Guide to the Rent Decree
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Key points of the new rent decree

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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.

If you want to be informed, do not miss our Blog and Press Room

And if you are looking for a house, enter Foroprovivienda

Image:@crdeprada

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15 thoughts on "Key points of the new rent decree"

  1. I have a query: My lease expires, after three years of use the next September 10 and the landlord (legal entity) requires me to renew a rise of 25% on the current price plus IBI and community fees. My question is, the landlord would not be obliged to renew the contract for up to seven years with maximum increases in the IPC ?. Thanks and regards

    1. We understand that the law comes into force for new rentals.
      Anyway, it is better that you go to an advisor. We only provide market information on our blog, but we are not advisors on rental issues. Our mission is the commercialization of new housing.

      Thank you very much for reading us.

      1. Thank you very much for your reply. Abusing your kindness and knowledge of the sector could you provide me the phone or contact of an advisor on rental issues? Best regards

      2. Thank you very much for your reply. Abusing their kindness and knowledge of the sector, could you give me the phone number or contact of a rental consultant? Best regards

        1. Hello Jesus, I'm sorry I can not help you. The same in companies, type Safe Rent, can help you. You could also ask the Town Hall or the Autonomous Community for information services. Maybe they recommend an organization or companies.

          a greeting

  2. Hello,
    when it is indicated that «The costs of real estate management and formalization must be borne by the lessor, if it is a legal entity», does the commission include a real estate agency that mediates in the contract?

    Thank you.

    1. We believe that the lease of a business is subject, on the one hand, to the pacts that appear in the contract and, in a subsidiary way, to the Law of Urban Leases and obviously to the Civil Code, in case of conflicts. However, we passed a link to the BOE, which also clarifies the issue, given that our role as a company is the commercialization of housing, not rentals:

      https://www.boe.es/buscar/act.php?id=BOE-A-1994-26003
      In this case, it should be fixed in TITLE III of the Law, under the name: Of leases for use other than housing.

      a greeting

  3. I have a question about the limitation of the rent increase, according to IPC.
    My contract expires in 10 days. We had already agreed with the owner to increase the annual rent by installments at the rate of 110 Eur / month / year. So the first year I'll pay 1000 EUr, second 1110 Eur, third 1220 ... ect up to fifth.
    A 10 days of signing the Administrator sends me a @ telling me that upon ratification of the new Decree, the conditions have changed and if I want to renew I must pay 1480 eur per month + IPC + IBI and the contratio, I must vacate the house on the day stipulated I have been looking at the Decree and I understand that if the parties agree, sign and agree, I can respect the increment by sections, that the Decree does not prevent the agreement. Can someone confirm if I am right?

    1. The Decree sets some guidelines and obviously, those involved can agree on conditions. But of course, the two parties must agree. And I understand that the new contract has been signed once the new Decree has come into force.

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