The signing of a rental contract generates certain doubts between landlords and tenants, especially regarding some of the clauses included in the document. One of the most common doubts is regarding the duration of the contract, and although many already know that there is a minimum duration of 5 years (7 years if it is a legal entity), What they do not always know is that the urban rental law (LAU) allows them to continue in the home for longer, being able to reach up to 8 years of rent thanks to legal extensions.
This is because the regulations establish a system of additional extensions. Specifically, article 10 establishes that, if neither of the parties communicates their desire not to renew the contract, it will be automatically extended for annual periods up to a maximum of 3 more years.
In practice, this means that the tenant can remain in the home for up to 8 years (or up to 10 years if the landlord is a company), as long as neither party objects to the renewal within the legal deadlines. In addition, this extension works automatically, so it is not necessary to sign a new contract to continue in the home.
The owner can avoid the extension if he gives advance notice
Although the law allows this extension of the contract, it also establishes that any of the parties can avoid it if they communicate their decision within the legal deadlines.
Article 10 itself states that the landlord must give notice at least four months in advance of the end date of the contract, while the tenant must give notice at least two months. If this communication does not occur, the contract is automatically extended.
During the extension the same conditions of the contract are maintained
Once this extension is activated, the regulations do not require you to sign a new contract or modify its conditions. In fact, the contract remains in force under the same terms.
Article 10 of the Urban Leasing Law itself establishes that the same legal and conventional regime that was in force will continue to apply to the extended contract.
This implies that aspects such as the income, the agreed clauses and the obligations of both parties are maintained, unless there is any update provided in accordance with the law.
Therefore, this extension of up to 3 additional years reinforces the stability of the tenant, allowing them to remain in the home beyond the minimum mandatory period without the need to renegotiate the contract.