Cantabria Landlord-Tenant Laws: RENT INCREASES

Rent increases in Cantabria are governed by the Ley de Arrendamientos Urbanos (LAU) 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:

• For 2024 and 2025: 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 2026 Onwards: The law mandates the use of a specific index defined by the government to replace the IPC (CPI) for annual rent updates, rather than the IPC or 2023 caps being the permanent reference. This new reference index, to be defined by the National Statistics Institute (INE), 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: While written notice is required to apply the update, 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 ideally include the calculation used to reach the new rent amount to ensure transparency.

Stressed Market Areas (Zonas Tensionadas)

The Ley de Vivienda allows the Government of Cantabria to designate specific municipalities or districts as "Stressed Market Areas." In such areas, additional rent controls may apply to new contracts or large holders. Landlords are advised to monitor the Boletín Oficial de Cantabria (BOC) for the declaration of these zones, as they can significantly restrict the ability to set or increase rents beyond established reference prices.

Exceptions for Property Improvement

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.