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The rental market for permanent residences has grown significantly in areas such as Torrevieja and Orihuela Costa, where high demand from both national and international residents has raised numerous legal questions. If you are thinking of renting a property to live in all year round in these locations, it is essential to know your rights and obligations, whether you are a tenant or a landlord.

In this article, our law firm specialising in civil law in Torrevieja and Orihuela Costa explains the key legal aspects you should take into account in a permanent residence rental contract, including the duration, fees, deposit and other fundamental aspects.

Rental Property in Orihuela Costa. Contract, Deposit and Fees

What is considered a primary residence rental?

A permanent residence rental is one that is signed with the aim of the tenant establishing their main and permanent residence in the property. This differs from a holiday or seasonal rental, where there is no intention of permanence.

In Torrevieja and Orihuela Costa, many leases are related to second homes or tourist rentals, so it is vital to make it clear in the contract that it is a permanent residence for the whole year.

What should a contract for the rental of a permanent residence include?

The contract must comply with the provisions of the Urban Leasehold Law (LAU), specifically its regulations applicable to dwellings for primary use.

The fundamental aspects that the contract must include are:

1. Duration of the contract

The LAU establishes that, if the lease is for a primary residence:

• The contract shall have a minimum duration of 5 years if the landlord is a natural person (7 years if it is a legal entity), even if a shorter duration is agreed upon.

• The tenant may withdraw from the contract after six months, provided that they give at least 30 days’ notice.

In areas such as Torrevieja and Orihuela Costa, where landlords often prefer short-term contracts so as not to commit themselves during tourist seasons, it is important to be aware of possible unfair terms that limit these rights.

2. Fees or rent

The rent is freely agreed between the parties, although it must be clearly established in the contract:

Frequency: normally monthly.

Method of payment: bank transfer, cash, etc.

Update: if you wish to update annually, this must be expressly stated and the reference index (e.g. CPI) must be established.

3. Deposit

The deposit is required by law and is equivalent to one month’s rent in contracts for permanent residence. This deposit:

• Must be paid at the time of signing the contract.

• Must be deposited with the relevant organism (e.g. the Valencian Regional Government) if required by regional regulations.

• Is returned at the end of the contract, provided that the property is in good condition and there are no outstanding debts.

In addition, additional guarantees (bank guarantee, extra deposits, etc.) may be agreed, although these must be reasonable.

Lawyer for Rental Property in Orihuela Costa and Torrevieja

Other relevant clauses

Maintenance and repairs

The law distinguishes between:

Ordinary repairs, which are the responsibility of the tenant (for normal use).

Necessary repairs, which are the responsibility of the landlord (leaks, structural damp, electrical faults, etc.).

It is common to find clauses that attempt to transfer repairs that are not the tenant’s responsibility to the tenant. At our law firm in Torrevieja and Orihuela Costa, we review these types of contracts to prevent abuse.

Community fees and taxes

Unless expressly agreed in the contract, the landlord must pay:

Community fees

Property tax (IBI)

The tenant only has to pay for utilities such as water, electricity, gas or internet, unless otherwise clearly agreed.

Practical advice for tenants in Torrevieja and Orihuela Costa

1. Avoid verbal agreements: Always sign a detailed, legally compliant written contract.

2. Request receipts: Ask for proof of payment, especially for deposits and monthly payments.

3. Make an inventory: If the property is furnished, draw up an inventory with photos and signatures from both parties.

4. Verify that the use is residential: In residential developments in the area, some properties are registered as commercial premises or warehouses, which can lead to legal or habitability issues.

Recommendations for landlords

In Torrevieja and Orihuela Costa, many landlords rent without legal advice, which can lead to problems such as:

• Delinquent tenants who are difficult to evict.

• Poorly drafted contracts that prevent rent claims.

• Tax non-compliance due to failure to declare rent.

Our firm offers services for drafting rental contracts, legal review of existing leases, and management of collections or claims.

Why hire a specialised lawyer?

Whether you are a tenant or a landlord, it is important to have legal support in order to:

Avoid unfair terms

Comply with current regulations

Prevent future conflicts

Take legal action in the event of non-payment or breach of contract

At our law firm in Torrevieja and Orihuela Costa, we have extensive experience in civil law and everything related to residential rental contracts. We offer personalised advice and comprehensive legal support at every stage of the contract.

Conclusion

Renting a residential property in Torrevieja and Orihuela Costa is a very common option, but it can also be a source of conflict if the legal aspects are not managed correctly. A well-drafted contract, with the rent, deposit and duration correctly stipulated, protects both the landlord and the tenant.

If you need advice or want to review your rental contract, contact our law firm specialising in civil law. We will help you ensure that everything is in order and in line with current legislation.

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This post is also available in: French