Should I expect a rent moratorium?
The new Royal Decree 11/2020 came into effect on April 1, 2020. On this law, the government hopes to mitigate the economic consequences of the quarantine.
The decree is designed to cover the maximum number of people interested in receiving aid. What changes are coming in the area of rental housing, according to this decree? Everyone should expect a rent moratorium and what other concession options are possible? Consider the approved decision in more detail.
To obtain possible relief, the tenant must meet the following conditions:
– be fired, fall under the ERTE (Temporary File of Employment Regulation) or reduce the official salary, and as a result officially earn less than three IPREM rates (Multiple Effects Public Income Indicator) per family (+ 10% per family with kid);
– amount of the rent payment is more than 35% of the official earnings per family.
The specified category of persons has the right to ask the owners of the property if:
– The lessor is a legal person or physical person, who owns 10 or more real estate in Spain. Within seven business days, said person must choose between two options: a 50% discount on the rent for the duration of the emergency measures (but not more than 4 months) or a complete moratorium on the rent for the duration of the emergency measures with the tenant’s obligation to make up for lost payments in equal installments in a period not to exceed three years from the end of the quarantine.
– the lessor is a physical person, who owns less than 10 properties in Spain, the lessee can only request a deferment plan. In turn, the lessor in seven business days can accept these conditions, offer his own or completely reject any concession.
At the time of quarantine, a prohibition on eviction of tenants is introduced, but only those who are in the conditions mentioned above.
Home rental contracts that expire during the quarantine period are considered automatically extended for up to 6 months.
Link to the Royal Decree – Law 11/2020