Spain

Illegal deposits and hidden fees hit renters’ contracts

Contract management fees, asking for several month’s deposit or two months’ guarantee to linking the return of the deposit to the completion of the . total duration of the lease.These are some of the most common abusive practices in housing rental contracts, according to a list published on Friday by the ministry of social rights, consumption and agenda 2030.”These are actions that have been judicially or legally declared abusive and are recurrently found in real estate contracts and in complaints lodged by consumers,” said ministerial

sources. They also reminded tenants that they have the right to review their contracts for these unlawful clauses and file the corresponding complaints.The consumer affairs list includes six common malpractices. The first one refers to the payment of fees by the tenant to the real estate agency for managing or formalising the rental contract. Secondly, there is the payment of more than one month’s deposit or two months’ guarantee, which is the maximum set by law.Similarly, the housing law classifies any terms that have not

been individually negotiated as unfair. It is therefore crucial that the terms of the contract have been effectively negotiated by the tenant and not imposed unilaterally.Breaking the contract can be costlyThe other three clauses deemed unfair relate to the termination or breach of the tenancy agreement. The consumer affairs department considers it unlawful to agree on disproportionate compensation for delays in vacating the property and to withhold part of the deposit paid by the tenant if the contract is not fulfilled until the end.After six

months’ occupancy of the property, the tenant is entitled to terminate the contract without incurring additional penalties.Related story general Auto No No Landlord fined €3,000 for security video camera in shared flat: ‘A rented room is a protected space’ Susana ZamoraFinally, any costs incurred by the tenant are also deemed void if a breach of the tenancy agreement leads to legal proceedings.In addition to carrying out monitoring activities, the consumer affairs department will, in the coming days, forward these clauses to organisations representing the letting

sector, including employers’ and estate agents’ associations, as well as to bodies representing tenants. The aim is to help prevent potential breaches and promote the correct application of the law, sources at the ministry stated.For more property news click here

renters, rental contracts, illegal deposits, hidden fees, contract management fees, consumer rights, housing law, deposit guarantee, tenancy termination

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