Extraordinary measures on residential renting included in RDL 11/2020 are approved. It does not apply, therefore, to the renting of premises, the negotiation of which is for the moment left to the intervening parties, and what we commented on in a previous article applies.
The experts from our Legal Consulting Department summarize the main points below:
Extraordinary measures on residential renting included in RDL 11/2020
Extraordinary extension of regular home leases
Rental contracts for permanent housing whose expiry date is between the date of entry into force of the RDL (2 April) and the end of two months from the end of the alarm condition may be extended by the tenant for a maximum period of six months. This must be requested from the lessor, and the parties may agree on measures different from those included in the RDL, as it is possible to agree on the contrary. During the extension period, the agreed contractual conditions are maintained.
Moratorium on rental debt. Definition of the situation of economic vulnerability
The situation of economic vulnerability is defined for the purpose of obtaining moratoriums or aid in relation to the rental income of the habitual residence. In any case, they will require that all the following requirements be met:
- That the tenant is in a situation of unemployment, ERTE, reduction of working hours due to care, or other similar circumstances that suppose a substantial loss of income. This also applies to self-employed professionals. Not reaching the total income of the members of the family unit:
- Transcription of the RDL:
- In general, the limit of three times the monthly Public Indicator of Multiple Effects Income (hereinafter, IPREM).
- This limit will be increased by 0.1 times the IPREM for each dependent child in the family unit. The applicable increase per dependent child shall be 0.15 times the IPREM for each child in the case of a single-parent family unit.
- This limit shall be increased by 0.1 times the IPREM for each person over 65 years of age in the family unit.
- In the event that any of the members of the family unit has been declared disabled for more than 33%, a situation of dependence or illness that permanently incapacitates him/her to carry out a work activity, the limit foreseen shall be four times the IPREM. Without prejudice to the accumulated increases per dependent child.
- In the event that the person obliged to pay the rent is a person with cerebral palsy, mental illness, or an intellectual disability, with a recognised degree of disability equal to or greater than 33%. Or a person with a physical or sensory disability, with a degree of recognized disability equal to or greater than 65%. As well as in the cases of serious illness that incapacitates the person or his/her carer, in an accredited way, to carry out a work activity, the limit foreseen will be five times the IPREM.
- Transcription of the RDL:
- That the rental income, plus expenses and basic supplies (consumption), be greater than 35% of the income of the members of the family unit.
- That none of the members of the family unit is the owner or usufructuary of any dwelling in Spain that they may have.
The tenant who intends to apply any of the measures or aids contemplated will be obliged to accredit compliance with these requirements. Either the landlord, the public administration or the judicial bodies.
Obligatory moratorium in the case of “large holders”
The term “large holder” means a natural or legal person who owns more than ten urban properties, excluding garages and storage rooms.
As long as the owner is a “large holder”, the tenant in a vulnerable situation may request the postponement or remission of the rent. He has a period of one month from the entry into force of the RDL. That is, from April 2, expiring this possibility, therefore, on May 2. It is up to the owner to choose any of the following measures, which are obligatory, as long as no other type of agreement is reached
- Reduce by 50% the accrued income within the duration of the Alarm State and the following monthly payments if necessary in relation to the situation of vulnerability. With a maximum of four months.
- Apply a moratorium on the payment of accrued rent within the duration of the alarm state and subsequent monthly payments if necessary in relation to the situation of vulnerability. Also with a maximum of four months. The rent included in the moratorium will be deferred by means of instalments with a minimum of three years. But always within the period during which the lease or any of its extensions continue. This will mean that the lessee will have to pay the debt when the lease ends and no interest will be due.
Measures in other cases
In cases where the owner of the property is not considered a “large holder”, the tenant may, within the same period of one month from the entry into force of the RDL (2 April), request the owner to postpone or remit the rent. Although in this case the owner is not obliged to accept any measure. So that, if no agreement is reached, the payment of the full rent will continue to be obligatory for the tenant. Who will be able to access the transitional financing aid programme, regulated in the same RDL.
Suspension of Evictions and Launches
In the event of evictions, after the lifting of the current suspension of legal proceedings and procedures, the tenant may declare and accredit to the court his situation of vulnerability. In the terms set out above that makes it impossible for him to find another dwelling, which will entail an extraordinary suspension of:
- the launching act (in the event that it has a set date)
- ten-day period granted to the tenant to oppose the application
- the holding of the oral hearing (i.e. the eviction and launch procedures are suspended),
All this until the measures deemed necessary by the social services are adopted, for a maximum period of six months from the entry into force of the RDL (2 April). After this period, the calculation of the time limits will be resumed or a date will be set for the oral hearing.
In the event that the owner is also in a situation of vulnerability, after his accreditation to the court, he will be transferred to the social services. They will take this into consideration when establishing the period of suspension.