SPANISH URBAN RENTAL LAW 2019. TITLE IV. Common provisions

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Article 36 Bail

1. Upon conclusion of the contract, it shall be compulsory to require and provide a cash deposit in an amount equivalent to one month’s rent for renting housing and two months’ rent for renting for use other than housing.
2. During the first five years of the contract, or during the first seven years if the lessor is a legal entity, the deposit shall not be subject to updating. But each time the lease is extended, the lessor may demand that the deposit be increased, or the lessee reduced, until it becomes equal to one or two monthly payments of the current rent, as appropriate, at the time of the extension.
3. The updating of the deposit during the period of time in which the term agreed for the lease exceeds five years, or seven years if the lessor is a legal entity, shall be governed by the provisions to that effect by the parties. In the absence of a specific agreement, what has been agreed upon regarding the updating of the rent shall also be presumed to have been agreed upon for the updating of the deposit.
4. The balance of the cash deposit that must be returned to the tenant at the end of the lease, will accrue legal interest, one month after the delivery of the keys by the same without having made effective such return.
5. The parties may agree on any type of guarantee of compliance by the lessee with his obligations under the lease in addition to the cash deposit.

In the case of rental of housing, in contracts of up to five years, or up to seven years if the lessor is a legal entity, the value of this additional guarantee may not exceed two monthly rent.

1. Exempted from the obligation to provide a bond are the General State Administration, the Administrations of the autonomous communities and the entities that make up the Local Administration, the autonomous bodies, the public business entities and other public entities linked or dependent on them, and the Mutual Collaborating with the Social Security in its public function of collaboration in the management of Social Security, as well as their Joint Centres, when the income has to be paid from their respective budgets. Article 36 drafted by section fourteen of the first article of R.D.-law 7/2019, of 1 March, on urgent measures regarding housing and rent (“B.O.E.” 5 March). Effective: March 6, 2019
   
   

Article 37 Formalisation of the lease

The parties may oblige each other to conclude the lease contract in writing.

In this case, the identity of the contracting parties, the identification of the leased property, the agreed duration, the initial rent of the contract and other clauses that the parties have freely agreed.

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