The Generalitat of Catalonia has approved Decree Law 6/2024, of April 24, on urgent measures in housing, which came into force on Friday, April 26 to regulate temporary rentals (11 months or less) and rentals of rooms. A measure that has been urgently approved to prevent rentals that should be long-term rentals, regulated by the new housing law and subject to price restrictions in stressed areas, from becoming room rentals or temporary rentals, which are not governed by these regulations. Thus, how is the new Housing Law affecting Temporary Rentals and Room Rentals?
Index:
1- What does the Decree Law for temporary and room rentals consist of?
2- What types of rental contracts will the Decree-Law of Catalonia affect?
3- What happens if I have a current temporary or room rental contract?
4- What happens if the owners do not comply with the regulations for temporary and room rentals?
Temporary Rentals and Room Rentals: how is the new housing law affecting them?
1- What does the Decree Law for temporary and room rentals consist of?
The main purpose of this new regulation is to regulate aspects of temporary rental contracts and rooms, which are not contemplated in the Housing Law. Thus, it will prevent many apartments that should be considered long-term rentals from being rented under the modalities of temporary rental or rooms, evading the regulations on the maximum limit of the rental price.
The main measure is the maximum limitation of the rental price in this type of contract that were excluded from the limits of the Housing Law. The most notable measures of this regulation are:
- Maximum rental price limit
- More information to be stated in rental contracts
- Rental formalization expenses
- Adds including the necessary information for the tenant
- Registration as temporary or room rental in the corresponding public office
Maximum limit on rental price:
Article 2 of the standard specifies that the rental price of this type of contract may not exceed the maximum rental price applicable if it were rented as a habitual residence when the home is located in an area declared as a stressed rental area.
Furthermore, Article 5 of the law applicable in Catalunya, specifies that for room rental contracts, the sum of the rent for each room of the property may not exceed the maximum price applicable to the unitary rental of the home.
For example, if the maximum rental price limit in stressed areas is 1,000 euros, the sum of the rent for all rooms may not exceed 1,000 euros per month.
Additional information in rental contracts:
Article 4 of the law indicates that in contracts for temporary housing and rooms, the following information must always be included:
- The rental price of the last contract that has been in force for the last 5 years
- The maximum rental price is indicated in the State Housing Rental Price Reference System.
- The condition of the owner as a major holder would be so as long as the home is located in an area declared stressed at the time of signing the contract.
- In Article 5 of the regulations, they indicate that “The temporary purpose must be stated in the contract and must be duly accredited”.
In addition, it is also indicated that, at the time of signing the contract, the tenant has the right to receive:
- The document accrediting the Reference Price Index System that corresponds to applying to the rental price containment regime obtained for this purpose through the public consultation system established by the competent administration.
- The certificate of habitability or equivalent accreditation.
- The energy efficiency certificate.
Rental formalization expenses:
Not passing on to the tenant the costs of property management and formalization of the contract
Registration as temporary or room rental in the corresponding public office:
Article 5 of the law indicates that the documentation proving that it is a temporary or room-based rental home must be deposited together with the deposit in the corresponding public registry. If this is not done, it is presumed that the rental is for permanent housing.
Announcements with the necessary information for the tenant:
When advertising a home for rent, this advertisement must include the following information, following Article 3 of the Decree-Law on urgent measures regarding housing:
- The reference price of rent resulting from the Government’s index system.
- The rental price of the last valid contract of the last five years.
- The condition of the owner as a major property holder, if applicable.
2- What types of rental contracts will the Decree-Law of Catalonia affect?
It will affect temporary rentals and room rentals within the Autonomous Community of Catalonia:
- Temporary rental is one where the rental period lasts 11 months or less and is intended for professional, work, study, medical care or assistance, or similar purposes.
- The rental of a part of the house, a room, with access to the common areas.
Furthermore, Article 5 of the Decree-Law, will also apply to housing rental contracts in which only the duration is foreseen, but not the temporary purpose.
What rental contracts will not be regulated by these regulations?
- Seasonal rentals (not temporary ones) are exempt from this regulation. These are also considered vacation rentals with a leisure, vacation, recreational, or cultural purpose (contests, conferences, fairs, festivals, events, etc.).
3- What happens if I have a current temporary or room rental contract?
The new measure will regulate new seasonal rental contracts or room rental contracts as of its entry into force (April 26, 2024), so the current contracts for this type of rental in Catalonia – in principle – would remain with the current conditions until the moment of renewal or new contract.
4- What happens if the owners do not comply with the regulations for temporary and room rentals?
The Decree Law, in its Articles 6, 7, 8, and 9, also contemplates violations for non-compliance with these measures:
Minor violation:
- Failure to include mandatory information in advertising, offers or contracts.
- Rent the apartment for a price that exceeds the maximum applicable in rent containment by up to 10%
- For example, if a home has a maximum limit of 1,000 euros, it will be considered easy to rent it for more than 1,001 and up to 1,100 euros per month.
Serious violation:
- Renting the home for a higher price of between 10% and 30% in accordance with what is set by the State Reference System for Housing Rental Prices.
- For example, if a home has a maximum limit of 1,000 euros, it will be considered very serious to rent it for more than 1,100 or 1,300 euros per month.
Very serious violation:
- Renting the home for a price that exceeds 30% of the maximum applicable according to the price containment regime.
- For example, if a home has a maximum limit of 1,000 euros, renting it for more than 1,300 euros per month will be considered very serious.
Want to learn more about the different rental contracts in Spain? Head over to our blog entry here.
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