Renting a home is an action that we have probably all done at some time, whether playing the role of tenant or owner, but at the time of negotiating the contract may arise some questions and you can ask how to make the rental contract and protect your interests. You will need a minimum knowledge of the Law of Urban Leases (LAU) and know how to regulate each clause.

In these cases, it is advisable to be advised by a lawyer specializing in real estate issues, to guide you as to what should be regulated and what is the best way to do it. The aspects that you should take into account on how to make a  rental contract for a home are the following:

What is rented

The contract should describe in detail where is the house to be rented (street, number, floor and population), how many square meters it has, how it is distributed and if it is rented with a garage and storage room or furniture.

How much will the tenant pay?

The first thing negotiated by the landlord and the tenant is the price of rent. In addition to this amount, it is possible that expenses such as community fees or taxes such as the Real Estate Tax may be passed on to the tenant, which may cause the total rental price to increase.

What guarantees are going to be delivered

The tenant must deliver the legal bond that consists of one month's rent for housing and two months for premises, offices or warehouses. If agreed between the owner and the lessee, the latter will also have to hand over a bank guarantee or a cash deposit, guaranteeing compliance with the contract.

In the case of bank guarantee, the bank guarantees the fulfillment of the contract and in the case of cash deposit the tenant delivers the landlord an amount of money to cover cases of contract compliance.

How the rent will be updated?

The most common is that the rent is reviewed every year and that this review is done by applying the CPI (Consumer Price Index) or the Competitiveness Guarantee Index. If the landlord and owner do not establish in the contract that the rent will be revised according to the index they choose, the rent will not be reviewed.

How long the contract will last?

The tenant and the owner can agree on the duration of the contract they want, but the contract will be extended until it reaches a minimum duration of three years. The extension of the contract does not occur if the tenant informs the landlord in writing one month in advance of the end of the contract, which does not want to extend said contract. On the other hand, it will not be extended if the landlord informs the tenant that he needs the rented house as his permanent home or for one of his relatives in the first degree of consanguinity after the first year of the contract.

What works can be done

As for the works that can be done on the floor, the most common is that the tenant cannot do works that affect the configuration of the floor, but can make small repairs of damage that are due to normal use of the house.

The most important obligation of the landlord is to keep the house habitable, this means that facilities such as electricity, water or gas should work perfectly and any other system that affects habitability.

Therefore, to make a lease is simple, you simply have to take into account the precautions we have seen and reflect everything you have agreed in writing to avoid any doubts in the future.