The eviction of a delinquent tenant for life takes an average of 11 months in Spain with Andalusia, Catalonia, Madrid and the Valencian Community as the communities in which the process lengthens the most. From Pelegrí Lawyers consider that the main cause of delinquency of the tenants is the mismatch between the salaries of the Spanish and the average price of rent in large cities. Likewise, the law firm believes that the new express eviction law does not serve to evict delinquent tenants.
In fact, almost 60% of the evictions executed during 2017 were motivated by non-payment of rent, 4.3% more than a year before, according to statistics from the General Council of the Judiciary (CGPJ).
In this context, the hiring of non-payment insurance for rent increased more than 30% year-on-year in 2017, according to the data of the Spanish Observatory of Rental Insurance (OESA). At the end of last year, the average rental income with non-payment insurance stood at 626 euros, 7.5% more than the 582 euros registered at the end of 2016, with a cost of between 250 and 400 euros per year.
«That the owners invest in a good insurance of non-payment of the rent will greatly facilitate the process of legal claim in the event that it signs a lease contract with a tenant delinquent. Although the possible illegal occupation of housing is a possibility in the event that the tenant does not want or can pay, the increase in this type of insurance is proof of the existence of a problem to be solved, "he says. Amor Pelegrí, founding partner of Pelegrí Abogados.
And to renew the rental agreement? The duration of a rental contract is a minimum of one year and a maximum of three. If the initial term established by the contract is less than three years, the contract will be renewed optionally for the tenant up to three years and mandatory for the lessor for three years.
The tacit renewal of a rental agreement supposes not to denounce its extinction at the expiration date. That is, if at its expiration there is no notice by any party of the desire of the lessor or lessee that the contract ends; will be extended automatically one more year, if this is included in the clauses of the aforementioned contract. Of course, the lease can expressly provide that there is no tacit renewal, provided that we are within three years.
If there is tacit renewal and the contract does not contemplate anything else, it will be understood that the contract has been extended, and then the rent will be increased only by applying the increase in the CPI. Conflicts may occur if it is understood that a new contract exists after three years, then it would affect the increase in income. In any case, you have to stick to what the contract picks up.