New Law in Spain

23.09.2023

Landlords to Cover Real Estate Expenses and Contract Fees for Long-Term Rentals

In recent times, the Spanish real estate market has witnessed a significant change that directly impacts long-term rental contracts. A recent amendment to the National Housing Law has shifted the responsibility for certain expenses from tenants to landlords. This adjustment has far-reaching implications for both landlords and tenants alike.

The Change in the Law:

The crucial change in the National Housing Law, which has garnered attention across Spain, reads as follows: "The real estate expenses and those for forming the [Rental] contract will be the responsibility of the Landlord." This modification is aimed at bringing transparency and fairness to the rental market by ensuring that certain expenses associated with renting a property are now borne by the landlord.

Implications for Long-Term Rentals:

This legal adjustment has a direct impact on long-term rental contracts in Spain. It essentially outlaws the practice of tenants being asked to pay a commission or fee when entering into such contracts. This is a significant shift, as these commissions or fees were previously common in many rental agreements.

Enforcement of the New Law:

To enforce this new law, property rental platforms and agents are taking proactive steps. On most platforms, properties that specify tenant payments for commissions or fees will now be labeled as "Not Shared." This means that such listings will not be allowed on platforms that adhere to this legal change.

What This Means for Property Agents:

Property agents and landlords who previously relied on tenant commissions or fees need to adapt swiftly to this legislative shift. To continue listing properties on rental platforms, agents should update their property listings to reflect the new regulations or temporarily set them to "Not Shared" until they have made the necessary adjustments with their clients (the landlords).

Conclusion of the Change in the Law:

The recent changes in the National Housing Law of Spain represent a significant transformation in the long-term rental landscape. With tenants no longer responsible for certain expenses and commissions, the law aims to create a more equitable rental market. Property agents and landlords should be aware of these changes, update their listings accordingly, and ensure compliance with the new legal requirements to continue offering properties for long-term rental in Spain.