Rights and obligations of a rental property owner

Renting a home can be a great way to earn additional income and maximize the profitability of a property that might otherwise be vacant.

However, owning a rental property comes with a number of legal responsibilities and rights that are crucial to know and understand.

Obligations of a rental property owner

The landlord of a rental property has the responsibility to comply with several obligations established by law. These obligations seek to ensure the safety and well-being of both the tenant and the landlord.

First and foremost, the landlord must maintain the rental unit in a safe and habitable condition. The landlord must ensure that the dwelling is maintained in good condition throughout the lease term.

This involves making any necessary repairs to ensure that the property is safe and habitable. For example, if there is a water leak, a breakdown in the electrical system, or any other problem that affects the habitability of the dwelling, the landlord is obligated to repair it in a reasonable amount of time.

The dwelling must have guaranteed access to basic services. The landlord must ensure that utilities such as water, electricity, gas, and heat are available and in good working order.

It is important that these services are contracted and operational prior to the handover of the property to the tenant. In the event that any of these services fail, it is the landlord's responsibility to manage and fix them as soon as possible.

Before the tenant moves in, the landlord must ensure that the property is in a suitable condition to move in, with no serious damage and no hidden defects or defects. This includes cleaning the premises, repairing any existing damage, and making sure that all systems and appliances are working properly, if the property includes them.

The owner is also responsible for paying the taxes associated with the property, such as the Real Estate Tax (IBI), as well as the fees corresponding to the common expenses if the property is part of a community of owners. These expenses cannot be transferred to the tenant.

As for the tenant's privacy, the landlord must respect it as much as possible during the lease period. This means that the landlord may not enter the dwelling without prior notice or without the tenant's consent, except in emergency situations requiring immediate intervention. Any visit to the dwelling by the landlord must be previously agreed with the tenant, and must take place at reasonable times.

The landlord has, on the other hand and as it is obvious, the obligation to formalize a written lease contract, in which the rental conditions are detailed, including the amount of the rent, the duration of the contract, the responsibilities of both parties and any other relevant clause. This contract must be signed by both parties and delivered to the tenant prior to the tenant's occupancy.

Where are the landlord's obligations regulated?

The obligations of the landlord of a rental property are mainly regulated by the Urban Leasing Law (LAU) in Spain. This law establishes the rights and duties of both the landlord and the tenant, and provides a clear legal framework for the rental relationship.

In addition to the LAU, there are regional and local regulations that may impose additional requirements specific to each region. For example, in some autonomous communities, there may be regulations on the energy efficiency of housing, the installation of security devices, or even on the prohibition of renting housing that does not meet certain minimum habitability requirements.

Rights of the owner of a rental property

Just as the owner has obligations, he also has a series of rights that allow him to manage his property effectively and protect himself against possible eventualities.

Right to the collection of the rent

The landlord has the right to receive the rent agreed in the lease in a timely manner. This rent is the payment that the tenant makes for the use of the property, and its amount and frequency must be clearly specified in the contract. In the event of nonpayment of rent, the landlord has the right to initiate legal proceedings to recover the amounts owed or, as the case may be, to terminate the lease and evict the tenant.

Right to revise and update the rent

In certain circumstances, the landlord may have the right to revise and update the rent.

This update must be provided for in the lease contract and must be made in accordance with the provisions of the Urban Lease Law or the agreed price index. It is usually done annually, coinciding with the renewal of the contract.

Right to request a deposit

The landlord has the right to request a deposit from the tenant at the time of formalizing the lease. This bond serves as a guarantee to cover possible damages to the property or non-payment of rent.

According to Spanish law, the security deposit must be equivalent to one month's rent for residential rentals. The landlord is obliged to return the deposit at the end of the contract, provided that the property is in good condition and there are no outstanding debts.

Right to terminate the contract

The landlord may terminate the lease in the event of a serious breach by the tenant, such as repeated non-payment of rent, unauthorized subletting of the dwelling, or misuse of the dwelling.

But to do so, the landlord must follow the established legal procedures; otherwise, breaking the lease and leaving the tenant vulnerable can have costly consequences for the landlord, so getting expert advice before acting is vital to know how to proceed.

Right to enforce the lease

The landlord has the right to demand that the tenant comply with all the terms of the lease. This includes timely payment of rent, proper use of the dwelling, and respect for the rules of coexistence. In the event of noncompliance by the tenant, the landlord may take legal action to enforce the lease or to terminate the lease.