For richer, for poorer, changes for landlords renting out a property in Spain

The new Housing law has left many landlords wondering if they will be better or worse off, and how will it impact younger people trying to set up home.

The new law has been drawn up after a year of negotiations and is expected to be passed before the May 28 municipal elections, according to El National. Cat.

The main issues are the limits placed on landlords with regard to increasing the rent for their tenants and who is now responsible for monies payable to real estate agents.

Last year the government set up a temporary rent ceiling that will carry on throughout 2023. That limit is currently set at 2 per cent on increases to rents, a ploy designed to slow down inflation.

However, this will change in 2024 when the limit will be adjusted to 3 per cent for large (at least five properties) and small (less than five properties) landlords.

‘Stressed’ areas will be subject to special controls regarding how rents are regulated. A ‘stressed’ area is basically an area with high rents which have forced tenants to leave.

Local authorities will decide which areas fall into the ‘stressed’ category and will review their status every three years. The new law will permit authorities to regulate all rents in areas designated as ‘stressed.’

The other major change are the fees payable to real estate agents. In a bid to stop legal loopholes, real estate agency fees and expenses are now the responsibility of the owner (large or small), not the tenant.

Landlords will also be prevented from increasing the tenant’s payments as a result of building work, garbage collection, or other such unagreed payments.

It sounds like good news for tenants. How will the changes affect landlords? It remains to be seen.