New Decree on urgent measures affecting the contracts that are to be signed from Wednesday, 19 December 2018

Following the publication of the new Royal Decree Law 21/2018 of 14 December on urgent measures concerning housing and rentals, certain points referring to rentals by private owners or companies have been changed, as well as the eviction process and the inclusion of social housing in financial investments.

Long-term rentals

With regard to long-term rentals, those who are signing with the aim of the property becoming their main residence, should know that since the entry into force of this new decree, rental contracts, despite being fixed by annuality, will have the following guarantee in favour of the tenant, who is covered by law:

  • For new contracts, concluded now: despite being agreed for the period of one year, the mere permanence of the tenant in the property will be understood as wanting to remain in the property for another year, and so on up to a period of 5 years.
  • The same will happen, but for a period of 7 years, in case the property is owned by a business.

Once these terms have elapsed, if the landlord does not give a prior notice of a minimum period of 30 days, there will be a tacit contract renewal, meaning an extension for another 3 years.

Subsequently, the contract may continue to be extended tacitly, yearly, as long as there is no notice of termination by the home owner.

The only way of refusing the compulsory extension of 5/7 years initially, and the subsequent 3 years of tacit renewal, is if after the first year of the rental agreement, the owner requires the property for his or his family's use, in the first degree of kinship. This must be communicated to the tenant in writing.

Tourist accommodations

In relation to tourist accommodations, these must be marketed through tourism channels only, and with the appropriate description according to the established tourism regulations applicable. In addition, it includes an improvement to the horizontal property regime that allows the owners' communities to limit or condition the exercise of said activity.

Eviction procedures

Lastly, with the eviction procedures, a new measure is introduced, meaning that when vulnerable households are affected, the process is suspended, until the measures deemed appropriate by social services are adopted.

For questions regarding your rights, procedures to be followed to recover your rented property, or any other legal matter, contact Pellicer & Heredia today. Email us at info@pellicerheredia.com or call (+34) 965 48 07 37.