Cantabria Landlord-Tenant Laws: RENT INCREASES

Rent increases in Cantabria are governed by the Ley de Arrendamientos Urbanos (LAU), effective 1 January 1995, and the significant modifications introduced by the national Ley 12/2023, de 24 de mayo, por el derecho a la vivienda. These regulations have established temporary caps and a new framework for annual rent updates to decouple residential leases from general inflation.

Annual Rent Adjustment Rules

The traditional reliance on the Consumer Price Index (IPC) has been suspended in favor of a new regulatory framework defined by the national housing law, Ley 12/2023, de 24 de mayo, por el derecho a la vivienda:

• For 2024: The annual rent increase for residential leases is legally capped at 3% as per Ley 12/2023. This 3% cap applies to all landlords, regardless of whether they are classified as a "large holder" (grande tenedor) or a small landlord, unless a lower amount is mutually agreed upon.
• From 2025 Onwards: The law mandates the use of a specific index defined by the government to replace the IPC (CPI) for annual rent updates. This new reference index, the Índice de Referencia de Arrendamientos de Vivienda (IRAV), defined by the National Statistics Institute (INE), came into force on January 1, 2025, and is specifically designed to prevent excessive fluctuations in the housing market.

Mandatory Notice and Formalities

In accordance with Article 18 of the LAU, rent can only be updated on the anniversary of the contract and only if the lease agreement explicitly includes a clause allowing for such updates.

Regarding the notification process:

• Written Requirement: The landlord must notify the tenant in writing (e.g., via burofax or email if specified in the contract) of the intent to apply the update.
• Notice Period: The LAU (Article 18) does not specify a 30-day (one month) advance notice requirement for the increase itself. Instead, the updated rent becomes payable starting from the month following the one in which the landlord notifies the tenant.
• Evidence of Calculation: The notice should state the percentage of alteration applied and must be accompanied by the appropriate certification from the National Statistics Institute (INE) if the tenant requires it.

Stressed Market Areas (Zonas Tensionadas)

While the national Ley de Vivienda allows the autonomous communities to designate specific municipalities or districts as "Stressed Market Areas," the Government of Cantabria has publicly stated its decision not to declare any such areas within its region. Therefore, additional rent controls specific to "Stressed Market Areas" are not applicable in Cantabria.

Under Article 19 of the LAU, landlords who perform specific property improvements (beyond standard maintenance) may be permitted to increase the rent by a higher percentage. This is typically only applicable after the mandatory 5 or 7-year extension period has concluded and must follow the calculation formulas and limitations set forth in the law.

Dispute Resolution and Jurisdiction

Disputes arising from rent adjustments or the application of statutory caps in Cantabria are subject to the jurisdiction of the Juzgados de Primera Instancia (Courts of First Instance) in the judicial district where the property is located. Legal proceedings are governed by the Ley 1/2000, de 7 de enero, de Enjuiciamiento Civil (LEC).