The new housing law came into effect on May 26, 2023, although its full implementation will be gradual, especially regarding measures to contain rents in new contracts. This is because, as of today, the tensioned residential market areas have not been published, and the reference index for rental prices has not yet been processed.

Therefore, until the tensioned market areas are approved, the rents for new contracts will be freely determined by the parties, whether you are a BIG LANDLORD or not. A BIG LANDLORD is considered to be a natural or legal person who owns 10 urban properties for residential use or a surface area of more than 1,500 m2 for residential use, excluding garages and storage rooms.

  • Attention! Autonomous Communities (CCAA) may reduce this number of 10 properties to 5 or more, as long as they are located within the limits of the same tensioned area.

In new rental contracts that do not reference any valid contract in the last 5 years, property tax (IBI) and community fees may be passed on, as long as they are specified in the contract and the concepts and amounts are detailed separately in the fixed rent.

In the case that the new contract is referenced to the previous one, only the mentioned expenses (IBI and community fees) can be passed on if they were provided for in the contract and if they are itemized, that is, if they were included within the overall rent, they cannot be passed on.

Once the tensioned residential market areas are approved, it must be included in the contract, as well as the amount of the last rent of the housing contract that has been in force in the last 5 years, and the amount that may correspond according to the reference index for rental prices in effect. The most beneficial option for the tenant will always be applied.

It is important to remember that, with the new law, the management and formalization costs of the rental contract will be borne by the landlord and not the tenant, meaning that individuals will be equated with legal entities that were already assuming this cost.

Lastly, regardless of what the parties have agreed to in the contract, when it comes to the rent review, it cannot increase by more than 2% until December 31, 2023, and 3% until December 31, 2024. Starting from January 1, 2025, the index published by the INE will be applied, which must be defined before December 31, 2024.

At addwill, we are at your disposal if you wish to obtain more information and seek advice on this matter from our professional experts in the civil department. You can leave your inquiry by clicking here.