New lease law
At Asmcasas, your real estate agency in Valencia, we tell you everything about the reform of rentals in Spain with the new law on rentals, approved by law in the Council of Ministers last Friday, March 1st.
After its publication in the BOE, rental contracts will present a series of modifications that to a large extent were already proposed in the previous text (RD-Ley 21/2018, of 14 December) and which was rejected at the time by the Congress of Deputies.
Extension of the contract period
Perhaps one of the most important changes of this new law and which recovers the 5 years of contract against the 3 years indicated in the last amendment and in contracts between individuals.
In the event that the lessor is a legal entity (company) the minimum contract time will be increased to 7 years. Furthermore, in both cases, the tacit extension is increased from 1 to 3 years.
CPI as a regulatory base
As a measure to the indiscriminate increase in the price of rental with a contract in force, the new law establishes the CPI index as the only valid indicator.
The landlord must wait until the five years of the contract have elapsed if he wants to make a price increase different from this index.
This is not a novelty in itself, but rather an extension, since in the previous decree, this measure was already stipulated for reduced rentals.
Notice to break the contract
The periods within which the owner must inform the tenant of the non-renewal of the contract have been extended to 4 months.
On the other hand, the tenant will be obliged to give two months’ notice.
Sale of the rented property
f the owner of the property you have rented decides to sell it, the new rental law establishes not only that the new owner must respect the terms but also the conditions in the contract.
This measure has been taken according to ministry sources as protection of the tenant against investment funds and even though these conditions are not registered in the property register.
Death of the tenant
As a protection measure towards vulnerable groups, the relatives of the contract holder will be able to continue in the housing.
Nor can a waiver of subrogation of the contract be agreed in the case of long-term contracts when there are minors, disabled people or people over 65 years of age.
Amount of the deposit
Without modification in this point, the rental law establishes a deposit for the lessor of 1 monthly payment, being able to demand as additional guarantee 2 monthly payments.
In other words, the law stipulates that the landlord must pay one month’s rent, which may be increased to three months’ rent as an additional guarantee.
Opposition to tourist rental
Changes also in the opposition of neighbours to the tourist rental of homes. Except for tourist rentals regulated by the LAU. If 3/5 of the residents present opposition, there will be no option for this type of rental in the community, as opposed to the unanimity indicated in the previous law.
Although the obligation of the tenant to pay the IBI is eliminated, in the new law of leases, the possibility is contemplated that the town halls make a bonus of up to 95% of the price of the IBI in reduced rents.
It also contemplates as an option for each town council to be able to apply a surcharge on the IBI for empty homes.
Contact us if you want to rent your home or are looking for rental housing and we will explain in more detail how the new law affects you.