The new rent decree, which comes into force today (6 March of 2019), brings some significant changes. Modifications that do not convince the sector, since it does not favor the sale to the market of more supply. We break down some aspects: duration of rent, bond, rent increases, management expenses, evictions. A guide to the rent decree with the highlights.
Duration of the rental.- Expands from three to five years the duration of the contracts. This period increases until the seven years, If the property of the house is a company or legal entity. And once that initial period has passed, the contracts are tacitly extended for one year between individuals. Three if it's a company
Recover the property.- And here is a very important point, if the owner wants to recover the house (for his use or that of a relative) he should leave written in the contract and give a four month notices.
Increase in income.- Until now it was a decision of the parties. Now, the CPI will be governed as a ceiling and the creation of a rental index is planned. Power that the Autonomous Communities will have. A point that is to be defined.
The mandatory extension of three to five years is extended
Bail.-The decree sets the bail in one month and two additional monthly payments as limit (in total three). With the previous regulations, the deposit or guarantee did not have a maximum amount.
Evictions.- The new royal decree seeks to establish certain measures for the protection of the tenant. Mandatory systematic notification of eviction procedures to social services is established. The objective is to analyze possible situations of vulnerability. You must know in advance date and time.
Expenses.- The expenses of real estate management and formalization must be assumed by the lessor, if it is a legal entity
Fiscal measures.- The norm contemplates that the tenant does not pay the IBI in the case of social housing, and offers to the town councils the possibility that the houses in rent of limited rent have a bonus of the 95% of the quota of this tax.
In this link You have access to the BOE with the details of all the changes.
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