Measures on renting of commercial properties in the RDL 15/2020

Measures on renting of commercial properties are approved in RDL 15/2020. In other words, for rentals for use other than housing, the negotiation of which had so far been left to the contracting parties.

From our Legal Consulting Department we summarize them below.

Measures on renting of commercial properties

Deferral of rental debt. Requirements for your application

The following requirements are established for the tenant to request a rent deferment from the landlord:

Self-employed:
- To be affiliated and in a situation of registration, on the date of the declaration of the state of alarm (March 14), in the Special Regime of Social Security for Self-Employed or Autonomous Workers (RETA), or in the Special Regime of Social Security for Sea Workers. Or, if applicable, in one of the RETA’s substitute mutual insurance companies.
- That their activity has been suspended as a result of the state of alarm or complementary or derived measures.
- If there is no suspension of the activity:
  - That turnover has been reduced by 75%.
  - or more in relation to the average monthly turnover for the same quarter of the previous year.
Companies / SMEs:
- That comply with the requirements for formulating abridged balance sheets and statements of changes in equity. That is to say, they must meet at least two of the following requirements:
  - assets under 4,000,001€
  - turnover less than 8,000,001€
  - average number of workers less than 50
- That their activity has been suspended as a result of the state of alarm or complementary or derived measures.
- If there is no suspension of the activity:
  - that turnover has been reduced by 75%
  - or more in relation to the average monthly turnover for the same quarter of the previous year.

Forced postponement in case of “large holders”

As long as the owner is a “large holder”. That is, a natural or legal person who is the owner:

of more than ten urban properties. Excluding garages and storage rooms
or a built up area of more than 1,500 m2.

The tenant who complies with the above requirements may request, within one month of the entry into force of the RDL (23 April, expiring therefore on 23 May), a postponement in the payment of the rent. This must be accepted by the landlord and will be applied automatically. Provided that no agreement on deferment or reduction of rent has already been reached. And it will suppose:

Deferment of the payment of the accrued rent within the duration of the alarm state and the following monthly payments if necessary in relation to the impact of the COVID-19, with a maximum of four months.
The rent included in the deferral will be deferred by means of instalments for two years. But always within the period during which the lease or any of its extensions continue. This will mean that the tenant will have to pay the debt when the lease ends.
No interest will accrue.

Measures in the rest of the cases

In cases where the owner is not considered to be a “large holder”, the tenant may, within the same period of one month from the entry into force of the RDL (23 April), request the landlord to defer the rent. Provided that no agreement on deferment or reduction of rent has already been reached.

In this case the owner is not obliged to accept any measure. Therefore, if no agreement is reached, the tenant will still be obliged to pay the full rent.

Use of the deposit for payment of rent

Only within the framework of the possible agreements mentioned in the previous paragraphs, the deposit may be used to pay the monthly rent. In this case the tenant must return the amount of the deposit within one year of the conclusion of the agreement. Or within the remaining term of the contract, if this term is less than one year.