Seasonal rentals are increasingly common in big Spanish cities, accounting for up to 30% of the rentals on offer on the housing market in Barcelona. Moreover, since the recent entry into force of Law 12/2023, of 24 May, on the right to housing, better known as the Housing Law, which regulates the prices of traditional rentals, temporary rentals became an alternative to avoid being subject to the new limits imposed by said law, since these limits do not apply to seasonal rentals or sublets.
In order to respond to the massive decline in homes intended for habitual place of residence, Decree Law 6/2024, of the 24 April, on urgent measures with regards to housing, was approved in Catalonia. This Decree-Law introduces the application of measures considered in the Housing Law to seasonal rentals and sublets, as well as establishing new requirements in terms of information and a new scheme of penalties.
The Decree-Law forces owners who opt for short-rentals to apply the rent caps established in the Housing Law unless they opt for rentals for leisure, tourist, recreational or cultural purposes. This means that seasonal rentals intended for tenants who rent for professional or academic purposes, amongst others, must be subject to the limits established in the Housing Law, these being caps on rent and prohibitions of things such as passing on the costs of formalising the contract and managing the property to the tenant.
It also introduces the obligation to inform at the time of placing the deposit with Incasol, and in seasonal rental contracts, the cause or purpose of the lease, in order to determine whether or not rent capping is applicable.
With regards to sublets, it establishes that the sum of the total rent of all of the rooms cannot exceed the limit that would be established if the property was rented as a whole.
The Decree-Law introduces various obligations in terms of advertising, and it becomes compulsory to make known in advertisements and offers reference prices for rent, the price of rent established in the most recent current contract from the last 5 years, and whether the owner meets the condition of a major property holder.
Finally, it introduces a system of sanctions, distinguishing between minor, serious and very serious penalties.
(i) Minor infractions will be considered to be failing to comply with advertising requirements and letting a property for a price exceeding no more than 10% of the limit established in the price capping regime.
(ii) Serious infractions will include the letting of a property for a price from 10% to 30% higher than the established limit, a lack of information on the purpose of a lease, as well as passing onto the tenant the costs of formalising the contract and property management.
(iii) Very serious infractions will be considered to be the letting of a property for a price that is more than 30% above the established limit.
Oscar Vilá
Vilá Abogados
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3rd May 2024
