The Act on housing: are you a “quality tenant”?

We Spaniards — through the electoral process — already are housing law (or so we assume). Once approved by Congress, the Senate process remains. Although not in force, it has already begun to disrupt the market because both tenants and – above all – owners consider the movements that are best for them. Until the publication of the law in BOE there are hundreds of questions that have yet to be answered and will be answered differently depending on the autonomous community where one lives, as powers are devolved. Some questions:

1.- The image of large holders becomes relevant in the case of highlighted areas. Will the city be an entire area of ​​tension or will the neighborhoods establish it?

2.- Let’s imagine a person who has five floors in Vigo. Of these, four are in the peripheral settlement (without tension) and one in the city center. Will it be considered a great fork?

3.- Let’s analyze the case of a lessor who does not raise the rent during the duration of the contract, regardless of whether he had the right to do so. When he enters into that contract, as expected, he must maintain the price by increasing it based on the new index. Can you apply any increases you didn’t make to the amount at that point?

4.- Rent will be paid electronically. Can it happen that one part is paid in A and the other in B?

5.- How long could be a squatter in the house without “hurrying” to leave?

6.- Does the law treat squatters or “tenants” (those who pay rent for only a few months) in the same way?

7- What is regulated in the law on tourist apartments?

8.- In short, who does this law benefit and who does it harm? Regarding this last question, Servihabitat Trends explains that the regulation proposes packages of measures which, although theoretically born with the desire to strengthen access to housing in Spain, They show some approaches that may be unfavorable to the rental market and adversely affect landlords or owners and potential tenants, who will not be exempt. He warns that the price cap may be a measure that initially favors someone who is already a tenant, but not for a new tenant. Because? A price cap also limits supply and it does foresees the transfer of these homes to the sales market to achieve higher rates of return. “This trend is already evident in the last two years. At Servihabitat Trends we have already discovered that in this period the supply of apartments has decreased 50% is rented. Like a snowball, this reduction in the rental park, the company warns, will complicate access to rent for those who do not qualify as “highly solvent tenants.” They are forced to resort to the rental market because they do not meet the conditions to access the purchase market (an environment of mortgage growth and inflation that makes saving difficult).

To compensate for the limitations, the owner can transfer the costs and fees related to housing. All costs not regulated by law will tend to be passed on to the tenant, especially in the case of new contracts (example: in new contracts it does not seem that the index of costs related to the apartment cannot be exceeded. the effect is therefore nullified intended to limit the price).

In short, owners will try, in addition to avoiding government intervention, to ensure that their property does not lose value (and if it does, they will sell it to invest capital in gold, treasury bills or whatever). And the tenants will be faced with more expensive apartments and the obligation to present the last three payslips and a certificate of work experience because there will be a real fear of squatters. Profile of the best tenants: a couple with two fixed and secure salaries. Are you?