New measures on residential renting of RDL 30/2020, of 29 September, have been approved. The deadlines for applying the extraordinary measures on residential renting introduced by RDL 11/2020 of 31 March have been extended.
The experts from our Legal Department summarise them below.
New measures on residential renting
Extraordinary extension of the lease of a permanent residence
It applies to rental contracts for a permanent residence whose expiry date is between the date of entry into force of RDL 11/2020 (2 April) and 31 January 2021. It implies that they can be extended by the tenant, for a maximum period of 6 months, who must request this from the landlord. The parties may agree on measures different to those included in the RDL, and may even agree to the contrary. During the period of extension, the agreed contractual conditions are maintained.
Obligatory moratorium in the case of “large holders”
As long as the owner is a “large holder”, he is an individual or legal entity that owns more than 10 urban properties. Excluding garages and storage rooms.
The tenant in a situation of vulnerability may request, until 31 January 2021, the postponement or remission of the rent. Provided that said postponement or remission has not already been voluntarily achieved previously by agreement between the parties. It is up to the owner to choose any of the following measures, provided no other agreement is reached:
- Reducing 50% of the accrued rent 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 4 months.
- Apply a moratorium on the payment of the income accrued 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 4 months. The income included in the moratorium will be deferred by means of instalments with a minimum of 3 years. But always within the period during which the rental contract or any of its extensions continues to be in force. This will mean that the lessee will have to pay off the debt when the lease ends. And no interest will accrue.
Suspension of evictions and launches
Eviction proceedings in which the tenant accredits to the court his situation of social or economic vulnerability due to the effects of the COVID-19, which makes it impossible for him to find other housing, will be suspended:
- The launch event, in the event that it is scheduled to take place.
- The period of 10 days granted to the tenant to oppose the lawsuit
- or the holding of the oral hearing.
In other words, the eviction and release procedures are suspended. All this until the measures deemed necessary by the social services are adopted, for a maximum period until 31 January 2021.
Definition of the situation of economic vulnerability of RDL 11/2020
This has not been changed. It defines the situation of economic vulnerability for the purpose of obtaining moratoriums or subsidies in relation to the rental income of the habitual residence. Which will require that all the following requirements are met:
- The tenant must be unemployed, in a situation of ERTE, reduction of working hours due to care, or other similar circumstances that suppose a substantial loss of income (being applicable also to self-employed professionals), not reaching the total income of the members of the family unit. The transcription of RDL 11/2020:
- 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 will 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 the age of 65 who is a member of the family unit.
- In the event that any of the members of the family unit have a declared disability of over 33%. situation of dependency or illness that makes them permanently incapable of carrying out a work activity, the limit foreseen shall be 4 times the IPREM, without detriment 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 recognised degree of disability equal to or greater than 65%, as well as in the cases of serious illness that makes the person or his/her carer demonstrably incapable of carrying out a work activity, the limit foreseen will be 5 times the IPREM.
- That the rental income, plus expenses and basic supplies (consumption), is 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 property in Spain that they may have.
The tenant who intends to apply any of the measures or aid contemplated will be obliged to accredit compliance with these requirements. Either the landlord, the public administration or the judicial bodies.
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