La Dirección General de Consumo de la Junta de Andalucía reminds tenants that, to determine the maximum annual rent increase in rental agreements, the National Institute of Statistics (INE) has published the new index for the annual update of housing rental contracts. The Ministry of Housing and Urban Agenda has a website that provides information on the maximum rent update for rental contracts based on the date they were signed.
In accordance with the Right to Housing Law, the percentage used to calculate rent updates is the Housing Rental Reference Index (IRAV), applicable to all rental contracts signed after May 26, 2023, and to rental agreements for primary residences whose rents are updated from January 1, 2025 onwards. In contrast, for contracts signed before the aforementioned Law – before May 26, 2023 – the annual rent will continue to be updated based on the Consumer Price Index (CPI), which stood at 2.4% in November of last year.
During the term of the contract, the rent can only be updated by the landlord or the tenant on the anniversary date of the contract. The contract must include a clause stating that the rent amount will be updated each year, and this must be notified by the landlord at least one month in advance.
In 2025, for rental contracts signed after May 26, 2023, the rent update is already based on the IRAV. As of January 2, the IRAV index has been set at 2.2% compared to November 2024. It is important to note that the value of the IRAV is the lowest value among the annual variation rate of the CPI, the Annual Variation Rate of the underlying CPI, and the Adjusted Average Annual Variation Rate of the CPI and the underlying CPI, the latter rate being established in Annex of the Resolution of December 18, 2024. The values of the IRAV in different months can be consulted on the INE website.
Consumo reminds that, under the reform of the Urban Leases Law, the duration of rental contracts will be freely agreed upon by the parties. However, for contracts signed after March 6, 2019, if the duration is less than 5 years (or less than 7 years if the landlord is a company or corporation), when the contract expires, it will be automatically extended annually until the rental reaches a minimum duration of 5 or 7 years, as the case may be. Prior to March 6, 2019, this period was 3 years.
Another important aspect is that the tenant has the possibility to terminate the lease, once at least six months have elapsed, provided that notice is given to the landlord at least 30 days in advance.
Both parties can agree and reflect in the contract that, in case of termination, the tenant must compensate the landlord with an amount equivalent to 1 month’s rent for each year remaining in the contract.
One of the most common questions from tenants is about who is responsible for management expenses. With the entry into force of the Right to Housing Law, real estate management and contract formalization expenses will always be borne by the landlord.
Regarding the security deposit, as established in the current Urban Leases Law, it will be mandatory to require and provide a cash deposit equivalent to 1 month’s rent for residential leases, or 2 months’ rent for leases for purposes other than housing, at the signing of the contract.
On the Consumo Responde website, there is a comprehensive section that addresses frequently asked questions related to housing rental.