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: suspending payments and distributions for a few months or even canceling rents altogether. Large state-owned companies have also joined such rent moratoriums. In the meantime, the government continues to look for options on how to help tenants affected by the crisis and not harm small real estate businesses.
At the same time, the government is still looking for options on how to help tenants affected by the crisis and not harm small real estate businesses.
Possible contingency plans and solutions for large companies:
– The Lazora Investment Fund has been present in the real estate market since 2004, was the first participant to declare a moratorium on rent payments to those families experiencing financial hardship due to COVID-19.
The criteria for qualifying for this assistance are based on those the government applies in the case of a mortgage moratorium (job loss or significant drop in income). They include the possibility of delaying the payment of rent for the period in which the state of emergency is in force in Spain. It is also possible to pay part of the rent during this period.
– Testa and Fidere, the real estate investment trust of Blackstone. This American real estate giant has around 20,000 rental apartments throughout Spain. They are also going after tenants in this unusual situation. They are going to analyze all cases in detail to find a solution for the tenants affected by this situation. Already they are considering the possibility of transferring rents. For example, the fund has already applied similar moratoriums in 2014 and 2015. They will also be offering bonuses for local estate agency tenants.
They will also be offering bonuses for local estate agency tenants.
Banks
– Caixabank. From April, the Catalan company will exempt tenants of homes owned by its affiliated real estate agency BuildingCenter. The measure will remain in effect until the state of emergency is declared over. And it will help those tenants who are out of work, or underemployed, who have shut down their businesses or whose activity has dropped by more than 40 percent.
– Santander, BBVA, Sabadell, Abanca, Bankinter, ING, Deutsche Bank y Banca March. These organizations will defer rents for up to three months for tenants living in Fondation Social Housing (FSV) apartments and experiencing economic impacts due to COVID-19.
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– Sareb. The company that manages the banks’ assets will also take steps to help tenants. They will do this through social assistance programs. The company already has such programs in place for 10,000 social housing parks. Specifically, the company will analyze individually each case and help those affected. For example, by offering them more affordable housing. In addition, they will not apply eviction for payments not made on time.
They will also not apply eviction for payments not made on time.
Decisions of city councils
Madrid City Council. The government of the capital will apply a moratorium on the leasing of apartments to the Municipal Housing and Land Company (EMVS). In particular, about 6,000 households will not receive a bill for April. The City Council does not rule out extending this moratorium if the pandemic continues. In this way, the necessary conditions for the payment of rent will be maintained. And new rent offers will be suspended until at least June 30.
– Barcelona City Council. There will be no apartment rental fees 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). The abolition of rents until July has been introduced. And the unpaid amounts will be prorated for the next 18 months. Namely from July 2020 to December 2021.
Council of Catalonia. The Catalan government has approved a moratorium on the rent of 20,000 apartments that are partially subsidized by the Spanish public administration. The April payment has been suspended for now, but will be extended as necessary. Bonuses will be applied to tenants who have lost their jobs or whose income has been affected.