by the landlord as they stated to the former tenant within 3 months of the tenant's departure, the former tenant can, within a period of one month, claim the right to rent this property again for 3 years under the same conditions. They can also demand compensation for the expenses they incurred due to the termination of the tenancy.
(Article 9.3 of the Spanish Tenancy Law)
5. What happens after the first 3 years of letting?
One month before the legally guaranteed tenancy period of 3 years, landlords and tenants can terminate the tenancy. This is a legally enforceable termination with due notice. If neither party terminates the tenancy, the tenancy agreement is extended for another year. After this extended year, the whole process repeats: No termination at least one month before the end of the year means a further extension of one year, and so on.
(Article 10 of the Spanish Tenancy Law)
6. When can a tenant give up the flat?
After the first 6 months, a tenant can terminate the tenancy at any time, but must give the landlord 30 days' notice. However, it can be included in the tenancy agreement that in the event of termination by the tenant, they must pay compensation equivalent to one month's rent for each year of the tenancy that they have not fulfilled.
(Article 11 of the Spanish Tenancy Law)
Learn more about important topics such as tenancy agreement drafting, security deposit, utility costs and your rights and obligations as a tenant in Mallorca in our article: "Renting in Mallorca: Tenancy Agreement, Rights and Obligations" and in our informative Property Guide.
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