There have been a series of adjustments in real estate laws lately, also due to government changes, and these laws are aimed at protecting tenants from possible wrongdoing by landlords or agencies.
These laws bring stability to rental agreements, as landlords are not allowed to raise rental prices as often as they once used to anymore.
This article by ShBarcelona will focus on some of the changes that have been made to real estate laws. It will show both positives and negatives.
Related article: Modifications in Urban Leasing Act (LAU)
Table of Contents
The minimum period of rental contracts has been extended from three to five years, and the period of tacit renewal has been extended from one to three years. This is only the case if the landlord is a natural person, and when both landlord and tenant haven’t expressed the intention of not renewing the rental contract.
Although new regulations include returning to the old, minimum contract duration of five years for all tenants, this reopens the debate on whether this duration is just enough or way too long.
Related article: Should You Rent or Buy Property in Barcelona?
As is often the case in these debates, it all depends on someone’s needs. Every tenant would like some form of stability when it comes to the roof they have over their heads.
But there is also the landlord, who wants to successfully exploit his property. It feels unfair to not allow a landlord to improve his property or get new tenants to generate higher revenue.
A solution to the minimum contract duration can usually be found somewhere in the middle, and social consensus seems to be the best option. First, we had the old situation of five years, then we went to a period of three years. This meant a decrease in contract length had already taken place.
In conclusion, what is most important is that, besides agreeing on the minimum duration of a contract, it will provide legal clarity and peace of mind to both tenants and landlords.
What is your opinion on these changes in real estate regulations in Spain?
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