New rental laws enforced TODAY to protect tenants in Spain

AS new measures surrounding rental regulations are implemented today (Wednesday), tenants will be offered more security and protection in Spain.

The Royal Decree 7/2019, approved on Friday 1, of urgent housing and rental measures has been made public by Spain’s Official State Bulletin (BOE) but will have to be ratified by the Congress within a month.

The most relevant changes are:

  1. Increase of rent limited. It should not surpass the CPI, consumer price index, within the contract period.
  2. Contracts extended. The mandatory extension will be of five years instead of three or seven if the owner is a business.
  3. Aside from a one-month guarantee, landlords can only request tenants for an “additional deposit” of two months.
  4. Tenant protection. Lease agreements must be respected by owners, even if they decide to sell the property whilst a rental contract is in place.
  5. If the tenant is found under a “vulnerable situation”, evictions may be delayed one month or three if the tenant is a legal entity.
  6. Benchmark index. The Government will develop, in the next eight months, an index that reflects trends in the rental market to help determine if the asking price is fair.
  7. Tourist rentals. Holiday leases are excluded from the new law and remain in the hands of the community that have the power to limit these types of rentals.

Any housing rental contract signed as of today, must follow these new measures.

Earlier contracts will continue to be covered by the previous laws, however, if both parties are in agreement, the arrangement can be upgraded according to the new ruling.

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