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Congress rejects the rental reform How does it affect you?

The Congress of Deputies has not validated the Royal Decree Law 21/2018, of December 14, of urgent measures on

The Congress of Deputies has not validated the Royal Decree Law 21/2018, of December 14, of urgent measures on housing and rent . In mid -December it was approved by the Government to solve the problem of access to housing. However, only 35 days later of its presentation, this decree law has been repealed. Why is the rent of your home now governed? These are the background:

On December 19, the reform of the rental market that the Government launched. Among the modifications that this new reform introduced, the most notable changes referred to the duration of contracts and bonds. However, the Plenary of Congress has not validated the Royal Decree Law by a large majority (241 votes in favor, 103 against and 1 abstention).

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with the repeal of the decree law, these are the current conditions
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The contracts signed during the period in which the Royal Decree Law has been in force will be protected by this, despite its subsequent repeal. For the new contracts, they will be governed by the former standard, dating from 2013. These are the main current conditions:

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  • unlimited guarantees

The owners have no limit when setting the guarantee or bond to the tenants. Royal Decree Law 21/2018 set the limit by a maximum of 1 month of rent for individuals, and a maximum of 2 months for companies.

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  • contracts with a lower duration

The minimum rental period is 3 years again. Royal Decree Law 21/2018 increased this period to 5 years for contracts between individuals, and up to 7 if the owner was a company.

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  • forced extension of one year

In reference to forced extension once the minimum period is reached, it is again 1 year. In other words, if once the minimum term of 3 years is reached, neither the owner nor a tenant manifests their willingness to not renew the contract, it will be extended for 1 more year. Royal Decree Law 21/2018 set this period of forced extension in 3 years.

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  • tenants take the Ibi

both the Patrimonial Transmissions and Documented Legal Acts (ITAJD) and the Real Estate Tax (IBI), will once again be assumed by the tenants. The Royal Decree Law declared exempt from this rental contract tax. But when repealed, the tenants will support these taxes again.

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  • advantages for tourist accommodations

With the repeal of the decree law, the possibility that the residents community of the property (with a majority of three fifths) can limit that a house is destined for tourist rent is no longer effective.

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What about the contracts signed during the validity of the Decree Law?
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Any contract that has been signed between December 19, 2018 and January 22, 2019 will enjoy a much more guarantee regime than the rest of the contracts. Contracts signed from December 19, 2018 until January 22, 2019 will be governed by the person in said decree law.

Therefore, the group of tenants will maintain their rental contracts valid for 5 years, and will be exempt from paying the IBI (real estate tax). Likewise, the owner may not demand from the lessee an extension of the guarantee, set at a maximum of one or two months.

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more information?
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Do you need more information on how the non -validation of Royal Decree Law 21/2018, of December 14, of urgent measures on housing and rent can affect the non -validation of December 14? You can consult with our technical team in info@verumasesores.com < /p>

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