The Right to Housing Act (Law 12/2023), enacted on May 24, introduced major changes to the 1994 Urban Leases Law, Civil Procedure Law, and eviction processes, particularly those focused on recovering possession of residential properties. These updates significantly impact large-scale property owners, affecting both the drafting of new lease agreements and the handling of evictions.
This article offers practical advice for large property owners, whether individuals or companies that manage real estate through holding entities.
The first step is to clarify what qualifies someone as a “large-scale property owner.” The law defines this as any individual or company owning more than ten properties or 1,500 square meters of residential space (excluding parking and storage). However, regional governments can adjust this definition. For instance, in Catalunya, the threshold is reduced to five properties in areas classified as high-demand or “stressed.”
Key Impacts for Large-Scale Property Owners:
New Lease Agreements
In stressed areas, additional rental restrictions apply to all landlords. However, large-scale owners face extra obligations, such as mandatory lease extensions (up to one or three years) for tenants, as outlined in Article 10 of the Urban Leases Law.
Lease agreements should also include a clause requiring tenants to provide personal information, especially to address potential vulnerability situations. This is particularly critical for large landlords.
Eviction Procedures
Large property owners must fulfill two preconditions before filing an eviction lawsuit: a vulnerability assessment and an attempt at mediation.
These steps are required by law, and failure to complete them will result in the case being dismissed:
Submit a vulnerability assessment request to the Catalunya Housing Department, including all relevant details. The department has up to two months to respond.
If the tenant is deemed vulnerable, mediation must be attempted to negotiate a feasible solution (e.g., a revised rental agreement). If mediation succeeds, legal proceedings are avoided. If not, proof of the attempt allows the eviction lawsuit to proceed.
If the tenant is not classified as vulnerable, the lawsuit can proceed without mediation.
Additional Recommendations:
– In Barcelona, courts base the “large-scale owner” definition on property registry records. For undivided buildings, each counts as one unit, potentially exempting some owners from large-scale classification. Avoid splitting such properties to minimize regulatory obligations.
– Start eviction processes promptly, as they now take longer. Avoid accumulating excessive unpaid rent, as extended procedures can further delay resolution.
For professional guidance, contact our procedural team at comunicacio@addwill.eu, 93 487 52 00, or click here. We will be glad to help.