Spain has been in a state of emergency for a week. The goal is to reduce the active spread of coronavirus throughout the country. At the same time, movements and associations are beginning to appear that demand a rent moratorium on rents from the state. In other words, renters want to get a legal right to defer payments due to the current situation in the country. They are guided by the principle: “If we do not work and do not receive a salary, then we cannot pay rent.”
This proposal was put forward by members of the “Unidas Podemos”. The main idea is similar to the measures that have already been taken with respect to mortgage payments. On March 17, the Council of Ministers approved a rent moratorium on the payment of mortgage payments for self-employed and self-employed. As a result of the adoption of exceptional measures to limit the spread of COVID-19, these groups of people lose their jobs or their income is sharply reduced.
In fact, the Spanish government, represented by Pablo Iglesias, vice president of social affairs, makes it clear that “the government is aware that many people will not be able to pay rent,” so “we will look for ways to guarantee their right to housing.”
General rent moratorium on rent and chaos
The possibility of introducing a rent moratorium on rent is becoming more and more. According to experts, such a measure can be extremely adverse for many individuals or small firms.
“Such an innovation will cause chaos and uncertainties, and this is what we least need at the moment, as this will lead to a reduction in the supply of rent. And this sector has already been seriously attacked by the legislature. ” In addition, housing is a source of income for millions of Spaniards. And if this crisis worsens, rental income will be the only source of income for many families and self-employed people, ”says Beatrice Toribio, a real estate analyst.
The rental sector is a huge social sector, and its proper development depends on the construction of affordable and social housing intended primarily for young people and low-income families. On the other hand, a person who is quarantined at home and works remotely continues to receive a salary. Accordingly, he will be able to fully pay his rent. Those with savings will also be able to pay until they are given unemployment benefits or find another job. Therefore, the state is cautious and plans to focus on helping those who really need it. Despite the state of emergency in the country, this is not the time to make hasty decisions and general measures. After all, this can adversely affect individuals or small firms and the economy of the whole country.
Opinions of experts and analysts
José Ramón, main director of real estate agency “Agencia Negociadora del Alquiler”, admits that “in most cases, it is the property owners who are in a worse economic situation than the renters.” Therefore, he warns that “any measure that is implemented in respect of rental payments must be mutual for both parties (lessors and renters). If a rent moratorium on the payment of rental housing is introduced, it should be accompanied by a similar measure with respect to the owners. They must not be left unprotected. ”
According to experts, the solution to this situation is that landlords agree individually with renters. If residents have specific problems, temporarily suspend monthly payments. And the state must commit itself to guarantee collection of payments after the agreed deadline. Or until the renter is able to resume payments as usual. But such an alternative is guaranteed by public resources and will directly affect the country’s economy. Everything indicates that the proposal of the Unidas Podemos party will focus only on large professional landlords. That is, companies and individuals who are considered large homeowners (at least 10 apartments).
How not to lose rent and money?
There is the possibility of a gradual distribution of debts and payment in a specified period of time (six months, a year, etc.). Exemption of a renter from payment during an emergency in the country does not imply that the owner is losing income. Proportional distribution implies an increase in rents in subsequent months, which is an absolute plus for the renters.
We monitor this topic daily and will notify you of new rules and laws. Stay tuned for updates here or on our Facebook page!
Regards, wishes of health and peace,
Anna Lyubavina and the team of Broadway Consulting Corporation SL