On March 1, the government passed a Royal Decree Law on Urgent Rental Market Reform. It is already in the BOE, and today we want to give the keys to this regulation that is already in force.

These are some of the keys provided by this decree, which is based on the previous one, but incorporates certain measures of an urgent nature.

URBAN LEASE LAW

Based on the reform of the Urban Leasing Act (LAU) that affects contracts:

• The mandatory extension period for rental contracts from three (3) to five (5) years is extended, and the tacit extension will be extended from one (1) to three (3) years for natural persons, in the event that the landlord or tenant does not express their willingness not to ren to owe it.
• In the event that the lessor party is a legal person, it shall be seven (7) years of compulsory contract and three (3) years of tacit.
• The annual income increase will be tied to the CPI for the duration of the contract (5 years).
• Additional guarantees to the bond (one month) are limited to two (2) months of rent, unless they are long-term contracts.
• In order to terminate the contract, once the expiration date of the contract or any of its extensions has arrived, and after at least 5 years if the lessor is a natural person, or 7 years if he is a legal person, the landlord must inform the tenant, will not renew it, at least four (4) months inadvance. If the tenant wants to leave, you must give two (2) months' notice.
• Otherwise, the contract will be extended for an annual period up to a maximum of three moreyears, unless the tenant expresses to the landlord one month before the date of termination of any of the annuities, his will to not renewing the contract.
• The owner's power to recover the home to terminate the contract in advance must be expressly included in the contract – as needed for his or her usual home, from his children or spouse if the family circumstances.
• The buyer of a rental home must respect the currentcontract, whether or not registered in the Land Registry.
• If there is an agreement between owner and tenant, work can be carried out to improve the house without having to sign a new contract.
• The costs of real estate management and the conclusion of the contract shall be borne by the lessor, provided that he is a legal entity.

FISCAL BENEFITS:

• City Councils are empowered to set a bonus of up to 95% in the IBI quota for homes subject to limited-pricerental. That is, it is a bonus for the individual who has an official protection home and who decides to put it up for rent, but at a limited price by the city council or the corresponding CCAA.
• The exemption from the Tax on Property Transfers and Documented Legal Acts is established in the subscription of housing leases for stable and permanent use. That is, the rIF payment by the tenant is eliminated in any CCAA.

HORIZONTAL PROPERTY ACT

Tourist housing is removed from the regulation of the LAU as it is an economic activity reforming the Law on horizontal property to:

• By a qualified majority of three-fifths of theowners, the communities of neighbors can adopt agreements that limit or condition the exercise of the activity of the tourist rental of a home, establishing the possibility of agreeing a greater contribution of these to the payment of overheads (up to 20% more).

Evictions

On the part of the evictions, it implies a reform of the Law on CivilProcedure:

• Once the judge orders the tenant's eviction, the tenant must notify social services so that they can act in case of vulnerability on the part of the tenant and until a housing alternative is sought. Eviction shall be interrupted for one (1) month if the owner is an individual and shall be paralyzed for the period of three (3) months in the case of a legal person.

• Once the judge orders the eviction claim, you must report it to the social services ex officio with the exact date and time of the launch.

• On the other hand, as regards rents for vulnerable households, persons with disabilities, minors or over 65 years of age, in the event of the death of the contract holder, the lease shall be subrogated to the rest housing tenants.

We hope to have helped you with this summary of the new Law on housing and rental material slate this year already in force. In this link you can find all the information -- HERE --

Travermed Gestión Immobiliria