The current legal conditions for Rental Housing is a recurring question that receives our Legal Consulting Dept.. That is why in this note we reiterate what we already reported through our Newsletter of last 24/January.
One month before, we published and commented on the conditions that were established for the Rental Housing according to the publication of RDL 21/2018. But the fact that it was rejected in Congress on 22/January, generates certain doubts that we clarify below.
All the normative modifications that it included are annulled. Returning to apply the previous regulatory regime, which in the case of Rental Housing assumes:
- The mandatory extension period is maintained at 3 years.
- We return to the tacit extension period in 1 year.
- It does not include the obligation that the expenses of real estate management, in the Rent of Housing, are assumed by the lessor. When the landlord is a legal entity.
- Limitations on guarantees additional to the deposit that the parties may agree are eliminated.
However, contracts entered into from 19 December 2018 until 22 January 2019 will be governed by the rules of the repealed Royal Decree.
They are also annulled for the same reason:
- Amendments to the Law on Horizontal Property, in relation to Tourist Rental.
- Modifications to the Law on the Tax on Patrimonial Transmissions and Documented Legal Acts
Conclusion
Thus, the current legal situation is the same as that which existed prior to 18/Dec/18. With the exception of rental contracts made between 18/December/2018 and 22/January/2019. Contracts signed during this period are subject to RDL 21/2018 and will not undergo any change in what is signed.
For example, the law protects them so that the contract they have signed has a duration of 5 years. However, if they had signed a contract for 1 year, they can count on a forced extension of up to 5 years.
Arrabe Integra
Legal Consulting
