Do you remember the old ice cream cart? We’d see it coming, but never knew whether it would stop, or where? The new Residential Tenancies Act is quite similar. We see it coming, and when we think it’s about to be passed, it turns the corner and disappears.
In the last 4 months the Residential Tenancies Act has been on a merry-go-round of change, due to the political battle in which we find ourselves in Spain.
On 19 December 2018, the rental market reform was put into effect by Pedro Sanchez’s government. The most significant changes in relation to the existing law (established by the PP in 2013), affected the duration of rental contracts, and security deposits.
However, on 22 January 2019, the reform was repealed by a large majority in Congress, showing Podemos’ opposition, after failing to achieve the limitation by the law of rental prices. The opposition repealed the reform because they claim it wouldn’t solve Spain’s real problem; the shortage of supply and the lack of legal security.
On 1 March 2019, facing the block of its reform, the government reacted rapidly and achieved approval of new legislation by the Council of Ministers. While this doesn’t incorporate the regulation of prices as demanded by Podemos, it does move towards providing more security for the tenant.
Any contract signed between these dates will remain in force, even though Congress has rejected the measures. The website Idealista has summarised the effects of this transience here.
In view of how the instability of the ice cream cart is brought about by uncertainty, we worry that the homeowner doesn’t feel secure and protected by the new Residential Tenancies Act, as it hasn’t brought any changes which offer more protection to the landlord.
If landlords were confident and protected by a stable law (without so much see-sawing), unafraid that it might disappear round the corner like the ice cream cart, then surely there would be a greater supply of housing, prices would stabilise and be more competitive for the tenant.
Better than an ice cream cart, what both the landlord and the tenant really need is a bona fide ICECREAM PALOUR, where the day of the month doesn’t affect the flavour and there is no doubt that it will be there, should they need it.
We need clients who feel safe; “good decisions are never made in fear”.
We give you the best tips and tricks to make renting your flat fast and secure. From finding the right tenant, to analysing which month is best for renting.
From Withfor, the high standing Real Estate in Barcelona, we expand the panorama of this new model that is giving something to talk about in the real estate world, and, in addition, can be an excellent way to invest in the...
The charm that lies within the Costa Brava is no secret. Because of its picturesque villages, its magic, its cuisine, its magnificent array of sunrise colours, its sunsets and the blueness of the ocean, it is word discovering every wonder...