Spanish government approves important Bill to reform existing rules for rentals and leases

30 Aug Spanish government approves important Bill to reform existing rules for rentals and leases

The Spanish Council of Ministers has recently approved a Bill to boost the housing rental market in Spain through measures aimed to increase its flexibility, reduce the time limits for the duration of the renting terms, and improve the legal certainty. It also introduces a series of measures of a fiscal nature. Now there will be a parliamentary procedure where the government will seek consensus with other political forces, although the majority of the PP at the legislative chamber will safeguard the Bill’s viability.

Some of the novelties are:

• The term of the lease will be the one expressly agreed upon by the parties. Without prejudice to that, in order to boost the rental market and provide it with greater flexibility, the existing compulsory time extension is reduced from 5 years to 3 and the tacit extension from 3 to 1, so that landlords and tenants can adapt more easily to changes in their personal circumstances.
• There is a possibility of the lessor to recover his property at any time even when this option was not explicitly provided for at the signing of the contract: as long as at least the first year of duration of the contract would have passed, but only when the conditions legally required for doing so are met.
• The tenant may withdraw from the lease contract provided that he informs the lessor with a minimum notice of one month.
• There is an expedition of eviction procedures, so that when a legal claim for eviction due to failure to pay is done, the defendant shall be required so that he proceeds to pay within ten days or explain the reasons which justify the non-payment. If the defendant does not appear, does not pay or does not justify failure to pay, the judge shall issue an order ending the trial and will proceed to the eviction for which the presence of an officer of the Court will be enough.