{"id":5724,"date":"2025-09-03T14:07:30","date_gmt":"2025-09-03T12:07:30","guid":{"rendered":"https:\/\/marcellocarames.com\/practical-issues-concerning-old-rent-tenancies\/"},"modified":"2025-09-17T12:42:04","modified_gmt":"2025-09-17T10:42:04","slug":"practical-issues-concerning-old-rent-tenancies","status":"publish","type":"post","link":"https:\/\/marcellocarames.com\/en\/practical-issues-concerning-old-rent-tenancies\/","title":{"rendered":"PRACTICAL ISSUES CONCERNING OLD-RENT TENANCIES"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\n\t\t\t\t\t\"Picture\n\t\t\t\t<\/a>\n\t\t\t\n\t\t\t
\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t

\n\t\t\t\t\t\t\tPaula Caram\u00e9s Rodr\u00edguez\t\t\t\t\t\t<\/h4>\n\t\t\t\t\t<\/a>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

It is often heard reference to so-called \u201cold-rent tenancies\u201d,<\/span><\/strong> many of which remain in force in Spain. Nevertheless, it is not always straightforward to identify the particularities of this type of tenancy agreement.
<\/span><\/p>

This article examines the main characteristics of old-rent tenancies and the key issues which must be assessed by both landlords and tenants who still have this type of contract in force.<\/span><\/p>

    1. What is an old-rent tenancy and where is it regulated?<\/b><\/span><\/h2><\/li><\/ol><\/li><\/ol>

      Old-rent tenancy agreements are those entered into before 9 May 1985. These contracts are regulated by: (i) Decree 4104\/1964 of 24 December, which approved the consolidated text of the Urban Leases Act (the \u201c1964 ULA<\/b><\/span><\/a>\u201d); and (ii) the Second Transitional Provision of the current Urban Leases Act.<\/span><\/p>

      The principal characteristic of the 1964 ULA was that it allowed tenants, if they so wished, to renew the tenancy agreement for the duration of their lifetime and, in certain cases,<\/span><\/strong> for the lifetime of their spouse, ascendants or descendants. They could then succeed to the tenancy upon the tenant\u2019s death, thereby assuming the same rights and obligations as the previous tenant.<\/span><\/p>

      Following the entry into force of Law 29\/1994 of 24 November on Urban Leases (the \u201c1994 ULA<\/b><\/span>\u201d), the right of subrogation or substitution has been maintained in respect of old-rent tenancies, albeit subject to specific limitations, which we shall now analyse.<\/span><\/p>

      2. So, when may I take over an old-rent tenancy agreement from a deceased relative?<\/span><\/strong><\/span><\/h2>

      As indicated, the right of subrogation for relatives of the deceased tenant is now subject to a series of limitations, which depend on the number of subrogations exercised prior to the entry into force of the 1994 ULA\u00b9. <\/span>Specifically:<\/span><\/p>

      a) <\/b><\/span>Where, prior to the entry into force of the 1994 ULA, the tenant remained the same person who originally signed the tenancy agreement<\/span><\/strong>, the following may succeed upon their death: (i) the legally or de facto non-separated spouse; failing that, (ii) children residing in the let premises who cohabited with the tenant during the two years immediately prior to death; and (iii) in the absence of the above, an ascendant dependent upon and cohabiting with the tenant for at least three years prior to the date of death.<\/span><\/p>

      Subrogation by the spouse or ascendant shall subsist until their death. Subrogation in favour of a child, however, shall endure: (i) until the death of the successor child, where that child has a disability greater than 65%; (ii) until the child attains 25 years of age, where at the time of subrogation the child was under 23 years; or (iii) for a period of two years from subrogation in any other case.<\/p>

      Following the death of the successor spouse, the child cohabiting with him or her may also succeed (for the same period as above).<\/p>

      b) <\/b><\/span>Where, prior to the entry into force of the 1994 ULA, a subrogation had already taken place,<\/span> <\/strong>the following may succeed upon the successor\u2019s death: (i) the legally or de facto non-separated spouse; failing that, (ii) children of the successor tenant who resided in the let premises and had cohabited with the successor during the two years prior to their death. The duration of succession shall be as outlined above.<\/span><\/p>

      No further subrogations are permissible following the death of the person who was subrogated once the 1994 ULA had entered into force (in which case the tenancy is terminated).<\/p>

