Five days after being approved by the Spanish Cabinet, a new government decree regulating property rentals in Spain went into effect on Wednesday.
The measures introduced by the government of Prime Minister Pedro Sánchez, seeks to improve protection for tenants at a time when affordable housing is becoming increasingly difficult to find.
Amongst other things the decree:
- Extends the duration of the rental contract from three to five years (or seven if the landlord is a company)
- Prevents annual rent hikes of more than the consumer price index (CPI)
- Contract periods are extended
- Evictions must first be notified with social services
- Introduces a state benchmark index for rental prices that will be used to follow changes in the market and help determine whether an asking price is adjusted to market realities
- In addition to a one-month deposit, property owners can only ask a tenant for additional guarantees equivalent to two months of rent.
- The decree says that a building’s apartment owners may collectively agree to place limits on the rental of tourist accommodation amid growing public concern over online services such as Airbnb and on the price of housing.
The new rules do not put a cap on how much monthly rent a landlord can ask for..
This decree will have to be ratified by Congress within a month.
The PSOE of Prime Minister Sanchez has already secured pledges of support from left-wing group Podemos and the Catalan nationalist party PdeCAT. The Basque Nationalist Party (PNV) is expected to back the decree as well.
Via El Pais
