April 20, 2021

Urgent rent housing decree

Urgent rent housing decree

After Congress failed to validate the decree-law on urgent housing measures, how is the market now?

All the contracts that were signed since December 19, when the decree came into force with its publication in the BOE, until yesterday, when the rule declined, will be governed by this rule.

And what happens with the rest of the contracts?

That they will be governed by the previous regulations.

What laws modified the decree?

The Urban Leasing Law, the Horizontal Property Law, the Civil Procedure Law, the Local Treasury Regulatory Law and the Property Transfer Tax Law and Documented Legal Acts.

What changes did the standard introduce in the extension of rental agreements?

It established a mandatory extension of five years – or 7 if the landlord was a legal entity. The previous regulation, once again in force, establishes a mandatory period of three years.

And about the guarantees?

The decree fixed a maximum of two monthly installments of income as an additional guarantee to the deposit -except for long-term contracts-. The previous legislation did not set a maximum amount.

What about tourist accommodation?

When decreeing the decree, the tourist accommodations return to be governed by the Law of Urban Leases although in the 34 days that the decree-law has remained in force they were considered like economic activity.

Can owners' communities continue to influence this type of accommodation?

No. The possibility that the residents of a building, by a majority of three fifths, can limit that a floor is used for tourist rental is no longer valid.

Does it affect local corporations in any way?

Yes. The decree-law of Ábalos empowered those municipalities with surpluses to invest it to promote their public housing stock. That possibility disappears when the decree decays. In addition, it introduced the definition of unoccupied residential use property on a permanent basis so that the municipalities could apply the surcharge of the IBI established in 2002.

How does it affect evictions?

While the regulations have remained in force, the eviction procedure mandatorily required a report from the social services that will no longer be mandatory from now on.

What other measures did the Ábalos decree include?

The regulations stipulated that the costs of real estate management and formalization of the contract shall be borne by the lessor when it is a legal entity, except for those expenses incurred at the initiative of the lessee. In addition, the obligation to pass the Real Property Tax (IBI) to the lessee in the social rent of the home was eliminated and included the exemption from the Patrimonial Transfer Tax in the subscription of housing leases for stable and permanent use.


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