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Residential lease agreement: a guide to getting it right

A good lease prevents most disputes. It must be written, made in triplicate and include a photo inventory, clear deposit rules and who pays each utility.

The Tenancy Law requires a written lease (article 23) and sets rules that no clause may worsen for the tenant (article 2). Within that framework, a good lease makes clear what the law leaves open.

Lease checklist

  • Parties: name, marital status, occupation, nationality, ID and address of each.
  • Property: address, registry details, rooms, parking and included furniture.
  • Term and start date.
  • Rent, currency, payment day and destination account. The landlord issues a receipt for each payment.
  • Security deposit: amount, what it covers, return deadline, and that it is not used as the last month's rent.
  • Utilities and fees: who pays power, water, internet, property tax and condominium fees.
  • Use and occupants: residential only, number of occupants, pets.
  • Repairs: minor ones by the tenant; structural and habitability repairs by the owner.
  • Inspection visits with prior notice.
  • Dated photo inventory signed as an annex.
  • Termination: article 51 grounds, and the tenant's notice if leaving early.

Three costly mistakes

  • Clauses the law voids: waivers of tenant rights, eviction "without a lawsuit", cutting utilities for late payment. They are invalid and expose the landlord to penalties.
  • No inventory: without dated photos, arguing about damage at the end is one word against another.
  • Payments without proof: ask for and give receipts, or use bank transfers.

Registering the lease

The law provides for a copy of the lease to go to the tenancy authority. The Departamento Administrativo de Inquilinato (DAI) publishes the requirements for registering it; a registered lease makes any later procedure easier.

CARACOL's model

CARACOL has prepared a model residential lease (in Spanish) aligned with the Tenancy Law. Use it as a base and have a lawyer review it before signing.