The tenants recover some lost guarantees in 2013. The tenants recover some lost guarantees in 2013.

The LAU reform allows tenants to recover five-year contracts and three-year contracts, but avoids setting a price cap

Those who are thinking of renting a house are looking to a 2019 in which prices will continue through the roof, but at least sign contracts more guarantees. The past day 19 came into force a Royal Decree Law of urgent measures in housing and rent approved by the Government that modifies the Law of Urban Leases (LAU).

In sum, tenants will enjoy more durable contracts and renewals. However, the text has obviated the main demand of users: a cap on unbridled rents.

Actually, the tenants have not advanced significantly; they only return to the situation previous to the modification of the norm in 2013, when the government that then presided over Mariano Rajoy cut the tenants some rights that they now recover.

Duration

Contracts go from at least three to five years
Given that the government has decided to postpone sine die to establish a control over the prices of rents -especially in those cities where the bubble is more inflated- the star measure of the decree is the lengthening of contracts, which go from three to five years. Seven, if the owner is a company.

It was one of the great demands of the tenants, who during these years of inflation were forced to renew or sign new contracts every three years, in many cases assuming excessive increases. They also regretted that this period is a short time to establish a fixed residence.

The modification of the LAU does not have retroactive effects, so these changes only affect the contracts signed from last day 19.

Automatic extension

Automatic extension

The renewal of contracts goes from one to three years
If the expiration date of the contract arrives and neither landlord nor tenant makes explicit their refusal to renew, there will be an automatic extension of another three years (after the modification of the LAU in 2013 that new period was only one year). In this way, contracts can now last a minimum of eight years-ten, if the owner is a company (banks or vulture funds.)

Bail bonds

Bail bonds

A cap of two monthly payments as collateral
The law limits the bonds that owners and agencies request as collateral to rent for a maximum of two monthly installments. It is another of the main claims of the tenants, who in the middle of the bubble have had to assume sureties and abusive bonds.

The landlords could claim payments in deposit of several monthly payments, which translated into disbursements of thousands of euros without having yet to live in the property.

The new LAU also rules out other types of endorsements that owners could request without any restriction.

Expenses

money expenses

They are borne by the owner if it is a company
The tenants will also save the management expenses with the real estate and the formalization of the contract if the owner of the property is a legal person (companies, companies). The lessee will assume the expenses if these have been generated by his initiative.

Evictions

Evictions

They are paralyzed one month in case of vulnerable families
The associations of tenants expected more determination from the Government to stop the evictions for non-payment of rent, whose number has soared -1,187 families have been evicted between January and October in the Balearic Islands for not paying the rent-. However, the text does not elaborate on this matter.

The new regulation establishes that, in case the family is in a vulnerable situation, the judge will go to the social services to find a solution in a month, during which the process of eviction will be paralyzed (it will be two months if the owner It’s a company).

The text makes clear that, if after that period, a housing alternative for the family has not been found, the eviction process will continue.