Spanish government is extending rental contract to a period of 5 years and limits the rental deposit to 2 months

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Spanish government is extending rental contract to a period of 5 years and limits the rental deposit to 2 months

 

On Friday 14th December, as expected, the Council of Ministers has approved the urgent matter regarding rental accommodations in order to improve its conditions, particularly difficult in larger cities.

These new mesures are aiming to decrease difficulties encounter by families and young people alike when accessing the rental market.

This new legislation would provide them with improved visibility and stability.The contract will be available for a period of 5 years instead of 3 as it was the case in the past.

In other words, the tenant would be able to stay in his accommodation  for a period of 5 years maximum, should he wishes to, before his contract terminates. Therefore his rights would be reinforced and would give him some protections against risk of rental increase and further renegotiations.

Maximum 2 months deposit

From now on, in order to avoid any form of abuse, the landlord will only be able to ask for no more than 2 months deposit, up to now there was no limit as how much the landlord could ask as a deposit.

The less fortunate will be allowed to access more easily  to the rental market without advancing large sum of money.

In fact, these new mesures aim to reverse back to the old 1994 legislation with some changes regarding taxation. Consequently, this would promote the rental market and keep prices relatively moderate.

Having say that, the Minister has emphasised that none of these mesures aim to legislate or interfere directly with rental prices as it has been suggested by the extreme left party Podemos even though this possibility would be discussed in the next budget.

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