A sequence of important changes is reshaping the residential rental landscape in Spain, driven by a new public housing law published as BOE 12/2023 on May 24. Government channels describe the update as strengthening the right to decent housing enshrined in the constitution and as a move to help groups facing the greatest barriers to housing access through measures like rental price controls and the expansion of public housing programs. [Citation: Government of Spain, BOE 12/2023]
Rental price adjustments
When people search for rentals, price trends are always a focus. The new statute introduces several changes here as well. The core provision is that annual rent increases are limited to the rate of inflation. In practical terms, leases reviewed after this year are capped at a maximum 2 percent rise. Leases that expired before June 30 are extended by six months upon tenant request, unless the owner requires the property for personal use by themselves or a close family member. [Citation: Ministry of Transport and Housing, SGE]
To promote transparency, the rules governing rental agreements establish clear criteria. For instance, procedures will be standardized to share information on security deposits among government bodies, and the reference index used to gauge market rents will be improved. This framework gives tenants and landlords a clearer view of market conditions, enabling more informed decisions. [Citation: Housing Authority]
Autonomous communities will have the option to create their own indices to exercise local authority over rent matters, including regional rental assistance programs. [Citation: Regional Administrations]
What changes mean for tenants
Several provisions directly affect tenants. For example, when a rental is sold, the new buyer must uphold the existing tenancy agreement, regardless of whether the lease is registered in the Property Registry. [Citation: Housing Ministry]
Extra guarantees are now available only at contract signing, with a security deposit set at two months’ rent. Previously there was no limit, which could invite risky practices. [Citation: Consumer Protection Office]
Additionally, if a lease is with a legal entity, the landlord will cover the costs of property management and formalization, and initial signing expenses will be reduced. [Citation: Real Estate Council]
Landlords rights and options
The update is not just about tenants. Landlords also gain provisions to address contract breaches. If a tenant violates the agreement, the landlord may pursue an oral trial. Claims for amounts up to 6000 euros can be resolved through a streamlined oral procedure, reducing costs and speeding up decisions. [Citation: Ministry of Justice]
Improvements and maintenance are encouraged when both parties consent. Home upgrades can be paired with rent increases, provided works exceed basic mandatory conservation duties. [Citation: Housing Policy Board]
Tourist rental controls are also tightened. Communities with owner participation can limit or condition tourist rentals, and contributions to shared expenses can be raised by as much as 20 percent with the consent of three fifths of the owners. [Citation: Local Governance Council]
Key deadline adjustments
The new law adjusts several timelines that were part of prior regulations. The Ministry of Transport, Mobility and Urban Agenda provides the latest official information on its housing rental page. [Citation: Ministry of Transport]
- The mandatory extension period has lengthened from three years to five years, and if the landlord is a legal entity, the period can extend to seven years. During this time, owners may reclaim the property for themselves or family only if this was stated in the contract at signing. [Citation: Housing Commission]
- An implied extension can range from one to three years.
- If a tenant plans to move out, the notice period has shifted. Tenants now have two months to inform the landlord, who must give four months of notice in return. [Citation: Rental Regulation Office]
For more on the new housing law, readers can explore the frequently asked questions section or review information about regional rental assistance programs. [Citation: Housing Information Hub]