Many private companies, such as real estate investment funds and banks, have announced various initiatives to help tenants affected by the crisis. They offer various options: suspension of payments and distribution for several months or even a complete cancel rent payment. Large state-owned companies have also joined such lease moratoria. At that time, the government continues to search for options on how to help tenants affected by the crisis and not harm small real estate businesses.
Possible plans and decisions of large companies in case of unforeseen circumstances:
– The Lazora Investment Fund has been represented on the real estate market since 2004, it was the first participant to cancel rent payment for families experiencing financial difficulties due to COVID-19.
The criteria for receiving such assistance are based on those that the government applies in the event of a moratorium on mortgages (job loss or a significant drop in income). They include the possibility of deferring rental payments for the period when the state of emergency in Spain. Partial rental payments are also possible during this period.
– Testa and Fidere, Blackstone Real Estate Investment Fund. This American real estate giant has about 20,000 rental apartments throughout Spain. They also meet tenants in this unusual situation. They are going to analyze in detail all cases in order to find a solution for tenants affected in this situation. Already considering the possibility of transferring rents. For example, the fund has already applied similar moratoria in 2014 and 2015. They will also offer bonuses to tenants at local real estate agencies.
Banks
– Caixabank. Starting in April, a Catalan company will exempt tenants from houses owned by its subsidiary Real Estate Agency BuildingCenter. This measure will continue until the end of the state of emergency is announced. And this will help those residents who are unemployed, or self-employed, who have stopped their activities or whose activity has decreased by more than 40%.
– Santander, BBVA, Sabadell, Abanca, Bankinter, ING, Deutsche Bank y Banca March. These organizations will set aside rents of up to three months for residents living in apartments of the Social Housing Fund (FSV) and experiencing economic impact due to COVID-19.
– Sareb. A company that manages bank assets will also take steps to help tenants. They will do this through social assistance programs. The company already has such programs for 10,000 social housing parks. In particular, the company will individually analyze each case and help the victims. For example, offering them more affordable housing. In addition, they will not apply eviction for payments at the wrong time.
City Council Decisions
– Madrid City Council. The government of the capital will apply a moratorium on rental apartments of the Municipal Housing and Land Company (EMVS). In particular, about 6,000 families will not receive an invoice for payment for April. The City Council does not rule out an extension of this moratorium if the pandemic continues. Thus, they will retain the necessary conditions for the payment of rent. And new rental offers will be suspended at least until June 30th.
– City Council of Barcelona. Apartments will not be charged in April, May and June. A total of 8,748 families living in rented apartments managed by the Municipal Institute of Housing and Rehabilitation (IMHAB). Abolition of rent by July. And unpaid amounts will be proportionately distributed over the next 18 months. Namely, from July 2020 to December 2021.
– Council of Catalonia. The Government of Catalonia has approved a moratorium on the rental of 20,000 apartments, which are partially subsidized by the Spanish state administration. So far, the April payment has been suspended, but it will be extended as necessary. Bonuses will apply to tenants who have lost their jobs or whose income has been affected.