July 3, 2020

The Government is considering freeing those affected by the crisis from paying the rent

The Government is considering approving in a next Council of Ministers to suspend the payment of rent for at least two months to all people who have been left in a vulnerable situation due to the crisis caused by the coronavirus pandemic.

The measure, according to sources of the Executive, would suppose a cancellation of that debt, not a delay or moratorium in the payment of the rent, and would be accompanied by an economic compensation by the State of up to 100% for the owners of the properties in rental.

However, this proposal to which EFE has had access and which has been promoted by Unidas Podemos, could undergo some modification during the internal debate in the Executive.

If they succeed, this initiative could be embraced by anyone who, as a result of this crisis, cannot face the payment of rent due to loss of employment, shorter working hours or ERTE.

In the case of freelancers and SMEs, if they have suffered a “substantial” drop in their income, they could be released in addition to paying the rent for their premises and office for two months or for the duration of the state of alarm.

In addition, the Government would agree that real estate leasing contracts that end during the state of alarm be automatically extended for three months and would establish that in the six months following the approval of this proposal, “abusive” rent increases cannot be made. .

As for landlords, the idea of ​​the Executive is to offer them financial compensation for the rent of their tenants that they would no longer receive, which will be progressive depending on the number of properties they have for rent.

Thus, in the case of those who have up to two properties for rent, the compensation would be 100% of the rent, but from there, if the owner has more homes for rent, the amount will be reduced and would remain at 5%. for those who have more than eight leased properties, according to the proposal that Unidas Podemos has always defended.


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