Rental price increase
One of the most common questions when searching for a rental is how prices rise over time. The new law introduces several updates, the core change being that annual rent increases are limited to the rate of CPI. As noted earlier, lease reviews are capped at a 2% increase through the end of the year. Leases that ended before June 30 were required to be extended for another six months upon tenant request, unless the owner needed the home for themselves, their family, or a spouse.
New rules are set to bring more transparency to the rental market. For example, information sharing about security deposits between administrations will be streamlined, and the state rental price reference index system will be enhanced. This makes it easier for both tenants and landlords to understand current market trends and make well‑informed decisions.
Regions can also establish their own indexes to use their authority. This includes rental assistance programs managed at the regional level.
What changes are in store for tenants?
There are several new features tenants should know about. For instance, when the property you rent is sold, the new owner must honor the existing rental agreement, regardless of whether it is registered in the Property Registry.
Guarantees are now limited to the time of signing the contract and must be equivalent to two months’ rent. Previously, there was no cap on guarantees, which could invite risky practices.
In addition, when a lease is signed with a legal entity, the landlord will cover the costs of property management and formalization, and initial signing costs will be reduced.
Landlords: new rights
The changes are not only for tenants. Landlords gain clarity too. If a tenant breaches the contract, the owner may pursue an oral trial. The Ministry notes that this option applies to claims up to 6,000 euros, offering a faster and cheaper route than a standard court procedure.
Improvements and upkeep are encouraged as well. If both parties agree, home improvements can be made in exchange for a rent increase. Any work must go beyond basic mandatory duties already required of the owner.
Regarding tourist rentals, local communities will have greater control. With the consent of three‑fifths of owners, communities can limit or condition tourist rental and may raise common expenses by up to 20%.
Significant changes to deadlines
The new law calls for adjustments to certain timelines, mirroring some provisions from prior regulations. The Ministry of Transport, Mobility and Urban Agenda provides the latest housing rental details on its site.
- The mandatory extension period has been extended from 3 years to 5 years, and if the landlord is a legal entity, this period may reach 7 years. During this time, owners can reclaim the home for themselves or their families only if this was stated in the contract at signing.
- There is now an implied extension of 1 to 3 years.
- If you are considering leaving your rental, you must give two months’ notice to the landlord, while they must provide four months’ notice to you.
To learn more about the new housing law, readers can explore the frequently asked questions section or review information about regional rental assistance programs. The guide below offers practical insights without linking to external sources.