{"id":1426,"date":"2013-06-14T10:56:54","date_gmt":"2013-06-14T10:56:54","guid":{"rendered":"https:\/\/vila.es\/en\/?p=1426"},"modified":"2021-11-16T17:38:54","modified_gmt":"2021-11-16T17:38:54","slug":"the-reform-of-the-urban-rentals-act-flexibility-in-rentals","status":"publish","type":"post","link":"https:\/\/vila.es\/en\/contracts\/the-reform-of-the-urban-rentals-act-flexibility-in-rentals\/","title":{"rendered":"THE REFORM OF THE URBAN RENTALS ACT: FLEXIBILITY IN RENTALS"},"content":{"rendered":"

I.- INTRODUCTION<\/p>\n

Law 4\/2013 on measures regarding the relaxation and promotion of the rental market was published in the Spanish Official State Gazette (BOE) on 4th June in order to modify a series of aspects of the existing Urban Rentals Act, thus adapting it to the needs of the current rentals market. It should be noted that Spain has one of the weakest rental markets of the European Union due to the importance given to being a property owner by the Spanish consumers and the apprehension of owners to rent their properties. These measures intend to promote and make the option of renting more attractive for both lessors and their tenants.<\/p>\n

II. RELAXATION AND PROMOTION OF THE RENTALS MARKET \u2013 MEASURES TO BE TAKEN.<\/strong><\/p>\n

Of the measures passed by the government, the following stand out:<\/p>\n

a) \u00a0Duration of the lease<\/span>:<\/p>\n

Up until the entry into force of the new law, the duration of the lease had to have an obligatory option for extension of 5 years at the discretion of the lessee and once these five years had elapsed, a tacit extension of three years, unless otherwise indicated by either of the parties. According to the \u00a0\u00a0 \u00a0new wording, the obligatory extension period is reduced to three years and the tacit extension to one year.<\/p>\n

b) \u00a0Recuperation of the property by the owner<\/span>:<\/p>\n

The recuperation of the property by the owner is allowed in cases where the property is intended to be used as the permanent home of the owner, provided that a series of circumstances are fulfilled, and always provided that the first year of the contract has been fulfilled.<\/p>\n

c) \u00a0Voluntary cancellation on the part of the lessee<\/span>:<\/p>\n

Likewise, measures clearly benefitting the lessee have also been taken, granting them the possibility to desist from the contract at any time with prior notification of 30 days, always providing that at least six months have passed as from the start of the contract.<\/p>\n

d) \u00a0The eviction of the lessee<\/span> shall remain linked to the lack of opposition from the defendant, that is to say, in cases where the latter does not attend to payment demands or does not appear in court to oppose, the court clerk shall pass a decree finalising the eviction proceedings.<\/p>\n

e) \u00a0Modification to the rental assistance system<\/span>:<\/p>\n

With the entry into force of this law, a series of changes shall take place regarding the rental assistance system established in the State Housing Plan and Basic Rental Plan for the independence of young people leaving the family home. In particular, subsidies given to agreed upon loans received at this time, likewise, assistance programmes for tenants, urban and integral refurbishment, individual refurbishment and the so called \u201cPlan Renove\u201d (renewal plan) shall be maintained.<\/p>\n

f) \u00a0Registration of final judgements passed for non-payment of rental<\/span>:<\/p>\n

One of the most interesting points of the new law is the creation of a new registry for judgements passed for the non-payment of rentals, which is aimed at offering information regarding the risk involved in renting out property to persons who have a background of not fulfilling their payment obligations under the conditions of a lease agreement, and who for said\u00a0reason, have been found guilty by a final judgement in an eviction procedure.<\/p>\n

III.- CONCLUSION<\/strong><\/p>\n

Having analysed the measures taken by the government, we may arrive at the conclusion that the main aim is to make the rentals market more secure for the lessors, in an attempt to make currently uninhabited dwellings available for rent, thus increasing the offer of properties and making the market more attractive. Likewise, the relationship between both parties is made more flexible and provides a beneficial environment for both.<\/p>\n

 <\/p>\n

 <\/p>\n

Vil\u00e1 Abogados<\/p>\n

 <\/p>\n

For more information, please contact:<\/p>\n

va@vila.es<\/span><\/a><\/p>\n

 <\/p>\n

14th<\/sup> of June 2013<\/p>\n","protected":false},"excerpt":{"rendered":"

I.- INTRODUCTION Law 4\/2013 on measures regarding the relaxation and promotion of the rental market was published in the Spanish Official State Gazette (BOE) on 4th June in order to modify a series of aspects of the existing Urban Rentals Act, thus adapting it to the needs of the current rentals market. It should be […]<\/p>\n","protected":false},"author":4,"featured_media":4704,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83,84],"tags":[],"class_list":["post-1426","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contracts","category-real-estate"],"yoast_head":"\nTHE REFORM OF THE URBAN RENTALS ACT: FLEXIBILITY IN RENTALS - Vil\u00e1 Abogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/vila.es\/en\/contracts\/the-reform-of-the-urban-rentals-act-flexibility-in-rentals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"THE REFORM OF THE URBAN RENTALS ACT: FLEXIBILITY IN RENTALS - Vil\u00e1 Abogados\" \/>\n<meta property=\"og:description\" content=\"I.- INTRODUCTION Law 4\/2013 on measures regarding the relaxation and promotion of the rental market was published in the Spanish Official State Gazette (BOE) on 4th June in order to modify a series of aspects of the existing Urban Rentals Act, thus adapting it to the needs of the current rentals market. 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