While most people may think this is rather straightforward, the fact is that if you do it wrong, you may find your tenant deposit not returned by your landlord; or even worse, an unwanted extension to your lease agreement! Handing back the keys is likely the most aggravating time you will endure throughout a tenancy, as both sides stand much to lose much if done incorrectly.
We have already covered in-depth how to formally terminate a lease agreement in Spain. Again, we stress that verbally, phone calls, e-mails, text messages, WhatsApp, social media messages etc. are not valid ways to terminate a lease agreement. It must be done formally following a set legal procedure. If you do this wrong, it will have adverse legal and financial consequences for you, the tenant.
Terminating the contract formally is key to obtaining a refund on your rental deposit and also to avoid triggering the dreaded silent renewals which add a further 3 years to your lease agreement in Spain if you are not mindful.
When you serve notice of termination to your landlord by recorded delivery, there will be a set day and time to hand back the keys. This is normally the last day mentioned in your rental contract.
Your landlord, or their representative (normally an estate agent), will be there to receive the house keys. This is called the entrega in Spanish. You must ensure all the following bullet points are carried out correctly:
- The inventory: If the property was rented with furniture, unless you already had a furniture inventory as an annex to the contract, you must review the whole house with the agent. This means painstakingly verifying that each household and kitchen appliance is in good working order i.e. A/C, washing machine, pool pump, fridge, dryer etc. If all is good, both the agent and you will sign on every page that everything has been returned in good working order. You must date this document and make sure you include the agent’s personal ID (DNI if Spanish, or passport number if a foreigner).
- The invoices: As a tenant you are normally expected to pay for water, electricity, WiFi (internet), gas etc. You must ensure all these invoices have been paid and are up to date. This, again, is to avoid the landlord pocketing part of your security deposit for non-payment of bills. The agent must sign the copies you hand them and you should keep these for your own records. If there are any arrears, you will need to negotiate how to pay these.
- The keys: The keys, and any copies of them, must be handed back to the landlord or their representative that day. You cannot withhold them. If you do, then legally possession has not been transmitted which may have serious legal consequences. Beware of people who tell you they are much too busy that day and for you to throw the keys under a door or leave them in a postbox. There will be no legal evidence whatsoever that you handed back the keys! It needs to be acknowledged on paper by both parties that the keys have been returned on a specified date, and you will both sign it. This will constitute irrefutable evidence should the landlord attempt to challenge it later on.
Ideally, we strongly advise that a legal document be drafted with several clauses covering all the above-listed points which must be dated and signed on every page by both parties.
If everything is returned in good working order and the landlord, or their representative, did not raise any objections (i.e. damages to the property) and signed the documents there will be no excuse not to return your one-month or two-month deposit (depending on the contract signed) in full as soon as possible.
Landlords only have 30 days by law to return it after you have handed them back the keys. If a landlord takes any longer, they are likely stalling and trying to pocket your deposit and you will be forced to contact a law firm to sue them. You will need to give the law firm a copy of the signed documents and inventory list mentioned above. Some landlords are renowned for pocketing tenants’ deposits and will only tell you they refuse to refund you after you have left the country. You should check the comments of other tenants on social media and be on the lookout to avoid such landlords.
What happens if a landlord refuses to accept being handed back the keys or makes up excuses fobbing you off?
This oddly enough happens frequently. One reason why a landlord would do this is because they want to trigger an automatic contractual extension so you owe them more money or because they are simply in disagreement with you pulling out of the contract.
In such cases, if you are certain you are within your legal rights to terminate a lease agreement, you can deposit the keys at a Notary Public. This is known as consignación in Spanish. On doing this, it creates legal evidence that you did in fact comply and abide with your end of the contract handing back the keys on time. The Notary will then be compelled to hand back the keys to the landlord. It will become apparent the landlord is in breach of contract which will be taken on board by the judge ruling on the matter if a legal procedure is instigated in court to terminate the contract and recover the deposit. Basically, what you are doing is pre-constituting legal evidence that will be used against your landlord at a later date showing they had bad faith (needless to say, it can also be used as leverage to negotiate a more favourable outcome and avoid a court case).
Good luck! You will be needing it.