      No cabr\u00e1n nuevas subrogaciones tras el fallecimiento de la persona que se subrogue<\/span> una vez entrada en vigor de la LAU de 1994 (en ese momento se producir\u00e1 la extinci\u00f3n del contrato).<\/span><\/p>

      c) <\/strong><\/span>Where, prior to the entry into force of the 1994 ULA, two subrogations had already taken place,<\/span> <\/strong>no further subrogation is admissible.<\/span><\/p>

      3. <\/b>Does this mean that the landlord may never regain possession of the property until the tenant or their successors die?<\/b><\/b><\/span><\/h3>

      Article 62 of the 1964 ULA establishes a series of circumstances in which the tenant has no right to statutory renewal of the tenancy<\/span> <\/strong>(meaning that, once notice is served, the tenant must vacate the property).<\/span><\/p>

      Such circumstances include: (i) where the tenant occupies two or more dwellings in the same locality and the use of all of them is not indispensable to his or her needs; (ii) where the landlord requires the dwelling for him or herself, or for descendants or ascendants; (iii) where the dwelling is not occupied for more than six months in a year; (iv) where, within the six months prior to any eviction proceedings, the tenant had a vacant dwelling of similar characteristics freely at his or her disposal; or (v) where the landlord intends to demolish the building in which the property is located in order to construct another with a greater number of dwellings.<\/p>

      4. <\/b><\/span>Can landlords increase the rent in cases of old-rent tenancies?<\/b><\/span><\/h3>

      The Second Transitional Provision of the 1994 ULA provides (in subsection D.11) that the rent<\/span> <\/strong>of tenancy agreements entered into prior to 1964 may be updated<\/span> <\/strong>at the landlord\u2019s request each time a year elapses.<\/span><\/strong><\/span><\/p>

      This update must be based on the National General Index of the Consumer Price Index System or the Urban General Index of the Cost of Living Index System.<\/p>

      Furthermore, the courts have held that, in updating the rent, it is permissible to accumulate increases not applied in previous years. However, only those rent increases not barred by the five-year limitation period set out in Article 1966 of the Civil Code may be accumulated.\u00b2<\/p>

      5. <\/b><\/span>Who must pay property tax (IBI) and service and supply charges in old-rent tenancies?<\/b><\/span><\/h3>

      In the case of old-rent tenancies, the 1994 ULA provides that the landlord may require the tenant to pay<\/strong><\/span> the full amount of the Property Tax (IBI)<\/span> <\/strong>applicable to the premises.\u00b3<\/span><\/p>

      Likewise, the landlord may also pass on to the tenant the costs of services<\/span> <\/strong>and utilities corresponding to the dwelling.<\/p>

      However, landlords cannot demand the full amount of the Community of Owners\u2019 levy from tenants, only the amounts paid to the Community that correspond directly to services and utilities. Moreover, it is the landlord who bears the obligation to duly evidence the exact amount and origin of each sum claimed from the tenant.<\/p>

      *****<\/span><\/p>

      \u00a0Madrid,\u00a0 8<\/span> September 2025.<\/span><\/p>

      Marcello Caram\u00e9s Abogados, S.L.P<\/span><\/a><\/p>

      info@marcellocarames.com<\/a><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

      \n\t\t\t\t\t
      \n\t\t\t\t
      \n\t\t\t\t
      \n\t\t\t\t\t\t\t\t\t

      \u00b9 Second Transitional Provision of the Urban Leases Act 1994 (LAU).<\/span><\/p>

      \u00b2 As explained, among others, by Judgment No. 15974\/2012 of Section 25 of the Provincial Court of Madrid, dated 28 September.<\/span><\/p>

      \u00b3 Section C) 10.2 of the Second Transitional Provision of the Urban Leases Act 1994 (LAU).<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

      It is often heard reference to so-called \u201cold-rent tenancies\u201d, many of which remain in force in Spain. Nevertheless, it is not always straightforward to identify the particularities of this type of tenancy agreement. This article examines the main characteristics of old-rent tenancies and the key issues which must be assessed by both landlords and tenants…<\/p>\n","protected":false},"author":2,"featured_media":5656,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sin-categorizar"],"acf":[],"_links":{"self":[{"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/posts\/5724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/comments?post=5724"}],"version-history":[{"count":11,"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/posts\/5724\/revisions"}],"predecessor-version":[{"id":5736,"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/posts\/5724\/revisions\/5736"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/media\/5656"}],"wp:attachment":[{"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/media?parent=5724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/categories?post=5724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marcellocarames.com\/en\/wp-json\/wp\/v2\/tags?post=5724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}