Updated Rental Contract Model LAU 2026

The rental contract constitutes the cornerstone of any rental relationship. A well-drafted document, compliant with the Urban Leases Law, protects the interests of both parties and prevents most conflicts that may arise during the lease term. Knowing its essential elements is indispensable for both landlords and tenants.

Identification of parties and property

Every contract must begin with complete identification of landlord and tenant, including full name, identity document, and current address. When either party acts through a representative, the agent's details and reference to the authorizing power must also be included.

The property subject to the lease requires a precise description: complete address with cadastral reference, usable surface area, and details of included annexes such as storage units or parking spaces. The law also requires attaching the energy efficiency certificate, a document the landlord must mandatorily provide to the tenant.

Duration and extensions

The LAU establishes a minimum duration of five years when the landlord is an individual, extending to seven years for legal entities. During this period, the tenant has the right to remain in the property even if the contract was signed for a shorter term.

Once the minimum period is completed, if neither party communicates their intention not to renew, the contract is automatically extended for annual periods up to a maximum of three additional years. To avoid extension, the landlord must give four months' notice and the tenant two months.

Seasonal contracts—those responding to a temporary tenant need, such as studies or temporary work—fall outside this regime and their duration can be freely agreed.

Rent and its update

The contract must clearly specify the monthly rent amount, the date it must be paid—generally the first seven days of the month—and the agreed payment method, whether bank transfer, direct debit, or other means. It's advisable to include the bank account details where deposits will be made.

The rent update clause deserves special attention. It must indicate the reference index to be applied, whether CPI, IGC, or another agreed index, as well as when the review will take place. Without this clause, the landlord cannot update the rent during the contract term.

Security deposits and guarantees

The law requires the tenant to provide a deposit equivalent to one month's rent for residential leases. Additionally, the landlord can request additional guarantees of up to two more months, totaling a maximum of three months.

The contract must reflect the deposit amount and remind of the landlord's obligation to deposit it with the corresponding regional body within the month following signing.

Clauses on property use

It's advisable to include clauses regulating property use, making clear it will be used exclusively to satisfy the tenant's and their family's permanent housing need. Regarding conservation, the tenant must maintain the property in good condition and take responsibility for minor repairs from ordinary use.

The prohibition on carrying out works without the landlord's written consent protects the property's integrity. Similarly, the clause prohibiting total or partial subletting without express authorization avoids unwanted situations.

Withdrawal clause: The tenant may withdraw from the contract once six months have passed from its start, notifying the landlord at least thirty days in advance.

Complementary documentation

Along with the contract, it's advisable to attach a detailed inventory of included furniture and appliances, dated photographs documenting the property's condition at the start of the lease, the energy efficiency certificate, the habitability certificate if required by the autonomous community, and a copy of the last property tax receipt allowing verification of the cadastral reference.

This documentation is fundamental for resolving any discrepancies at the end of the contract, especially regarding deposit return.

Contract registration

Although registration is not mandatory for the contract's validity, it is required for it to be enforceable against third parties and for the tenant to benefit from tax deductions for primary residence rental. The process requires paying the Property Transfer Tax and registering the contract with the Property Registry.

Tools like Inquly allow automatically generating contracts from templates updated according to the LAU, customizing clauses according to each lease's needs, securely storing all associated documentation, and managing expirations and renewals without risk of oversight. A well-drafted contract is the best guarantee of a trouble-free rental relationship.