Contracts are extended, prices go up

11/05/2019

In the first weeks of the new regulations, in addition to the reduction of the offer, there is also an upward trend in the prices of outgoing rentals caused by the extension of contracts from 3 to 5 years. This is due, he explains, to the landlords trying to keep their incomes out of date for these longer periods. "

"When the market itself tended to show signs of moderation in rental prices, we began to see how these measures favor new increases because of the low supply and high demand," he says.

According to recent estimates, more than 80% of the rental park in Spain is in the hands of private owners, small investors who see in the home a way to ensure a future or to help their children.

"These owners are not favored to take the housing out of the rental market. There are no measures that provide confidence, the deadlines for the eviction have been extended and, as the floors are after an operation of this type, the owner does not want to re-rent ", Criica.

To this is added that the fiscal measures approved to favor the lessor are "insignificant". In this way, he regrets that when the market began to show signs of moderation in rental prices, the measures "have favored a new recovery".

For the experts, it does not encourage the owner "the responsibility that falls on him, without corresponding to him, in the case of the vulnerable families in which the social services must intervene.

In this sense, experts see "unfortunate" the decision to remove additional guarantees and guarantees for potential tenants, as the measure hurts people with fewer resources.

«With the additional guarantees they could provide security to the owner and guarantee the payment of the rents. The absence of these guarantees makes it very difficult, and in many cases impossible, for these people to have free rent, "he adds.

 


The regulation of tourist rental

On the other hand, the real estate experts applaud the decision of the Executive to advance in a state regulation that regulates the tourist rents.

Therefore, they see "right" that this rental model is excluded from the LAU and that the Horizontal Property Law has incorporated modifications that give the community owners resources to limit these rents in the multi-family blocks. They also believe that these measures will favor that many of these flats go out to the ordinary rent and allow to increase the offer.