Many people who move to Spain are sometimes quite confused regarding the need to pay an initial deposit to secure a rental or rental agreement. Over the years, the actual amount corresponding to a number of months’ rent has also varied depending on the type of rental agreement. The legislation that specifically regulates rental or lease bonds is found in the 1994 Urban Leasing Law (‘LAU’) in its article 36. Below are some of the main points to take into account.

When signing a rental or lease contract for a house, apartment or office, it is important to remember that in Spain the payment of a deposit is required at the beginning of the term that acts as a guarantee of payment of unpaid invoices. the completion of the contract, as well as the guarantee that the property will be returned to the owner in the same state as before the effective occupation of the property. It is also a guarantee that the tenant will comply with the general conditions of the signed rental contract. The deposit is then a monetary payment that will be equivalent to one month’s rent for housing and two months for offices and commercial premises, although the landlord can request a higher payment (that is, they are legal minimum amounts).

This money must be deposited by the owner in an interest-free account with the local authority, during the first 5 years it will not require a revision to adjust it to the increases in the actual amount paid in rent. Thereafter, rent increases will require the necessary and corresponding increase in the deposit. At the end of the rental contract, and when verifying that there are no outstanding debts and that the property is in good condition, the deposit must be returned to the lessee, increasing interest after one month from the end of the contract.

You should also take into account that in Spain the owners can also request additional guarantees if they consider it appropriate. These guarantees can be in the form of bank guarantees, personal guarantees from an owner, personal references.

One last thing to keep in mind is that although the owners are obliged to return the deposit at the end of the contract and check that everything is in order, unfortunately in Spain some of them can be quite reluctant to do so and, in fact, some may invent costs. to have to return the money. For this reason, in practice, although not strictly legal, many tenants who have paid the month’s deposit at notice simply do not pay last month’s rent.