Are There Still Old-Rent Rentals?

Old-rent housing in Spain

Spain still has housing leases commonly known as old-rent rentals. These agreements arose from social policies introduced to support access to housing during periods of need.

The rent is generally much lower than current market rates because it was fixed when the contract was signed. Many agreements also included compulsory extensions that could continue for the tenant’s lifetime and, in certain circumstances, allow a spouse or descendant to take over the tenancy.

How urban leasing laws address these agreements

Old-rent conditions principally affect contracts governed by Spain’s 1964 Urban Leasing Law. In 1985, the legislation commonly called the Boyer Decree abolished compulsory extensions for subsequently signed contracts.

The Urban Leasing Law of 1994, which took effect in 1995, introduced mechanisms intended to bring older agreements to an end over time. These included limits on transfers and subrogations.

The termination date of an individual lease can depend on factors including when the agreement was signed, the type of property, and the tenant’s personal and family circumstances. The legislation also provided for rent revisions, although the applicable rules depend on the contract.

Housing and commercial premises

Old-rent rules have affected leases for both homes and business premises, particularly in the historic centers of large cities such as Madrid, Barcelona, and Seville.

The 1994 law established deadlines affecting many commercial leases originally signed under the 1964 law. When these arrangements ended, some businesses faced substantial rent increases as premises moved toward market prices.

Can an old-rent lease be terminated?

An old-rent lease does not necessarily last indefinitely, but its termination may depend on the original tenant’s lifetime and any legally permitted subrogation.

The article identifies circumstances in which an owner may seek termination, including a demonstrated need to use the property as a home for the owner or certain direct relatives, or a planned demolition of the building. The result in any particular case depends on the contract and the legislation applicable to it.