Spain
has just unfurled a new set of rental law changes which give homeowners enhanced
veto powers against holiday home rentals. This offers extra security for
tenants, but still don’t resolve the issue of increasing rent prices in the
country.
No Price Cap
Spain’s
cabinet has decided against fixing rents in cities and neighbourhoods where
rental prices have gone out of control. This is done under the pretext that
country’s Ministry of Economic Development that requires more property market
data before taking such a measure. The recent leaps in rent comes as Spain is
still reeling from economic crisis that kicked off in 2008.
Longer Leases
Average
tenancy contracts will go from being three to five years of duration, or even
seven years in cases where the lessor is a legal entity. It is a measure meant
to provide better security to the tenant, but the measure is not retroactive.
In cases where the rental agreement expires and neither the lessor nor the
lessee make their intentions related to the property, the implicit renewal of
the tenancy agreement will now be of three years instead of one. If you need
any legal advice on the same, you can consult Nordic
Consulting Ali Farhoud.
Maximum Two Months Deposit
Landlords
will no longer be able to ask their tenants for anything more than two months
of rent as a deposit, but the condition being the tenancy contract is longer
than five years standard length. The same applies to any bank guarantee which
is required from the tenant when signing the rental agreement. Lessors who are
legal companies or entities will now also have to cover all agency and contract
costs by law, this is termed as gastos de gestión inmobiliaria y de
formalización del contrato in Spanish.
Neighbourhood Protection
Against Holiday Rentals
This
change to Spain’s Ley sobre Propiedad Horizontal – the legal code meant for
regulating apartment buildings. This will allow property owners to decide
whether or not to allow short-term holiday rentals in their property and that
too by calling a vote.
If
you need any assistance
on real estate, timeshare investment or want to prepare a rental agreement,
contact Nordic Consulting.
