Should I count on a rent moratorium?
The new Royal Decree 11/2020 came into force on April 1, 2020. With this legislation, the government hopes to mitigate the economic impact of the quarantine.
The decree is designed to reach as many people as possible who are interested in getting some kind of help or relief. What changes are coming to the rental housing industry under this decree? Should everyone expect a rent moratorium and what other concessions are possible? Let’s take a closer look at the approved ordinance.
In order to be eligible for possible relief from the landlord, the tenant must fulfill the following conditions:
– to be dismissed, to be subject to ERTE (Expediente Temporal de Regulación de Empleo) or a reduction in rate, and as a consequence to earn officially for the month of March less than three IPREM rates (Indicador Público de Renta de Efectos Múltiples) per family (+10% for a family with a child);
– The amount of rent paid is more than 35% of the official earnings per family.
The above category of people get the right to make a request to their landlord if:
– The landlord is a legal entity or individual who owns 10 or more properties in Spain. Such a person has seven working days to choose between two options: a 50% discount on rent for the duration of the emergency measures (but not more than 4 months) or a complete moratorium on rent for the duration of the emergency measures with the obligation of the tenant to repay the missed payment in equal installments for a period not exceeding three years from the end of the quarantine.
– the landlord is a natural person who owns less than 10 properties in Spain, the tenant can only ask for a deferral or installment of payment. The landlord, in turn, has seven working days to accept these terms, offer his own or refuse any concessions at all.
For the duration of the quarantine, there is a ban on evicting tenants, but only those that fall under the conditions listed above.
Rental housing contracts that expire during the quarantine period are considered automatically renewed for up to 6 months.
Link to Royal Decree Real Decreto – Ley 11/2020