Lorraine Williamson
A recent amendment to Spanish rental legislation has ignited discussions across the real estate sector. The new law provides tenants with greater security, allowing them to remain in their homes even if landlords do not wish to renew the contract.
While the measure aims to improve housing security, landlords’ associations warn it could lead to a reduction in available rental properties.
Right to stay in the property
One of the most significant changes is the right of permanence, which allows tenants to stay in their rented homes after their contract expires, provided they continue to meet their payment obligations and comply with the terms of the agreement. This applies to contracts signed from 6 March 2019 onwards. For contracts shorter than five years (for private landlords) or seven years (for corporate landlords), renewal will now be automatic.
Balancing tenant protection and landlord rights
The reform, based on the urban tenancy law, aims to prevent sudden evictions and provide tenants with long-term housing security. However, many landlords argue that the legislation restricts their property rights, leading to tension between tenant protection and landlord interests.
Impact on the rental market
Tenant advocacy groups support the changes, viewing them as a step toward fairer housing policies. However, experts warn that the new rules could reduce the availability of rental properties, as some landlords may opt to withdraw their properties from the market. This could, in turn, lead to a decrease in supply and potentially drive up rental prices.
New restrictions for landlords
The revised law introduces additional restrictions for landlords, limiting their ability to sell properties or adjust rental rates once contracts expire. Landlords will need to either comply with the new rules or negotiate stable, long-term agreements with their tenants.
As the new legislation takes effect, the real estate sector will closely monitor its impact on tenants and property owners across Spain.
Also read: Tax relief for long term rental landlords in Spain